TIANJIN, China — As previously mentioned, quite a number of developing countries in our region seem to have skipped, overlooked, or at least "simplified" the development of so-called import substitution industries during their economic development process. Instead, they leaped directly into an export-oriented industrial model driven by an overly ambitious pursuit of higher income and loftier developmental status.
In other words, before our own industrialization took off, the vast majority of industrial products in the region — ranging from heavy machinery to daily necessities — used to rely heavily on imports from developed countries with mature industrial capabilities. According to modern developmental economics theory, the first step for developing countries keen to undertake industrialization should be to establish industries capable of replacing these imported goods, thereby meeting local demand to the greatest extent possible.
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