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The Need for Industrial Policy in LDC's--A Re-statement of the Infant Industry Argument

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  • Succar, Patricia

Abstract

This paper presents a learning-by-doing model of a small open economy. Learning acquired in production of an industry x enhances productivity of industries x and y. By introducing dynamic production complementarities across industries through the learning curve, this approach presents an important generalization of P.K. Bardhan's 1971 model. Copyright 1987 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

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  • Succar, Patricia, 1987. "The Need for Industrial Policy in LDC's--A Re-statement of the Infant Industry Argument," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 28(2), pages 521-534, June.
    • Handle: RePEc:ier:iecrev:v:28:y:1987:i:2:p:521-34
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    Cited by:

    1. Melitz, Marc J., 2005. "When and how should infant industries be protected?," Journal of International Economics, Elsevier, vol. 66(1), pages 177-196, May.
    2. To, T.C., 1993. "Infant Industry Protection with Learning-by-Doing," Discussion Paper 1993-26, Tilburg University, Center for Economic Research.
    3. Roman Stöllinger & Mario Holzner, 2017. "State Aid and Export Competitiveness in the EU," Journal of Industry, Competition and Trade, Springer, vol. 17(2), pages 203-236, June.
    4. Rodriguez-Clare, Andres, 2007. "Clusters and comparative advantage: Implications for industrial policy," Journal of Development Economics, Elsevier, vol. 82(1), pages 43-57, January.
    5. Kibritçioğlu, Aykut, 1996. "Friedrich List'in Bebek Endüstriler Tezi [Friedrich List's Infant Industry Argument]," MPRA Paper 2549, University Library of Munich, Germany.
    6. Harrison, Ann E. & Rodriguez-Clare, Andres, 2009. "Trade, Foreign Investment, and Industrial Policy," MPRA Paper 15561, University Library of Munich, Germany.
    7. B. Ravikumar & Raymond Riezman & Yuzhe Zhang, 2022. "Private Information and Optimal Infant Industry Protection," Working Papers 2022-013, Federal Reserve Bank of St. Louis, revised 18 Apr 2024.
    8. Harrison, Ann & Rodríguez-Clare, Andrés, 2010. "Trade, Foreign Investment, and Industrial Policy for Developing Countries," Handbook of Development Economics, in: Dani Rodrik & Mark Rosenzweig (ed.), Handbook of Development Economics, edition 1, volume 5, chapter 0, pages 4039-4214, Elsevier.
    9. Korinek, Anton & Servén, Luis, 2016. "Undervaluation through foreign reserve accumulation: Static losses, dynamic gains," Journal of International Money and Finance, Elsevier, vol. 64(C), pages 104-136.
    10. Alwyn Young, 1991. "Learning by Doing and the Dynamic Effects of International Trade," NBER Working Papers 3577, National Bureau of Economic Research, Inc.
    11. Florian Schaefer & Girum Abebe, 2015. "The case for industrial policy and its application in the Ethiopian cut flower sector," Working Papers 012, Policy Studies Institute.
    12. Dosi, Giovanni & Grazzi, Marco & Mathew, Nanditha, 2017. "The cost-quantity relations and the diverse patterns of “learning by doing”: Evidence from India," Research Policy, Elsevier, vol. 46(10), pages 1873-1886.
    13. Hassan Benchekroun & Ngo Long, 2018. "Nurturing an Infant Industry by Markovian Subsidy Schemes," Dynamic Games and Applications, Springer, vol. 8(3), pages 519-541, September.
    14. Keun Lee & John A. Mathews, 2010. "From Washington Consensus to BeST Consensus for world development," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 24(1), pages 86-103, May.
    15. Manelici, Isabela & Pantea, Smaranda, 2021. "Industrial policy at work: Evidence from Romania’s income tax break for workers in IT," European Economic Review, Elsevier, vol. 133(C).

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