Evaluating the Structure of Protection in Less Developed Countries

Abstract

Trade policy involves the use of tariff and non-tariff interventions which seek to discriminate in favour of domestic firms and against foreign-based firms. As we saw in Chapter 4, at the strategy level the orientation of policy can be described as export-promoting or import-substituting, depending upon whether the net impact of policies is to engender an orientation to the ‘world’ or domestic market.