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Can Industrial Policy Work under Neopatrimonial Rule?

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  • Tilman Altenburg

Abstract

Technological latecomer countries face a dilemma, they need to pursue pro-active industrial policies to compensate for manifold disadvantages vis-à-vis established competitors, but at the same time, due to neopatrimonial politics and capacity constraints, their institutions are rarely in a position to correct market failure effectively. Do the risks of misallocation outweigh the benefits and should these countries abstain from industrial policies?

Suggested Citation

  • Tilman Altenburg, 2011. "Can Industrial Policy Work under Neopatrimonial Rule?," WIDER Working Paper Series wp-2011-041, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2011-041
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    File URL: https://www.wider.unu.edu/sites/default/files/wp2011-041.pdf
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    Cited by:

    1. Benner, Maximilian, 2013. "Developing Economies with Industrial Policy: Towards a Toolbox for Economic Growth. With Case Studies of Jordan and Egypt," MPRA Paper 43857, University Library of Munich, Germany, revised 2013.
    2. Benner, Maximilian, 2012. "Cluster Policy: Principles and a Toolbox," MPRA Paper 43847, University Library of Munich, Germany.
    3. Tine Lehmann & Maximilian Benner, 2015. "Cluster Policy in the Light of Institutional Context—A Comparative Study of Transition Countries," Administrative Sciences, MDPI, vol. 5(4), pages 1-25, October.

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