The Political Economy of Industrial Policy / Réka Juhász, Nathan J. Lane.

Format:

Book

Author/Creator:

Juhász, Réka.

Contributor:

National Bureau of Economic Research.

Lane, Nathan J.

Series:

Working Paper Series (National Bureau of Economic Research) no. w32507.

NBER working paper series no. w32507

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2024.

Summary:

We examine the ways in which political realities shape industrial policy through the lens of modern political economy. We consider two broad "governance constraints": i) the political forces that shape how industrial policy is chosen and ii) the ways in which state capacity affects implementation. The framework of modern political economy suggests that government failure is not a necessary feature of industrial policy; rather, it is more likely to emerge when countries pursue industrial policies beyond their governance capacity constraints. As such, our political economy of industrial policy is not fatalist. Instead, it enables policymakers to constructively confront challenges.

Notes:

Print version record

May 2024.