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Industrial Policy and the Great Divergence

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  • Juhász, Réka
  • Steinwender, Claudia

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

  • Juhász, Réka & Steinwender, Claudia, 2023. "Industrial Policy and the Great Divergence," SocArXiv 28uzn, Center for Open Science.
    • Handle: RePEc:osf:socarx:28uzn
    DOI: 10.31219/osf.io/28uzn
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    Cited by:

    1. Belloc, Filippo & Lofaro, Antonino, 2026. "Subsidies, new firms, and productivity in global manufacturing," International Journal of Industrial Organization, Elsevier, vol. 104(C).
    2. Ossa, Ralph & Redding, Stephen, 2026. "The Economics of Tariffs," CEPR Discussion Papers 21221, Centre for Economic Policy Research.
    3. 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.
    4. Grafström, Jonas, 2025. "Vertical industrial policy: principles, practice and potential," Ratio Working Papers 384, The Ratio Institute.
    5. 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.
    6. 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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    More about this item

    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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