Industrial Policy Coverage in IMF Surveillance— Broad Considerations
Policy Papers, March 11, 2024
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Bibliographic details
- Published: March 11, 2024
- Series: Policy Papers
- DOI: https://doi.org/10.5089/9798400266683.007
Overview
- Aim: Provide a conceptual framework and guiding principles for the coverage of Industrial Policy (IP) in IMF surveillance.
- Core emphasis: Cover IP in IMF surveillance when it is deemed macro-critical and/or has the potential to generate significant cross-border spillovers.
- Components of the paper:
- Proposes a working definition of industrial policy.
- Discusses objectives and main instruments of IP.
- Provides a brief review of academic literature on IP.
- Discusses four broad sets of considerations for assessing IP.
- Discusses specific IP aspects (trade-related IP, green IP, SEZs, SOEs).
- Provides examples of IP coverage in Article IV consultations.
Working definition, objectives, and instruments
- Proposes a working definition of Industrial Policy (IP).
- Discusses IP objectives and main instruments (as presented in the paper).
- Provides a brief review of academic literature on IP.
Four broad sets of considerations for assessing IP
- Justification
- Design
- Cost-benefit assessment
- Implementation
Criteria for IMF surveillance coverage
- IP should be covered when:
- It is macro-critical.
- It has the potential to generate significant cross-border spillovers.
Specific aspects of industrial policies covered
- Trade-related IP
- Green IP
- Special Economic Zones (SEZs)
- State-Owned Enterprises (SOEs)
Examples of Article IV coverage
- Country examples cited for IP coverage in Article IV consultations:
- China
- Euro Area
- Indonesia
- Saudi Arabia
- United States
Content in this bundle
- Policy Paper