IDEAS home Printed from https://ideas.repec.org/p/eab/tradew/22111.html
   My bibliography  Save this paper

Relevance of ‘Policy Space’ for Development : Implications for Multilateral Trade Negotiations

Author

Listed:
  • Nagesh Kumar

    (RIS)

  • Kevin P. Gallagher

Abstract

This paper makes a compelling case for public intervention for fostering industrial development. We have also summarized evidence that suggests that present day developed countries have extensively employed infant industry protection, industrial policy and performance requirements, soft intellectual property protection regimes, subsidies, government procurement and regional economic integration among other policies in their process of industrialization. Many of these policies have also been effectively and successfully emulated by the newly industrializing economies in East Asia to build internationally competitive modern industries despite the lack of the apparent comparative advantage. A development-friendly outcome of the Doha Round would provide flexibility from the TRIPs and TRIMs obligations for facilitating transfer of technology and building up local capabilities in developing countries besides allowing them adequate space for pursuing infant industry protection in the tariff reduction commitments.

Suggested Citation

  • Nagesh Kumar & Kevin P. Gallagher, 2007. "Relevance of ‘Policy Space’ for Development : Implications for Multilateral Trade Negotiations," Trade Working Papers 22111, East Asian Bureau of Economic Research.
  • Handle: RePEc:eab:tradew:22111
    as

    Download full text from publisher

    File URL: http://www.eaber.org/node/22111
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jørgen Drud Hansen & Camilla Jensen & Erik Strøjer Madsen, 2001. "Green Subsidies and Learning-by-doing in the Windmill Industry," CIE Discussion Papers 2001-06, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
    2. Will Martin & Kym Anderson, 2006. "Agricultural Trade Reform and the Doha Development Agenda," World Bank Publications - Books, The World Bank Group, number 6889.
    3. Erik S. Reinert (ed.), 2004. "Globalization, Economic Development and Inequality," Books, Edward Elgar Publishing, number 1570.
    4. Westphal, Larry E., 2000. "Industrialization Meets Globalization : Uncertain Reflections on East Asian Experience," UNU-INTECH Discussion Paper Series 2000-08, United Nations University - INTECH.
    5. Francois, Joseph & van Tongeren, Frank & van Meijl, Hans, 2003. "Trade Liberalization and Developing Countries Under the Doha Round," CEPR Discussion Papers 4032, C.E.P.R. Discussion Papers.
    6. R. G. Lipsey & Kelvin Lancaster, 1956. "The General Theory of Second Best," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 24(1), pages 11-32.
    7. Yilmaz Akyüz, 2005. "The WTO Negotiations on Industrial Tariffs : What is at Stake for Developing Countries?," Trade Working Papers 22080, East Asian Bureau of Economic Research.
    8. Murphy, Kevin M & Shleifer, Andrei & Vishny, Robert W, 1989. "Industrialization and the Big Push," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1003-1026, October.
    9. Tibor Scitovsky, 1954. "Two Concepts of External Economies," Journal of Political Economy, University of Chicago Press, vol. 62(2), pages 143-143.
    10. Yılmaz AKYÜZ, 2005. "The wto negotiations on industrial tariffs: What is at stake for developing countries?," Iktisat Isletme ve Finans, Bilgesel Yayincilik, vol. 20(232), pages 5-35.
    11. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249.
    12. Anderson, Kym & Martin, Will & van der Mensbrugghe, Dominique, 2005. "Global impacts of Doha trade reform scenarios on poverty," Policy Research Working Paper Series 3735, The World Bank.
    13. Michael Hobday, 1995. "Innovation In East Asia," Books, Edward Elgar Publishing, number 226.
    14. Nagesh Kumar, 1998. "Multinational enterprises, regional economic integration, and export-platform production in the host countries: An empirical analysis for the US and Japanese corporations," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 134(3), pages 450-483, September.
    15. Nagesh Kumar & K.J. Joseph, 2006. "National Innovation Systems and India’s IT Capability: Are There Any Lessons for ASEAN Newcomers?," Chapters, in: Bengt-Åke Lundvall & Patarapong Intarakumnerd & Jan Vang (ed.), Asia’s Innovation Systems in Transition, chapter 10, Edward Elgar Publishing.
    16. Anne O. Krueger, 1996. "The Political Economy of Trade Protection," NBER Books, National Bureau of Economic Research, Inc, number krue96-2.
    17. Sachin Chaturvedi, 2007. "Trade Facilitation Measures in South Asian FTAs : An Overview of Initiatives and Policy Approaches," Trade Working Papers 22091, East Asian Bureau of Economic Research.
    18. John Weiss, 2005. "Export Growth and Industrial Policy: Lessons from the East Asian Miracle Experience," IDB Publications (Working Papers) 47618, Inter-American Development Bank.
    19. Anne O. Krueger, 1996. "Introduction to "The Political Economy of Trade Protection"," NBER Chapters, in: The Political Economy of Trade Protection, pages 1-4, National Bureau of Economic Research, Inc.
    20. Nagesh Kumar, 2006. "Emerging Multinationals : Trends, Patterns and Determinants of Outward Investment by Indian Enterprises," Microeconomics Working Papers 22108, East Asian Bureau of Economic Research.
    21. Ram Upendra Das & Ramaa Sambamurty, 2006. "Addressing Global Growth Asymmetries through Regional Trade Integration : Some Explorations," Trade Working Papers 22095, East Asian Bureau of Economic Research.
    22. Kim,Linsu & Nelson,Richard R. (ed.), 2000. "Technology, Learning, and Innovation," Cambridge Books, Cambridge University Press, number 9780521770033, September.
    23. Saman Kelegama & Indra Nath Mukherji, 2007. "India-Sri Lanka Bilateral Free Trade Agreement : Six Years Performance and Beyond," Trade Working Papers 22104, East Asian Bureau of Economic Research.
    24. Leopoldo Dimas & Susan Kandel & Deborah Barry & Herman Rosa, 2004. "Compensation for Environmental Services and Rural Communities: Lessons from the Americas," Working Papers wp96, Political Economy Research Institute, University of Massachusetts at Amherst.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kevin Gallagher, 2011. "Trading Away Stability and Growth: United States Trade Agreements in Latin America," Working Papers wp266, Political Economy Research Institute, University of Massachusetts at Amherst.
    2. Ken Jameson, 2008. "The Indigenous Movement and the Economic Trajectory of Ecuador," Working Paper Series, Department of Economics, University of Utah 2008_05, University of Utah, Department of Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yýlmaz Akyüz, "undated". "Global Rules and Markets: Constraints over Policy Autonomy in Developing Countries," Working Papers 2007/5, Turkish Economic Association.
    2. Kalim SIDDIQUI, 2016. "The Political Economy of Free Trade, WTO and the Developing Countries," Turkish Economic Review, KSP Journals, vol. 3(1), pages 103-121, March.
    3. Frank Ackerman, "undated". "The Shrinking Gains from Trade: A Critical Assessment of Doha Round Projections," GDAE Working Papers 05-01, GDAE, Tufts University.
    4. Eromenko, Igor, 2010. "Accession to the WTO. Computable General Equilibrium Analysis: the Case of Ukraine. Part II," MPRA Paper 67452, University Library of Munich, Germany.
    5. Stolpe, Michael, 1995. "Technology and the dynamics of specialization in open economies," Open Access Publications from Kiel Institute for the World Economy 738, Kiel Institute for the World Economy (IfW Kiel).
    6. Ram Upendra Das, 2009. "Regional Economic Integration in South Asia : Prospects and Challenges," Macroeconomics Working Papers 22987, East Asian Bureau of Economic Research.
    7. Shafaeddin, Mehdi, 2009. "Impact of Selectivity and Neutrality of trade Policy Incentives on Industrialization of Developing Countries; Implications for NAMA Negotiations," MPRA Paper 15037, University Library of Munich, Germany.
    8. Eromenko, Igor, 2011. "Accession to the WTO. Computable General Equilibrium Analysis: the Case of Ukraine," MPRA Paper 67535, University Library of Munich, Germany.
    9. Nathalie Berta, 2016. "On the definition of externality as a missing market," Post-Print halshs-01277990, HAL.
    10. Vanessa CASADELLA, 2014. "Systèmes d’innovation du Sud, transfert technologique et capacités d’apprentissage [Innovation Systems From The South, Technological Transfer And Leaning Capabilities]," Working Papers 38, Réseau de Recherche sur l’Innovation. / Research Network on Innovation.
    11. Venables, Anthony & Duranton, Gilles, 2018. "Place-Based Policies for Development," CEPR Discussion Papers 12889, C.E.P.R. Discussion Papers.
    12. Javier Revilla Diez & Martin Berger, 2005. "The Role of Multinational Corporations in Metropolitan Innovation Systems: Empirical Evidence from Europe and Southeast Asia," Environment and Planning A, , vol. 37(10), pages 1813-1835, October.
    13. Lori Bennear & Robert Stavins, 2007. "Second-best theory and the use of multiple policy instruments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(1), pages 111-129, May.
    14. Dieter Schmidtchen & Jenny Helstroffer & Christian Koboldt, 2021. "Regulatory failure and the polluter pays principle: why regulatory impact assessment dominates the polluter pays principle," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(1), pages 109-144, January.
    15. Bryan K. Ritchie, 2004. "Politics and Economic Reform in Malaysia," William Davidson Institute Working Papers Series 2004-655, William Davidson Institute at the University of Michigan.
    16. Mr. Etienne B Yehoue, 2005. "Clusters As a Driving Engine for FDI," IMF Working Papers 2005/193, International Monetary Fund.
    17. Karshenas M., 1993. "Environment, employment and sustainable development," ILO Working Papers 992920663402676, International Labour Organization.
    18. Mario Cimoli & Giovanni Dosi & Richard Nelson & Joseph Stiglitz, 2007. "Policies and Institutional Engineering in Developing Economies," Globelics Working Paper Series 2007-04, Globelics - Global Network for Economics of Learning, Innovation, and Competence Building Systems, Aalborg University, Department of Business and Management.
    19. repec:ilo:ilowps:417617 is not listed on IDEAS
    20. Dumitriu, Ramona & Stefanescu, Răzvan, 2016. "Strategic decisions on industrialization: case of Galati Steel Works," MPRA Paper 89007, University Library of Munich, Germany, revised 2016.
    21. Kala Krishna & César A. Pérez, 2005. "Unbalanced growth," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 38(3), pages 832-851, August.

    More about this item

    Keywords

    industrial development; Doha; WTO; industrialization;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F10 - International Economics - - Trade - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eab:tradew:22111. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Shiro Armstrong (email available below). General contact details of provider: https://edirc.repec.org/data/eaberau.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.