The Rise and Fall of Import Substitution

  title={The Rise and Fall of Import Substitution},
  author={Douglas A. Irwin},
  journal={NBER Working Paper Series},
  • D. Irwin
  • Published 2020
  • Economics
  • NBER Working Paper Series
In the 1950s, many economists believed that import substitution—policies to restrict imports of manufactured goods—was the best trade strategy to promote industrialization and economic growth in developing countries. By the mid-1960s, however, there was widespread disenchantment with the results of such a policy, even among its proponents. This paper traces the rise and fall of import substitution as a development idea. Perhaps surprisingly, early advocates of import substitution were quite… Expand
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