Advantages/merits of Inward-looking industrial development strategy or import substitution industrial strategy
- Reduces its foreign dependency through the local production of industrialized products and leads to self-sustenance of economy.
- It yield steady flow of income since prices of industrial products tend to be stable
- Improves skills and marginal productivity
- It provides market for agricultural products
- Reduces balance of payment position since it reduces proportion of imports
- Improves terms of trade because it promotes exportation
- It encourages development of infrastructure such as roads, schools, hospitals, etc.
- Provide government revenues through taxation
- Industries in rural areas reduce rural-urban migration
- Promotes efficient utilization of local resources
- Creates employment
- Promotes customers choice through a variety of products
- control import inflation since the volume of imports is reduced
CATEGORIES Economics
TAGS Dr. Bbosa Science
