chapter  10
31 Pages

Strategy switching and industrial transformation

In the previous chapter, we saw that the initial impulse toward a higher level of development comes with the movement of labor from agriculture toward industrial production and that this typically is achieved via easy import substitution industrialization (ISI) as relatively simple, non-durable manufactured goods are produced for the domestic market. This structural shift in the production process and of labor usage toward import substitution is common to virtually all successful and to many unsuccessful development experiences.