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Navigating Industrial Policy

Author

Listed:
  • Beata Javorcik
  • Alexander Plekhanov

Abstract

Key Messages:Industrial policies can be effective where markets fail, including in supporting green transitionIndustrial policies often pursue multiple conflicting objectives that must be prioritizedTo counteract discrimination against foreign interests, industrial policies should include competitive elements and market testsIndustrial policies should include sunset clauses and evaluation mechanisms to help assess whether the policy should be extendedEvaluation units could be made of independent experts, particularly in cases where the administrative capacity of governments is limited

Suggested Citation

  • Beata Javorcik & Alexander Plekhanov, 2026. "Navigating Industrial Policy," EconPol Forum, CESifo, vol. 27(01), pages 09-13, January.
    • Handle: RePEc:ces:epofor:v:27:y:2026:i:01:p:09-13
    as

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    References listed on IDEAS

    as
    1. 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.
    2. Réka Juhász & Nathan Lane, 2024. "The Political Economy of Industrial Policy," Journal of Economic Perspectives, American Economic Association, vol. 38(4), pages 27-54, Fall.
    3. repec:osf:osfxxx:y74uh_v1 is not listed on IDEAS
    4. Falck, Oliver & Gollier, Christian & Woessmann, Ludger (ed.), 2011. "Industrial Policy for National Champions," MIT Press Books, The MIT Press, edition 1, volume 1, number 026201601x, December.
    5. Gopinath, Gita & Gourinchas, Pierre-Olivier & Presbitero, Andrea F. & Topalova, Petia, 2025. "Changing global linkages: A new Cold War?," Journal of International Economics, Elsevier, vol. 153(C).
    6. Klakow Akepanidtaworn & Rick Di Mascio & Alex Imas & Lawrence D.W. Schmidt, 2023. "Selling Fast and Buying Slow: Heuristics and Trading Performance of Institutional Investors," Journal of Finance, American Finance Association, vol. 78(6), pages 3055-3098, December.
    Full references (including those not matched with items on IDEAS)

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