Import Substitution

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earned.
There is no need for high protection at the first stage of import
substitution in the replacement of the imports of non-durable consumer goods
(clothing, shoes, household goods, textile fabrics, leather, wood and other
types of inputs) since these commodities exist in the developing countries that
are at the initial frontier of industrialization.
The commodities I mentioned are intensive in unskilled labor, the scale
of output is relatively low, and costs do not rise substantially at lower output
levels. The production of the commodities do not involve the use of
sophisticated technology or highly educated workers and suppliers for parts,
components, materials and accessories are not necessary for highly efficient
operations.
An argument for infant industry protection and promotion is made for the
"easy" stage, that being the first stage of import substitution because even
though the domestic production of the commodities generates external economies
in the ...

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