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(1)Comparative Advantage and Development Strategy

Lin Yifu Cai Fang Li Zhou  
With regard to the choice of strategies for economic development, in addition to a strategy that gives priority to the development of heavy industries with an eye to catching up with and surpassing the advanced nations, and an import substitution strategy, there is a more successful approach to economic development, that is, the comparative advantage strategy. This approach is the reason for the economic successes of Japan and the “four Asian small dragons.” This strategy gives full play to comparative resource advantages at each stage of economic development, thus sustaining economic growth and upgrading the resource structure. In this paper, the authors point out that in order to implement a comparative advantage strategy, market mechanism must be given full rein, and the government must fulfill its economic functions of safeguarding the competitiveness and orderliness of the market, and, in particular, formulating correct industrial policies and ensuring their implementation. A comparative advantage strategy does not necessarily lead to economic crisis, on the contrary, it will help prevent and guard against economic crisis.
【CateGory Index】: F131
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