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Industrial policy and the great divergence

Author

Listed:
  • Reka Juhasz
  • Claudia Steinwender

Abstract

We discuss recent work evaluating the role of the government in shaping the economy during the long 19th century, a practice we refer to as industrial policy. We show that states deployed a vast variety of different policies aimed at, primarily, but not exclusively, fostering industrialization. We discuss the thin, but growing literature that evaluates the economic effects of these policies. We highlight some fruitful avenues for future study.

Suggested Citation

  • Reka Juhasz & Claudia Steinwender, 2023. "Industrial policy and the great divergence," CEP Discussion Papers dp1949, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp1949
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    References listed on IDEAS

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    Cited by:

    1. Doré, Natalia I. & Araújo, Eliane, 2025. "Long-term analysis of Kaldor's law applied to Brazil (1909-2020)," Structural Change and Economic Dynamics, Elsevier, vol. 74(C), pages 147-157.
    2. Ralph Ossa & Stephen J. Redding, 2026. "The Economics of Tariffs," NBER Working Papers 34915, National Bureau of Economic Research, Inc.
    3. Grafström, Jonas, 2025. "Vertical industrial policy: principles, practice and potential," Ratio Working Papers 384, The Ratio Institute.
    4. Suesse, Marvin & Grigoriadis, Theocharis, 2025. "Financing Late Industrialization: Evidence from the State Bank of the Russian Empire," The Journal of Economic History, Cambridge University Press, vol. 85(4), pages 1170-1206, December.
    5. Brian D. Varian, 2025. "Effective Rates of Protection in an Industrialising, Settler Economy: Estimates for Victoria (Australia) in 1880," CEH Discussion Papers 02, Centre for Economic History, Research School of Economics, Australian National University.

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    Keywords

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    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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