Foreign Trade Policies, Domestic Competition and the Benefits of Imported and In-house Technologies in the Newly Industrialising Countries

  • Homi Katrak


The governments of a number of newly industrialising countries have implemented various policies to achieve ‘technological self-reliance’ (TSR). The precise interpretation of this objective1 has differed somewhat from one country to another but, as recent studies by Enos (1991) and Forsyth (1989) and also earlier work by UNCTAD (1981) and UNIDO (1981) suggest, TSR policies encourage the development of indigenous technological capabilities and assign only a limited role to imported technologies. The policy measures actually used to promote TSR have included government support for further education in science, engineering and technology, funding of scientific and industrial research institutes, incentives to enterprises to develop in-house technological know-how and restrictions on the imports of technology and on competing import products.


Trade Liberalisation Consumer Surplus High Quality Product Trade Restriction Operating Profit 
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.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Adikibi, O.T. (1988), ‘The Multinational Corporation and Monopoly of Patents in Nigeria’, World Development.Google Scholar
  2. Bhagwati, J.N. (1994), ‘Free-trade: Old and New Challenges’, Economic Journal.Google Scholar
  3. Braga, L. and Willmore, L. (1991), ‘Technological Imports and Technological Effort: An Analysis of Their Determinants in Brazilian Firms’, Journal of Industrial Economics.Google Scholar
  4. Caves, R.E. et al. (1983), ‘The Imperfect Market for Technology Licences’, Oxford Bulletin of Economics and Statistics.Google Scholar
  5. Chudnovsky, D. (1981), ‘Regulating Technology Imports in Some Developing Countries’, Trade and DevelopmentGoogle Scholar
  6. Cohen, W.M. and Levinthal, D.A. (1989), ‘Innovation and Learning: The Two Faces of R&D’, Economic JournalGoogle Scholar
  7. Contractor, F.J. (1981), International Technology Licensing (Lexington, MA: D.C. Heath and Company).Google Scholar
  8. Devarajan, S. and Rodrik, D. (1991) ‘Pro-competitive Effects of Trade Reform: Results from a CGE Model of Cameroon’, European Economic Review.Google Scholar
  9. Enos, J.L. (1991), The Creation of Technological Capability in Developing Countries (London: Frances Pinter).Google Scholar
  10. Forsyth, D.J.C. (1989), Appropriate National Technology Policies: A Manual for their Assessment (Geneva: ILO).Google Scholar
  11. Gunasekara, H. and Tyers, R. (1991), ‘Imperfect Competition and Returns to Scale in a Newly Industrialising Economy: A General Equilibrium Analysis of Korean Trade Policy’, Journal of Development Economics.Google Scholar
  12. Helleiner, G.K. (1990), ‘Trade Strategy in Medium-term Adjustment’, World Development.Google Scholar
  13. Katrak, H. (1988), ‘Payments for Imported Technologies, Market-rivalry and Adaptive Activity in the Newly Industrialising Countries’, Journal of Development Studies.Google Scholar
  14. Katrak, H. (1989), ‘Imported Technologies and R&D in a Newly Industrialising Country: the Experience of Indian Enterprises’, Journal of Development Economics.Google Scholar
  15. Katrak, H. (1994), ‘Imports of Technology, Enterprise Size and R&D Based Production in a Newly Industrialising Country: The Evidence from Indian Enterprises’, World Development.Google Scholar
  16. Katz, J.M., ed. (1987), Technology Generation in Latin American Manufacturing Industries (London: Macmillan).Google Scholar
  17. Lall, S. (1987), Learning to Industrialise: The Acquisition of Technological Capability by India (London: Macmillan).CrossRefGoogle Scholar
  18. Pack, H. (1988), ‘Industrialisation and Trade’, in H.B. Chenery and T.N. Srinivasan, eds, Handbook of Development Economics (Amsterdam: North-Holland).Google Scholar
  19. Patibandla, M. (1992), ‘Industrial Decontrol and Competition Policy: A Few Conceptual Issues’, Economic and Political Weekly.Google Scholar
  20. Rodrik, D. (1991), ‘Closing the Productivity Gap: Does Trade Liberalisation Really Help?’, in G.K. Helleiner, ed., Trade Policy, Industrialisation and Development (Oxford: Oxford University Press).Google Scholar
  21. UNCTAD (1981), Planning the Technological Transformation of Developing Countries (New York: United Nations).Google Scholar
  22. UNIDO (1981), Technological Self-Reliance of the Developing Countries: Towards Operational Strategies (Vienna: United Nations).Google Scholar

Copyright information

© V. N. Balasubramanyam and D. Greenaway 1996

Authors and Affiliations

  • Homi Katrak

There are no affiliations available

Personalised recommendations