Abstract
Jayanthakumaran investigates the inward-oriented industrialization strategy and summarizes barriers to trade, control of foreign direct investment, and an overvalued currency. This chapter also explores theoretical and empirical evidence for this strategy and analyses its advantages and disadvantages. As firms enter limited, small domestic markets where they are unlikely to reap the benefits of economies-of-scale, this chapter emphasizes existing findings that the inward-oriented industrialization strategy is a necessary condition for the initial stage of development but not sufficient in the long run. This chapter concludes that outward-orientation is essential at some stage in order to reap the economies-of-scale.
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Jayanthakumaran, K. (2016). Inward Orientation as a Development Strategy. In: Industrialization and Challenges in Asia. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-10-0824-5_1
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DOI: https://doi.org/10.1007/978-981-10-0824-5_1
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