Rethinking industrial policy
AbstractIndustrial policy has a bad name: â??picking winnersâ?? and thus distorting competition, while exposing government to capture by vested interests. But there are reasons for a rethink. First, climate change: without government intervention to jump-start massive private investment in clean technologies, governments, by default, encourage investment in dirtier technologies. Second, a new post-crisis realism: laissez-faire complacency by many governments has led to mis-investment in the non-tradable sector at the expense of growth-rich tradables. Third, China â?? and some other emerging economies â?? are big deployers of growth-enhancing sectoral policies. The challenge for Europe is how it can design and govern sectoral policies that are competition-friendly and thus growth-enhancing.
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Bibliographic InfoPaper provided by Bruegel in its series Policy Briefs with number 566.
Date of creation: Jun 2011
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-06-25 (All new papers)
- NEP-ENE-2011-06-25 (Energy Economics)
- NEP-IND-2011-06-25 (Industrial Organization)
- NEP-PKE-2011-06-25 (Post Keynesian Economics)
- NEP-REG-2011-06-25 (Regulation)
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:CitEc Project, subscribe to its RSS feed for this item.
- Karl Aiginger, 2013. "A Southern Europe strategy based on vision and industrial policy," EKONOMIAZ, Gobierno Vasco / Eusko Jaurlaritza / Basque Government, vol. 82(01), pages 127-168.
- Guillou, Sarah & Nesta, Lionel, 2011. "politique industrielle dans la mondialisation ?," Open Access publications from Sciences Po info:hdl:2441/eu4vqp9ompq, Sciences Po.
- Karl Aiginger, 2012. "A Systemic Industrial Policy to Pave a New Growth Path for Europe," WIFO Working Papers 421, WIFO.
- Karl Aiginger, 2013. "A New Strategy for the European Periphery," WIFO Working Papers 443, WIFO.
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