Is There a Case for Industrial Policy? A Critical Survey

Pack, Howard; Saggi, Kamal

Is There a Case for Industrial Policy? A Critical Survey

Autores

Pack, Howard

Saggi, Kamal

Editor

Oxford University Press on behalf of the World Bank

Descripción

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? This article addresses these questions through a critical survey of the analytical literature on industrial policy. It also reviews some recent industry successes and argues that public interventions have played only a limited role. Moreover, the recent ascendance and dominance of international production networks in the sectors in which developing countries once 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.

Palabras clave

ACCOUNTING, ADVERSE EFFECT, AGRICULTURE, ANALOG, ASYMMETRIC INFORMATION, AUTOMOBILE, AUTOMOTIVE, BANKING SECTOR, BARRIER TO ENTRY, BARRIERS TO ENTRY, BASIC, BUSINESS CLIMATE, BUSINESSES, BUYER, CAPABILITIES, CAPITAL FORMATION, CAPITAL MARKET, CAPITAL MARKETS, CATALYTIC ROLE, CELLULAR PHONES, CITIES, CODES, COLLABORATION, COMMUNICATION TECHNOLOGY, COMPARATIVE ADVANTAGE, COMPETITION POLICY, COMPETITIVE ADVANTAGE, COMPETITIVE MARKET, COMPETITIVENESS, COMPONENTS, COMPUTER HARDWARE, COMPUTER SCIENCE, COMPUTER SOFTWARE, COMPUTER SOFTWARE INDUSTRY, COMPUTER SYSTEMS, COMPUTER TECHNOLOGY, CONSTANT RETURNS TO SCALE, CONSUMERS, COORDINATION FAILURE, COORDINATION FAILURES, CORPORATE TAX RATES, CREDIBILITY, DEVELOPING COUNTRIES, DEVELOPMENT BANK, DEVELOPMENT ECONOMICS, DEVELOPMENT STRATEGIES, DIMINISHING RETURNS, DIRECTED CREDIT, DOMESTIC MARKET, DYNAMIC ANALYSIS, E-MAIL, E-MAIL ADDRESS, ECONOMIC DEVELOPMENT, ECONOMIC POLICIES, ECONOMIC THEORY, ECONOMIES OF SCALE, ECONOMIES OF SCOPE, ELECTRONICS, ELECTRONICS INDUSTRY, ENTRY BARRIER, ENTRY BARRIERS, EQUILIBRIUM, EXPORTER, EXPORTS, EXTERNALITIES, EXTERNALITY, FINANCIAL CRISES, FINANCIAL CRISIS, FINANCIAL SECTOR, FIXED COSTS, FOREIGN COMPETITION, FOREIGN DIRECT INVESTMENT, FOREIGN INVESTMENT, FOREIGN INVESTORS, FOREIGN MARKETS, FORMAL ANALYSIS, FREE TRADE, GLOBAL CAPITAL, GLOBAL CAPITAL MARKETS, GLOBAL TRADE, GLOBALIZATION, GOVERNMENT INTERVENTION, GOVERNMENT INTERVENTIONS, GOVERNMENT POLICY, GOVERNMENT SUBSIDIES, GROSS DOMESTIC PRODUCT, GROSS DOMESTIC PRODUCT GROWTH, GROWTH MODELS, GROWTH RATE, HIGH TECHNOLOGY, HOST COUNTRIES, HOST COUNTRY, HOST ECONOMY, HUMAN CAPITAL, IMPLICIT TAX, INCREASING RETURNS, INCREASING RETURNS TO SCALE, INDUSTRIAL DEVELOPMENT, INDUSTRIALIZATION, INDUSTRY ASSOCIATION, INFANT INDUSTRY ARGUMENT, INFORMATION ASYMMETRY, INFORMATION EXCHANGE, INFORMATION INDUSTRY, INFORMATION TECHNOLOGY, INFORMATIONAL ASYMMETRIES, INNOVATION, INPUTOUTPUT, INSTITUTION, INSTRUMENT, INTELLECTUAL PROPERTY, INTENSIVE GROWTH, INTEREST RATES, INTERNATIONAL BANK, INTERNATIONAL DEVELOPMENT, INTERNATIONAL ECONOMICS, INTERNATIONAL FINANCE, INTERNATIONAL STANDARDS, INTERNATIONAL TRADE, INVENTIONS, INVESTING, INVESTMENT CLIMATE, INVESTMENT DECISIONS, LDCS, LEARNING, LOCAL MARKET, MANUFACTURING, MARGINAL COSTS, MARKET DISTORTIONS, MARKET ECONOMY, MARKET FAILURE, MARKET FAILURES, MARKETING, MONOPOLISTIC COMPETITION, MONOPOLY, NATIONAL INCOME, NETWORKING, NETWORKS, NEW MARKETS, NEW TECHNOLOGIES, NEW TECHNOLOGY, OLIGOPOLY, OPEN ECONOMY, OPPORTUNITY COST, OUTSOURCING, PERFECT COMPETITION, PHONES, POLITICAL ECONOMY, PORTFOLIO, POSITIVE EXTERNALITIES, POSITIVE FEEDBACK, POTENTIAL INVESTORS, PRIVATE SECTOR, PRODUCT CATEGORIES, PRODUCTION COSTS, PRODUCTION EFFICIENCY, PRODUCTION FUNCTION, PRODUCTIVITY, PRODUCTIVITY GROWTH, PROFIT MARGIN, PROGRAMMING, PROPERTY RIGHTS, R&AMP;D, RAM, RATE OF RETURN, REAL TIME, RENT SEEKING, RESULT, RESULTS, SAN, SATELLITE, SATELLITES, SEARCH, SETTLEMENT, SETTLEMENT PROCEDURE, SILICON, SOFTWARE DEVELOPMENT, SOFTWARE ENGINEERING, SOFTWARE EXPORTS, SOFTWARE INDUSTRY, SOFTWARE PROGRAMMERS, STOCK MARKETS, SUPPLY CHAINS, SUPPLY NETWORKS, TARGETS, TAX, TAX INCENTIVES, TAX SUBSIDIES, TECHNICAL INFRASTRUCTURE, TECHNICAL SKILLS, TECHNICIANS, TECHNOLOGICAL CHANGE, TECHNOLOGICAL LEARNING, TECHNOLOGY SPILLOVERS, TECHNOLOGY TRANSFER, TECHNOLOGY TRANSFERS, TELECOMMUNICATION, TELECOMMUNICATION INFRASTRUCTURE, TELECOMMUNICATIONS, TELECOMMUNICATIONS INFRASTRUCTURE, TELEPHONE, TELEPHONE LINES, TELEVISIONS, TIME PERIOD, TOTAL FACTOR PRODUCTIVITY, TOTAL FACTOR PRODUCTIVITY GROWTH, TRADE POLICY, TRADE PROTECTION, TRADE REGIMES, TRADING, TRADING SYSTEM, TRANSMISSION, UNDERLYING PROBLEM, USER INTERFACE, USES, VERTICAL INTEGRATION, WAGES, WELFARE ECONOMICS, WORLD TRADE ORGANIZATION, WTO, Y2K, Y2K PROBLEM