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Interaction between Regional and Industrial Policies: Evidence from Four Countries

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  • Ann Markusen

    (Bloustein School of Planning and Public Policy Rutgers University New Brunswick NJ 08903 USA)

Abstract

After World War II, policies to promote industrialization-both to substitute for manufactured imports and to encourage exports based on unskilled labor-often successfully complemented regional polices to better distribute economic activity. The recent shift toward high technology, however, has strongly favored major urban areas, undermining efforts at regional decentralization and stabilization. Furthermore, countries are increasingly abandoning top-down regional policy and passing on responsibility for development to provincial and local levels, setting off vigorous interregional competition for economic activity and often favoring a few, relatively well-endowed regions. Evidence from Brazil, Japan, the Republic of Korea, and the United States shows how the recent emphasis on high-tech exports and decentralized regional policy may reinforce polarization and slow progress toward eliminating regional growth and income differentials.

Suggested Citation

  • Ann Markusen, 1996. "Interaction between Regional and Industrial Policies: Evidence from Four Countries," International Regional Science Review, , vol. 19(1-2), pages 49-77, April.
    • Handle: RePEc:sae:inrsre:v:19:y:1996:i:1-2:p:49-77
    DOI: 10.1177/016001769601900205
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    References listed on IDEAS

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    1. Haddad, Paulo Roberto, 1989. "Os padroes locacionais das atividades de alta tecnología: a questao dos desequilibrios regionais de desenvolvimento reexaminada," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 33282, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    2. Harry W. Richardson, 1980. "Polarization Reversal In Developing Countries," Papers in Regional Science, Wiley Blackwell, vol. 45(1), pages 67-85, January.
    3. Kaldor, Nicholas, 1970. "The Case for Regional Policies," Scottish Journal of Political Economy, Scottish Economic Society, vol. 17(3), pages 337-348, November.
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    1. Richard Shearmur & Philippe Apparicio & Pauline Lizion & Mario Polèse, 2007. "Space, Time, and Local Employment Growth: An Application of Spatial Regression Analysis," Growth and Change, Wiley Blackwell, vol. 38(4), pages 696-722, December.
    2. André Rodríguez‐Pose & Glauco Arbix, 2001. "Strategies of Waste: Bidding Wars in the Brazilian Automobile Sector," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 25(1), pages 134-154, March.
    3. Brian W. Head, 2011. "Governance for sustainable regions: can government meet the innovation policy challenge?," Regional Science Policy & Practice, Wiley Blackwell, vol. 3(3), pages 219-230, August.
    4. B.G. Jean Jacques Iritié, 2018. "Economic issues of innovation clusters-based industrial policy: a critical overview," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 20(3), pages 286-307.
    5. Shin, Dong-Ho, 2002. "Regional innovation systems of Tsukuba, Japan," ERSA conference papers ersa02p493, European Regional Science Association.

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