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

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  • 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
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    References listed on IDEAS

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    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.

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    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

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