Import-Substitution in Developing Economies
I am going to look at the development of the petrochemical industries in the developing nations of Taiwan, Saudi Arabia, and Mexico. Specifically, I am going to look at the impact of import-substitution in them. I intend to look at whether or not macroeconomic strategy of this type can actually create an increase in TFP.
Wan-Wen Chu’s, “Import Substitution and Export-Led Growth: A study of Taiwan’s Petrochemical Industry”, shows that the government played a leading role in bringing the petrochemical material sector into existence.
Norma Martinez Laguna’s, “Oil policies and privatization strategies in Mexico: implications for the petrochemical sector and its production spaces”, finds that trade liberalization after disbanding the government’s monopoly led to growth of the sector.
H. Bardesi’s, “Inward foreign direct investment, industrial development, and trade: the case of the Saudi petrochemical industry”, finds that Multi-national corporations were essential to the growth of Saudi’s petrochemical industry