Industrial Policies and Growth: Lessons from International Experience
AbstractThe application of industrial policies (IP) to direct resources to industries considered preponderant in achieving growth has been the chosen road by many emerging economies to tackle underdevelopment. Subsidized loans, variable taxes and differentiated tariffs are frequently used. Because of the successful experiences of some South Asian industrial policies, other emerging countries feel tempted of replicating the formula. However, these should be sure first that their governments have the necessary competencies. There are also two questions to ask on the role of IPs in the growth of these countries: first, Were IPs the dominant factor in the countries’ accelerated growth? The neoclassical approach offers an alternative explanation, that the Asian miracle was mainly the result of strong macroeconomic policies implemented. The second question is: Can the problems of some Asian economies in the 1990s be explained by the prolonged application of IPs? This article finds evidence to support that economic growth was due to strong macroeconomic foundations, such as fiscal discipline, controlled inflation and adequate real exchange rate levels. These variables were the driving forces that created high levels of saving and investment. On the other hand, the implementation of IPs is difficult in a globalized world where the regulations of international trade have become very important.
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.
Bibliographic InfoPaper provided by Central Bank of Chile in its series Working Papers Central Bank of Chile with number 169.
Date of creation: Jul 2002
Date of revision:
Other versions of this item:
- Marcus Noland & Howard Pack, 2002. "Industrial Policies and Growth: Lessons From International Experience," Central Banking, Analysis, and Economic Policies Book Series, in: Norman Loayza & Raimundo Soto & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Series Editor) (ed.), Economic Growth: Sources, Trends, and Cycles, edition 1, volume 6, chapter 9, pages 251-308 Central Bank of Chile.
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.:
- Wolfgang Keller, 1996.
"Are International R&D Spillovers Trade-related? Analyzing Spillovers among Randomly Matched Trade Partners,"
- Keller, Wolfgang, 1998. "Are international R&D spillovers trade-related?: Analyzing spillovers among randomly matched trade partners," European Economic Review, Elsevier, vol. 42(8), pages 1469-1481, September.
- Wolfgang Keller, 1997. "Are International R&D Spillovers Trade-Related? Analyzing Spillovers Among Randomly Matched Trade Partners," NBER Working Papers 6065, National Bureau of Economic Research, Inc.
- Noland, Marcus, 1996. "Research and Development Activities and Trade Specialization in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 10(2), pages 150-168, June.
- Marcus Noland, 1996.
"Public Policy, Private Preferences, and the Japanese Trade Pattern,"
Working Paper Series
WP96-2, Peterson Institute for International Economics.
- Marcus Noland, 1997. "Public Policy, Private Preferences, And The Japanese Trade Pattern," The Review of Economics and Statistics, MIT Press, vol. 79(2), pages 259-266, May.
- Tibor Scitovsky, 1954. "Two Concepts of External Economies," Journal of Political Economy, University of Chicago Press, vol. 62, pages 143.
- Leamer, Edward E, 1987. "Paths of Development in the Three-Factor, n-Good General Equilibrium Model," Journal of Political Economy, University of Chicago Press, vol. 95(5), pages 961-99, October.
- Rob, Rafael, 1991. "Learning and Capacity Expansion under Demand Uncertainty," Review of Economic Studies, Wiley Blackwell, vol. 58(4), pages 655-75, July.
- Okuno-Fujiwara, Masahiro, 1988. "Interdependence of industries, coordination failure and strategic promotion of an industry," Journal of International Economics, Elsevier, vol. 25(1-2), pages 25-43, August.
- Moonsung Kang, 2000. "Patent Protection and Strategic Trade Policy," Trade Working Papers 21761, East Asian Bureau of Economic Research.
- Lee, Hiro, 1993. "General equilibrium evaluation of industrial policy in Japan," Journal of Asian Economics, Elsevier, vol. 4(1), pages 25-40.
- Mariko Sakakibara & Michael E. Porter, 2001. "Competing At Home To Win Abroad: Evidence From Japanese Industry," The Review of Economics and Statistics, MIT Press, vol. 83(2), pages 310-322, May.
- Beason, R. & Weinstein, D.E., 1993.
"Growth, Economies of Scale, and Targeting in Japan (1955- 1990),"
Harvard Institute of Economic Research Working Papers
1644, Harvard - Institute of Economic Research.
- Beason, Richard & Weinstein, David E, 1996. "Growth, Economies of Scale, and Targeting in Japan (1955-1990)," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 286-95, May.
- Weinstein David E., 1995. "Evaluating Administrative Guidance and Cartels in Japan (1957-1988)," Journal of the Japanese and International Economies, Elsevier, vol. 9(2), pages 200-223, June.
- Moonsung Kang, 2000. "Patent Infringement and Strategic Trade Policies : R&D and Export Subsidies," Trade Working Papers 21759, East Asian Bureau of Economic Research.
- Horioka, C.Y. & Watanabe, W., 1996.
"Why Do People Save? A Micro-Analysis of Motives for Household Saving in Japan,"
ISER Discussion Paper
0412, Institute of Social and Economic Research, Osaka University.
- Horioka, Charles Yuji & Watanabe, Wako, 1997. "Why Do People Save? A Micro-Analysis of Motives for Household Saving in Japan," Economic Journal, Royal Economic Society, vol. 107(442), pages 537-52, May.
- Tetsuji Okazaki, 2000. "Government-Firm Relationship in Postwar Japan: Success and Failure of the Bureau-Pluralism," CIRJE F-Series CIRJE-F-69, CIRJE, Faculty of Economics, University of Tokyo.
- World Bank, 2005. "Kazakhstan : Country Economic Memorandum, Getting Competitive, Staying Competitive, The Challenge of Managing Kazakhstan's Oil Boom," World Bank Other Operational Studies 8656, The World Bank.
- Ronald Fischer, . "Trade liberalization in Latin America: The case of Chile," Documentos de Trabajo 190, Centro de Economía Aplicada, Universidad de Chile.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Claudio Sepulveda).
If references are entirely missing, you can add them using this form.