Coordination Failures and Government Policy: Evidence From Emerging Countries
AbstractRodrik [JIE 1996] argues for coordinated government policy when emerging countries are stuck in a low wage equilibrium because of a coordination failure. Because the return to intermediate output is markedly below that realised when a minimum threshold number of varieties must produced in concert, the expectation of too few varieties is sufficient to discourage entry and keep a high tech sector from succeeding. Here we search for evidence consist with such threshold models on cross country data. First production data is used to ask (i) whether evidence of coordination failures among intermediate good producers is associated with a low wage equilibrium and (ii) whether government policy can succeed in moving an emerging country from a low to high wage equilibrium. Second, financial data is used to ask whether there is evidence that government coordination can replace missing private markets in emerging economies and whether a moderate degree of financial repression can help rather than hinder growth.
Download InfoIf 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Journal of Development Studies.
Volume (Year): 39 (2003)
Issue (Month): 4 ()
Contact details of provider:
Web page: http://www.tandfonline.com/FJDS20
Other versions of this item:
- J. Stephen Ferris & Kishore Gawande, 1998. "Coordination Failures and Government Policy: Evidence from Emerging Countries," Carleton Economic Papers 98-03, Carleton University, Department of Economics, revised Apr 2003.
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral 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: (Michael McNulty).
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.