scholarly journals Industrial Policy and Learning

2019 ◽  
pp. 207-234
Author(s):  
Wilson Peres ◽  
Annalisa Primi
Keyword(s):  
Political Economy ◽  
Latin America ◽  
Industrial Policy ◽  
Growth And Development ◽  
Technological Development ◽  
Industrial Policies ◽  
Limited Impact ◽  
Catching Up ◽  
The 1950S ◽  
Learning And Change

This chapter contributes to the understanding of how nations learn by looking at Latin America. It focuses on the experiences of some of the most advanced countries in the region, notably Brazil, Colombia, Chile, Mexico, and Uruguay. Industrial policies have been no strangers in these countries, however, diversifying the economy and catching up are still pending challenges. The analysis of the evolution of policies for industrialization and technological development from the 1950s onward clarifies why, in most cases, they had limited impact on domestic learning and catching-up dynamics. The review of some recent successful cases (from Chile, Uruguay, and Mexico) sheds light on which specific institutional and political economy dynamics enabled the activation of learning and change in the economy. The achievements and the persistent shortcomings of the region contribute to identifying lessons for growth and development whose relevance goes beyond Latin America and contributes to the overall global debate on how countries can achieve prosperity.

Book Reviews

2012 ◽  
Vol 50 (4) ◽  
pp. 1132-1135
Keyword(s):  
Political Economy ◽  
Developing Countries ◽  
Latin America ◽  
Industrial Policy ◽  
Industrial Development ◽  
State Intervention ◽  
The Political ◽  
Industrial Policies ◽  
Catch Up ◽  
The Caribbean

Ann Harrison of Wharton School, University of Pennsylvania reviews, “Industrial Policy and Development: The Political Economy of Capabilities Accumulation” by Mario Cimoli, Giovanni Dosi and Joseph E. Stiglitz. The EconLit Abstract of this book begins: “ Nineteen papers explore state intervention in industry and markets, focusing on successful industrial policies and interventions. Papers discuss institutions and policies shaping industrial development—an introductory note; technological learning, policy regimes, and growth—the long-term patterns and some specificities of a “"globalized'' economy; emulation versus comparative advantage—competing and complementary principles in the history of economic policy; industrial policies in developing countries—history and perspectives; industrial tariffs, international trade, and development; the (slow) return of industrial policies in Latin America and the Caribbean; the different capabilities of east Asia and Latin America to “"demand-adapt'' and “"supply-upgrade'' their export productive capacity; microeconomic evolution in high uncertainty contexts—the manufacturing sector in Argentina; the impact of public policies in Brazil along the path from semistagnation to growth in a Sino-centric market; the past, present, and future of industrial policy in India—adapting to the changing domestic and international environment; growth and development in China and India—the role of industrial and innovation policy in rapid catch-up; the political economy of industrial policy in Asia and Latin America; the roles of research at universities and public labs in economic catch-up; nationality of firm ownership in developing countries—who “"crowds out'' whom in imperfect markets; a question of trust—historical lessons for current development; competition policy and industrial development; latecomer entrepreneurship—a policy perspective; intellectual property and industrial development—a critical assessment; and the future of industrial policies in the new millennium—toward a knowledge-centered development agenda. Cimoli is with the United Nations Economic Commission for Latin America and the Caribbean and the Department of Economics at the University of Venice (Ca Foscari). Dosi is Professor of Economics at the Sant'Anna School of Advanced Studies, Pisa. Stiglitz is University Professor at Columbia University and Co-President of the Initiative for Policy Dialogue. Index.

Climate Converts: Institutional Redeployment, Industrial Policy, and Public Investment in Energy in Japan

2012 ◽  
Vol 12 (1) ◽  
pp. 89-117 ◽  
Author(s):  
Llewelyn Hughes
Keyword(s):  
Public Policy ◽  
Political Economy ◽  
Energy Policy ◽  
Industrial Policy ◽  
Public Investment ◽  
Industrial Policies ◽  
State Functions

A large literature in political economy argues that governments in the advanced industrialized states retrenched from the application of industrial policy while resisting pressure to reform in a limited number of sectors. In this article, I argue that retrenchment and resistance do not fully describe the range of choices made by governments. Through an analysis of investment in energy policy in Japan, I show that in addition to retrenching from industrial policies and resisting pressure to reduce industrial targeting, domestic actors have retained and redeployed state functions in public policy areas unaffected by the causes of liberalization.

Industrial Policy and Late Industrialization in Ethiopia

2019 ◽  
pp. 604-629
Author(s):  
Arkebe Oqubay
Keyword(s):  
Political Economy ◽  
Industrial Policy ◽  
Structural Transformation ◽  
Industrial Structure ◽  
Economic Structure ◽  
First Century ◽  
Industrial Policies ◽  
Early Twenty ◽  
Ethiopian Government ◽  
Catch Up

Ethiopia has emerged as one of the fastest-growing economies in Africa in the early twenty-first century. Despite rapid growth, structural transformation of the economy remains the country’s central challenge. This chapter reviews the origins of Ethiopia’s industrialization and industrial policymaking process in the twentieth century. The Ethiopian government has pursued developmentalism and practised an active industrial policy since the early 2000s. However, a review of industrial policies in priority sectors shows that the outcome has been uneven across sectors, indicating the importance of the interaction between industrial structure, linkage dynamics, and politics/political economy for the evolution and effectiveness of an industrial policy. After examining the fundamental weakness in Ethiopia’s economic structure, this chapter illustrates why and how industrial policy must focus on manufacturing and exports to generate structural transformation and accelerate catch-up. The Ethiopian experience shows that an activist industrial policy goes hand in hand with an activist state.

Middle Innovation Trap

2021 ◽  
pp. 100-122
Author(s):  
Jeong-Dong Lee ◽  
Chulwoo Baek ◽  
Jung-In Yeon
Keyword(s):  
Economic Growth ◽  
Growth And Development ◽  
Technological Development ◽  
Concept Design ◽  
Technological Capabilities ◽  
Middle Income ◽  
Development Patterns ◽  
Catching Up ◽  
Long Run ◽  
Middle Income Trap

In the context of emerging economies, long-run economic growth and development encompass mechanisms from technological catching-up to moving forward by one’s upgrading. However, as the economy reaches the middle-income range, economic growth mostly slows down unless adopting strategies for building technological capabilities. To identify the bottleneck in sustainable technological development and the ways to avoid the middle-income trap, therefore, this chapter focuses on the development patterns of two different types of technological capabilities: implementation and concept design capabilities. Our first finding from the empirical study emphasizes the need for the development of the concept design capability, describing the middle-income trap as a “capability transition failure” or “middle-innovation trap”. Secondly, discussing difficulties of the capability transition from the institutional rigidity perspective, this chapter highlights “innovation commons” as a coherent transition platform for the development of concept design capability.

Twilights and rebirths of National Development Banks in Latin America: Understanding factors that could have affected different trajectories in Argentina and Brazil

2016 ◽  
pp. 101-139
Author(s):  
María Luz Martínez Sola
Keyword(s):  
Political Economy ◽  
Industrial Policy ◽  
National Development ◽  
Second World War ◽  
Three Dimensions ◽  
Historical Period ◽  
World War ◽  
Political Coalitions ◽  
Development Banks ◽  
Second World

National Development Banks (NDB) could be pictured as engines pushing backward economies through the developmental ladder's rungs. After being key protagonists of industrial policy after Second World War, most NDBs were dismantled during the 1980s and 90 s. Notable exceptions to this trend exist, however. The goal of this study is thus to understand the political economy issues; Institutional Capacity International Bargaining Power and Domestic Political Coalitions; that explain those trajectories, by taking the cases of Argentina (BANADE) and Brazil (BNDES). When analyzing these three dimensions of political economy the paper concludes that the main difference between BANADE and BNDES' trajectories seems to stem from the diverse Domestic Political Coalitions crafted by Argentina and Brazil, in each historical period. Understanding the underlying conditions to create a cohesive and solid NDB is fundamental to reassess their roles in the XXI century industrial policy.

Capitalism and the State in Latin America

2020 ◽  
Author(s):  
Esteban Torres ◽  
Carina Borrastero
Keyword(s):  
Social Sciences ◽  
Latin America ◽  
Social Inequality ◽  
Latin American ◽  
The State ◽  
American Sociology ◽  
The 1950S ◽  
The Relationship

This article analyzes how the research on the relation between capitalism and the state in Latin America has developed from the 1950s up to the present. It starts from the premise that knowledge of this relation in sociology and other social sciences in Latin America has been taking shape through the disputes that have opposed three intellectual standpoints: autonomist, denialist, and North-centric. It analyzes how these standpoints envision the relationship between economy and politics and how they conceptualize three regionally and globally growing trends: the concentration of power, social inequality, and environmental depletion. It concludes with a series of challenges aimed at restoring the theoretical and political potency of the autonomist program in Latin American sociology.

Industrial Policy and Local Economic Transformation: Evidence From the U.S. Rust Belt

2021 ◽  
pp. 089124242110228
Author(s):  
Ben Armstrong
Keyword(s):  
Industrial Policy ◽  
Local Governments ◽  
State Level ◽  
Economic Transformation ◽  
Local Economy ◽  
Rust Belt ◽  
Industrial Policies ◽  
Cast Doubt ◽  
State And Local

State and local governments frequently invest in policies aimed at stimulating the growth of new industries, but studies of industrial policy and related economic development initiatives cast doubt on their effectiveness. This article examines the role of state-level industrial policies in contributing to the different economic trajectories of two U.S. metro areas—Pittsburgh, Pennsylvania, and Cleveland, Ohio—as they adapted to the decline of their legacy industries. Comparative case studies show that industrial policies in Pittsburgh, which empowered research universities as local economic leaders, contributed to the transformation of the local economy. In Cleveland, by contrast, state industrial policies invested in making incremental improvements, particularly in legacy sectors. The article concludes that by empowering new local economic actors—such as universities—industrial policies can foment political change that enables structural economic change to follow.

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