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Submitted by Joe on
"In the transition process, it may be desirable to adopt a dual-track approach, providing some transitory protection to those non-viable firms to maintain stability, but liberalizing entry to sectors in which the country has comparative advantage." Yes, but what about non-viable firms that may become viable in the future - the idea of dynamic comparative advantage and the work of Ha Joon Chang suggesting that early protection of firms such as Toyota and Samsung allowed them to become industrial powerhouses further on in their development?