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Industrial Policy and the Great Divergence

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  • Réka Juhász
  • Claudia Steinwender

Abstract

We discuss recent work evaluating the role of the government in shaping the economy during the long 19th century, a practice we refer to as industrial policy. States deployed a vast variety of different policies aimed at, primarily, but not exclusively, fostering industrialization. A thin, but growing literature has started to evaluate the economic effects of these policies, but many questions remain open for study.

Suggested Citation

  • Réka Juhász & Claudia Steinwender, 2023. "Industrial Policy and the Great Divergence," NBER Working Papers 31736, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:31736
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    1. Sascha O. Becker & Ludger Woessmann, 2009. "Was Weber Wrong? A Human Capital Theory of Protestant Economic History," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(2), pages 531-596.
    2. Pablo Fajgelbaum & Stephen J. Redding, 2022. "Trade, Structural Transformation, and Development: Evidence from Argentina 1869–1914," Journal of Political Economy, University of Chicago Press, vol. 130(5), pages 1249-1318.
    3. Liu, Cong, 2020. "The Effects of World War I on the Chinese Textile Industry: Was the World’s Trouble China’s Opportunity?," The Journal of Economic History, Cambridge University Press, vol. 80(1), pages 246-285, March.
    4. Brian D. Varian, 2023. "British exports and foreign tariffs: Insights from the Board of Trade's foreign tariff compilation for 1902," Economic History Review, Economic History Society, vol. 76(3), pages 827-843, August.
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    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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