The political economy of industrial policy: Structural interdependencies, policy alignment and conflict management

By Antonio Andreoni, Ha-Joon Chang. Structural Change and Economic Dynamics, 2019

224 citations recorded by the source corpus.

Industrial policy is back in the mainstream debates. The paper provides a long-term analytical perspective of the industrial policy debate, and it critically assesses the current mainstream phase of the debate in light of three fundamental theoretical insights that developed along several decades of industrial policy theory and practice. These are related to the (i) structural interdependencies, tensions and dualism arising in the industrialisation process; (ii) variety and types of institutions for industrialisation and the importance of policy alignment; (iii) conflict management role of the government, alongside his entrepreneurial function, and the importance of government organisational capabilities. Building on this theoretical analysis, the last section of the paper provides a framework for the strategic coordination of packages of interactive industrial policy measures. The Policy Package Matrix is introduced as an operationalisation of the framework and a tool for effective industrial policy making.

Subfields: Economics and Econometrics, Political Science and International Relations

View Paper: https://www.semanticscholar.org/paper/0951d804d7cd3c16ab6362cc31fefe8f4df9e07b

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

1. Antonio Andreoni
2. F. Tregenna
3. Ha-Joon Chang
4. Matt Andrews
5. P. Arestis

In Political Science and International Relations

1. Antonio Andreoni
2. F. Tregenna
3. Ha-Joon Chang

Citations in the corpus

• Industrial Policy in the 21st Century (2020, background): “…one of the reasons for the East Asian economic successes (Chang, 2010; Stiglitz, 1996), but few contributions have so far looked at this policy alignment and synchronization between industrial and macroeconomic policies (for some exceptions, see Andreoni and Chang, 2019; Borras and Edquist, 2019).”
• Escaping the middle-income technology trap: A comparative analysis of industrial policies in China, Brazil and South Africa (2020, background): “First-tier suppliers and original equipment manufacturer (OEM) companies in middle-income countries, however, face multiple challenges in linking up to the GVC, especially moving into more technologically sophisticated segments of GVCs.”