Import replacement

Import replacement is the replacement of an Adult by a corresponding domestic or internal market mined or manufactured goods.

The purpose of the import substitute is to avoid customs duties , transport costs and uncertainties in delivery. In addition, domestic jobs can be created and the industrialization of the economy promoted. This can lead to greater economic independence.

A popular example of a successful substitute for imports is South Korea's economic policy . From 1953 onwards, the targeted promotion of import replacement began in three phases :

Labor-intensive industries (e.g. textiles )
Labor and capital intensive industries (e.g. heavy industry, chemical ind.)
Capital and technology-intensive industries (e.g. car and electronics industry)

As early as 1972, the industry switched to export-oriented growth.