Theoretical foundations of industrial policy

Elie Cohen ()
Additional contact information
Elie Cohen: Centre National de la Recherche Scientifique

No 4/2006, EIB Papers from European Investment Bank, Economics Department

Abstract: Highlighting the revival of industrial-policy thinking in an era of globalisation and disenchantment with free trade, this paper reviews alternative and, in part, competing theoretical foundations of industrial policy: neoclassical foundations, structuralist approaches, and pragmatic approaches inspired by new growth and development theories. One of the main conclusions is that the industrial-policy debate is no longer between advocates of horizontal and vertical policies, but between those who deny any potential for state intervention to make economies more dynamic and those who seek to clarify the specific conditions for appropriate intervention. Another salient conclusion is that state intervention is especially important in a knowledge-based economy, as witnessed by successful industrial policies in - for instance - the United States, Germany and France, and Finland.

Keywords: industrial policy; mainstream approach; heterodox approaches (search for similar items in EconPapers)
JEL-codes: B52 H11 L52 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2009-04-07
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.eib.org/attachments/efs/eibpapers/eibpa ... 1_n01_en.pdf#page=86 Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:eibpap:2006_004

Access Statistics for this paper

More papers in EIB Papers from European Investment Bank, Economics Department Contact information at EDIRC.
Bibliographic data for series maintained by Polyxeni Kanelliadou ().