IDEAS home Printed from https://ideas.repec.org/a/taf/jdevst/v39y2003i4p84-111.html
   My bibliography  Save this article

Coordination Failures and Government Policy: Evidence From Emerging Countries

Author

Listed:
  • Stephen Ferris
  • Kishore Gawande

Abstract

Rodrik [JIE 1996] argues for coordinated government policy when emerging countries are stuck in a low wage equilibrium because of a coordination failure. Because the return to intermediate output is markedly below that realised when a minimum threshold number of varieties must produced in concert, the expectation of too few varieties is sufficient to discourage entry and keep a high tech sector from succeeding. Here we search for evidence consist with such threshold models on cross country data. First production data is used to ask (i) whether evidence of coordination failures among intermediate good producers is associated with a low wage equilibrium and (ii) whether government policy can succeed in moving an emerging country from a low to high wage equilibrium. Second, financial data is used to ask whether there is evidence that government coordination can replace missing private markets in emerging economies and whether a moderate degree of financial repression can help rather than hinder growth.

Suggested Citation

  • Stephen Ferris & Kishore Gawande, 2003. "Coordination Failures and Government Policy: Evidence From Emerging Countries," Journal of Development Studies, Taylor & Francis Journals, vol. 39(4), pages 84-111.
    • Handle: RePEc:taf:jdevst:v:39:y:2003:i:4:p:84-111
    DOI: 10.1080/713869427
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/713869427
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/713869427?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    Citations

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


    Cited by:

    1. Pazhanisamy, R., 2020. "Asymmetric Information and Global Market Failure: Evidence and Policy Implications from Covid-19," EconStor Research Reports 228512, ZBW - Leibniz Information Centre for Economics.

    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:taf:jdevst:v:39:y:2003:i:4:p:84-111. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/FJDS20 .

    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.