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The agents of industrial policy and the North-South convergence: State-owned enterprises in an international-trade macroeconomic ABM

Author

Listed:
  • Lucrezia Fanti
  • Marcelo C. Pereira
  • Maria Enrica Virgillito

Abstract

How to conceive industrial policies as development instruments distinct from trade or fiscal-deduction interventions? How can we model and study the role of state-owned enterprises (SOEs) as agents of industrial policy? How can we model their main attributes and architectures? Drawing on the labour-augmented K+S agent-based model (ABM) in a two-country configuration, we propose an ABM aimed at analysing how SOEs may affect technological and industrial development, fostering economic growth and international competitiveness, in the context of a North-South, leader-laggard type of dynamics. Our objective is not simply to study the ex post out- comes of industrial policies, but rather to model SOEs as explicit economic agents potentially capable to drive industrial dynamics, institutional build-up, and, ultimately, growth. The results indicate that SOEs are a relevant policymaking instrument for these purposes.

Suggested Citation

  • Lucrezia Fanti & Marcelo C. Pereira & Maria Enrica Virgillito, 2024. "The agents of industrial policy and the North-South convergence: State-owned enterprises in an international-trade macroeconomic ABM," LEM Papers Series 2024/20, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    • Handle: RePEc:ssa:lemwps:2024/20
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    References listed on IDEAS

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    More about this item

    Keywords

    Industrial Policy; State-Owned Enterprises; Technology Gap; Agent-Based Model;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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