Problem Set _6b - Econ 181: International Trade Spring 2009...

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Econ 181: International Trade Spring 2009 Problem Set #6b (Due Tuesday, May 5, 2009) 1. Article Analysis—Import-Substituting/Export-Oriented Industrialization. Read this article and answer the following questions. Stephen Kotkin, “In Africa, One Step Forward and Two Back”. The New York Times, July 08, 2007. The URL is: . a. The textbook argues that import substitution industrialization did not work well, including in Africa. However, export oriented industrialization might have had some success in East Asia. However, according to the article, Paul Collier seems to argue that export oriented industrialization or trade liberalization policies enacted by African countries would not help Africa develop. Why? Do you believe his argument? b. Mr. Collier seems to argue that rich countries need to lead trade liberalization in a way that gives preferential treatment to African countries—so that African countries can engage in a kind of "export oriented industrialization" initiated by rich countries and driven by demand in rich countries. Please
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Problem Set _6b - Econ 181: International Trade Spring 2009...

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