Encyclopedia > Import substitution

  Article Content

Import substitution

Import substitution is a trade and economic policy based on the premise that a developing country should attempt to substitute products which it imports (mostly finished goods) with locally produced substitutes. This usually involves high tariff barriers to protect local industries and hence import substitution policies run contrary to the concept of free trade.

Import substitution policies were adopted by most nations in Latin America in the 1950s and 1960s. They were rejected by most nations in East Asia in the 1960s, and many economists attribute the superior performance of East Asia in the 1970s and 1980s to this difference in policies. As a result, import substitution policies generally became unpopular by the mid-1980s.

All Wikipedia text is available under the terms of the GNU Free Documentation License

  Search Encyclopedia

Search over one million articles, find something about almost anything!
  Featured Article
Lake Ronkonkoma, New York

... 12.7 km² (4.9 mi²) of it is land and none of the area is covered with water. Demographics As of the census of 2000, there are 19,701 people, 6,700 ...

This page was created in 22 ms