Export-oriented industrialization

Definition

Export-oriented industrialization is a trade and economic policy aiming to speed up the industrialization process of a country by exporting goods for which the nation has a comparative advantage.

Related terms

Comparative Advantage: The ability of an individual or group to carry out a particular economic activity more efficiently than another activity.

Trade Liberalization: The removal or reduction of restrictions or barriers on the free exchange of goods between nations.

Import Substitution Industrialization (ISI): An economic policy that advocates replacing foreign imports with domestic production. It contrasts with export-oriented industrialization as it focuses inward rather than outward.