PSCI 4356- Final Exam Guide - Comprehensive Notes for the exam ( 34 pages long!)
4 Dec 2017
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Document Summary
If trade is optimal and economists are right, it should be a good tool for countries trying to grow. Developing countries look to trade policy to control their growth. There are a few different ways to approach trade policy. If they could industrialize their own economy, they could remove tariffs and compete competition. Key to economic development was creation of a strong manufacturing sector. Economic dualism: key to industrialization was domestic investment, modern dynamic sectors and traditional stagnant sectors, workers in modern sectors make high wages, capital earns lower returns in industrial sector, persistent urban unemployment. Infant industry argument clearly underpins the ideas of isi. Components of isi: high barriers to trade, government gives subsidies and incentives to industry, state ownership of much of the economy. Isi successes: worked in certain countries, but not everywhere, brazil achieved 9% gdp growth between 1965-1980. Imports went from 60% to 10% between 1949 to 1964.
