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The Failure of French Industrial Policy

Author

Listed:
  • Pierre-André Buigues

    (University of Toulouse (Toulouse Business School))

  • Elie Cohen

    (Centre National de la Recherche Scientifique)

Abstract

France, for a century, thought of herself as a great industrial nation. This country not only saw a source of prosperity and quality jobs for its citizens but also always considered technological autonomy and industrial power as an attribute of sovereignty. For the classical economist, deindustrialization is a fact of development: the more economies grow and become more sophisticated, the more they produce and consume services, and the more industrial activities migrate to emerging countries. However, in France, the attachment to industry and to an active industrial policy remained strong even as the country gradually embarked on European construction and had to respond to globalization and new technological waves. France has long successfully pursued an industrial policy of major projects. European integration, the ever closer union, the development of regulatory authorities for competition, and state aids led France to dismantle its public intervention apparatus. The introduction of the euro further deprived France of its devaluation power to correct relative competitiveness losses. Thus, France is a pure case of a voluntarist country subjected to the test of globalization intermediated by the European Union whose long-term effects on deindustrialization can be judged.

Suggested Citation

  • Pierre-André Buigues & Elie Cohen, 2020. "The Failure of French Industrial Policy," Journal of Industry, Competition and Trade, Springer, vol. 20(2), pages 249-277, June.
  • Handle: RePEc:kap:jincot:v:20:y:2020:i:2:d:10.1007_s10842-019-00325-0
    DOI: 10.1007/s10842-019-00325-0
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    References listed on IDEAS

    as
    1. Pierre-André Buigues & Khalid Sekkat, 2011. "Public Subsidies to Business: An International Comparison," Journal of Industry, Competition and Trade, Springer, vol. 11(1), pages 1-24, March.
    2. Pierre-André Buigues & Khalid Sekkat, 2009. "Industrial Policy in Europe, Japan and the USA," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-24435-1, December.
    3. Dani Rodrik, 2016. "Premature deindustrialization," Journal of Economic Growth, Springer, vol. 21(1), pages 1-33, March.
    4. Elie Cohen, 2007. "Industrial Policies in France: The Old and the New," Journal of Industry, Competition and Trade, Springer, vol. 7(3), pages 213-227, December.
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    Cited by:

    1. Samuel Klebaner & Anaïs Voy-Gillis, 2023. "The political economy of French industrial policymaking," Review of Evolutionary Political Economy, Springer, vol. 4(1), pages 49-74, April.

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    More about this item

    Keywords

    Public support; Business; Subsidies; Public procurement; Competitivity;
    All these keywords.

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods

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