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Developing Economies with Industrial Policy: Towards a Toolbox for Economic Growth. With Case Studies of Jordan and Egypt


  • Benner, Maximilian


During the past two decades, the “Washington Consensus” has been the dominant recipe for unleashing economic growth in developing countries. In view of the strong criticism mounted against it, it seems to have lost prominence recently. The success of the East Asian newly industrialized economies and recently of China is often seen as an alternative way towards economic development. However, most instruments stipulated in the Washington Consensus can be reconciled with successful measures employed by industrialized or fastly industrializing Asian economies. Most likely, the stability and market orientation of the Washington Consensus as a recommendation for developing countries is not wrong in itself but rather incomplete. In order to give developing countries a perspective for durable and preferably inclusive growth, it must be complemented by a modern and market-oriented industrial policy aimed at upgrading the economy's competitiveness. Such a “newer” industrial policy offers a host of instruments that can enhance economic growth in a generally favorable macroeconomic framework that can be achieved through the Washington Consensus. This article undertakes to integrate industrial policy in a comprehensive toolbox for economic growth and takes Jordan and Egypt as examples for how industrial policy measures are employed in practice.

Suggested Citation

  • Benner, Maximilian, 2013. "Developing Economies with Industrial Policy: Towards a Toolbox for Economic Growth. With Case Studies of Jordan and Egypt," MPRA Paper 43857, University Library of Munich, Germany, revised 2013.
  • Handle: RePEc:pra:mprapa:43857

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    1. repec:mes:challe:v:33:y:1990:i:4:p:57-59 is not listed on IDEAS
    2. Tri Widodo, 2008. "Dynamic changes in comparative advantage: Japan “flying geese” model and its implications for China," Journal of Chinese Economic and Foreign Trade Studies, Emerald Group Publishing, vol. 1(3), pages 200-213, October.
    3. Karl Aiginger, 2007. "Industrial Policy: A Dying Breed or A Re-emerging Phoenix," Journal of Industry, Competition and Trade, Springer, vol. 7(3), pages 297-323, December.
    4. Dohse, Dirk, 2000. "Technology policy and the regions -- the case of the BioRegio contest," Research Policy, Elsevier, vol. 29(9), pages 1111-1133, December.
    5. Dirk Dohse, 2007. "Cluster-Based Technology Policy—The German Experience," Industry and Innovation, Taylor & Francis Journals, vol. 14(1), pages 69-94.
    6. Chaponniere, Jean-Raphael & Cling, Jean-Pierre & Zhou, Bin, 2008. "Vietnam Following in China?s Footsteps: The Third Wave of Emerging Asian Economies," WIDER Working Paper Series 084, World Institute for Development Economic Research (UNU-WIDER).
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    Cited by:

    1. Benner, Maximilian, 2013. "Towards a policy to promote tourism clusters," MPRA Paper 43924, University Library of Munich, Germany.

    More about this item


    economic growth; industrial policy; regional policy; development policy; Washington Consensus; Jordan; Egypt;

    JEL classification:

    • N45 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Asia including Middle East
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • N35 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Asia including Middle East
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General
    • L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy

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