CH 6 - Development Without Trade Flashcards
Enclave agriculture
Export-oriented agriculture that has few linkages to the rest of the local economy.
Structuralism
It held that the shift in resources from agriculture to manufacturing associated with industrialization would occur only if the state adopted policies explicitly designed to bring it about
Complementary demand
A market failure structuralists believed would limit automatic industrialization
Pecuniary externality
A market failure that was believed to limit automatic industrialization that arises from the independence not of economic activities
Big push
The state would plan and coordinate a substantial large investment to solve the market failures that was believed to have inhibited rapid industrialization in developing societies.
Singer-Prebisch theory
Claimed that developing countries faced a secular decline in their terms of trade, participation in the GATT would hamper their industrialization
Terms of trade
The ratio of the price of a country’s exports to the price to its imports
ISI
An economic development strategy in which states attempted to industrialize by substituting domestically produced goods for manufactured items that had previously been imported.
Easy isi
First stage of isi that focused on developing domestic capacity to produce consumet nondurable manufactured goods
Export substitution strategy
A development strategy in which labor-intensive manufactured goods produced as a consequence of easy isi would take the place of primary commodities in exports
Secondary isi
the second stage of isi in which emphasis shifts to production of consumer durables, intermediate inputs such as steel and chemicals and capital goods
Backward linkages
Refers to instances when the creation of a domestic industry increases demand in domestic industries that supply inputs to the original industry
