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The industrial policy debate

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  • Kosacoff, Bernardo
  • Ramos, Adrián

Abstract

This article seeks to rethink the conceptual framework for the formulation of industrial policy in the conditions currently being faced by most of the more industrialized countries of the region; it may be noted that the debate has very similar features in the economies at an intermediate level of industrial development too. The authors review the different theories on government intervention (section II); and the industrial policy arguments (section III);. They then consider the situation of the developing countries, taking a structuralist view (section IV); and the interaction of the macro- and microeconomic levels (section V);, after which they briefly review the debate in the World Bank on these matters (section VI); and set forth the systemic approach taken by ECLAC (section VII);. In their final reflections (section VIII); they argue that every new industrial proposal must take account of the beneficial lessons of the past and the problems associated with the errors made on the way, and they emphasize the need to overcome such limitations and shortcomings in order to follow paths that will lead to the acquisition of dynamic comparative advantages. A system based on an explicit industrial policy will provide coordination mechanisms which are lacking in a free-market economy but can be more efficient in a context where the interdependence and special nature of the assets involved are given importance. Industrial policy must help to coordinate economic change, encourage experimentation and preserve diversity.

Suggested Citation

  • Kosacoff, Bernardo & Ramos, Adrián, 1999. "The industrial policy debate," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
  • Handle: RePEc:ecr:col070:10685
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    References listed on IDEAS

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    Cited by:

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    2. Freire Junior, Clovis, 2017. "Promoting structural transformation: Strategic diversification vs laissez-faire approach," MERIT Working Papers 2017-037, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    3. Calá, Carla Daniela & Manjón-Antolín, Miguel & Arauzo-Carod, Josep-Maria, 2017. "Regional determinants of exit across firms' size: evidence from a developing country," Nülan. Deposited Documents 2548, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    4. Belmartino, Andrea & Calá, Carla Daniela, 2020. "A regional approach to the study of industrial diversity in Argentina (1996–2012)," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    5. Alberto Melo, 2001. "Industrial Policy in Latin America and the Caribbean at the Turn of the Century," Research Department Publications 4281, Inter-American Development Bank, Research Department.
    6. Kross, Karmo, 2013. "Developmental welfare capitalism in East Asia with a special emphasis on South Korea," Discourses in Social Market Economy 2013-05, OrdnungsPolitisches Portal (OPO).
    7. Carla Daniela Calá & Miguel Manjón-Antolín & Josep-Maria Arauzo-Carod, 2017. "Regional Determinants of Exit Across Firms’ Size: Evidence from Argentina," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 108(6), pages 768-785, December.
    8. Melo, Alberto, 2001. "Industrial Policy in Latin America and the Caribbean at the Turn of the Century," IDB Publications (Working Papers) 6088, Inter-American Development Bank.
    9. Alberto Melo, 2001. "La política industrial en América Latina y el Caribe a comienzos del siglo," Research Department Publications 4282, Inter-American Development Bank, Research Department.
    10. Calá, Carla Daniela, 2018. "Sectoral and regional determinants of firm dynamics in developing countries: evidence for low-, mediumand high-tech manufacturing in Argentina," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    11. François Lévêque & Michelle Hallack, 2013. "The new Brazilian oil regulation: an ex ante economic assessment," RSCAS Working Papers 2013/48, European University Institute.

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