Industrial policy (IP) is one of the most controversial issues in economics. There is no agreement on the different definitions of IP, especially in developing country contexts. Similarly, there are different economic arguments on the issue, those who favour IP and those who oppose it. Historically, developing countries have adopted different models of IP, each with varying characteristics, performance levels and results. IP performance and results need to be understood in historical, social, economic and political contexts of the regions and countries where it was applied. At the global level, IP design and implementation have influenced world trade rules and the international division of labour. More recently, research is looking at the elements of the “new industrial policy.”
— Suggested Readings
Amsden, Alice H. (2001). The Rise of the Rest: Challenges to the West from Late-Industrializing Economies. Oxford: Oxford University Press. [PDF 250KB]
Cimoli, Mario, Giovanni Dosi and Joseph E. Stiglitz (eds.) (2009). Industrial Policy and Development: The Political Economy of Capabilities Accumulation. Oxford: Oxford University Press. [PDF 230KB]
Harrison, Ann and Andrés Rodríguez-Clare (2010). Trade, Foreign Investment, and Industrial Policy for Developing Countries (NBER Working Paper No. 15261). Cambridge, MA: National Bureau of Economic Research (NBER). [PDF 150KB]
Pack, Howard and Kamal Saggi (2007). “The Case for Industrial Policy: A Critical Survey,” World Bank Research Observer, 21(2): 267–97. [PDF 120KB]
Rodrik, Dani. (2007). “Normalizing Industrial Policy” (CGD Working Paper No. 3). Washington, DC: Center for Global Development (CGD).
Soludo, Charles C., Osita Ogbu, and Ha-Joon Chang. (2004). The politics of trade and industrial policy in Africa: forced consensus? Ottawa: International Development Research Centre. (Résumé en français disponible ici)