Thursday, October 14, 2010

Industrial policy and government intervention

In my International Political Economy class, we will be covering international competitiveness and
strategic trade policy tomorrow. This past summer, the Economist featured a very informative debate on the issue of industrial policy (government promotion of particular industries) between Josh Lerner and Dani Rodrik. Worth reading in its entirety (the link is to the overview page, but there are opening statements, rebuttals, and closing statements by both economists as well as the moderator). None of the contributions really break new ground, but they do a nice job of highlighting the promises and pitfalls of government intervention in industry.

(update, 15 Oct.)
The Economist also had a nice article later in the summer (Aug. 15th) about the renewed appeal of industrial policy in rich countries: Picking winners, saving losers.

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