The Case for Industrial Policy : A Critical Survey
What are the underlying rationales for industrial policy? Does empirical evidence support the use of industrial policy for correcting market failures that plague the process of industrialization? To address these questions, the authors provide a critical survey of the analytical literature on indust...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2006/02/6567863/case-industrial-policy-critical-survey http://hdl.handle.net/10986/8782 |
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okr-10986-87822021-04-23T14:02:40Z The Case for Industrial Policy : A Critical Survey Pack, Howard Saggi, Kamal ASYMMETRIC INFORMATION BACKWARD LINKAGE CAPITAL MARKET CAPITAL MARKETS COLLABORATION COMPARATIVE ADVANTAGE COMPETITIVE PRICE COMPETITORS CONDITIONS CONSTANT RETURNS TO SCALE CONSUMERS DIMINISHING RETURNS DOMESTIC MARKET DYNAMIC ANALYSIS DYNAMIC EFFICIENCY ECONOMIES OF SCALE EQUILIBRIUM EXPORTS EXTERNALITIES FACTORS OF PRODUCTION FINANCIAL SECTOR FIXED COSTS FOREIGN COMPETITION FORMAL ANALYSIS FREE RIDER FREE RIDER PROBLEM FREE TRADE GROWTH MODELS HUMAN CAPITAL IMPERFECT COMPETITION INCREASING RETURNS INCREASING RETURNS TO SCALE INDUSTRIAL GROWTH INDUSTRIAL POLICIES INDUSTRIAL POLICY INDUSTRIALIZATION INFANT INDUSTRY ARGUMENT INTERMEDIATE GOODS INTERNATIONAL TRADE INVENTIONS LATIN AMERICAN LDCS LEARNING LICENSING LOCAL INDUSTRY MARKET ANALYSIS MARKET ECONOMY MARKET EQUILIBRIUM MARKET FAILURE MARKET FAILURES MARKET POWER MARKET STUDY MONOPOLISTIC COMPETITION MONOPOLY NATIONAL INCOME NEW INDUSTRY OLIGOPOLY OPEN ECONOMY OPPORTUNITY COST PERFECT COMPETITION POSITIVE EXTERNALITIES POSITIVE EXTERNALITY PRICE LEVELS PRODUCERS PRODUCT QUALITY PRODUCTION COSTS PRODUCTION EFFICIENCY PRODUCTION FUNCTION PRODUCTIVITY PROFIT MARGIN PROPERTY RIGHTS RENT SEEKING SOFTWARE INDUSTRY SUBSTITUTE SUPPLY CHAINS SURPLUS TELEPHONE LINES UNDERLYING PROBLEM WELFARE ECONOMICS YIELDS What are the underlying rationales for industrial policy? Does empirical evidence support the use of industrial policy for correcting market failures that plague the process of industrialization? To address these questions, the authors provide a critical survey of the analytical literature on industrial policy. They also review some recent industry successes and argue that only a limited role was played by public interventions. Moreover, the recent ascendance of international industrial networks, which dominate the sectors in which less developed countries have in the past had considerable success, implies a further limitation on the potential role of industrial policies as traditionally understood. Overall, there appears to be little empirical support for an activist government policy even though market failures exist that can, in principle, justify the use of industrial policy. 2012-06-22T15:28:23Z 2012-06-22T15:28:23Z 2006-02 http://documents.worldbank.org/curated/en/2006/02/6567863/case-industrial-policy-critical-survey http://hdl.handle.net/10986/8782 English Policy Research Working Paper; No. 3839 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ASYMMETRIC INFORMATION BACKWARD LINKAGE CAPITAL MARKET CAPITAL MARKETS COLLABORATION COMPARATIVE ADVANTAGE COMPETITIVE PRICE COMPETITORS CONDITIONS CONSTANT RETURNS TO SCALE CONSUMERS DIMINISHING RETURNS DOMESTIC MARKET DYNAMIC ANALYSIS DYNAMIC EFFICIENCY ECONOMIES OF SCALE EQUILIBRIUM EXPORTS EXTERNALITIES FACTORS OF PRODUCTION FINANCIAL SECTOR FIXED COSTS FOREIGN COMPETITION FORMAL ANALYSIS FREE RIDER FREE RIDER PROBLEM FREE TRADE GROWTH MODELS HUMAN CAPITAL IMPERFECT COMPETITION INCREASING RETURNS INCREASING RETURNS TO SCALE INDUSTRIAL GROWTH INDUSTRIAL POLICIES INDUSTRIAL POLICY INDUSTRIALIZATION INFANT INDUSTRY ARGUMENT INTERMEDIATE GOODS INTERNATIONAL TRADE INVENTIONS LATIN AMERICAN LDCS LEARNING LICENSING LOCAL INDUSTRY MARKET ANALYSIS MARKET ECONOMY MARKET EQUILIBRIUM MARKET FAILURE MARKET FAILURES MARKET POWER MARKET STUDY MONOPOLISTIC COMPETITION MONOPOLY NATIONAL INCOME NEW INDUSTRY OLIGOPOLY OPEN ECONOMY OPPORTUNITY COST PERFECT COMPETITION POSITIVE EXTERNALITIES POSITIVE EXTERNALITY PRICE LEVELS PRODUCERS PRODUCT QUALITY PRODUCTION COSTS PRODUCTION EFFICIENCY PRODUCTION FUNCTION PRODUCTIVITY PROFIT MARGIN PROPERTY RIGHTS RENT SEEKING SOFTWARE INDUSTRY SUBSTITUTE SUPPLY CHAINS SURPLUS TELEPHONE LINES UNDERLYING PROBLEM WELFARE ECONOMICS YIELDS |
| spellingShingle |
ASYMMETRIC INFORMATION BACKWARD LINKAGE CAPITAL MARKET CAPITAL MARKETS COLLABORATION COMPARATIVE ADVANTAGE COMPETITIVE PRICE COMPETITORS CONDITIONS CONSTANT RETURNS TO SCALE CONSUMERS DIMINISHING RETURNS DOMESTIC MARKET DYNAMIC ANALYSIS DYNAMIC EFFICIENCY ECONOMIES OF SCALE EQUILIBRIUM EXPORTS EXTERNALITIES FACTORS OF PRODUCTION FINANCIAL SECTOR FIXED COSTS FOREIGN COMPETITION FORMAL ANALYSIS FREE RIDER FREE RIDER PROBLEM FREE TRADE GROWTH MODELS HUMAN CAPITAL IMPERFECT COMPETITION INCREASING RETURNS INCREASING RETURNS TO SCALE INDUSTRIAL GROWTH INDUSTRIAL POLICIES INDUSTRIAL POLICY INDUSTRIALIZATION INFANT INDUSTRY ARGUMENT INTERMEDIATE GOODS INTERNATIONAL TRADE INVENTIONS LATIN AMERICAN LDCS LEARNING LICENSING LOCAL INDUSTRY MARKET ANALYSIS MARKET ECONOMY MARKET EQUILIBRIUM MARKET FAILURE MARKET FAILURES MARKET POWER MARKET STUDY MONOPOLISTIC COMPETITION MONOPOLY NATIONAL INCOME NEW INDUSTRY OLIGOPOLY OPEN ECONOMY OPPORTUNITY COST PERFECT COMPETITION POSITIVE EXTERNALITIES POSITIVE EXTERNALITY PRICE LEVELS PRODUCERS PRODUCT QUALITY PRODUCTION COSTS PRODUCTION EFFICIENCY PRODUCTION FUNCTION PRODUCTIVITY PROFIT MARGIN PROPERTY RIGHTS RENT SEEKING SOFTWARE INDUSTRY SUBSTITUTE SUPPLY CHAINS SURPLUS TELEPHONE LINES UNDERLYING PROBLEM WELFARE ECONOMICS YIELDS Pack, Howard Saggi, Kamal The Case for Industrial Policy : A Critical Survey |
| relation |
Policy Research Working Paper; No. 3839 |
| description |
What are the underlying rationales for industrial policy? Does empirical evidence support the use of industrial policy for correcting market failures that plague the process of industrialization? To address these questions, the authors provide a critical survey of the analytical literature on industrial policy. They also review some recent industry successes and argue that only a limited role was played by public interventions. Moreover, the recent ascendance of international industrial networks, which dominate the sectors in which less developed countries have in the past had considerable success, implies a further limitation on the potential role of industrial policies as traditionally understood. Overall, there appears to be little empirical support for an activist government policy even though market failures exist that can, in principle, justify the use of industrial policy. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Pack, Howard Saggi, Kamal |
| author_facet |
Pack, Howard Saggi, Kamal |
| author_sort |
Pack, Howard |
| title |
The Case for Industrial Policy : A Critical Survey |
| title_short |
The Case for Industrial Policy : A Critical Survey |
| title_full |
The Case for Industrial Policy : A Critical Survey |
| title_fullStr |
The Case for Industrial Policy : A Critical Survey |
| title_full_unstemmed |
The Case for Industrial Policy : A Critical Survey |
| title_sort |
case for industrial policy : a critical survey |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2006/02/6567863/case-industrial-policy-critical-survey http://hdl.handle.net/10986/8782 |
| _version_ |
1764405995848597504 |