Import-Substituting Industrialization Promoting Manufacturing Through Protection Import-substituting industrialization The strategy of encouraging domestic industry by limiting imports of manufactured goods Many less-developed countries have pursue d this strategy Has import-substituting industrialization promoted economic development? Many economists are now harshly critical of the results of import substitution, arguing that it has fostered high cost, inefficient production Copyright C 2003 Pearson Education, Inc Slide 10-9Copyright © 2003 Pearson Education, Inc. Slide 10-9 ▪ Promoting Manufacturing Through Protection • Import-substituting industrialization – The strategy of encouraging domestic industry by limiting imports of manufactured goods – Many less-developed countries have pursued this strategy. • Has import-substituting industrialization promoted economic development? – Many economists are now harshly critical of the results of import substitution, arguing that it has fostered high￾cost, inefficient production. Import-Substituting Industrialization