IDEAS home Printed from https://ideas.repec.org/a/bla/worlde/v47y2024i7p2762-2788.html

The return of industrial policy in data

Author

Listed:
  • Simon Evenett
  • Adam Jakubik
  • Fernando Martín
  • Michele Ruta

Abstract

This paper introduces the New Industrial Policy Observatory (NIPO) data set and documents emergent patterns of policy intervention during 2023 associated with the return of industrial policy. The data show that the recent wave of new industrial policy activity is primarily driven by advanced economies and that subsidies are the most employed instrument. Trade restrictions on imports and exports are more frequently used by emerging market and developing economies. Strategic competitiveness is the dominant motive governments give for these measures, but other objectives such as climate change, resilience and national security are on the rise. In exploratory regressions, we find that implemented measures are correlated with the past use of measures by other governments in the same sector, pointing to the tit‐for‐tat nature of industrial policy. Furthermore, domestic political economy factors and macroeconomic conditions correlate with the use of industrial policy measures. We intend for the NIPO to be a publicly available resource to help monitor the evolution and effects of industrial policies.

Suggested Citation

  • Simon Evenett & Adam Jakubik & Fernando Martín & Michele Ruta, 2024. "The return of industrial policy in data," The World Economy, Wiley Blackwell, vol. 47(7), pages 2762-2788, July.
    • Handle: RePEc:bla:worlde:v:47:y:2024:i:7:p:2762-2788
    DOI: 10.1111/twec.13608
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/twec.13608
    Download Restriction: no
    File URL: https://libkey.io/10.1111/twec.13608?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Howard Pack & Kamal Saggi, 2023. "Is There a Case for Industrial Policy? A Critical Survey," World Scientific Book Chapters, in: Kamal Saggi (ed.), Technology Transfer, Foreign Direct Investment, and the Protection of Intellectual Property in the Global Economy, chapter 26, pages 585-615, World Scientific Publishing Co. Pte. Ltd..
    2. Krueger, Anne O & Tuncer, Baran, 1982. "An Empirical Test of the Infant Industry Argument," American Economic Review, American Economic Association, vol. 72(5), pages 1142-1152, December.
    3. Santos Silva, J.M.C. & Tenreyro, Silvana, 2011. "Further simulation evidence on the performance of the Poisson pseudo-maximum likelihood estimator," Economics Letters, Elsevier, vol. 112(2), pages 220-222, August.
    4. Lorenzo Rotunno & Michele Ruta, 2024. "Trade Spillovers of Domestic Subsidies," IMF Working Papers 2024/041, International Monetary Fund.
    5. Réka Juhász & Nathan Lane & Dani Rodrik, 2024. "The New Economics of Industrial Policy," Annual Review of Economics, Annual Reviews, vol. 16(1), pages 213-242, August.
    6. Cherif Reda & Hasanov Fuad, 2019. "Principles of True Industrial Policy," Journal of Globalization and Development, De Gruyter, vol. 10(1), pages 1-22, June.
    7. Damien NEVEN & Paul SEABRIGHT, 1995. "European Industrial Policy: The Airbus Case," Cahiers de Recherches Economiques du Département d'économie 9509, Université de Lausanne, Faculté des HEC, Département d’économie.
    8. repec:imf:imfdep:2023/005 is not listed on IDEAS
    9. Richard Baldwin & Paul Krugman, 1988. "Industrial Policy and International Competition in Wide-Bodied Jet Aircraft," NBER Chapters, in: Trade Policy Issues and Empirical Analysis, pages 45-78, National Bureau of Economic Research, Inc.
    10. Bown, Chad, 2023. "Modern industrial policy and the WTO," CEPR Discussion Papers 18700, C.E.P.R. Discussion Papers.
    11. Romain Duval & Davide Furceri & Jakob Miethe, 2021. "Robust political economy correlates of major product and labor market reforms in advanced economies: Evidence from BAMLE for logit models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 36(1), pages 98-124, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lane, Nathaniel, 2016. "Manufacturing Revolutions: Industrial Policy and Industrialization in South Korea," SocArXiv 6tqax, Center for Open Science.
    2. ZHANG,Hongyong & CHENG,Wenyin & LIANG,David Tao & Meng,Bo, 2024. "Industrial Subsidies along Domestic Value Chains and their Impacts on China’s Exports," IDE Discussion Papers 937, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    3. Kaivanto, Kim & Stoneman, Paul, 2007. "Public provision of sales contingent claims backed finance to SMEs: A policy alternative," Research Policy, Elsevier, vol. 36(5), pages 637-651, June.
    4. Justin Yifu Lin, 2013. "New structural economics: the third wave of development thinking," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 27(2), pages 1-13, November.
    5. Wu, Yiyun & Zhu, Xiwei & Groenewold, Nicolaas, 2019. "The determinants and effectiveness of industrial policy in china: A study based on Five-Year Plans," China Economic Review, Elsevier, vol. 53(C), pages 225-242.
    6. Harrison, Ann & Rodríguez-Clare, Andrés, 2010. "Trade, Foreign Investment, and Industrial Policy for Developing Countries," Handbook of Development Economics, in: Dani Rodrik & Mark Rosenzweig (ed.), Handbook of Development Economics, edition 1, volume 5, chapter 0, pages 4039-4214, Elsevier.
    7. Irwin, Douglas A. & Pavcnik, Nina, 2004. "Airbus versus Boeing revisited: international competition in the aircraft market," Journal of International Economics, Elsevier, vol. 64(2), pages 223-245, December.
    8. Nathaniel Lane, 2020. "The New Empirics of Industrial Policy," Journal of Industry, Competition and Trade, Springer, vol. 20(2), pages 209-234, June.
    9. Koopmann, Georg, 1998. "German foreign economic policy in the age of globalisation," HWWA Discussion Papers 56, Hamburg Institute of International Economics (HWWA).
    10. Koopmann, Georg, 1998. "German Foreign Economic Policy in the Age of Globalisation," Discussion Paper Series 26395, Hamburg Institute of International Economics.
    11. Lin, Jietong & Wang, Xin & Xu, Mingzhi, 2024. "Industrial policy persistence and local economic performance: The role of subsidy allocation in China," Economic Modelling, Elsevier, vol. 141(C).
    12. Carson, Matthew., 2010. "Guiding structural change : the role of government in development," ILO Working Papers 994550973402676, International Labour Organization.
    13. Ralph Ossa & Stephen J. Redding, 2026. "The Economics of Tariffs," NBER Working Papers 34915, National Bureau of Economic Research, Inc.
    14. Barattieri, Alessandro & Mattoo, Aaditya & Taglioni, Daria, 2025. "Trade effects of industrial policies: Are preferential agreements a shield?," Journal of Policy Modeling, Elsevier, vol. 47(4), pages 830-841.
    15. Seabright, Paul, 1996. "The starfish effect: Can market entry by one firm encourage further entry by others?," European Economic Review, Elsevier, vol. 40(3-5), pages 541-550, April.
    16. Brian Tavonga Mazorodze, 2025. "Government Subsidies and Industrial Productivity in South Africa: A Focus on the Channels," Econometrics, MDPI, vol. 13(2), pages 1-26, May.
    17. Lars Calmfors & Giancarlo Corsetti & Michael P. Devereux & Gilles Saint-Paul & Hans-Werner Sinn & Jan-Egbert Sturm & Xavier Vives, 2008. "Chapter 4: Industrial policy," EEAG Report on the European Economy, CESifo, vol. 0, pages 105-124, February.
    18. Pramila Crivelli & Luca Rubini, 2019. "“Flying High in a Plane” Appellate Body Report, European Communities and Certain Member States – Measures Affecting Trade in Large Civil Aircraft (WT/DS316/AB/RW)," RSCAS Working Papers 2019/78, European University Institute.
    19. repec:ilo:ilowps:455097 is not listed on IDEAS
    20. Jinran Chen & Lijuan Xie, 2019. "Industrial policy, structural transformation and economic growth: evidence from China," Frontiers of Business Research in China, Springer, vol. 13(1), pages 1-19, December.
    21. Harrison, Ann E. & Rodriguez-Clare, Andres, 2009. "Trade, Foreign Investment, and Industrial Policy," MPRA Paper 15561, University Library of Munich, Germany.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:worlde:v:47:y:2024:i:7:p:2762-2788. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0378-5920 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.