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Choice of Trade Strategies:General Case and "Big Country" Case

DING Xiang-sheng ZHANG Yan-gui  
The dominating dual economic structure in developing countries determines that these countries must choose the approach of industrialization to develop their economy. The alternative strategies of industrialization include import substitution and export promotion. The performance comparison between these two strategies has been the focus of academic discussions. This paper discusses the performance of different trade strategies by constructing a simple three-sector model,and analyzes the applicability of the model under the condition of "Big Country".
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