Alternative Trade Strategies and Employment

Abstract

During the extensive debate and research undertaken in the 1960s and early 1970s on the relative merits and drawbacks of import-substitution and export-promotion development strategies, little attention was paid to the effects of the alternatives on the demand for labour and its composition. This omission was curious for two reasons. On one hand, there had been the investigations emanating from the Leontief paradox literature, which seemed to refute the basic Heckscher—Ohlin model’s predictions, at least in their apparent implications for industrial countries’ factor intensities of export and import-competing production. On the other hand, the results of most analyses of developing countries’ experiences with export-promotion and import-substitution development strategies seemed to indicate that growth performance was generally considerably more satisfactory under the former than under the latter. These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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