Unproductive import substitution

Name(s): 
Import substitution as a barrier to subsequent economic growth
Development of products substituting for exports from other countries
Nature 
At the early stage of industrialization, import substitution takes the form of reducing imports of non-durable consumer goods, as well as their inputs, so as to permit indigenous manufacturing to develop and to save foreign currency needed for the imports of producer goods. At the later stage, import substitution involves replacement of producer goods and intermediate inputs, as well as consumer durables, so as to increase the reliance for economic growth on the supply of domestically produced goods. Excessive and prolonged protection of import substitution industries has often adverse consequences on efficiency and competitiveness and impedes export promotion.
Broader 
Domestic market restrictions
Reduces 
Dependence on imported technology
Aggravates 
Inadequate production capacity [in 7 loops]
Distortion in international trade
Acquisition of inappropriate equipment [in 2 loops]
Vulnerability of national economies to vagaries of external markets for goods and services [in 1 loop]
Aggravated by 
Irresponsible nationalism
Decline in import capacity
Restrictive trade practices
Consumer boycott of foreign goods
Trade barriers against developing countries
Vulnerability of economies to import penetration
Strategy(ies) 
Substituting capital for resources
Type 
(E) Emanations of other problems