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The Return of Industrial Policy in Data

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  • Simon Evenett
  • Adam Jakubik
  • Fernando Martín
  • Michele Ruta

Abstract

This paper introduces the New Industrial Policy Observatory (NIPO) dataset and documents emergent patterns of policy intervention during 2023 associated with the return of industrial policy. The data show that the recent wave of new industrial policy activity is primarily driven by advanced economies, and that subsidies are the most employed instrument. Trade restrictions on imports and exports are more frequently used by emerging market and developing economies. Strategic competitiveness is the dominant motive governments give for these measures, but other objectives such as climate change, resilience and national security are on the rise. In exploratory regressions, we find that implemented measures are correlated with the past use of measures by other governments in the same sector, pointing to the tit-for-tat nature of industrial policy. Furthermore, domestic political economy factors and macroeconomic conditions correlate with the use of industrial policy measures. We intend for the NIPO to be a publicly available resource to help monitor the evolution and effects of industrial policies.

Suggested Citation

  • Simon Evenett & Adam Jakubik & Fernando Martín & Michele Ruta, 2024. "The Return of Industrial Policy in Data," IMF Working Papers 2024/001, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:2024/001
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    References listed on IDEAS

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    1. Krueger, Anne O & Tuncer, Baran, 1982. "An Empirical Test of the Infant Industry Argument," American Economic Review, American Economic Association, vol. 72(5), pages 1142-1152, December.
    2. Chad P. Bown, 2023. "Modern industrial policy and the WTO," Working Paper Series WP23-15, Peterson Institute for International Economics.
    3. Réka Juhász & Nathan Lane & Dani Rodrik, 2024. "The New Economics of Industrial Policy," Annual Review of Economics, Annual Reviews, vol. 16(1), pages 213-242, August.
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    6. repec:imf:imfdps:2023/005 is not listed on IDEAS
    7. Lorenzo Rotunno & Michele Ruta, 2024. "Trade Spillovers of Domestic Subsidies," IMF Working Papers 2024/041, International Monetary Fund.
    8. Cherif Reda & Hasanov Fuad, 2019. "Principles of True Industrial Policy," Journal of Globalization and Development, De Gruyter, vol. 10(1), pages 1-22, June.
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    Cited by:

    1. Fanti, Lucrezia & Pereira, Marcelo C. & Virgillito, Maria Enrica, 2024. "The agents of industrial policy and the North-South convergence: State-owned enterprises in an international-trade macroeconomic ABM," GLO Discussion Paper Series 1491, Global Labor Organization (GLO).
    2. Domenico Delli Gatti & Roberta Terranova & Enrico Maria Turco, 2024. "Industrial Policy in Times of Market Power," CESifo Working Paper Series 11544, CESifo.
    3. Xue, Jiashun & Poon, Jessie & Yang, Yu & Ji, Qiang, 2024. "Effect of green industrial policy on China's outward renewable energy investment," Energy Economics, Elsevier, vol. 138(C).
    4. Catherine L. Mann, 2024. "Could Domestic Industrial Policies, Even With Global Fragmentation, Revive Productivity?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 47, pages 3-19, Fall.

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