Problem

Unproductive import substitution

Other Names:
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 Problems:
Domestic market restrictions
Problem Type:
E: Emanations of other problems
Related UN Sustainable Development Goals:
GOAL 1: No PovertyGOAL 2: Zero HungerGOAL 3: Good Health and Well-beingGOAL 4: Quality EducationGOAL 5: Gender EqualityGOAL 6: Clean Water and SanitationGOAL 7: Affordable and Clean EnergyGOAL 8: Decent Work and Economic GrowthGOAL 9: Industry, Innovation and InfrastructureGOAL 10: Reduced InequalityGOAL 11: Sustainable Cities and CommunitiesGOAL 12: Responsible Consumption and ProductionGOAL 13: Climate ActionGOAL 14: Life Below WaterGOAL 15: Life on LandGOAL 16: Peace and Justice Strong InstitutionsGOAL 17: Partnerships to achieve the Goal
Date of last update
05.02.1997 – 00:00 CET