Industrialization In Malaysia: Import Substitution And Infant Industry Performance (routledge Studies In The Growth Economies Of Asia)

## INDUSTRIALISATION IN MALAYSIA Did the 'infant industries' of the 1960s ever grow up? Is the scepticism surrounding import-substitution (IS) strategies justified? Import-substitution strategy enjoyed its heyday in the 1970s but has been largely discredited and replaced by free-market policies in the 1980s. However, it has been recently acknowledged that some of the most successful growth economies in the Pacific Rim combined protectionist import-substituting industry (ISI) policies with export-orientated policies. A systematic rethinking of the relationship between import substituting and export-orientated industrialisation strategies is provided by this study using: l Direct price comparisons to estimate the effective rate of protection (ERP) l An examination of the dynamic performance of infant industries using total factor productivity growth (TFPG) and domestic resource cost (DRC). l A comparison of the experience with the case of South Korea. "Did the 'infant industries' of the 1960s ever grow up? Is the scepticism surrounding import-substitution (IS) strategies justified? Import-substitution strategy enjoyed its heyday in the 1970s but has been largely discredited and replaced by free-market policies in the 1980s. However, it has been recently acknowledged that some of the most successful growth economies in the Pacific Rim combined protectionist import-substituting industry (ISI) policies with export-orientated policies." "A systematic rethinking of the relationship between import substituting and export-orientated industrialisation strategies is provided by this study using direct price comparisons to estimate the effective rate of protection (ERP), an examination of the dynamic performance of infant industries using total factor productivity growth (TFPG) and domestic resource cost (DRC), and a comparison of the experience with the case of South Korea."--Résumé de l'éditeur Import substitution strategy enjoyed its heyday in the 1970s but was largely discredited and replaced by free market policies in the 1980s. It has been acknowledged recently, however, that some of the most successful growth economies in the Pacific Rim combined protectionist ISI policies with export-oriented policies. A systematic rethinking of the relationship between import-substituting and export-oriented industrialization strategies is provided, firstly, by making direct price comparisons to estimate the effective rate of protection (ERP); secondly, through an examination of the dynamic performance of infant industries using total factor productivity growth (TFPG) and domestic resource cost (DRC); and thirdly, through a comparison of the experience with the case of South Korea 1. Industrial Strategy : A Framework For Analysis -- 2. Malaysian Industrial Development : 1957-1990s -- 3. The Structure Of Tariff Incentives In Malaysia -- 4. The Infant Industry Argument : A Theoretical Analysis -- 5. Protection And Productivity Growth -- 6. Have The Infant Industries Grown Up? -- 7. Conclusions And Policy Recommendations. Rokiah Alavi. Includes Bibliographical References (p. 182-206) And Index. Some of the most successful growth economies in the Pacific Rim have combined protectionist Import Substitution Industrialisation policies with export-oriented policies. This study provides a systematic rethinking of relationships between strategies within the Malaysian context. This study sets out to provide a systematic rethinking of the relationship between import-substituting and export-oriented industrialization strategies