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The Role of Industrial Policy as a Development Tool: New Evidence from the Globalization of Trade-and-Investment

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  • Theodore H Moran

Abstract

This paper identifies the ingredients for what it calls “light-handed†industrial policy to address these obstacles. To a certain extent, emerging market hosts can carry out the policy interventions recommended here on their own. But the evidence presented in this paper shows that external support is often essential to success. Developed countries, development agencies, and multilateral financial institutions have crucial roles to play. The paper concludes therefore with policy implications for developing countries, developed countries, and multilateral financial institutions.

Suggested Citation

  • Theodore H Moran, 2016. "The Role of Industrial Policy as a Development Tool: New Evidence from the Globalization of Trade-and-Investment," Working Papers id:8423, eSocialSciences.
  • Handle: RePEc:ess:wpaper:id:8423
    Note: Institutional Papers
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    File URL: http://www.esocialsciences.org/Download/repecDownload.aspx?fname=A201611517145_20.pdf&fcategory=Articles&AId=8423&fref=repec
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    References listed on IDEAS

    as
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    3. Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2007. "What you export matters," Journal of Economic Growth, Springer, vol. 12(1), pages 1-25, March.
    4. Theodore H. Moran & Edward M. Graham & Magnus Blomstrom, 2005. "Does Foreign Direct Investment Promote Development?," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 3810.
    5. Du, Luosha & Harrison, Ann & Jefferson, Gary, 2014. "FDI Spillovers and Industrial Policy: The Role of Tariffs and Tax Holidays," World Development, Elsevier, vol. 64(C), pages 366-383.
    6. Theodore H. Moran, 2003. "Reforming OPIC for the 21st Century," Peterson Institute Press: All Books, Peterson Institute for International Economics, number pa69.
    7. Torfinn Harding & Beata S. Javorcik, 2011. "Roll Out the Red Carpet and They Will Come: Investment Promotion and FDI Inflows," Economic Journal, Royal Economic Society, vol. 121(557), pages 1445-1476, December.
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    Citations

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    Cited by:

    1. Evelyn Dietsche, 2017. "New industrial policy and the extractive industries," WIDER Working Paper Series 161, World Institute for Development Economic Research (UNU-WIDER).
    2. Prema-chandra Athukorala, 2017. "Global Productions Sharing and Local Entrepreneurship in Developing Countries: Evidence from Penang Export Hub, Malaysia," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 4(2), pages 180-194, May.
    3. Ramesh Chandra Paudel & Swarnim Wagle, 2017. "Export performance and potential with regional partners: The case of a landlocked LDC, Nepal," Departmental Working Papers 2017-06, The Australian National University, Arndt-Corden Department of Economics.

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