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The Agents of Industrial Policy and the North-South Convergence: State-Owned Enterprises in an International-Trade Macroeconomic ABM

Author

Listed:
  • Lucrezia Fanti

    (Dipartimento di Politica Economica, DISCE, Università Cattolica del Sacro Cuore, Milano, Italy)

  • Marcelo C. Pereira

    (Institute of Economics, University of Campinas, Campinas, Brazil)

  • Maria Enrica Virgillito

    (Institute of Economics, Scuola Superiore Sant’Anna, Pisa, Italy)

Abstract

How to conceive industrial policies as development instruments distinct from trade or fiscal-deduction interventions? How can we model and study the role of State-owned enterprises (SOEs) as agents of industrial policy? How can we model their main attributes and architectures? Drawing on the labour-augmented K+S Agent-Based Model (ABM) in a two-country configuration, we propose an ABM aimed at analysing how SOEs may affect technological and industrial development, fostering economic growth and international competitiveness, in the context of a North-South, leader-laggard type of dynamics. Our objective is not simply to study the ex post outcomes of industrial policies, but rather to model SOEs as explicit economic agents potentially capable to drive industrial dynamics, institutional build-up, and, ultimately, growth. The results indicate that SOEs are a relevant policymaking instrument for these purposes.

Suggested Citation

  • Lucrezia Fanti & Marcelo C. Pereira & Maria Enrica Virgillito, 2024. "The Agents of Industrial Policy and the North-South Convergence: State-Owned Enterprises in an International-Trade Macroeconomic ABM," DISCE - Quaderni del Dipartimento di Politica Economica dipe0041, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    • Handle: RePEc:ctc:serie5:dipe0041
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    More about this item

    Keywords

    Industrial Policy; State-Owned Enterprises; Technology Gap; Agent-Based Model;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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