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Relevance of ‘Policy Space’ for Development : Implications for Multilateral Trade Negotiations

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  • Nagesh Kumar

    (RIS)

  • Kevin P. Gallagher

Abstract

This paper makes a compelling case for public intervention for fostering industrial development. We have also summarized evidence that suggests that present day developed countries have extensively employed infant industry protection, industrial policy and performance requirements, soft intellectual property protection regimes, subsidies, government procurement and regional economic integration among other policies in their process of industrialization. Many of these policies have also been effectively and successfully emulated by the newly industrializing economies in East Asia to build internationally competitive modern industries despite the lack of the apparent comparative advantage. A development-friendly outcome of the Doha Round would provide flexibility from the TRIPs and TRIMs obligations for facilitating transfer of technology and building up local capabilities in developing countries besides allowing them adequate space for pursuing infant industry protection in the tariff reduction commitments.

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Bibliographic Info

Paper provided by East Asian Bureau of Economic Research in its series Trade Working Papers with number 22111.

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Date of creation: Jan 2007
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Handle: RePEc:eab:tradew:22111

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Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200
Web page: http://www.eaber.org
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Related research

Keywords: industrial development; Doha; WTO; industrialization;

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References

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  1. Nagesh Kumar, 1998. "Multinational enterprises, regional economic integration, and export-platform production in the host countries: An empirical analysis for the US and Japanese corporations," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 134(3), pages 450-483, September.
  2. Will Martin & Kym Anderson, 2006. "Agricultural Trade Reform and the Doha Development Agenda," World Bank Publications, The World Bank, number 6889, October.
  3. John Weiss, 2005. "Export Growth and Industrial Policy: Lessons from the East Asian Miracle Experience," IDB Publications 47618, Inter-American Development Bank.
  4. J. Francois & H. van Meijl & F. van Tongeren, 2003. "Trade Liberalization and Developing Countries under the Doha Round," Tinbergen Institute Discussion Papers 03-060/2, Tinbergen Institute, revised 30 Aug 2003.
  5. Anderson, Kym & Martin, Will & van der Mensbrugghe, Dominique, 2005. "Global impacts of Doha trade reform scenarios on poverty," Policy Research Working Paper Series 3735, The World Bank.
  6. Yilmaz Akyüz, 2005. "The WTO Negotiations on Industrial Tariffs : What is at Stake for Developing Countries?," Trade Working Papers 22080, East Asian Bureau of Economic Research.
  7. Jørgen Drud Hansen & Camilla Jensen & Erik Strøjer Madsen, 2001. "Green Subsidies and Learning-by-doing in the Windmill Industry," CIE Discussion Papers 2001-06, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
  8. Yılmaz AKYÜZ, 2005. "The wto negotiations on industrial tariffs: What is at stake for developing countries?," Iktisat Isletme ve Finans, Bilgesel Yayincilik, vol. 20(232), pages 5-35.
  9. Anne O. Krueger, 1996. "Introduction to "The Political Economy of Trade Protection"," NBER Chapters, in: The Political Economy of Trade Protection, pages 1-4 National Bureau of Economic Research, Inc.
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Cited by:
  1. Ken Jameson, 2008. "The Indigenous Movement and the Economic Trajectory of Ecuador," Working Paper Series, Department of Economics, University of Utah 2008_05, University of Utah, Department of Economics.
  2. Kevin Gallagher, 2011. "Trading Away Stability and Growth: United States Trade Agreements in Latin America," Working Papers wp266, Political Economy Research Institute, University of Massachusetts at Amherst.

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