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Industrial Policy in the Twenty-First Century

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  • Weiss, John
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    Abstract

    Industrial policy has attracted considerable controversy in the development context. This paper makes a case for a pragmatic and limited approach to interventions as a means of stimulating industrialization in the context of current and future challenges facing newly industrializing economies. It begins with a simple definition of industrial policy, a brief survey of the theoretical case, and a taxonomy of different possible interventions. Recent empirical evidence on the role of industrialization in development is examined, whilst considering how far government policy per se has contributed to manufacturing success. Finally, a series of key issues for today.s industrializing economies that industrial policy needs to address are highlighted.

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    File URL: http://www.wider.unu.edu/stc/repec/pdfs/wp2011/wp2011-055.pdf
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    Bibliographic Info

    Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number UNU-WIDER Research Paper WP2011/55.

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    Length: 20
    Date of creation: 2011
    Date of revision:
    Handle: RePEc:unu:wpaper:wp2011-55

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    Keywords: industrialization; government; trade; protection; productivity; exports;

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    1. Lall, Sanjaya & Albaladejo, Manuel, 2004. "China's Competitive Performance: A Threat to East Asian Manufactured Exports?," World Development, Elsevier, vol. 32(9), pages 1441-1466, September.
    2. Hausmann, Ricardo & Rodrik, Dani, 2003. "Economic development as self-discovery," Journal of Development Economics, Elsevier, vol. 72(2), pages 603-633, December.
    3. Poonam Gupta & Rana Hasan & Utsav Kumar, 2008. "What Constrains Indian Manufacturing?," Macroeconomics Working Papers 22162, East Asian Bureau of Economic Research.
    4. Marcus Noland & Howard Pack, 2003. "Industrial Policy in an Era of Globalization: Lessons from Asia," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 358.
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