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Import Substitution Industrialization [ISI]: An approach to Global Economic Sustainability

Author

Listed:
  • Jackson, Emerson Abraham
  • Jabbie, Mohamed
Abstract
Globalisation has over the years brought about openness, thus creating an inextricable link among countries through various channels, including trade and investment. Consequently, there has been a substantial expansion in trade in goods and services and the flow of foreign direct investment between developed and developing countries. Even though, both have benefitted from this global openness, the balance of benefits is mainly tilted to developed countries, reinforced by the fact that developing countries have been importing more and exporting less to these countries – a reflection of the under-developed state of their industrial sector, which is evident in their export of mainly unrefined or primary products, with little or no value addition taking place. This gives attestation to the presence of an insignificant import substitution-oriented manufacturing activity in such countries, which have rendered them heavily reliant on imports for their survival – by extension making them highly susceptible to external risks and shocks. This brought about the inception of ISI, which originated from as early as in the 1930s through into the 1960s in Latin America and some parts of Asia and Africa – a notion that was meant to incorporate three stages, namely ‘domestic production of previously imported non-durable consumer goods, extension of production to a wide-range of consumer durables and complex manufactured items and finally, exporting of manufactured goods, with the vision of diversifying to multiple range of items’ (Bussell,, n/d).

Suggested Citation

  • Jackson, Emerson Abraham & Jabbie, Mohamed, 2020. "Import Substitution Industrialization [ISI]: An approach to Global Economic Sustainability," MPRA Paper 102316, University Library of Munich, Germany, revised 03 Jul 2020.
    • Handle: RePEc:pra:mprapa:102316
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    File URL: https://mpra.ub.uni-muenchen.de/102316/1/MPRA_paper_102316.pdf
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    References listed on IDEAS

    as
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    2. Ms. Stefania Fabrizio & Mr. Rodrigo Garcia-Verdu & Ms. Catherine A Pattillo & Mr. Adrian Peralta & Mr. Andrea F Presbitero & Baoping Shang & Ms. Genevieve Verdier & Mrs. Marie T Dal Corso & Kazuaki Wa, 2015. "From Ambition to Execution: Policies in Support of Sustainable Development Goals," IMF Staff Discussion Notes 2015/018, International Monetary Fund.
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    6. Jackson, Emerson Abraham, 2019. "Systemic health care failure as a symptom of Market Failure in Sierra Leone," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue Forthcomi.
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    10. Jackson Emerson Abraham, 2017. "Challenges and Optimism for Sustainable Research Capacity in Sierra Leone," Management of Sustainable Development, Sciendo, vol. 9(1), pages 43-46, June.
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    13. Jackson, Emerson Abraham, 2016. "Phronesis and Resource Curse Hypothesis in Post-Independent Sierra Leone," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 3, pages 1-11.
    14. Akyuz, Yilmaz & Gore, Charles, 2001. "African Economic Development in a Comparative Perspective," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 25(3), pages 265-288, May.
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    16. Jackson, Emerson Abraham, 2019. "Global Perspectives on Gender Sensitivity and Economic Benefits," MPRA Paper 101788, University Library of Munich, Germany, revised 27 May 2020.
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    Cited by:

    1. Dimitrios Karkanis & Myrsini Fotopoulou, 2023. "Import Substitution or Just “Catching the Wave”? Evidence from the Greek Manufacturing Exports," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 3-15.

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    More about this item

    Keywords

    Import Substitution Industrialization (ISI); Economic Sustainability; Globalization; Sustainable Development Goals (SDGs);
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy

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