The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Import Substitution and Export-Led Growth

  • John Eatwell
Reference work entry


In an economy in which expansion is limited by a balance of payments constraint, action must be taken either to boost exports or to limit imports. This truism takes on an added dimension when the trade strategy adopted is part of a general development strategy. In these circumstances the evaluation of any particular trade strategy must include not only the implications for the allocation of resources, but also the consequences for the rate of accumulation and of technological progress.

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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • John Eatwell
    • 1
  1. 1.