First, the definition of two economic strategies
Import substitution strategy
Import substitution strategy is also called "inward development strategy". It refers to the strategy of replacing imports with domestic products, or promoting domestic industrialization by restricting the import of manufactured goods. It is a strategy to reduce or completely eliminate the import of this commodity for the purpose of economic independence, and the domestic market is completely supplied by domestic producers. Because the implementation of this strategy must be accompanied by trade protection policies, it is not conducive to promoting the improvement of labor productivity and industrial technology progress in China, and it is also not conducive to the export of products. Too long is not conducive to the further development of the economy.
(B) Export-oriented strategy
Export-oriented strategy is also called export substitution strategy. It means that the state takes various measures to promote the development of export-oriented industrial sectors, replace the export of traditional primary products with non-traditional export products, expand foreign trade and diversify export products, thus promoting the development of industry and the whole economy. The export-oriented strategy focuses on the positive role of export in economic development, and through deep processing of primary products, it organizes product export to replace the original primary product export.
Second, the advantages and disadvantages of two economic strategies
(1) extroverted
1. Advantages of export-oriented strategy:
1) We can make full use of foreign resources and combine them with our own labor resources with absolute advantages to produce and export our own products with comparative advantages, thus alleviating a country's foreign exchange pressure.
2) Trade is conducive to learning foreign advanced technology and management experience, and exporting for new machines, equipment and funds needed for economic development, thus accelerating domestic economic growth and industrialization.
3) Increasing employment and improving income distribution can help local residents enjoy more economic benefits and improve their living standards through foreign trade and exchange of needed commodities.
4) It can save labor in international division of labor, give play to comparative advantages, promote the optimization and upgrading of China's industrial structure in the global adjustment of industrial structure, and obtain economies of scale generated by division of labor.
2. Problems in export-oriented strategy:
1) is vulnerable to fluctuations in the international market. Dependence on foreign capital is too high, and the lifeline of the national economy is easily manipulated by foreign capital.
2) There are limitations in promoting sustainable economic development through trade.
3) Abnormal development of domestic industrial structure, layout and trade. Some industries are prone to overcapacity.
(2) import substitution type
Advantages of import substitution strategy
1) is conducive to the rapid establishment of the national industrial system and the independent star of domestic industrial development policies, and prevents the lifeline of the national economy from being subject to foreign investment.
2) With the growth of domestic enterprises, it is helpful to improve the international competitiveness of domestic products, improve the structure and conditions of a country's foreign trade, improve the level of opening up of a country, and effectively prevent the deterioration of terms of trade.
3) Import substitution strategy will create necessary conditions for China to develop strategic industries and realize industrialization. It can not only train a large number of technical and management talents for our country in the process of continuous learning and reference, but also gradually promote the diversification and modernization of domestic industries, realize self-sufficiency of some products, and reduce foreign exchange expenditure while getting rid of excessive imports of similar products.
2. Problems existing in import substitution strategy
1) High trade protection makes the import substitution department easy to breed enterprising mentality and style, and the motivation of metal progress and innovation is weakened.
2) The risk of foreign debt increases, and import substitution tends to be anti-export, which is not conducive to the low ability of export departments to earn foreign exchange.
3) It blocks the opportunity for China to learn from foreign countries, which is not conducive to enterprises to participate in international competition.
Fourthly, the condition analysis of the two economic strategies.
1. Conditions of import substitution strategy
1) has a basic industrial technology foundation and talent pool.
2) Rich resource endowments enable import substitution departments to win a certain market share by competing for resource consumption rather than technology.
3) The domestic market is large, which makes the import substitution department sell a good price even if the product quality is poor.
4) Only suitable for the initial stage of industrialization.
2. Conditions of export-oriented strategy
1) An orderly and step-by-step reform and opening-up policy can give birth to a large number of institutional and technological innovations.
2) China has a stable and united political situation, and various political forces can work together in Qi Xin to understand and tolerate each other, so as to maintain the sustainability of the open policy and create a good political and legal environment for attracting investment.
3) The export-oriented strategy also needs to implement some protective measures, which will also distort the market price system and reduce the efficiency of resource allocation.
An analysis of the causes of two economic strategies: verb (abbreviation of verb)
1. Reasons for choosing import substitution strategy
1) The terms of international trade have deteriorated.
2) national rejuvenation or rejuvenation psychology.
1. Reasons for implementing export-oriented strategy
1) foreign exchange is in short supply, so choosing export orientation can save foreign exchange.
2) The land area is small, natural resources are scarce, capital and technology are scarce, and the domestic market is narrow, so it is difficult to effectively achieve the industrialization goal only by relying on the domestic market. In order to realize industrialization, these countries must open their doors and attract large-scale investment.
3) Domestic labor resources are relatively abundant, labor-intensive industries and low costs are attractive for attracting investment, and their products are also competitive for export. 、
A Comparison of the Policy Systems of Two Economic Strategies with Intransitive Verbs
1. Import substitution policy system
1) Trade protection policy is the basic policy to implement import substitution strategy, which mainly restricts or even completely bans the import of some foreign industrial products through tariff and non-tariff barriers.
2) In line with trade protection policies, some developing countries have implemented stricter foreign exchange management policies and overvalued exchange rates.
3) In order to strengthen the accumulation of domestic funds, developing countries give special preferential treatment to import substitution industries in terms of finance, taxation, loans and prices, so as to promote investment in such industries, and generally adopt different degrees of encouragement policies for foreign investment.
2. Policy system of export-oriented strategy
1) relax trade protection, vigorously encourage exports, and give preferential treatment to export enterprises such as tax reduction and exemption, low-interest loans and subsidies.
2) Relax foreign exchange control, set a reasonable exchange rate and promote export.
3) Depreciation of the local currency to reduce the foreign currency price of domestic export commodities and enhance the competitiveness of enterprises and products in the international market.
Seven. Other differences
From the above analysis, we see the difference between the two strategies, and here we discuss this difference in detail. We think the main differences between these two strategies are as follows:
1. The strategic emphasis is different: the door-to-door substitution strategy mainly focuses on improving the structure of imported goods and developing domestic substitution industries, while the export substitution strategy mainly focuses on improving the structure of export goods and developing export-oriented industries.
2. Different strategic guiding ideology: the guiding ideology of import substitution strategy is based on independence and self-reliance, and the state should create conditions to produce goods with large demand in its own market; The guiding ideology of export substitution strategy is mainly based on comparative cost theory, and vigorously increase the production and export of domestic superior industrial products.
3. Different strategic objectives: the goal of import substitution strategy is to establish an independent and complete industrial system based on the pillar industries in traditional industries, while the goal of export substitution strategy is to establish an industrial system that participates in international division of labor based on China's advantageous industries.
4. The choice of pillar industries is different: the import substitution strategy generally chooses the pillar industries in traditional industries, such as steel, chemistry, petroleum, automobiles, household appliances and other industries as the pillar industries of the national economy, while the export substitution strategy generally chooses industries that can make full use of their own human and material resources and have comparative cost advantages as the pillar industries of the national economy.
5. Different market orientations: under the import substitution strategy, the main purpose of production is to meet the needs of the domestic market, so the pillar industries not only do not earn foreign exchange, but also spend a lot of foreign exchange. Under the export substitution strategy, the production of pillar industries is mainly to occupy or expand the international market share, so the pillar industries are generally the main export-oriented industries or export-oriented industries.
Eight, the link between the two strategies
Import substitution strategy and export substitution strategy are the unity of opposites. On the one hand, these two strategies are mutually exclusive; On the other hand, there is a certain transformation sequence and stage between the two strategies, and there is also a complementary, interrelated and interpenetrating side. Generally speaking, most developing countries implement import substitution strategy first in the process of industrialization. When the import substitution strategy is implemented to a certain extent, the export substitution strategy will be implemented only when the domestic market is narrow or restricted by other conditions. In addition, in countries where export substitution strategies are often successful, import substitution strategies are mostly well implemented. Therefore, to some extent, mature import substitution strategy is the basis of export substitution strategy. From the actual situation, many developing countries, especially large developing countries, generally adopt a mixed strategy of combining the two, but there are primary and secondary points. According to the national conditions, some are based on import substitution strategy, supplemented by export substitution strategy, and some are based on export substitution strategy, supplemented by import substitution strategy.