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

  • Bjorvatn, Kjetil
  • Coniglio, Nicola Daniele

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.

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Article provided by Elsevier in its journal Journal of the Japanese and International Economies.

Volume (Year): 26 (2012)
Issue (Month): 1 ()
Pages: 129-141

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Handle: RePEc:eee:jjieco:v:26:y:2012:i:1:p:129-141
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622903

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  2. Dani Rodrik, 2008. "Goodbye Washington Consensus, Hello Washington Confusion? A Review of the World Banks Economic Growth in the 1990s: Learning from a Decade of Reform," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 55(2), pages 135-156, June.
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