The Return of the Policy That Shall Not Be Named: Principles of Industrial Policy
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Summary:
Industrial policy is tainted with bad reputation among policymakers and academics and is often viewed as the road to perdition for developing economies. Yet the success of the Asian Miracles with industrial policy stands as an uncomfortable story that many ignore or claim it cannot be replicated. Using a theory and empirical evidence, we argue that one can learn more from miracles than failures. We suggest three key principles behind their success: (i) the support of domestic producers in sophisticated industries, beyond the initial comparative advantage; (ii) export orientation; and (iii) the pursuit of fierce competition with strict accountability.
Series:
Working Paper No. 2019/074
Subject:
Comparative advantage Economic sectors Exports Income International trade Manufacturing National accounts Production Productivity
English
Publication Date:
March 26, 2019
ISBN/ISSN:
9781498305402/1018-5941
Stock No:
WPIEA2019074
Pages:
79
Please address any questions about this title to publications@imf.org