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Big push or big failure? On the effectiveness of industrialization policies for economic development

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  • Bjorvatn, Kjetil
  • Coniglio, Nicola Daniele

Abstract

The role of the government in industrialization is heavily debated. Some claim that extensive government involvement is key to initiate a sustainable development process, others see the government as an obstacle to it, pointing to the importance of government failure. We formulate a model, which explains why even a highly inefficient industrial policy can successfully promote big-push development. Moreover, we show that extensive government intervention is more likely to be successful when the initial level of development is low.

Suggested Citation

  • Bjorvatn, Kjetil & Coniglio, Nicola Daniele, 2012. "Big push or big failure? On the effectiveness of industrialization policies for economic development," Journal of the Japanese and International Economies, Elsevier, vol. 26(1), pages 129-141.
  • Handle: RePEc:eee:jjieco:v:26:y:2012:i:1:p:129-141 DOI: 10.1016/j.jjie.2011.07.005
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    References listed on IDEAS

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    Cited by:

    1. Wrona, Jens & Kreickemeier, Udo, 2016. "Industrialisation and the Big Push in a Global Economy," Annual Conference 2016 (Augsburg): Demographic Change 145707, Verein für Socialpolitik / German Economic Association.
    2. Michele Di Maio & Giorgio Fabbri & Vincenzo Lombardo, 2016. "Heterogeneous Entrepreneurs, Government Quality and Optimal Industrial Policy," Working Papers halshs-01340051, HAL.
    3. Steve Loris Gui-Diby & Mary-Françoise Renard, 2015. "Foreign Direct Investment Inflows and the Industrialization of African Countries," Post-Print halshs-01152516, HAL.
    4. Yuan Zi, 2014. "Trade Costs, Global Value Chains and Economic Development," CTEI Working Papers series 06-2014, Centre for Trade and Economic Integration, The Graduate Institute.
    5. Gui-Diby, Steve Loris & Renard, Mary-Françoise, 2015. "Foreign Direct Investment Inflows and the Industrialization of African Countries," World Development, Elsevier, vol. 74(C), pages 43-57.

    More about this item

    Keywords

    Industrialization; Big push; State owned enterprises; Government failure; Patronage employment;

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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