Microeconomic Interventions after the Washington Consensus
AbstractThis paper examines the microeconomic interventions used to complement Washington Consensus reforms in Latin America. It maintains that the kind of interventions currently in vogue in most countries lack a sound theoretical and empirical foundation or are applied in a manner likely to prove ineffective. Arguing that the countries of the region should engage in selective interventions aimed at discovering new profitable activities (horizontal policies) and at creating innovation clusters (vertical policies), the paper discusses how such a strategy could be implemented. Both horizontal and vertical policies are important, although the appropriate mix depends on a country’s stage of development. Pessimism about Latin American economies’ ability to undertake this more sophisticated set of microeconomic interventions is an exaggerated reaction to the problems of corruption and capture encountered by import-substitution policies. At least in some countries, there is scope for a carefully executed strategy of the type discussed here.
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 Inter-American Development Bank, Research Department in its series Research Department Publications with number 4393.
Date of creation: Feb 2005
Date of revision:
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.:
- Thierry Mayer & Keith Head, 2003.
"The Empirics of Agglomeration and Trade,"
2003-15, CEPII research center.
- Romer, Paul M, 1990.
"Endogenous Technological Change,"
Journal of Political Economy,
University of Chicago Press, vol. 98(5), pages S71-102, October.
- Andres Rodriguez-Clare & Laura Alfaro, 2004.
"Multinationals and Linkages: An Empirical Investigation,"
2004 Meeting Papers
145, Society for Economic Dynamics.
- Laura Alfaro & Andrés Rodriguez-Clare, 2004. "Multinationals and Linkages: An Empirical Investigation," Journal of LACEA Economia, LACEA - LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
- Glenn Ellison & Edward L. Glaeser, 1994.
"Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach,"
NBER Working Papers
4840, National Bureau of Economic Research, Inc.
- Ellison, Glenn & Glaeser, Edward L, 1997. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Journal of Political Economy, University of Chicago Press, vol. 105(5), pages 889-927, October.
- Ellison, G. & Glaeser, E.L., 1994. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Working papers 94-27, Massachusetts Institute of Technology (MIT), Department of Economics.
- Eduardo Lora & Ugo Panizza, 2002.
"Structural Reforms in Latin America under Scrutiny,"
Research Department Publications
4303, Inter-American Development Bank, Research Department.
- Eduardo Lora & Ugo Panizza, 2002. "Structural Reforms in Latin America under Scrutiny," Research Department Publications 4301, Inter-American Development Bank, Research Department.
- Thomas J. Holmes, 1995.
"Localization of industry and vertical disintegration,"
190, Federal Reserve Bank of Minneapolis.
- Thomas J. Holmes, 1999. "Localization Of Industry And Vertical Disintegration," The Review of Economics and Statistics, MIT Press, vol. 81(2), pages 314-325, May.
- Wacziarg, Romain & Imbs, Jean, 2000.
"Stages of Diversification,"
1653, Stanford University, Graduate School of Business.
- Brian Aitken & Gordon H. Hanson & Ann E. Harrison, 1994.
"Spillovers, Foreign Investment, and Export Behavior,"
NBER Working Papers
4967, National Bureau of Economic Research, Inc.
- Aitken, Brian & Hanson, Gordon H. & Harrison, Ann E., 1997. "Spillovers, foreign investment, and export behavior," Journal of International Economics, Elsevier, vol. 43(1-2), pages 103-132, August.
- Aitken, B. & Hanson, G.H. & Harrison, A.E., 1994. "Spillovers, Foreign Investment and Export Behavior," Papers 95-06, Columbia - Graduate School of Business.
- Sanjaya LALL, 2004.
"Reinventing Industrial Strategy: The Role Of Government Policy In Building Industrial Competitiveness,"
G-24 Discussion Papers
28, United Nations Conference on Trade and Development.
- Sanjaya Lall, 2013. "Reinventing Industrial Strategy: The Role Of Government Policy In Building Industrial Competitiveness," Annals of Economics and Finance, Society for AEF, vol. 14(3), pages 785-829, December.
- Sanjaya Lall (QEH), . "Reinventing Industrial Strategy: The Role of Government Policy in Building Industrial Competitiveness," QEH Working Papers qehwps111, Queen Elizabeth House, University of Oxford.
- Rodrik, Rani, 1995. "Trade and industrial policy reform," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 45, pages 2925-2982 Elsevier.
- Rui Albuquerque & Hugo A. Hopenhayn, 2004.
"Optimal Lending Contracts and Firm Dynamics,"
Review of Economic Studies,
Wiley Blackwell, vol. 71(2), pages 285-315, 04.
- Ethier, Wilfred J, 1982. "National and International Returns to Scale in the Modern Theory of International Trade," American Economic Review, American Economic Association, vol. 72(3), pages 389-405, June.
- Stokey, Nancy L, 1991.
"Human Capital, Product Quality, and Growth,"
The Quarterly Journal of Economics,
MIT Press, vol. 106(2), pages 587-616, May.
- Nancy L. Stokey, 1990. "Human Capital, Product Quality, And Growth," NBER Working Papers 3413, National Bureau of Economic Research, Inc.
- Nancy L. Stokey, 1990. "Human Capital, Product Quality, and Growth," Discussion Papers 883, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Gordon H. Hanson, 2000. "Scale Economies and the Geographic Concentration of Industry," NBER Working Papers 8013, National Bureau of Economic Research, Inc.
- Krugman, Paul, 1991. "History versus Expectations," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 651-67, May.
- Rosenthal, Stuart S. & Strange, William C., 2004. "Evidence on the nature and sources of agglomeration economies," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 49, pages 2119-2171 Elsevier.
- Pack, Howard & Saggi, Kamal, 2006. "The case for industrial policy : a critical survey," Policy Research Working Paper Series 3839, The World Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Luis Daniel Martinez).
If references are entirely missing, you can add them using this form.