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The New Empirics of Industrial Policy

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  • Nathaniel Lane

    (Monash University)

Abstract

Nations have and will continue to shape their economies through industrial policy. Nevertheless, the empirical literature on these interventions is thin, dwarfed by the attention industrial policies receive from policymakers across the world. In this paper, I discuss the difficulties of empirically studying industrial policy and review how new econometric work is confronting these issues. Through careful research design and attention to institutional detail, I argue that emergent studies are rapidly expanding what we know—and updating what we thought we knew—about these policies. As well, I argue tools from policy evaluation allow us to study the impact of endogenous industrial interventions. This review is a proposal to take industrial policy, along with their complexities, more seriously as objects of inquiry. Doing so requires not only more serious evaluations of past policy but also a reevaluation of past empirical work and consensus.

Suggested Citation

  • Nathaniel Lane, 2020. "The New Empirics of Industrial Policy," Journal of Industry, Competition and Trade, Springer, vol. 20(2), pages 209-234, June.
  • Handle: RePEc:kap:jincot:v:20:y:2020:i:2:d:10.1007_s10842-019-00323-2
    DOI: 10.1007/s10842-019-00323-2
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    6. Giovanni Dosi & Andrea Roventini & Emmanuele Russo, 2020. "Public Policies And The Art Of Catching Up," Working Papers hal-03242369, HAL.
    7. Lane, Nathaniel, 2016. "Manufacturing Revolutions: Industrial Policy and Industrialization in South Korea," SocArXiv 6tqax, Center for Open Science.
    8. Alje van Dam & Koen Frenken, 2020. "Vertical vs. Horizontal Policy in a Capabilities Model of Economic Development," Papers in Evolutionary Economic Geography (PEEG) 2037, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2020.
    9. Jonas Hjort & Vinayak Iyer & Golvine de Rochambeau, 2020. "Informational Barriers to Market Access: Experimental Evidence from Liberian Firms," SciencePo Working papers hal-03389180, HAL.
    10. Douglas A. Irwin, 2019. "Does Trade Reform Promote Economic Growth? A Review of Recent Evidence," Working Paper Series WP19-9, Peterson Institute for International Economics.
    11. Ron Crawford, 2021. "Focused innovation policy: Lessons from international experience," Working Papers 2021/03, New Zealand Productivity Commission.
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    13. Emilia Landa Shikomba & Elizabeth Elias & Sirorat Ruttanawijit, 2021. "Industry Policy Effects On Namibia'S Economic Growth," Economic Review: Journal of Economics and Business, University of Tuzla, Faculty of Economics, vol. 19(1), pages 13-22, May.
    14. Sebastian Siegloch & Nils Wehrhöfer & Tobias Etzel, 2022. "Spillover, Efficiency and Equity Effects of Regional Firm Subsidies," ECONtribute Discussion Papers Series 210, University of Bonn and University of Cologne, Germany.
    15. Feld, Lars P. & Schmidt, Christoph M. & Schnabel, Isabel & Truger, Achim & Wieland, Volker, 2019. "Den Strukturwandel meistern. Jahresgutachten 2019/20," Annual Economic Reports / Jahresgutachten, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung, volume 127, number 201920.
    16. Manelici, Isabela & Pantea, Smaranda, 2021. "Industrial policy at work: Evidence from Romania’s income tax break for workers in IT," European Economic Review, Elsevier, vol. 133(C).
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    14. James Harrigan & Ariell Reshef & Farid Toubal, 2018. "Techies, Trade, and Skill-Biased Productivity," NBER Working Papers 25295, National Bureau of Economic Research, Inc.
    15. Gornig, Martin & Schiersch, Alexander, 2019. "Agglomeration economies and firm TFP: different effects across industries," VfS Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203597, Verein für Socialpolitik / German Economic Association.
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    21. Yang Yang, 2018. "Transport Infrastructure, City Productivity Growth and Sectoral Reallocation: Evidence from China," IMF Working Papers 2018/276, International Monetary Fund.

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