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Export Growth and Industrial Policy: Lessons from the East Asian Miracle Experience

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  • John Weiss
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    Abstract

    Industrial policy was for many years associated in policy discourse with failed interventionist import substitution strategies despite its apparent success in East Asia. Further despite the obvious point that in the real world 'markets fail' and enterprises impinge on each other, so that inevitably private and social returns deviate, public policy interventions to try to address these issues in the context of manufacturing have been treated with considerable suspicion. Industrial policy has seen a minor revival in recent times, however, stimulated in part by new theorizing and in part by ongoing debates on 'national competitiveness' strategies which have offered a new entrée in the context of globalization. The paper commences with a survey of the evidence on export growth and industrial policy in the NIEs, before turning to lessons for contemporary policy. This paper was prepared to be presented at the LAEBA Second Annual Meeting, Buenos Aires, Argentina, 28-29 November, 2005.

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    Bibliographic Info

    Paper provided by Inter-American Development Bank in its series IDB Publications with number 47598.

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    Date of creation: Nov 2005
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    Handle: RePEc:idb:brikps:47598

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    Keywords: Integration & Trade; Economics :: Industrial Policy; LAEBA conference; LAEBA meeting; east asia miracle;

    References

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    1. Robert J Barro, 1999. "Determinants of Economic Growth: Implications of the Global Evidence for Chile," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 36(107), pages 443-478.
    2. Thee Kian Wie, 2010. "Technology and Indonesia’s Industrial Competitiveness," Working Papers id:3295, eSocialSciences.
    3. Hausmann, Ricardo & Rodrik, Dani, 2002. "Economic Development as Self Discovery," CEPR Discussion Papers 3356, C.E.P.R. Discussion Papers.
    4. Eduardo Borensztein & Jose De Gregorio & Jong-Wha Lee, 1995. "How Does Foreign Direct Investment Affect Economic Growth?," NBER Working Papers 5057, National Bureau of Economic Research, Inc.
    5. Quibria, M.G., 2002. "Growth and Poverty: Lessons from the East Asian Miracle Revisited," MPRA Paper 2638, University Library of Munich, Germany.
    6. Rodrik, Dani, 1994. "King Kong Meets Godzilla: The World Bank and The East Asian Miracle," CEPR Discussion Papers 944, C.E.P.R. Discussion Papers.
    7. Marcus Noland & Howard Pack, 2003. "Industrial Policy in an Era of Globalization: Lessons from Asia," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 358, 1st quart.
    8. Sebastian Edwards, 1991. "Trade Orientation, Distortions and Growth in Developing Countries," NBER Working Papers 3716, National Bureau of Economic Research, Inc.
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    Cited by:
    1. Zoltan Acs & José Amorós, 2008. "Entrepreneurship and competitiveness dynamics in Latin America," Small Business Economics, Springer, vol. 31(3), pages 305-322, October.
    2. Çigdem Akin & M. Ayhan Kose, 2007. "Changing Nature of North-South Linkages: Stylized Facts and Explanations," IMF Working Papers 07/280, International Monetary Fund.
    3. Yýlmaz Akyüz, . "Global Rules and Markets: Constraints over Policy Autonomy in Developing Countries," Working Papers 2007/5, Turkish Economic Association.
    4. Nagesh Kumar & Kevin P. Gallagher, 2007. "Relevance of ‘Policy Space’ for Development : Implications for Multilateral Trade Negotiations," Trade Working Papers 22111, East Asian Bureau of Economic Research.
    5. Roman Stöllinger & Beate Muck, 2011. "Long Term Patterns of International Merchandise Trade," FIW Specials series 001, FIW.
    6. Carson, Matthew, 2010. "Guiding structural change : the role of government in development," ILO Working Papers 455097, International Labour Organization.
    7. Gonzalo Hernandez & Arslan Razmi, 2011. "Can Asia Sustain an Export-Led Growth Strategy in the Aftermath of the Global Crisis? An Empirical Exploration," UMASS Amherst Economics Working Papers 2011-29, University of Massachusetts Amherst, Department of Economics.
    8. Mo, Pak Hung, 2011. "Trade Liberalization Sequence for Sustained Economic Growth," MPRA Paper 28917, University Library of Munich, Germany.

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