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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
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    File URL: http://www.eaber.org/node/22111
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. Nagesh Kumar & K.J. Joseph, 2006. "National Innovation Systems and India’s IT Capability: Are There Any Lessons for ASEAN Newcomers?," Chapters,in: Asia’s Innovation Systems in Transition, chapter 10 Edward Elgar Publishing.
    4. Will Martin & Kym Anderson, 2006. "Agricultural Trade Reform and the Doha Development Agenda," World Bank Publications, The World Bank, number 6889.
    5. John Weiss, 2005. "Export Growth and Industrial Policy: Lessons from the East Asian Miracle Experience," IDB Publications (Working Papers) 47618, Inter-American Development Bank.
    6. 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.
    7. R. G. Lipsey & Kelvin Lancaster, 1956. "The General Theory of Second Best," Review of Economic Studies, Oxford University Press, vol. 24(1), pages 11-32.
    8. 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.
    9. 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.
    10. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249, March.
    11. 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.
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    Citations

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    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.

    More about this item

    Keywords

    industrial development; Doha; WTO; industrialization;

    JEL classification:

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

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