Import Substitution in Automotive Industry: a Historical Review

Abstract

This paper analyzes import substitution policies, their evolution, and implementation in various countries, with a focus on the automotive industry. The research provides a historical overview of the concept of import substitution, tracing its origins, development and adaptation. We provide an overview of successful cases in China, South Korea, and India, as well as the historical and modern experiences of the USSR and Russia in the automotive sector. The paper concludes by outlining the risks associated with implementing import substitution policies. We emphasize the importance of transitioning from protectionist measures to an export-oriented model of import substitution to achieve sustainable economic growth.