Openness and Industrialization in Developing Countries

Document Type

Article

Publication Date

3-1-1999

Department

Management and International Business

Abstract

This paper investigates the relationship between trade policy orientation and industrialization. Growth rates of manufacturing value added, rather than output growth rates, are related to index of real exchange rate distortion to establish the superiority of outward-oriented strategies in fostering industrial development. Results suggest developing countries will industrialize faster by adopting outward-oriented trade strategies than by using import-substitution industrialization policies.

Publication Title

Applied Economics Letters

Volume

6

Issue

3

First Page

161

Last Page

164

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