Liberalization and Industrial Transformation: Lessons from the Sri Lankan Experience
Liberalization and Industrial Transformation: Lessons from the Sri Lankan Experience
复制标题
自由化和产业转型:斯里兰卡的经验教训
DOI:
10.1086/452610
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发表时间:
2000
影响因子:
2
通讯作者:
S. Rajapatirana
中科院分区:
文献类型:
--
作者:
P. Athukorala;S. Rajapatirana
Despite a growing consensus in the economic profession that interventionist import-substitution industrialization policies in developing countries have misfired, there is no agreement on the appropriate way for latecomers to industrialization to move forward. The mainstream policy advocacy in the neoclassical tradition of development economics sees the removal of government in direct production activities and the shift toward market forces as the appropriate strategy for achieving rapid, robust, and equitable growth. 1 The economists of the structuralist persuasion (the revisionists) argue, however, that having activist and selective public policies tailored to the circumstances of each individual country, while eschewing indiscriminate state intervention, is how the latecomers should industrialize. 2 Another way of stating this position is that trade policy must be subservient to the avowed aim of rapid industrialization, drawing a contrast between allocation of resources based on neutral trade policies and those based on selective interventions. This article aims to contribute to this debate using a case study of Sri Lanka. During the first decade after independence in 1948, Sri Lanka continued with a liberal trade regime until growing balance-of-payments problems induced a policy shift toward protectionist import-substitution policies starting in the early 1960s. By the mid-1970s, the Sri Lankan economy had become one of the most inward-oriented and regulated economies outside of the group of centrally planned economies. In 1977, Sri Lanka responded to the dismal economic outcome of the closedeconomy era by embarking on an extensive economic liberalization process, becoming the first country in the South Asian region to do so. De-© 2000 by The University of Chicago. All rights reserved.