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Labor Market Policies as Instruments of Industry Policy: What Can Europe Learn from Southeast Asia?

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  • Anis Chowdhury

Abstract

. It seems there is a pessimistic view about the need and effectiveness of industry policy in an era of unprecedented globalization. The discussion about industry policy has been mostly on the fiscal, credit, and tariff measures, which are generally designed to favor particular activities. However, the rationale for industrial policy does not have to be the infant industry argument or market failures and knowledge spillover. In advanced industrial countries, the rationale for industry policy arises from the need to constantly restructure their economies to maintain competitiveness. The lesson that mature democracies can learn from East and Southeast Asia is the importance of consensual policy making, especially in the realm of the labor market. Such policies have not only helped them maintain macroeconomic stability but also accelerated industrial restructuring.

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  • Anis Chowdhury, 2008. "Labor Market Policies as Instruments of Industry Policy: What Can Europe Learn from Southeast Asia?," American Journal of Economics and Sociology, Wiley Blackwell, vol. 67(4), pages 661-681, October.
    • Handle: RePEc:bla:ajecsc:v:67:y:2008:i:4:p:661-681
    DOI: 10.1111/j.1536-7150.2008.00594.x
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    References listed on IDEAS

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    Cited by:

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    3. Florian Brugger, 2016. "Asias Reserve Accumulation: Part of a New Paradigm," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 6(8), pages 457-476, August.
    4. Popov, Vladimir & Chowdhury, Anis, 2015. "What Uzbekistan tells us about industrial policy that we did not know?," MPRA Paper 67013, University Library of Munich, Germany.
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    7. Mohammad Zulfan Tadjoeddin & Ilmiawan Auwalin & Anis Chowdhury, 2016. "Revitalizing Indonesia’s manufacturing: the productivity conundrum," Departmental Working Papers 2016-20, The Australian National University, Arndt-Corden Department of Economics.

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