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Industrial Policy and Growth

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Author Info
Helen Shapiro
Abstract

The paper highlights how the rationales and instruments of industrial policy have changed since the 1960s. It finds that theories of industrialization have come full circle, as many of the assumptions behind the market failure paradigm have made a comeback. The policy implications of these theories, however, have not been similarly resurrected. It makes an explicit comparison between the strategies of East Asia and Latin America, and reviews the explanations for their divergent performance. It identifies a “back to the future” quality of Latin America’s situation, pointing to the region’s balance of payments constraint and dependence on commodity-like industrial products.

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Paper provided by United Nations, Department of Economics and Social Affairs in its series Working Papers with number 53.

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Length: 17 pages
Date of creation: Aug 2007
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Handle: RePEc:une:wpaper:53

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Related research
Keywords: Industrial Policy Competitiveness East Asia Latin America

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Find related papers by JEL classification:
L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy
O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
O38 - Economic Development, Technological Change, and Growth - - Technological Change - - - Government Policy
O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
O54 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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  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)
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  8. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December. [Downloadable!] (restricted)
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  9. Traca, Daniel A., 2002. "Imports as competitive discipline: the role of the productivity gap," Journal of Development Economics, Elsevier, vol. 69(1), pages 1-21, October. [Downloadable!] (restricted)
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  13. JOSÉ ANTONIO OCAMPO, 2004. "Beyond the Washington consensus: what do we mean?," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 27(2), pages 293-314, December. [Downloadable!] (restricted)
  14. Bruton, H.J., 1998. "A Reconsideration of Import Substitution," Center for Development Economics 156, Department of Economics, Williams College.
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