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Which "industrial policies" are meaningful for Latin America?

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  • Marcelo de Paiva Abreu

    (Department of Economics PUC-Rio)

Abstract

This paper’s main concern is to assess which "industrial policies" would be meaningful for Latin America nowadays. The first section considers definitions of "industrial policies" and their nature in the past. The second section centers on national growth experiences that may serve as paradigms for LAC economies. Section 3 is on economies which are growth paradigms and on their relevant policies. Section 4 is on present multilateral constraints on "industrial policies", especially in the case of subsidies and trade-related investment measures, as these have been considerably tightened as a result of the Uruguay Round of multilateral trade negotiations. The following section analyses the link between macroeconomics and "industrial policies" both in relation to limitations imposed by macroeconomic instability on industrial policy and to how growth depends on the cost of investment on both micro and macroeconomic factors. Section 6 analyses industrial policy alternatives. The paper concludes with section 7 which is on policy recommendations seeking to improve criteria to pick winners where market failures are especially costly.

Suggested Citation

  • Marcelo de Paiva Abreu, 2005. "Which "industrial policies" are meaningful for Latin America?," Textos para discussão 493, Department of Economics PUC-Rio (Brazil).
    • Handle: RePEc:rio:texdis:493
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    References listed on IDEAS

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    1. Mauricio Mesquita Moreira, 1995. "Industrialization, Trade and Market Failures," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-23698-5, December.
    2. Dani Rodrik & Arvind Subramanian, 2005. "From "Hindu Growth" to Productivity Surge: The Mystery of the Indian Growth Transition," IMF Staff Papers, Palgrave Macmillan, vol. 52(2), pages 193-228, September.
    3. Marcelo de Paiva Abreu, 2004. "Trade Liberalization and the Political Economy of Protection in Brazil since 1987," IDB Publications (Working Papers) 9376, Inter-American Development Bank.
    4. Chen, Derek H. C. & Dahlman, Carl J., 2004. "Knowledge and development : a cross-section approach," Policy Research Working Paper Series 3366, The World Bank.
    5. De Paiva Abreu, Marcelo, 2004. "Trade Liberalization and the Political Economy of Protection in Brazil since 1987," IDB Publications (Working Papers) 2642, Inter-American Development Bank.
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    Cited by:

    1. Manuel Orozco & Rachel Fedewa, 2007. "Leveraging efforts on remittances and financial intermediation," INTAL Working Papers 1448, Inter-American Development Bank, INTAL.
    2. Helen Shapiro, 2007. "Industrial Policy and Growth," Working Papers 53, United Nations, Department of Economics and Social Affairs.
    3. Luis Perez-Batres & Van Miller & Michael Pisani, 2010. "CSR, Sustainability and the Meaning of Global Reporting for Latin American Corporations," Journal of Business Ethics, Springer, vol. 91(2), pages 193-209, February.

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    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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