Industrialization was an essential path to modernization for early industrialized nations.Since the 1990s,however,premature deindustrialization has swept across much of the developing world,where industry contributed ...Industrialization was an essential path to modernization for early industrialized nations.Since the 1990s,however,premature deindustrialization has swept across much of the developing world,where industry contributed less to job creation and economic growth.Will developing countries still have opportunity to achieve economic growth and catch-up through industrialization?This article contends that the traditional path of industrialization has become more elusive in the era of globalization but the changing global economy and technological progress create new opportunities for developing countries.In today’s interconnected world,China’s economic rise has great implications for other developing countries.This article finds that China’s emergence as the world’s workshop has helped rather than hurt industrial development in Africa through two-way trade,but its impact may differ across the African continent,Africa’s industrial path may not follow an exportoriented approach.Instead,Africa’s future sustainability depends on its adoption of a diversified industrial policy.展开更多
Research on industrial policy has taken off,leading to a better understanding of when such policies effectively harness economic development.This article reviews the recent literature on the economics of industrial po...Research on industrial policy has taken off,leading to a better understanding of when such policies effectively harness economic development.This article reviews the recent literature on the economics of industrial policies.Until recently,empirical studies on industrial policies came largely in one of two types:detailed country/region studies and cross-industry or cross-country econometric studies.I point out that the country/region studies had the usual problem that it was difficult to trace the effects of success to specific industrial policies,while the econometric studies suffered from the problem of misspecification.I show that a new generation of work has been moving us beyond the largely ideological debates of the past to a more contextual,pragmatic understanding.展开更多
This review paper provides a new narrative by combing through the experiences of structural transformation among developing countries and discussing the roles of government and market in different contexts.Country per...This review paper provides a new narrative by combing through the experiences of structural transformation among developing countries and discussing the roles of government and market in different contexts.Country performance has been influenced by the prevailing development thinking:the structuralism in the 1950s-1970s,which stresses an active government's role to overcome market failures for industrialization,and the neoliberalism in the 1980s-present,which advocates for eliminating government failures to build up a well-functioning market.We find that almost all countries failing by following structuralism in their industrialization and neoliberalism in their transition to a market economy,and the few countries successful in catching up have a few characteristics that go against the prevailing structuralism and neoliberalism.The new structural economics,generated from the experiences of successful East Asian economies and proposing active facilitating roles of government in a market economy to remove market failures,will gain traction and take root.展开更多
文摘Industrialization was an essential path to modernization for early industrialized nations.Since the 1990s,however,premature deindustrialization has swept across much of the developing world,where industry contributed less to job creation and economic growth.Will developing countries still have opportunity to achieve economic growth and catch-up through industrialization?This article contends that the traditional path of industrialization has become more elusive in the era of globalization but the changing global economy and technological progress create new opportunities for developing countries.In today’s interconnected world,China’s economic rise has great implications for other developing countries.This article finds that China’s emergence as the world’s workshop has helped rather than hurt industrial development in Africa through two-way trade,but its impact may differ across the African continent,Africa’s industrial path may not follow an exportoriented approach.Instead,Africa’s future sustainability depends on its adoption of a diversified industrial policy.
文摘Research on industrial policy has taken off,leading to a better understanding of when such policies effectively harness economic development.This article reviews the recent literature on the economics of industrial policies.Until recently,empirical studies on industrial policies came largely in one of two types:detailed country/region studies and cross-industry or cross-country econometric studies.I point out that the country/region studies had the usual problem that it was difficult to trace the effects of success to specific industrial policies,while the econometric studies suffered from the problem of misspecification.I show that a new generation of work has been moving us beyond the largely ideological debates of the past to a more contextual,pragmatic understanding.
文摘This review paper provides a new narrative by combing through the experiences of structural transformation among developing countries and discussing the roles of government and market in different contexts.Country performance has been influenced by the prevailing development thinking:the structuralism in the 1950s-1970s,which stresses an active government's role to overcome market failures for industrialization,and the neoliberalism in the 1980s-present,which advocates for eliminating government failures to build up a well-functioning market.We find that almost all countries failing by following structuralism in their industrialization and neoliberalism in their transition to a market economy,and the few countries successful in catching up have a few characteristics that go against the prevailing structuralism and neoliberalism.The new structural economics,generated from the experiences of successful East Asian economies and proposing active facilitating roles of government in a market economy to remove market failures,will gain traction and take root.
