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Industrial Policy and the Great Divergence

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  • Juhász, Réka
  • Steinwender, Claudia

Abstract

We discuss recent work evaluating the role of the government in shaping the economy during the long 19th century, a practice we refer to as industrial policy. We show that states deployed a vast variety of different policies aimed at, primarily, but not exclusively, fostering industrialization. We discuss the thin, but growing literature that evaluates the economic effects of these policies. We highlight some fruitful avenues for future study.

Suggested Citation

  • Juhász, Réka & Steinwender, Claudia, 2023. "Industrial Policy and the Great Divergence," CEPR Discussion Papers 18489, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:18489
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    1. Sascha O. Becker & Ludger Woessmann, 2009. "Was Weber Wrong? A Human Capital Theory of Protestant Economic History," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(2), pages 531-596.
    2. Pablo Fajgelbaum & Stephen J. Redding, 2022. "Trade, Structural Transformation, and Development: Evidence from Argentina 1869–1914," Journal of Political Economy, University of Chicago Press, vol. 130(5), pages 1249-1318.
    3. Brian D. Varian, 2023. "British exports and foreign tariffs: Insights from the Board of Trade's foreign tariff compilation for 1902," Economic History Review, Economic History Society, vol. 76(3), pages 827-843, August.
    4. Liu, Cong, 2020. "The Effects of World War I on the Chinese Textile Industry: Was the World’s Trouble China’s Opportunity?," The Journal of Economic History, Cambridge University Press, vol. 80(1), pages 246-285, March.
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    More about this item

    Keywords

    Industrial policy; Infant industries; Technology adoption; Technology diffusion; Transport infrastructure; Industrialization;
    All these keywords.

    JEL classification:

    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • N1 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations
    • N4 - Economic History - - Government, War, Law, International Relations, and Regulation
    • N6 - Economic History - - Manufacturing and Construction

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