Topic > Case Study on Import Substitution Industrialization

The EOI regime in Kenya largely depends on this discipline. According to Martin (2011), EOI directly translates into the allocation of resources based on comparative advantage. A great example to understand how resource allocation in the current EOI regime in Kenya increases comparative advantage is the tea and coffee sectors and subsectors. Kenya produces these two products cheaply and, as such, allows for large exports. However, such production can only be achieved if these sectors are substantially strengthened. The existence of EOI policies in Kenya therefore makes it easy to identify the tea and coffee sectors as those that offer comparative advantages and therefore need greater allocation of resources to facilitate growth and development in line with the Vision.