Industrial Policy and Development: The Political Economy of Capabilities Accumulation
Industrial Policy and Development: The Political Economy of Capabilities Accumulation
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Abstract
In the 1990s, development policy advocated by international financial institutions was influenced by the so-called Washington Consensus thinking. This strategy, based largely on liberalization, privatization, and price-flexibility, downplayed, if not disregarded, the role of government in steering the processes of technological learning and economic growth. With the exception of the Far East, many developing countries adopted the view that industrial policy resulted in inefficiency and poor economic growth. However, industrial policies have been successfully employed in the past in the countries that are now developed industrial leaders, including the USA, Germany, and Japan, and more recently by in what are now some of the most vibrant emerging markets. India, China, Brazil, and many NIE Asian countries nurtured technology intensive industries to jumpstart their production and (later) exports. They have had remarkable success not only in boosting economic growth, but also in diffusing the benefits of technological learning to the rest of the economy. The book analyzes the impact of an ensemble of industrial policies, including those affecting the accumulation of technological knowledge, institutions supporting scientific and technological learning, the profitability of different lines of business, the protection of “infant industries”, competition and intellectual property rights, and trade policies. Ample historical evidence, which the book explores, shows that industrial policies do work when appropriate combinations of measures are adopted. Well beyond a “market failure” perspective — whereby “perfect” markets are the purest benchmarks — institutions and policies embed both learning and non-learning behaviors, the construction of domestic learning organizations, national systems of production, imitation, and innovation. Together, the book discusses the opportunities and constraints facing the implementation of industrial policies associated with the current regime of international economic relations (WTO, TRIPs).
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Front Matter
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1
1 The Political Economy of Capabilities Accumulation: The Past and Future of Policies for Industrial Development
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Part I
General Introduction -
Part II
Industrial Policies in a Historical Perspective-
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4 Emulation versus Comparative Advantage: Competing and Complementary Principles in the History of Economic Policy
Erik S. Reinert
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5 Industrial Policies in Developing Countries: History and Perspectives
Michele Di Maio
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6 Industrial Tariffs, International Trade, and Development
Yılmaz Akyüz
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7 The (Slow) Return of Industrial Policies in Latin America and the Caribbean
Wilson Peres
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4 Emulation versus Comparative Advantage: Competing and Complementary Principles in the History of Economic Policy
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Part III
National and Regional Experiences-
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8 Flying Geese and Waddling Ducks: The Different Capabilities of East Asia and Latin America to ‘Demand‐Adapt’ and ‘Supply‐Upgrade’ their Export Productive Capacity
José Gabriel Palma
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9 Microeconomic Evolution in High Uncertainty Contexts: The Manufacturing Sector in Argentina
Bernardo Kosacoff andAdrián H. Ramos
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10 The Impact of Public Policies in Brazil along the Path from Semi‐Stagnation to Growth in a Sino‐Centric Market
Antonio Barros de Castro
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11 The Past, Present, and Future of Industrial Policy in India: Adapting to the Changing Domestic and International Environment
Ajit Singh
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12 Growth and Development in China and India: The Role of Industrial and Innovation Policy in Rapid Catch‐Up
Carl J. Dahlman
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13 The Political Economy of Industrial Policy in Asia and Latin America
Mushtaq H. Khan andStephanie Blankenburg
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14 The Roles of Research at Universities and Public Labs in Economic Catch‐Up
Roberto Mazzoleni andRichard R. Nelson
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15 Nationality of Firm Ownership in Developing Countries: Who Should ‘Crowd Out’ Whom in Imperfect Markets?
Alice H. Amsden
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16 A Question of Trust: Historical Lessons for Current Development
Colin Mayer
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17 Competition Policy and Industrial Development
Mario L. Possas andHeloisa Borges
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18 Latecomer Entrepreneurship: A Policy Perspective
Mike Hobday andFernando Perini
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19 Intellectual Property and Industrial Development: A Critical Assessment
Mario Cimoli and others
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8 Flying Geese and Waddling Ducks: The Different Capabilities of East Asia and Latin America to ‘Demand‐Adapt’ and ‘Supply‐Upgrade’ their Export Productive Capacity
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Part IV
Conclusion -
End Matter
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