Advanced Search
MyIDEAS: Login to save this article or follow this journal

Reinventing Industrial Strategy: The Role Of Government Policy In Building Industrial Competitiveness

Contents:

Author Info

  • Sanjaya Lall

    (Green College, Oxford University)

Abstract

The paper reviews the nature of current globalization and the growing divergence in competitive performance in the developing world. It considers the case for industrial policy, contrasting the neoliberal with the structuralist approach. It argues that there is a valid case for selective interventions in overcoming the market and institutional failures in building the capabilities required for industrial development. It describes the strategies adopted by the Asian Tigers to build industrial competitiveness, and concludes with lessons for other developing countries. The kinds of industrial policy needed in the current setting are different from traditional industrialisation strategies, but globalization and technical change do not eliminate the need for intervention. On the contrary, given path dependence, cumulativeness and agglomeration economies, they increase it. There is a need to reconsider the rules of the game constraining the exercise of industrial policy, and for international assistance in designing and implementing appropriate policies.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://down.aefweb.net/AefArticles/aef140307Lall.pdf
Download Restriction: no

Bibliographic Info

Article provided by Society for AEF in its journal Annals of Economics and Finance.

Volume (Year): 14 (2013)
Issue (Month): 2 (November)
Pages: 785-829

as in new window
Handle: RePEc:cuf:journl:y:2013:v:14:i:3:lall

Contact details of provider:
Web page: http://www.aeconf.net/
More information through EDIRC

Related research

Keywords:

Other versions of this item:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Mathews, John A., 2002. "The origins and dynamics of Taiwan's R&D consortia," Research Policy, Elsevier, Elsevier, vol. 31(4), pages 633-651, May.
  2. Larry Westphal, 2002. "Technology Strategies For Economic Development In A Fast Changing Global Economy," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(4-5), pages 275-320.
  3. Timothy J. Sturgeon, 2002. "Modular production networks: a new American model of industrial organization," Industrial and Corporate Change, Oxford University Press, vol. 11(3), pages 451-496, June.
  4. Erik S. Reinert, . "Competitiveness and its predecessors - a 500-year cross-national perspective," STEP Report series, The STEP Group, Studies in technology, innovation and economic policy 199403, The STEP Group, Studies in technology, innovation and economic policy.
  5. Marcus Noland & Howard Pack, 2003. "Industrial Policy in an Era of Globalization: Lessons from Asia," Peterson Institute Press: All Books, Peterson Institute for International Economics, Peterson Institute for International Economics, number 358, July.
  6. Lall, Sanjaya & Teubal, Morris, 1998. ""Market-stimulating" technology policies in developing countries: A framework with examples from East Asia," World Development, Elsevier, Elsevier, vol. 26(8), pages 1369-1385, August.
  7. Lall, Sanjaya, 2001. "Competitiveness Indices and Developing Countries: An Economic Evaluation of the Global Competitiveness Report," World Development, Elsevier, Elsevier, vol. 29(9), pages 1501-1525, September.
  8. Lall, Sanjaya, 2003. "Indicators of the relative importance of IPRs in developing countries," Research Policy, Elsevier, Elsevier, vol. 32(9), pages 1657-1680, October.
  9. Tun-Jen Cheng & Stephan Haggard & David Kang, 1998. "Institutions and growth in Korea and Taiwan: The bureaucracy," Journal of Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 34(6), pages 87-111.
  10. Pack, Howard & Westphal, Larry E., 1986. "Industrial strategy and technological change : Theory versus reality," Journal of Development Economics, Elsevier, Elsevier, vol. 22(1), pages 87-128, June.
  11. Lall, Sanjaya, 1992. "Technological capabilities and industrialization," World Development, Elsevier, Elsevier, vol. 20(2), pages 165-186, February.
  12. Westphal, Larry E, 1990. "Industrial Policy in an Export-Propelled Economy: Lessons from South Korea's Experience," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 4(3), pages 41-59, Summer.
  13. Stiglitz, Joseph E, 1996. "Some Lessons from the East Asian Miracle," World Bank Research Observer, World Bank Group, World Bank Group, vol. 11(2), pages 151-77, August.
  14. Peter Evans, 1998. "Transferable lessons? Re-examining the institutional prerequisites of East Asian economic policies," Journal of Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 34(6), pages 66-86.
  15. Teitel, Simon & Colman Sercovich, Francisco, 1984. "Latin America," World Development, Elsevier, Elsevier, vol. 12(5-6), pages 645-660.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Shafaeddin, Mehdi, 2010. "The Role of China in Regional South-South Trade in Asia-Pacific: Prospects for industrialization of the low-income countries," MPRA Paper 26358, University Library of Munich, Germany.
  2. Shafaeddin, Mehdi, 2008. "South-South Regionalism And Trade Cooperation In The Asia-Pacific Region," MPRA Paper 10886, University Library of Munich, Germany.
  3. Christian Bellak & Rajneesh Narula, 2008. "EU enlargement and consequences for FDI assisted industrial development," Economics & Management Discussion Papers, Henley Business School, Reading University em-dp2008-69, Henley Business School, Reading University.
  4. Andrés Rodríguez-Clare, 2005. "Coordination Failure, Clusters, and Microeconomic Interventions," JOURNAL OF LACEA ECONOMIA, LACEA - LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
  5. Shafaeddin, Mehdi, 2010. "The rationale for South-South trade; An Alternative Approach," MPRA Paper 26354, University Library of Munich, Germany.
  6. Shafaeddin, Mehdi, 2010. "Trade liberalization, industrialization and development; experience of recent decades," MPRA Paper 26355, University Library of Munich, Germany.
  7. Uzma Zia, 2007. "International Competitiveness  Where Pakistan Stands?," Development Economics Working Papers 22222, East Asian Bureau of Economic Research.
  8. Benhassine, Najy & Raballand, Gaël, 2009. "Beyond ideological cleavages: A unifying framework for industrial policies and other public interventions," Economic Systems, Elsevier, Elsevier, vol. 33(4), pages 293-309, December.
  9. Ortíz Quevedo, Carlos Humberto & Salazar Juan David, 2014. "Brasil como horizonte: mayor ingreso y mayor crecimiento económico para Colombia," DOCUMENTOS DE TRABAJO-CIDSE 011033, UNIVERSIDAD DEL VALLE - CIDSE.
  10. Khemraj, Tarron & Hinova, Diana, 2011. "Elected Oligarchy and Economic Underdevelopment: The Case of Guyana," MPRA Paper 29733, University Library of Munich, Germany.
  11. Mallett, Alexandra, 2007. "Social acceptance of renewable energy innovations: The role of technology cooperation in urban Mexico," Energy Policy, Elsevier, Elsevier, vol. 35(5), pages 2790-2798, May.
  12. Andrés Rodríguez-Clare, 2005. "Intervenciones microeconómicas después del Consenso de Washington," Research Department Publications, Inter-American Development Bank, Research Department 4394, Inter-American Development Bank, Research Department.
  13. Mo, Pak Hung, 2011. "Trade Liberalization Sequence for Sustained Economic Growth," MPRA Paper 28917, University Library of Munich, Germany.
  14. Andrés Rodríguez-Clare, 2005. "Microeconomic Interventions after the Washington Consensus," Research Department Publications, Inter-American Development Bank, Research Department 4393, Inter-American Development Bank, Research Department.
  15. Rodrik, Dani, 2004. "Industrial Policy for the Twenty-First Century," Working Paper Series, Harvard University, John F. Kennedy School of Government rwp04-047, Harvard University, John F. Kennedy School of Government.
  16. Shafaeddin, Mehdi, 2009. "Impact of Selectivity and Neutrality of trade Policy Incentives on Industrialization of Developing Countries; Implications for NAMA Negotiations," MPRA Paper 15037, University Library of Munich, Germany.
  17. Andrés Rodríguez-Clare, 2005. "Fallas de coordinación, conglomerados e intervenciones microeconómicas," Research Department Publications, Inter-American Development Bank, Research Department 4432, Inter-American Development Bank, Research Department.
  18. Uzma Zia, 2007. "International Competitiveness—Where Pakistan Stands?," PIDE-Working Papers, Pakistan Institute of Development Economics 2007:28, Pakistan Institute of Development Economics.
  19. Helen Shapiro, 2007. "Industrial Policy and Growth," Working Papers, United Nations, Department of Economics and Social Affairs 53, United Nations, Department of Economics and Social Affairs.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:cuf:journl:y:2013:v:14:i:3:lall. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Qiang Gao).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.