The Return of the Policy That Shall Not Be Named: Principles of Industrial Policy

Author/Editor:

Reda Cherif ; Fuad Hasanov

Publication Date:

March 26, 2019

Electronic Access:

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

Industrial policy is tainted with bad reputation among policymakers and academics and is often viewed as the road to perdition for developing economies. Yet the success of the Asian Miracles with industrial policy stands as an uncomfortable story that many ignore or claim it cannot be replicated. Using a theory and empirical evidence, we argue that one can learn more from miracles than failures. We suggest three key principles behind their success: (i) the support of domestic producers in sophisticated industries, beyond the initial comparative advantage; (ii) export orientation; and (iii) the pursuit of fierce competition with strict accountability.

Series:

Working Paper No. 19/74

Subject:

English

Publication Date:

March 26, 2019

ISBN/ISSN:

9781498305402/1018-5941

Stock No:

WPIEA2019074

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

79

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