The New Economics of Industrial Policy / Réka Juhász, Nathan J. Lane, Dani Rodrik.

Format:

Book

Author/Creator:

Juhász, Réka.

Contributor:

National Bureau of Economic Research.

Lane, Nathan J.

Rodrik, Dani.

Series:

Working Paper Series (National Bureau of Economic Research) no. w31538.

NBER working paper series no. w31538

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2023.

Summary:

We discuss the considerable literature that has developed in recent years providing rigorous evidence on how industrial policies work. This literature is a significant improvement over the earlier generation of empirical work, which was largely correlational and marred by interpretational problems. On the whole, the recent crop of papers offers a more positive take on industrial policy. We review the standard rationales and critiques of industrial policy and provide a broad overview of new empirical approaches to measurement. We discuss how the recent literature, paying close attention to measurement, causal inference, and economic structure, is offering a nuanced and contextual understanding of the effects of industrial policy. We re-evaluate the East Asian experience with industrial policy in light of recent results. Finally, we conclude by reviewing how industrial policy is being reshaped by a new understanding of governance, a richer set of policy instruments beyond subsidies, and the reality of deindustrialization.

Notes:

Print version record

August 2023.