Industrial Policy and Structural Change in Bolivia: Resource Curse or Historical Institutional Failure?

2021 ◽  
Author(s):  
Fernando Cruz Prego
Keyword(s):  
Structural Change ◽  
Industrial Policy ◽  
Resource Curse ◽  
Institutional Failure

Industrial Structural Change, Growth Patterns, and Industrial Policy

2013 ◽  
pp. 457-491 ◽  
Author(s):  
Ludovico Alcorta ◽  
Nobuya Haraguchi ◽  
Gorazd Rezonja
Keyword(s):  
Structural Change ◽  
Industrial Policy ◽  
Growth Patterns

Macro-Policy, Labour Markets, and Industrial Policy

2020 ◽  
pp. 450-484
Author(s):  
Servaas Storm
Keyword(s):  
Structural Change ◽  
Industrial Policy ◽  
Open Economy ◽  
Aggregate Demand ◽  
Point Of View ◽  
Policy Support ◽  
Industrial Diversification ◽  
Long Run ◽  
Industrialization Process ◽  
Labour Regulation

Debates on industrialization and industrial policy have historically had a supply-side bias: development planners focused on strengthening inter-industry linkages, mobilizing savings to finance investment, and the accumulation of technological knowledge. Aggregate demand was expected to accommodate and even facilitate the structural change brought about by the industrialization process. However, botched industrialization experiences in South East Asia, Latin America, and Africa demonstrate that failures to manage demand in ways supportive of industrial policy can slow or even derail industrialization. We use an open-economy growth model of a late industrializing economy, featuring cumulative causation and a (long-run) balance-of-payments constraint, to investigate conflicts and complementarities between macroeconomic and industrial policies. We identify key macro mechanisms that undermine industrialization processes—and highlight macro policies in support of industrial diversification, structural change, and upgrading. We close by arguing that from a macro point of view, the widely held claim that labour laws are a ‘luxury’ developing countries cannot afford, is wrong. Labour regulation and higher real wage growth, when given adequate macroeconomic policy support, can be made to further industrialization.

Technical Change, the Shifting ‘Terrain of the Industrial’, and Digital Industrial Policy

2020 ◽  
pp. 368-393
Author(s):  
Antonio Andreoni
Keyword(s):  
Developing Countries ◽  
Structural Change ◽  
Industrial Policy ◽  
Technical Change ◽  
Digital Technologies ◽  
Value Chains ◽  
Industrial Ecosystem ◽  
Technology Platforms ◽  
Key Enabling Technologies

Technical change is a major driver of structural transformation and industrial mutations within and across sectors of the economy. We show how, by deploying different concepts of sector—commodity/product, production/technology, or location-based taxonomies—we can better capture the heterogeneity of production activities, shifting sectoral boundaries, industrial mutations, sources of technical change, and non-linear patterns of structural change. These are important dimensions for industrial policy targeting. We analyse these technological dynamics with an industrial ecosystem framework structured around several sectoral value chains underpinned by different technology platforms. Within this framework, we highlight the role of digital technologies alongside other key enabling technologies and discuss technological change trajectories and cross-sectoral diversification patterns. Against this background, we discuss the specific challenges of deploying digital technologies effectively faced by developing countries. To address these challenges and capture windows of digital opportunity, industrial policy must be articulated along both sectoral and cross-sectoral mission-oriented strategies.

Industrial Structural Change, Growth Patterns, and Industrial Policy

2014 ◽  
Author(s):  
Ludovico Alcorta ◽  
Nobuya Haraguchi ◽  
Gorazd Rezonja
Keyword(s):  
Structural Change ◽  
Industrial Policy ◽  
Growth Patterns

The Rent Curse

2018 ◽  
Author(s):  
Richard M Auty ◽  
Haydn I Furlonge
Keyword(s):  
Economic Growth ◽  
Structural Change ◽  
Development Policy ◽  
Resource Curse ◽  
Dutch Disease ◽  
Sub Saharan Africa ◽  
Urban Sector ◽  
Relative Prices ◽  
High Rent ◽  
Sub Saharan

This book analyses the political economy of economic development using two stylized facts models of rent-driven growth. The models show that: (i) the resource curse is a variant of a wider rent curse that can be driven by geopolitical rent (foreign aid), labour rent (worker remittances), or regulatory rent (government manipulation of relative prices); (ii) the rent curse is caused by policy failure and is avoidable; (iii) the global incidence of the rent curse varies over time, which reflects development policy fashions; and (iv) the intensity of the rent curse also varies with rent linkages. Rent cycling theory posits that low rent incentivizes the elite to grow the economy to become wealthy, whereas high rent encourages siphoning rent for immediate enrichment at the expense of sustainable and diversified economic growth. The contrasting incentives trigger divergent policies and structural change. Low rent motivates the efficient allocation of inputs in line with the economy’s comparative advantage in labour-intensive exports, which drives: structural change; rapid egalitarian economic growth; and incremental democratization. High rent, however, elicits contests to capture rent for immediate enrichment so the economy absorbs rent too quickly. The economy experiences Dutch disease effects that expand a subsidized urban sector whose rent demands outstrip supply, resulting in a staple trap and a protracted growth collapse. The economy fails to diversify competitively and depends for growth on expanding rent rather than on competitive diversification that boosts productivity. The book uses the models to explain why many developing countries in Latin America, Sub-Saharan Africa, and the Gulf followed a staple trap trajectory and draws on East Asia and South Asia for reform.

Industrial Policy and the Evolution of Industrial Hubs in Vietnam

2020 ◽  
pp. 722-745
Author(s):  
Vu-Thanh Tu-Anh ◽  
Do-Thien Anh-Tuan
Keyword(s):  
Structural Change ◽  
Industrial Policy ◽  
Industrial Development ◽  
Industrial Structure ◽  
Foreign Firms ◽  
Private Sector Development ◽  
Doi Moi ◽  
Industrialization Policy ◽  
Political Economic ◽  
Early Phases

Industrial hubs (IHs) have played a significant role in Vietnam’s industrialization policy and helped transform the country’s economic and industrial structure, especially in the early phases of Doi Moi. However, IHs have not lived up to initial expectations of sustaining structural change, deepening domestic linkages, and upgrading industrial development, due to the dualistic nature of Vietnam’s political-economic system, an over reliance on a combination of SOEs and FDI, a hybrid industrialization policy, and a fragmented policy environment. Moving forward, it is critically important for Vietnam to continue capitalizing on the static gains by downsizing the SOE sector, fostering private-sector development, and reducing policy fragmentation. It is even more important for Vietnam to find ways to foster the dynamic gains of FDI and IHs by making incentives offered to foreign firms conditional on their performance, thereby facilitating an organic integration between FDI and domestic sectors.

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