IDEAS home Printed from https://ideas.repec.org/a/nea/journl/y2014i22p186-190.html
   My bibliography  Save this article

Industrial Policy - How to Choose Industries that Should Be Supported

Author

Listed:
  • Popov, V.

    (Russian Presidential Academy of National Economy and Public Administration (RANEPA), Moscow, Russia
    New Economic School (NES), Moscow, Russia)

Abstract

Sometimes industrial police is a success story, but sometimes it is a total failure. It seems like the best results are achieved in countries that (1) support industries oriented not only towards import substitution, but also towards export, at least in the longer run, and (2) support not all exports, but only exports of products that are associated with greatest externalities, emerging when returns for the whole society are larger than returns for particular exporting companies. As a rule, these are secondary manufacturing and high-tech industries. The ways to select industries that should be supported are discussed in the paper.

Suggested Citation

  • Popov, V., 2014. "Industrial Policy - How to Choose Industries that Should Be Supported," Journal of the New Economic Association, New Economic Association, vol. 22(2), pages 186-190.
    • Handle: RePEc:nea:journl:y:2014:i:22:p:186-190
    as

    Download full text from publisher

    File URL: http://www.econorus.org/repec/journl/2014-22-186-190r.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Richard Harris & Qian Cher Li, 2007. "Learning-by-Exporting? Firm-Level Evidence for UK Manufacturing and Services Sectors," Working Papers 2007_22, Business School - Economics, University of Glasgow.
    2. Hausmann, Ricardo & Rodrik, Dani, 2003. "Economic development as self-discovery," Journal of Development Economics, Elsevier, vol. 72(2), pages 603-633, December.
    3. Dani Rodrik, 2006. "What's So Special about China's Exports?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 14(5), pages 1-19, September.
    4. Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2007. "What you export matters," Journal of Economic Growth, Springer, vol. 12(1), pages 1-25, March.
    5. Yevgeniya Shevtsova, 2012. "International Trade and Productivity: Does Destination Matter?," Discussion Papers 12/18, Department of Economics, University of York.
    6. Polterovich, Victor & Popov, Vladimir, 2006. "Эволюционная Теория Экономической Политики: Часть I: Опыт Быстрого Развития [An Evolutionary Theory of Economic Policy: Part I: The Experience of Fast Development]," MPRA Paper 22168, University Library of Munich, Germany.
    7. Popov, V., 2014. "An Economic Miracle in the Post-Soviet Space: How Uzbekistan Managed to Achieve What No Other Post-Soviet State Has," Journal of the New Economic Association, New Economic Association, vol. 21(1), pages 136-159.
    8. Lee,Keun, 2013. "Schumpeterian Analysis of Economic Catch-up," Cambridge Books, Cambridge University Press, number 9781107042681, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Polterovich, V., 2014. "Industrial Policy: Recipes or Institutions?," Journal of the New Economic Association, New Economic Association, vol. 22(2), pages 190-195.
    2. Olga Romanova, 2018. "Industrial Policy Priorities of Russia in the Context of Challenges of the Fourth Industrial Revolution. Part 2," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(3), pages 806-819.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Popov, Vladimir, 2014. "Can Uzbekistan Economy Retain Its High Growth Rates? Scenarios of Economic Development in 2015-30," MPRA Paper 59735, University Library of Munich, Germany, revised 20 Oct 2014.
    3. Popov, Vladimir, 2019. "Successes and failures of industrial policy: Lessons from transition (post-communist) economies of Europe and Asia," MPRA Paper 95332, University Library of Munich, Germany.
    4. V. Popov & В. Попов, 2016. "Секреты И Перспективы Промышленной Политики Узбекистана // What Can Uzbekistan Tell Us About Industrial Policy That We Did Not Already Know," Review of Business and Economics Studies // Review of Business and Economics Studies, Финансовый Университет // Financial University, vol. 4(1), pages 5-25.
    5. Popov, Vladimir, 2014. "Сохранит Ли Экономика Узбекистана Высокие Темпы Роста? Сценарии Развития В 2015-30гг [Can Uzbekistan Economy Retain Its High Growth Rate? Scenarios Of Economic Development In 2015-30]," MPRA Paper 59785, University Library of Munich, Germany, revised 15 Oct 2014.
    6. Popov, V., 2015. "Can Uzbekistan Economy Retain Its High Growth Rate? Scenarios of Economic Development in 2015-2030," Journal of the New Economic Association, New Economic Association, vol. 27(3), pages 163-181.
    7. Jarreau, Joachim & Poncet, Sandra, 2012. "Export sophistication and economic growth: Evidence from China," Journal of Development Economics, Elsevier, vol. 97(2), pages 281-292.
    8. Polterovich, Victor & Popov, Vladimir & Tonis, Alexander, 2008. "Mechanisms of Resource Curse, Economic Policy and Growth," MPRA Paper 20570, University Library of Munich, Germany.
    9. Evgeny V. Balatsky & Natalia A. Ekimova, 2023. "Antifragility of the national economy: A heuristic assessment," Journal of New Economy, Ural State University of Economics, vol. 24(2), pages 28-49, July.
    10. Dosi, Giovanni & Roventini, Andrea & Russo, Emanuele, 2019. "Endogenous growth and global divergence in a multi-country agent-based model," Journal of Economic Dynamics and Control, Elsevier, vol. 101(C), pages 101-129.
    11. Hartmann, Dominik & Guevara, Miguel R. & Jara-Figueroa, Cristian & Aristarán, Manuel & Hidalgo, César A., 2017. "Linking Economic Complexity, Institutions, and Income Inequality," World Development, Elsevier, vol. 93(C), pages 75-93.
    12. Baliamoune-Lutz, Mina, 2019. "Trade sophistication in developing countries: Does export destination matter?," Journal of Policy Modeling, Elsevier, vol. 41(1), pages 39-51.
    13. repec:spo:wpmain:info:hdl:2441/46k9rkvut99i7qnn4vqm25t53b is not listed on IDEAS
    14. repec:hal:spmain:info:hdl:2441/46k9rkvut99i7qnn4vqm25t53b is not listed on IDEAS
    15. Jianing Hou & Shih-Chih Chen & De Xiao, 2018. "Measuring the Benefits of the “One Belt, One Road” Initiative for Manufacturing Industries in China," Sustainability, MDPI, vol. 10(12), pages 1-16, December.
    16. Song Zhang & Chunlai Chen, 2020. "Does Outward Foreign Direct Investment Facilitate China's Export Upgrading?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 28(5), pages 64-89, September.
    17. Nebojsa Stojcic & Edvard Orlic, 2016. "Foreign Direct Investment And Structural Transformation Of Exports," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 25(2), pages 355-378, december.
    18. Popov, Vladimir, 2023. "Can China maintain high growth rates under the “dual-circulation” decoupling?," MPRA Paper 117953, University Library of Munich, Germany.
    19. Bawoo Kim, 2017. "What has China learned from processing trade?," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 6(1), pages 1-14, December.
    20. Harrison, Ann E. & Rodriguez-Clare, Andres, 2009. "Trade, Foreign Investment, and Industrial Policy," MPRA Paper 15561, University Library of Munich, Germany.
    21. Manuel Agosin & Claudio Bravo-Ortega, 2009. "Surgimiento de nuevas actividades de exportación en América Latina: el caso de Chile," Research Department Publications 3266, Inter-American Development Bank, Research Department.
    22. Robert Z. Lawrence & Lawrence Edward, 2010. "Do Developed and Developing Countries Compete Head to Head in High Tech?," Working Paper Series WP10-8, Peterson Institute for International Economics.

    More about this item

    Keywords

    industrial policy; industrial structure; import substitutions; export orientation; diversification of exports;
    All these keywords.

    JEL classification:

    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • N1 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nea:journl:y:2014:i:22:p:186-190. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alexey Tcharykov (email available below). General contact details of provider: https://edirc.repec.org/data/nearuea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.