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Industrial policy for growth

  • Farla, Kristine

    ()

    (UNU-MERIT / MGSOG, Maastricht University)

This study distinguishes between industrial policy that stimulates incumbent industry development, `pro-business policy', and industrial policy that promotes the development of free markets, `pro-market policy'. We find that there is a positive relation between the level of countries' implementation of these policies. However, we find opposite effects of pro-business and pro-market policies when estimating the policy effect on growth and income level. Pro-business policy has a positive effect on economic development, and pro-market policy has a negative effect on economic development.

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File URL: http://www.merit.unu.edu/publications/wppdf/2012/wp2012-039.pdf
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Paper provided by United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) in its series MERIT Working Papers with number 039.

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Date of creation: 2012
Date of revision:
Handle: RePEc:unm:unumer:2012039
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  1. Robert Wade, 2009. "Rethinking Industrial Policy in Low Income Countries," African Development Review, African Development Bank, vol. 21(2), pages 352-366.
  2. Stefano Breschi & Lucia Cusmano, 2002. "Unveiling the Texture of a European Research Area: Emergence of Oligarchic Networks under EU Framework Programmes," KITeS Working Papers 130, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Jul 2002.
  3. Finbarr Livesey, 2012. "Rationales for Industrial Policy Based on Industry Maturity," Journal of Industry, Competition and Trade, Springer, vol. 12(3), pages 349-363, September.
  4. Dani Rodrik & Arvind Subramanian, 2004. "From "Hindu Growth" to Productivity Surge; The Mystery of the Indian Growth Transition," IMF Working Papers 04/77, International Monetary Fund.
  5. Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2002. "Institutions Rule: The Primacy of Institutions over Geography and Integration in Economic Development," NBER Working Papers 9305, National Bureau of Economic Research, Inc.
  6. Daron Acemoglu & Philippe Aghion & Fabrizio Zilibotti, 2002. "Distance to Frontier, Selection, and Economic Growth," NBER Working Papers 9066, National Bureau of Economic Research, Inc.
  7. A. Colin Cameron & Jonah B. Gelbach & Douglas L. Miller, 2006. "Robust Inference with Multi-way Clustering," NBER Technical Working Papers 0327, National Bureau of Economic Research, Inc.
  8. Pierre-André Buigues & Khalid Sekkat, 2011. "Public Subsidies to Business: An International Comparison," Journal of Industry, Competition and Trade, Springer, vol. 11(1), pages 1-24, March.
  9. Jaymin Lee, 2011. "The Performance of Industrial Policy: Evidence from Korea," International Economic Journal, Taylor & Francis Journals, vol. 25(1), pages 1-27.
  10. de la Torre, Augusto & Gozzi, Juan Carlos & Schmukler, Sergio L., 2007. "Innovative experiences in access to finance : market friendly roles for the visible hand ?," Policy Research Working Paper Series 4326, The World Bank.
  11. Patrizio Bianchi & Sandrine Labory, 2006. "Empirical Evidence on Industrial Policy using State Aid Data," International Review of Applied Economics, Taylor & Francis Journals, vol. 20(5), pages 603-621.
  12. Luc Soete, 2007. "From Industrial to Innovation Policy," Journal of Industry, Competition and Trade, Springer, vol. 7(3), pages 273-284, December.
  13. Caroline Buts & Marc Jegers, 2013. "The Effect of ‘State Aid’ on Market Shares: An Empirical Investigation in an EU Member State," Journal of Industry, Competition and Trade, Springer, vol. 13(1), pages 89-100, March.
  14. Mario Cimoli & Giovanni Dosi & Joseph E. Stiglitz, 2008. "The Future of Industrial Policies in the New Millennium: Toward a Knowledge-Centered Development Agenda," LEM Papers Series 2008/19, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
  15. Heinz Zourek, 2007. "The European Commission’s New Industrial Policy in an Integrating and Globalizing World," Journal of Industry, Competition and Trade, Springer, vol. 7(3), pages 285-295, December.
  16. Robert H. Wade, 2012. "Return of industrial policy?," International Review of Applied Economics, Taylor & Francis Journals, vol. 26(2), pages 223-239, November.
  17. Mario Cimoli & Giovanni Dosi & Joseph E. Stiglitz, 2008. "The Political Economy of Capabilities Accumulation: the Past and Future of Policies for Industrial Development. A Preface," LEM Papers Series 2008/15, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
  18. Elie Cohen, 2007. "Industrial Policies in France: The Old and the New," Journal of Industry, Competition and Trade, Springer, vol. 7(3), pages 213-227, December.
  19. Furman, Jeffrey L. & Porter, Michael E. & Stern, Scott, 2002. "The determinants of national innovative capacity," Research Policy, Elsevier, vol. 31(6), pages 899-933, August.
  20. Aghion, Philippe & Dewatripont, Mathias & Du, Liqun & Harrison, Ann & Legros, Patrick, 2011. "Industrial Policy and Competition," CEPR Discussion Papers 8619, C.E.P.R. Discussion Papers.
  21. Fagerberg, Jan & Srholec, Martin, 2008. "National innovation systems, capabilities and economic development," Research Policy, Elsevier, vol. 37(9), pages 1417-1435, October.
  22. Michael Peneder, 2012. "Competition and Innovation: Revisiting the Inverted-U Relationship," Journal of Industry, Competition and Trade, Springer, vol. 12(1), pages 1-5, March.
  23. Valila, Timo, 2009. "No policy is an island - on the interaction between industrial and other policies," EIB Papers 7/2006, European Investment Bank, Economics Department.
  24. 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.
  25. Karl Aiginger & Susanne Sieber, 2006. "The Matrix Approach to Industrial Policy," International Review of Applied Economics, Taylor & Francis Journals, vol. 20(5), pages 573-601.
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