1. It should be clear that an export-promotion trade strategy is to be distinguished from policies adopted by a government to promote exports. All governments, and especially those in countries where import substitution has been associated with chronic ‘foreign exchange shortage’, have policies to ‘promote exports’. Among import-substitution countries, however, those policies generally consist of providing special incentives to import-substitution industries to induce them to sell some part of their output on the international market. The resulting export mix gives no clue as to the sorts of industries that would generate exports under an export-promotion strategy. See the studies by Carvalho and Haddad and by Thoumi on this point, in Anne O. Krueger, Hal B. Lary, Terry Monson and Narongchai Akrasance (1976), et al., Trade and Employment in Developing Countries 1: Individual Studies,(University of Chicago Press, National Bureau of Economic Research, 1981).