No . 2011 / 41 Can Industrial Policy Work under Neopatrimonial Rule ? Tilman Altenburg
نویسنده
چکیده
Technological latecomer countries face a dilemma, they need to pursue pro-active industrial policies to compensate for manifold disadvantages vis-à-vis established competitors, but at the same time, due to neopatrimonial politics and capacity constraints, their institutions are rarely in a position to correct market failure effectively. Do the risks of misallocation outweigh the benefits and should these countries abstain from industrial policies? Country studies show that selective industry support is indeed frequently used as a source of patronage and clientelism, and implementation is often ineffective. Two of the surveyed countries—Tunisia and Ethiopia—with neopatrimonial traits nevertheless pursue ambitious agendas of industrial modernization and implement them fairly effectively. Scarcity of fossil energy and mineral resources, the need to build legitimacy on increasing social welfare, and committed leadership distinguish them from worse performers. JEL classification: L52, O14
منابع مشابه
Can industrial policy work under neopatrimonial rule ?
Technological latecomer countries face a dilemma,they need to pursue pro-active industrial policies to compensate for manifold disadvantages vis-à-vis established competitors, but at the same time, due to neopatrimonial politics and capacity constraints, their institutions are rarely in a position to correct market failure effectively. Do the risks of misallocation outweigh the benefits and sho...
متن کاملGreen Exports and the Global Product Space: Prospects for Eu Industrial Policy
• We test if and where industrial policy to promote ‘green’ industry development can improve competitiveness in export markets. Proponents of ‘green growth’ have argued that domestic promotion of ‘green’ energy will generate improved comparative advantage in export markets for high-technology goods such as wind turbines or solar cells. If this holds depends on if domestic market expansion can, ...
متن کاملTaylor Rule: A Model for the Mechanism of Monetary Policy and Inflation Control in the Framework of the Interest-Free Banking Act
The ultimate goal of monetary policy is to achieve price stability and high output. In this regard, central banks usually change the interest rate, liquidity, and money base in order to apply monetary policies. The John B. Taylor rule is one of the rules known in the transmission of monetary policy.[1] Based on this rule and given the output gap and inflation gap, the central bank increases or ...
متن کامل