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Embracing globalization to promote industrialization: Insights from the development of Singapore's petrochemicals industry

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  • Vu, Khuong M.

Abstract

Debates about industrial policy reveal disagreements on three salient issues. The first is whether government can overcome its own failures, namely knowledge constraints and rent-seeking, to correct market failures. The second is whether government should go beyond horizontal policies to adopt more activist interventions such as “winner-picking.” The third is whether intervention should follow or defy the country's comparative advantage. Singapore's experience in developing a globally competitive petrochemicals industry, within only a few decades and through vigorous interventions, provides meaningful insights into these debates and offers valuable lessons for developing countries. The lessons drawn from this paper suggest three fundamental principles for designing a promotion strategy and a strategic action framework for implementation.

Suggested Citation

  • Vu, Khuong M., 2018. "Embracing globalization to promote industrialization: Insights from the development of Singapore's petrochemicals industry," China Economic Review, Elsevier, vol. 48(C), pages 170-185.
    • Handle: RePEc:eee:chieco:v:48:y:2018:i:c:p:170-185
    DOI: 10.1016/j.chieco.2017.01.003
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    Cited by:

    1. Guiliang Li & Bingyuan Hong & Haoran Hu & Bowen Shao & Wei Jiang & Cuicui Li & Jian Guo, 2022. "Risk Management of Island Petrochemical Park: Accident Early Warning Model Based on Artificial Neural Network," Energies, MDPI, vol. 15(9), pages 1-13, April.
    2. Efrain Boom-Cárcamo & Rita Peñabaena-Niebles, 2022. "Analysis of the Development of Industrial Symbiosis in Emerging and Frontier Market Countries: Barriers and Drivers," Sustainability, MDPI, vol. 14(7), pages 1-32, April.
    3. Milad Bagheri & Ku Azam Tuan Lonik & Mastura Jaafar & Radziah Adam & Wan Izatul Asma Wan Talaat & Isabelle D. Wolf, 2022. "Integrating Social, Economic, and Environmental Factors to Evaluate How Competitive Urban Landscapes Are for the Development of Sustainable Cities: Penang Island in Malaysia as a Case Study," Land, MDPI, vol. 12(1), pages 1-27, December.

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    More about this item

    Keywords

    Industrial policy; Cluster; Strategy; Petrochemicals; Singapore;
    All these keywords.

    JEL classification:

    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy

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