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Industrial Policy - How to Choose Industries that Should Be Supported

Author

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  • Popov, V.

    (Russian Presidential Academy of National Economy and Public Administration (RANEPA), Moscow, Russia
    New Economic School (NES), Moscow, Russia)

Abstract

Sometimes industrial police is a success story, but sometimes it is a total failure. It seems like the best results are achieved in countries that (1) support industries oriented not only towards import substitution, but also towards export, at least in the longer run, and (2) support not all exports, but only exports of products that are associated with greatest externalities, emerging when returns for the whole society are larger than returns for particular exporting companies. As a rule, these are secondary manufacturing and high-tech industries. The ways to select industries that should be supported are discussed in the paper.

Suggested Citation

  • Popov, V., 2014. "Industrial Policy - How to Choose Industries that Should Be Supported," Journal of the New Economic Association, New Economic Association, vol. 22(2), pages 186-190.
    • Handle: RePEc:nea:journl:y:2014:i:22:p:186-190
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    References listed on IDEAS

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    8. Polterovich, Victor & Popov, Vladimir, 2006. "Эволюционная Теория Экономической Политики: Часть I: Опыт Быстрого Развития [An Evolutionary Theory of Economic Policy: Part I: The Experience of Fast Development]," MPRA Paper 22168, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Polterovich, V., 2014. "Industrial Policy: Recipes or Institutions?," Journal of the New Economic Association, New Economic Association, vol. 22(2), pages 190-195.
    2. Olga Romanova, 2018. "Industrial Policy Priorities of Russia in the Context of Challenges of the Fourth Industrial Revolution. Part 2," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(3), pages 806-819.

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    More about this item

    Keywords

    industrial policy; industrial structure; import substitutions; export orientation; diversification of exports;
    All these keywords.

    JEL classification:

    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • N1 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy

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