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Which "industrial policies" are meaningful for Latin America?

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Marcelo de Paiva Abreu () (Department of Economics PUC-Rio)
Abstract

This paper’s main concern is to assess which "industrial policies" would be meaningful for Latin America nowadays. The first section considers definitions of "industrial policies" and their nature in the past. The second section centers on national growth experiences that may serve as paradigms for LAC economies. Section 3 is on economies which are growth paradigms and on their relevant policies. Section 4 is on present multilateral constraints on "industrial policies", especially in the case of subsidies and trade-related investment measures, as these have been considerably tightened as a result of the Uruguay Round of multilateral trade negotiations. The following section analyses the link between macroeconomics and "industrial policies" both in relation to limitations imposed by macroeconomic instability on industrial policy and to how growth depends on the cost of investment on both micro and macroeconomic factors. Section 6 analyses industrial policy alternatives. The paper concludes with section 7 which is on policy recommendations seeking to improve criteria to pick winners where market failures are especially costly.

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Paper provided by Department of Economics PUC-Rio (Brazil) in its series Textos para discussão with number 493.

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Length: 48p
Date of creation: Jan 2005
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Handle: RePEc:rio:texdis:493

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  1. Mauricio Mesquita Moreira, 1994. "Industrialization, trade and market failures: the role of government intervention in Brazil," Revista Brasileira de Economia, Graduate School of Economics, Getulio Vargas Foundation (Brazil), vol. 48(3), April.
  2. Cedric Tille & Kei-Mu Yi, 2001. "Curbing unemployment in Europe: are there lessons from Ireland and the Netherlands?," Current Issues in Economics and Finance, Federal Reserve Bank of New York, issue May. [Downloadable!]
  3. Rodriguez-Clare, Andres, 2007. "Clusters and comparative advantage: Implications for industrial policy," Journal of Development Economics, Elsevier, vol. 82(1), pages 43-57, January. [Downloadable!] (restricted)
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  4. Dani Rodrik & Arvind Subramanian, 2004. "From "Hindu Growth" to Productivity Surge: The Mystery of the Indian Growth Transition," NBER Working Papers 10376, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. Chen, Derek H. C. & Dahlman, Carl J., 2004. "Knowledge and development : a cross-section approach," Policy Research Working Paper Series 3366, The World Bank. [Downloadable!]
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