Jayanthakumaran, K., Industrialisation: Import Substitution to Export Promotion, Department of Economics, University of Wollongong, 2000.
Import-substitution policy creates biases in the incentive structure and lowers the growth of potential exports in the long run. Trade reforms in this respect are likely to reduce the gap between domestic and border prices. The expectation is to bring better industrial performance on the lines of comparative advantages. This paper examines the import-substitution policy and the effect and impact of trade liberalisation.