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The East Asian Industrial Policy Experience: Implications for the Middle East

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Author Info
Marcus Noland () (Institute for International Economics)
Howard Pack () (Wharton School)

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Abstract

Japan, South Korea, and Taiwan are regarded as primary examples of countries that have derived great benefits from increasing integration with the international economy, without surrendering national autonomy in the economic or cultural spheres, by pursuing decidedly nonneutral policies with respect to the promotion of specific sectors and activities. This working paper addresses a series of questions in an attempt to assess the relevance of their experiences for the contemporary Middle East: Was industrial policy a major source of growth in these three economies? Can these outcomes be duplicated in the Middle East today, or do special circumstances or changes in the international policy environment prevent replication of the East Asian experience? Given the revealed costs and benefits, is replication advisable? And, if not, are there other, positive lessons that Middle Eastern countries can derive from the experiences of the East Asians?

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Paper provided by Peterson Institute for International Economics in its series Peterson Institute Working Paper Series with number WP05-14.

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Date of creation: Dec 2005
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Handle: RePEc:iie:wpaper:wp05-14

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Related research
Keywords: industrial policy Asia Middle East

Find related papers by JEL classification:
L5 - Industrial Organization - - Regulation and Industrial Policy
O38 - Economic Development, Technological Change, and Growth - - Technological Change - - - Government Policy
O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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  1. 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. [Downloadable!] (restricted)
  2. Avinash K. Dixit & Gene M. Grossman, 1987. "Targeted Export Promotion with Several Oligopolistic Industries," NBER Working Papers 1344, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Lee, Jong-Wha, 1996. " Government Interventions and Productivity Growth," Journal of Economic Growth, Springer, vol. 1(3), pages 391-414, September.
  4. Robert Z. Lawrence & David E. Weinstein, 1999. "Trade and Growth: Import-Led or Export-Led? Evidence From Japan and Korea," NBER Working Papers 7264, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Pack, Howard & Saggi, Kamal, 2006. "The case for industrial policy : a critical survey," Policy Research Working Paper Series 3839, The World Bank. [Downloadable!]
  6. Kaufmann, Daniel & Kraay, Aart & Zoido-Lobaton, Pablo, 1999. "Governance matters," Policy Research Working Paper Series 2196, The World Bank. [Downloadable!]
  7. Murphy, Kevin M & Shleifer, Andrei & Vishny, Robert W, 1989. "Industrialization and the Big Push," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1003-26, October. [Downloadable!] (restricted)
    Other versions:
  8. Pack, Howard, 2000. "Industrial Policy: Growth Elixir or Poison?," World Bank Research Observer, Oxford University Press, vol. 15(1), pages 47-67, February. [Downloadable!]
  9. Hausmann, Ricardo & Rodrik, Dani, 2003. "Economic development as self-discovery," Journal of Development Economics, Elsevier, vol. 72(2), pages 603-633, December. [Downloadable!] (restricted)
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  10. Marcus Noland, 2004. "Selective Intervention and Growth: The Case of Korea," Peterson Institute Working Paper Series WP04-3, Peterson Institute for International Economics. [Downloadable!]
  11. Trindade, Vitor, 2005. "The big push, industrialization and international trade: The role of exports," Journal of Development Economics, Elsevier, vol. 78(1), pages 22-48, October. [Downloadable!] (restricted)
  12. Itoh, Motoshige & Kiyono, Kazuharu, 1987. "Welfare-Enhancing Export Subsidies," Journal of Political Economy, University of Chicago Press, vol. 95(1), pages 115-37, February. [Downloadable!] (restricted)
  13. 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. [Downloadable!] (restricted)
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