IDEAS home Printed from https://ideas.repec.org/p/imf/imfsdn/2025-002.html
   My bibliography  Save this paper

Industrial Policies: Handle with Care

Author

Listed:
  • Sandra Baquie
  • Yueling Huang
  • Ms. Florence Jaumotte
  • Jaden Kim
  • Rafael Machado Parente
  • Samuel Pienknagura

Abstract

Industrial policies (IPs) are increasingly implemented, necessitating a reassessment of their benefits and costs. This study examines their economic and geopolitical drivers and their impact on targeted sectors. While IPs yield moderate and uneven economic gains, they are more effective when addressing highly-distorted upstream sectors with suitable tools. Structural reforms generally offer greater benefits and strengthen the link between IPs and economic performance. However, IPs may lead to significant fiscal costs and unintended spillovers, potentially accelerating economic fragmentation. Therefore, careful management of IPs is crucial.

Suggested Citation

  • Sandra Baquie & Yueling Huang & Ms. Florence Jaumotte & Jaden Kim & Rafael Machado Parente & Samuel Pienknagura, 2025. "Industrial Policies: Handle with Care," IMF Staff Discussion Notes 2025/002, International Monetary Fund.
    • Handle: RePEc:imf:imfsdn:2025/002
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=561795
    Download Restriction: no
    ---><---

    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:imf:imfsdn:2025/002. 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: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.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.