import substitution


Also found in: Financial.

import substitution

the process whereby countries begin to produce certain goods for themselves instead of importing them. Given the heavy reliance of many THIRD WORLD countries on importing manufactured goods, one strategy they have tried to adopt is that of import-substitution industrialization. This has been successful where the goods can be produced with simple machinery and low capital costs. However, many countries have run into problems when such manufacturing involves high capital costs, complex machinery which they do not produce themselves, or labour and technical skills which they do not possess. In such cases, instead of diversifying their economies, and becoming less reliant on manufactured exports, they have often witnessed a new set of problems with dependency on foreign capital and technical knowledge. Further, since the 1970s, the experience of starting up industries and the provision of the necessary infrastructure has led to the creation of INTERNATIONAL DEBT. see also DEPENDENCY THEORY.
References in periodicals archive ?
The collective of the enterprise, having realized this project, certainly made a significant contribution to the implementation of the course on import substitution and import-transit ,
This is one of the components of the import substitution policy pursued by the Azerbaijani state, he said.
The Pakistani businessman's orientation has to be changed from import substitution to export.
The projects will bring in much needed FDI as well as lead to import substitution for solar energy products (solar power systems, solar water pumps, etc.
Agha, who is also Executive Director of Agha Steel Industries, said the first phase of Agha Steel's project was expected to come on line in 2018, which would directly save the government at least $180 million per annum in import substitution and generate additional taxes for the government.
This strategy of import substitution, however, may hit a snag as this is currently a point of contention in the recently passed tax-reform law.
5 billion to the national exchequer through import substitution of expensive furnace oil.
Skepticism toward import substitution as economic policy was well-founded by the 1970s.
Has the import substitution policy affected the choice of the end consumer?
Fourth, because of the above, the country also has a weak agri-food manufacturing sector affecting exports and import substitution.
He said Pakistan normally adopted import substitution approach, but private sector could put it on export-led growth.
Al-Dekheiri praised the significant role played by the oil portfolio which enabled a large part to return to the industry, stressing the need to the producers to get access to the global market, referring to the economic actions helped the agricultural sector by opening domains for the export and import substitution.