Local Content Requirements: Promises and Pitfalls

Focused on the controversial use of Local Content Requirements (LCRs), this book evaluates their impact on industrial development and international trade. LCRs are often implemented to boost domestic industries and create jobs; however, the authors argue that they can also lead to significant economic pitfalls, such as increased production costs and reduced global competitiveness. The text provides a global perspective, comparing various regional applications of LCRs and analyzing their compatibility with World Trade Organization rules. Through empirical evidence and case studies, the book offers a critical assessment of whether these policies achieve their intended promises or merely serve as inefficient barriers to trade in the modern manufacturing landscape.