Economic Policy

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By Bela Balassa (auth.)

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46. E. Grinols, and J. N. Bhagwati, 'Foreign Capital Savings and Dependence,' Review of Economics and Statistics, LVIII (1976) pp. 416-24. 47. Bhagwati, p. 211. Bhagwati's definition of an export-promoting strategy (p. 207) is practically equivalent to the above definition of outward orientation. The Importance of Trade for Developing Countries 31 48. R. Banerji, and J. Riedel, 'Industrial Employment Expansion under Alternative Trade Strategies: Case of India and Taiwan, 1950-1970,' Journal of Development Economics, VII (1980) pp.

Cox, Trade, Industrial Policy, and Canadian Manufacturing (Toronto, Economic Council, 1983). M. Nishimizu, and S. Robinson, 'Trade Policies and Productivity Change in Semi-Industrialized Countries,' Journal of Development Economics, XVI (1984), Table 5. A. 0. Krueger, and B. Tuncer, 'An Empirical Test of the Infant Industry Argument,' American Economic Review, LXXII (1982) pp. 1142-52. I. J. Ahluwalia, Industrial Growth in India (Delhi: Oxford University Press, 1985). 36. H. B. Chenery, 'Structural Chance,' in H.

8 percent in 1984. 9 percent. Smaller changes occurred in the other country groups. These developments are closely linked to the policies applied by the various countries. The Far Eastern NICs began a policy of outward orientation10 in the early 1960s and continued with this policy afterwards. The South Asian NICs, however, persisted with highly protectionist inwardoriented policies. In the North Africa-Middle East area, the unfavorable results were dominated by Egypt that failed to productively utilize the bonanza provided by increased oil earnings, toll receipts from the Suez Canal, and workers' remittances from the Middle East.

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