The manufacturing sectors of less developed countries (LDCs) have traditionally been relatively protected. They have also been subject to heavy regulation, much of which is biased in favor of large enterprises. Accordingly, it is often argued that manufacturers in these countries perform poorly

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The current school of thought in the growth literature appears to favor international openness as the appropriate strategy for generating sustainable growth in developing countries. Relatedly, the import-substituting (IS) paradigm that appeared to dominate

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