Without generating high growth rates of national income, a
country cannot make a sustained attack on poverty, unemployment, and
other economic problems. Developing countries have, generally, pursued
the goal of rapid economic growth with the help of industrialisation. In
this regard, an optimal structure of the industries enables a country to
experience 'sustainable' economic growth. Countries adopt various trade
strategies to allocate resources to their optimal use in order to
exploit their industrial potential. Developing countries, including
Pakistan, have adopted the import -substituting (IS) trade strategy to
foster industrialisation.1 But the disillusionment with the IS strategy
and its results is increasing over time. Contributing to this trend is
the remarkable increases in growth rates by many countries that have
shifted to an export-promoting (EP) trade strategy. At the same time
came a fundamental question of the adequacy of economic growth itself.
That is to what extent the economic growth under the IS strategy has
given rise to the unfavourable results with respect to employment,
capital accumulation, and income distribution. Analysis of these effects
presents a tall order and we do not go that far in their evaluation. In
this study we restrict ourselves to the question how various trade
regimes are related with savings. The nature of this relation is
somewhat complex.
The Effect of Globalization On Foreign Trade and Investment in Eurasian Countries
