An important implication of the PSH, which is at the core of sructuralist theory, is that a secular decline in the terms of trade implies a progressively unfavorable international trade scenario for developing countries. The importsubstitution strategy, undertaken during the 1950-1975 period in most Lain American countries, proposed a ransitory withdrawal of the countries from world markets in order to develop a domestic industrial base, with which the economy would re-enter world markets in a stronger position (see Lustig, 1988).
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.