Abstract:industrialization in sub-saharan africa and import substitution policy ana pauLa F. MenDes MáriO a. BerteLLa ruDOLpH F. a. p. teixeira* This article aims to contribute to the understanding of the process of import substitution in Sub-Saharan Africa. The process of industrialization in Sub-Saharan Africa occurred in two phases: a first step, even very early during the colonial regime began around the 1920s and ended in the late forties; a second phase of industrialization began in the late fifties and gained mo… Show more
“…Import Substitution Industrialization (ISI) is a development theory of trade and economic policy which advocates for replacement of foreign importation with domestic production (Baer, 1972;Mendes et al 2014). This theory which is often linked with the dependency theory proposes that countries, especially developing countries should attempt to reduce its foreign dependency through the local production of imported products.…”
The study examined the relationship between maize importation, local prices and local production. Secondary data from 1970 to 2016 were employed. Unit root, co-integration and Ordinary Least Square (OLS) assumption tests were checked. Least Square estimation model, Pearson Coefficient and Generalized Least Model (GLM) were employed. The results show that strong linear relationship (-0.466) exist between local maize production and maize importation, though in opposite direction. The results from GLM shows that quantities of maize imported (-0.0324), sorghum production (-0.967) and population growth (-0.779) are statistically significant but negatively influences local maize production. Local price of maize (0.471) on the other hand is positive and significantly influences local maize production. There should be effective government policy to reduce maize importation.
“…Import Substitution Industrialization (ISI) is a development theory of trade and economic policy which advocates for replacement of foreign importation with domestic production (Baer, 1972;Mendes et al 2014). This theory which is often linked with the dependency theory proposes that countries, especially developing countries should attempt to reduce its foreign dependency through the local production of imported products.…”
The study examined the relationship between maize importation, local prices and local production. Secondary data from 1970 to 2016 were employed. Unit root, co-integration and Ordinary Least Square (OLS) assumption tests were checked. Least Square estimation model, Pearson Coefficient and Generalized Least Model (GLM) were employed. The results show that strong linear relationship (-0.466) exist between local maize production and maize importation, though in opposite direction. The results from GLM shows that quantities of maize imported (-0.0324), sorghum production (-0.967) and population growth (-0.779) are statistically significant but negatively influences local maize production. Local price of maize (0.471) on the other hand is positive and significantly influences local maize production. There should be effective government policy to reduce maize importation.
“…Proponents, on the other hand, point to the possibilities of agriculture (à la Lewis) as a spur to the pro‐poor growth sought by the late Millennium Development Goals (Andersson Djurfeldt, : 218; Bezemer and Headey, ; Hazell et al., : 1351). Rather than citing current or past low productivity, these authors tend instead to focus on productivity potential and the historically inadequate investment and policy support that has long created a bias against subsistence agriculture in SSA (Andersson Djurfeldt, : 5; Diao et al., : 1376; Mendes et al., : 131–32; Rao, : 1280).…”
Section: The Role Of Agriculture In Developmentmentioning
confidence: 99%
“…Other reports/papers used to estimate or verify appropriate industrialization categories include Mendes et al (2014); Saha (1991); UN (1967); and IBRD (various dates) annual reports for the early independency era (ca 1961-80).…”
This article seeks to refocus some of the attention devoted in the past several decades to the issue of food security in sub‐Saharan Africa to the broader context of food dependency. Using panel data for 44 countries over a period of 51 years (1961–2011), the article tests several hypotheses drawn from Lewis's classical model of development characterized by ‘unlimited supplies of labour’. The model requires either rising agricultural productivity (the closed model) or imports of global market foodstuffs (the open model) to ensure the low food prices and wages required for capital accumulation. Empirical results reject a positive association between food dependency, as represented by five decades of increasing per capita grain imports, and any measurable level of economic modernization with sufficient forward momentum to spur or justify such dependency. Results suggest instead a significant correlation between increasing food dependency and separate panel time periods associated with differing trade and policy regimes. More importantly, empirical results call for a re‐evaluation of Lewis's original development model, focusing on the pivotal role of a supported food subsistence sector in creating economic possibilities for development.
“…Therefore, governments felt the need to mitigate this issue by playing a central role in the economic planning and well-being of states by trying to secure equitable distribution of wealth. This came in the form of African socialism, which SSA states began implementing around the 1960s (Rostow, 1956;Richardson, 1990;Hill, 2011;Mendes et al, 2014;Linder, 1961;Knox et al, 2003;Peng, 2009;Todaro and Smith, 2009;Davis, 1994;Meyer, 2004;Ayittey, 2012;Nyerere, 1962).…”
Section: African Socialism and Import Substitution Industrialization mentioning
This study examines the empirical links between market-based aid and economic reform in sub-Sahara Africa. My research question: Is market-based aid necessary for economic reform across sub-Sahara Africa? To answer that question, I applied both quantitative and qualitative approaches. Specifically, regression analyses were conducted to determine whether or not causality could be established between my dependent and independent variables. 22 sub-Saharan states were used. In addition, two case studies (Ghana and Senegal) were conducted to help explain some of the cultural nuances that may be missing from the statistical analysis. As a result of the Washington Consensus, International Financial Institutions (IFIs) and advanced economies have advocated for economic reforms-namely macro-level neoliberal structural adjustments-to help facilitate sustainable economic growth and development across emerging economies. This approach has been critiqued in the past since it uses a 'one-size-fits-all' approach and assumes that since similar reform efforts were successful in the west, then they should work in the sub-Sahara region absent of accounting for internal nuances such as cultural and traditional values, customs, structures and conditions. I argue that more market-based aid could be the best way forward, especially if economic reform efforts are tailored toward four key conduits that are essential for driving subsequent economic growth and development: government capacity, economic freedom, private sector investments, and domestic savings. I hypothesized the aforementioned are positively linked with market-based aid.
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