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The Consensus Today Is That Import-Substitution Protectionist Industrial Policy Has

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Essay

The consensus today is that import-substitution protectionist industrial policy has not served the developing countries' growth ambitions well. This fact proves that policies relying on export-driven growth are the "winning ticket" for these countries.


Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, which can be a bank loan, bond, mortgage, or other forms of debt financing.

Discounted Bond

A bond sold for less than its face value due to prevailing interest rates being higher than the bond's coupon rate.

Amortized

The process of gradually writing off the initial cost of an asset over a period of time or spreading out a loan payment.

Discount on Bonds Payable

The difference between the bonds' par (or face) value and their lower selling price, representing additional interest expense to the issuer over the term of the bonds.

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