Industrial Policy Coverage in IMF Surveillance

Industrial Policy Coverage in IMF Surveillance—Broad Considerations

March 11, 2024

Preview Citation

Format: Chicago

Industrial Policy Coverage in IMF Surveillance—Broad Considerations, (USA: International Monetary Fund, 2024) accessed December 21, 2024

Summary

The paper aims to provide a conceptual framework and guiding principles for the coverage of Industrial Policy (IP) in IMF surveillance. It proposes a working definition of industrial policy, discusses its objectives and main instruments, and provides a brief review of academic literature on IP. The paper discusses the four broad sets of considerations for assessing IP: justification, design, cost-benefit assessment, and implementation. It stresses that IP should be covered in IMF surveillance when it is deemed macro-critical and/or has the potential to generate significant cross-border spillovers. The paper also discusses specific aspects of industrial policies, including trade-related IP, green IP, Special Economic Zones (SEZs), and State-Owned Enterprises (SOEs), and provides examples of the IP coverage in the Article IV consultations with China, Euro Area, Indonesia, Saudi Arabia, and the United States.

Subject: Balance of payments, Financial sector policy and analysis, Institutional View on capital flows, International trade, Monetary policy, Political economy, Special economic zones, Spillovers, Tax incentives, Taxes, Trade policy

Keywords: Global, Green Industrial Policy, Horizontal Policies, IMF surveillance, Industrial Policy, Institutional View on capital flows, IP definition, IP effectiveness, IP measure, IP type, Special Economic Zones, Spillovers, State-Owned Enterprises, Structural Policies, Tax incentives, Trade Policy, Transparency policy

Publication Details

Pages:

38
Volume:

---
DOI:

---
Issue:

---
Series:

Policy Paper No. 2024/008
Stock No:

PPEA2024008
ISBN:

9798400266683
ISSN:

2663-3493

FACTSHEETS

RESOURCES

TOPICS

Flagship Publications

Other Publications

IMF reports and publications by country

Regional Offices

All News

See Also

For Journalists

Press Center

RESOURCES

FLAGSHIPS

KEY SERIES

IMF NOTES

Policy Papers