Import substitution strategy enjoyed its heyday in the 1970s but was largely discredited and replaced by free market policies in the 1980s. It has been acknowledged recently, however, that some of the most successful growth economies in the Pacific Rim combined protectionist ISI policies with export-oriented policies. A systematic rethinking of the relationship between import-substituting and export-oriented industrialization strategies is provided, firstly, by making direct price comparisons to estimate the effective rate of protection (ERP); secondly, through an examination of the dynamic...