import substitution


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Import Substitution Development Strategy

A development strategy whereby a government restricts or forbids the import of industrial material and subsidizes local material. For example, a country may not allow the import of refined oil and instead encourage development of local oil refineries. The idea behind this strategy is to make a less developed country less dependent on international assistance and foreign direct investment until such time as it is can absorb investment more easily and also trade its own products. This development strategy was followed in Latin America and some other regions for most of the mid and late 20th century. It has its theoretical foundations in Keynesian economics, though some analysts have claimed that each nation industrializing after the United Kingdom has followed some form of import substitution.

import substitution

a strategy aimed at reducing IMPORTS in order to encourage the production of domestic substitutes. Import substitution is pursued in particular by DEVELOPING COUNTRIES as a means of promoting domestic INDUSTRIALIZATION and conserving scarce FOREIGN CURRENCY resources. By limiting or removing competing IMPORTS through the use of QUOTAS, TARIFFS, etc., the country aims to establish its own manufacturing industries which, initially, can be expanded to cater for the domestic market, and at a later stage develop an EXPORT trade. See INFANT INDUSTRY, ECONOMIC DEVELOPMENT.
References in periodicals archive ?
Imported material, in many cases, is essential to meet international standards/specification, especially for import substitution. Imported material is usually a small percentage of the final product but is necessary.
The document was created to implement the Memorandum of Cooperation in the field of import substitution, innovative development and implementation of digital economy projects, signed by the parties in February.
In a question Indian ban and imposing 200% custom duty of Pakistani goods, he said it's now time for our industry to realize to achieve self-reliance in cotton production and import substitution of dyes and chemicals, importing from India.
The import substitution strategy that the current government is trying to embark upon cannot work in the present circumstances.
Moody's report said that the fresh budget measures would support manufacturing sector, fostering exports and import substitution, help narrow current account deficit.
ISLAMABAD -- A five-year Trade Related Investment Policy Framework (TRIPF-2018-23) is being formulated to provide a comprehensive package of incentives to attract investment in export-oriented production and competitive import substitution.
Ehsan said the aims of reviving manufacturing are clear.Pakistan needs 2-3 million jobs annually and the country's exports should be of value-added products instead of commodities and we must take control and encourage import substitution. A country of over 200 million people has the scale to be competitive.
Strategic Planning of the Agribusiness Development in the Conditions of Import Substitution
But first, the Philippines needs to move back to the vital program of import substitution that seems to have been put way on the back burner in the past decade.
One of Jacobs' central ideas is "import substitution," a phrase that had fallen out of favor among economists of the '70s and '80s.
Has the import substitution policy affected the choice of the end consumer?
Following the introduction of sanctions from the U.$., European Union, Canada and a number of other countries the Russian government has declared the strategy of import substitution as the main driver for economy development for the next several years.