IDEAS home Printed from https://ideas.repec.org/p/idb/brikps/1495.html
   My bibliography  Save this paper

Productive Development Policies in Jamaica

Author

Listed:
  • Panadeiros, Monica
  • Benfield, Warren

Abstract

Jamaica seems to be a puzzling case for economic growth: despite the structural reforms implemented in the last three decades and adequate investment levels, real GDP per capita is roughly the same as in 1970. The disappointing performance of this economy suggests that productive development policies (PDPs), including first-generation reforms, have not been enough to create a better environment for productivity growth. This paper examines the PDPs in Jamaica and concludes that behind the paradox of high investment and low growth of this economy are the "public debt trap" and a highly distortive tax incentive structure to attract foreign direct investment (FDI) and promote exports. Although industrial policy is moving towards a more modern conceptual design, the old schemes seem politically difficult to dismantle.

Suggested Citation

  • Panadeiros, Monica & Benfield, Warren, 2010. "Productive Development Policies in Jamaica," IDB Publications (Working Papers) 1495, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:1495
    as

    Download full text from publisher

    File URL: https://publications.iadb.org/publications/english/document/Productive-Development-Policies-in-Jamaica.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. William Maloney & Andrés Rodríguez‐Clare, 2007. "Innovation Shortfalls," Review of Development Economics, Wiley Blackwell, vol. 11(4), pages 665-684, November.
    2. repec:idb:brikps:21858 is not listed on IDEAS
    3. Olarreaga, Marcelo & Lederman, Daniel & Payton, Lucy, 2006. "Export Promotion Agencies: What Works and What Doesn't," CEPR Discussion Papers 5810, C.E.P.R. Discussion Papers.
    4. Melo, Alberto & Rodríguez-Clare, Andrés, 2006. "Productive Development Policies and Supporting Institutions in Latin America and The Caribbean," IDB Publications (Working Papers) 3358, Inter-American Development Bank.
    5. Hausmann, Ricardo & Rodrik, Dani, 2003. "Economic development as self-discovery," Journal of Development Economics, Elsevier, vol. 72(2), pages 603-633, December.
    6. Ricardo Hausmann & Dani Rodrik & Charles F. Sabel, 2008. "Reconfiguring Industrial Policy: A Framework with an Application to South Africa," CID Working Papers 168, Center for International Development at Harvard University.
    7. Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2007. "What you export matters," Journal of Economic Growth, Springer, vol. 12(1), pages 1-25, March.
    8. World Bank, 2004. "The Road to Sustained Growth in Jamaica," World Bank Publications - Books, The World Bank Group, number 15014, December.
    9. Trajtenberg, Manuel, 2006. "Innovation Policy for Development: an Overview," Foerder Institute for Economic Research Working Papers 275698, Tel-Aviv University > Foerder Institute for Economic Research.
    10. Klenow, Peter J. & Rodriguez-Clare, Andres, 2005. "Externalities and Growth," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 11, pages 817-861, Elsevier.
    11. International Monetary Fund, 2008. "Portugal: Staff Report for the 2008 Article IV Consultation," IMF Staff Country Reports 2008/323, International Monetary Fund.
    12. Wolfgang Keller, 2004. "International Technology Diffusion," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 752-782, September.
    13. Schiffbauer, Marc, 2006. "Theoretical and methodological study on the role of public policies in fostering innovation and growth," Papers DYNREG04, Economic and Social Research Institute (ESRI).
    14. Ricardo Hausmann & Bailey Klinger, 2006. "Structural Transformation and Patterns of Comparative Advantage in the Product Space," CID Working Papers 128, Center for International Development at Harvard University.
    15. Daniel Artana & Emilio Osambela Zavala & Desmond Thomas & Roberto Zahler & Andrew S. Downes & Ricardo D. Paredes Molina & Martin Naranjos Lander & Ashu Handa, 2004. "Revitalizing the Jamaican Economy: Policies for Sustained Growth," IDB Publications (Books), Inter-American Development Bank, number 21858, February.
    16. Alberto Melo & Andrés Rodríguez-Clare, 2006. "Productive Development Policies and Supporting Institutions in Latin America and The Caribbean," Research Department Publications 1005, Inter-American Development Bank, Research Department.
    17. Manuel Trajtenberg, 2009. "Innovation Policy for Development: An Overview," Chapters, in: Dominique Foray (ed.), The New Economics of Technology Policy, chapter 26, Edward Elgar Publishing.
    18. International Monetary Fund, 2008. "Dominica: 2008 Article IV Consultation Staff Report; Staff Supplement; Staff Statement and Public Information Notice on the Executive Board Discussion: 2008 Article IV Consultation—Staff Report; Staff," IMF Staff Country Reports 2008/310, International Monetary Fund.
    19. Manuel Trajtenberg, 2009. "Innovation Policy for Development: An Overview," Chapters,in: The New Economics of Technology Policy, chapter 26 Edward Elgar Publishing.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Moya, Ramiro & Mohammed, Anne-Marie & Sookram, Sandra, 2010. "Productive Development Policies in Trinidad and Tobago: A Critical Review," IDB Publications (Working Papers) 1492, Inter-American Development Bank.
    2. Sami Atallah & Ilina Srour, 2014. "The Emergence of Highly Sophisticated Lebanese Exports in the Absence of an Industrial Policy," Working Papers 876, Economic Research Forum, revised Nov 2014.
    3. C. Veeramani, 2008. "Impact of imported intermediate and capital goods on economic growth: A Cross country analysis," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2008-029, Indira Gandhi Institute of Development Research, Mumbai, India.
    4. Ricardo Hausmann & Bailey Klinger, 2008. "South Africa's export predicament," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 16(4), pages 609-637, October.
    5. Rosales-Tijerino, Julio & Rivera, Luis & Monge-González, Ricardo, 2010. "Productive Development Policies in Costa Rica: Market Failures, Government Failures, and Policy Outcomes," IDB Publications (Working Papers) 1706, Inter-American Development Bank.
    6. Bahar, Dany & Rosenow, Samuel & Stein, Ernesto & Wagner, Rodrigo, 2019. "Export take-offs and acceleration: Unpacking cross-sector linkages in the evolution of comparative advantage," World Development, Elsevier, vol. 117(C), pages 48-60.
    7. Rougier, Eric, 2016. "“Fire in Cairo”: Authoritarian–Redistributive Social Contracts, Structural Change, and the Arab Spring," World Development, Elsevier, vol. 78(C), pages 148-171.
    8. Agosin, Manuel & Retamal, Yerko, 2021. "A model of diversification and growth in open developing economies," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 455-470.
    9. Ricardo Hausmann & Bailey Klinger, 2008. "Growth Diagnostics: Perú," Research Department Publications 2005, Inter-American Development Bank, Research Department.
    10. Fakhri J. Hasanov & Muhammad Javid & Frederick L. Joutz, 2022. "Saudi Non-Oil Exports before and after COVID-19: Historical Impacts of Determinants and Scenario Analysis," Sustainability, MDPI, vol. 14(4), pages 1-38, February.
    11. Fernández-Arias, Eduardo & Jaramillo, Fidel & Agosin, Manuel R. & Sánchez, Gabriel & Butler, Inés & Blyde, Juan S. & Pinheiro, Armando Castelar & Daude, Christian & Cueva Armijos, Simón & Albornoz, Vi, 2009. "Growing Pains: Binding Constraints to Productive Investment in Latin America," IDB Publications (Books), Inter-American Development Bank, number 305.
    12. Raúl Serrano & Vicente Pinilla, 2014. "New directions of trade for the agri-food industry: a disaggregated approach for different income countries, 1963–2000," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 23(1), pages 1-22, December.
    13. Claudio Bravo-Ortega & Manuel Agosin Trumper, 2007. "The Emergence Of New Successful Export Activities In Latin America: The Case Of Chile," Working Papers wp236, University of Chile, Department of Economics.
    14. Krishna, Pravin & F. Maloney, William, 2011. "Export quality dynamics," Policy Research Working Paper Series 5701, The World Bank.
    15. Frensch, Richard & Gaucaite Wittich, Vitalija, 2009. "Product variety and technical change," Journal of Development Economics, Elsevier, vol. 88(2), pages 242-257, March.
    16. Felipe Starosta de Waldemar, 2010. "How costly is rent-seeking to diversification: an empirical approach," Documents de travail du Centre d'Economie de la Sorbonne 10008, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    17. Sánchez, Gabriel & Butler, Inés & Rozemberg, Ricardo, 2011. "Productive Development Policies in Argentina," IDB Publications (Working Papers) 3095, Inter-American Development Bank.
    18. Zahler, Andrés, 2007. "Decomposing world export growth and the relevance of new destinations," MPRA Paper 30295, University Library of Munich, Germany.
    19. Zegarra, Eduardo & Escobal, Javier & Aldana, Ursula, 2008. "Titling, Credit Constraints and Rental Markets in Rural Peru: Exploring Channels and Conditioned Impacts," IDB Publications (Working Papers) 3707, Inter-American Development Bank.
    20. Hausmann, Ricardo & Rodriguez, Francisco & Wagner, Rodrigo, 2006. "Growth Collapses," Working Paper Series rwp06-046, Harvard University, John F. Kennedy School of Government.

    More about this item

    Keywords

    IDB-WP-128;

    JEL classification:

    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:idb:brikps:1495. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Felipe Herrera Library (email available below). General contact details of provider: https://edirc.repec.org/data/iadbbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.