Big push or big failure? On the effectiveness of industrialization policies for economic development

Kjetil Bjorvatn and Nicola Coniglio

Journal of the Japanese and International Economies, 2012, vol. 26, issue 1, 129-141

Abstract: The role of the government in industrialization is heavily debated. Some claim that extensive government involvement is key to initiate a sustainable development process, others see the government as an obstacle to it, pointing to the importance of government failure. We formulate a model, which explains why even a highly inefficient industrial policy can successfully promote big-push development. Moreover, we show that extensive government intervention is more likely to be successful when the initial level of development is low.

Keywords: Industrialization; Big push; State owned enterprises; Government failure; Patronage employment (search for similar items in EconPapers)
JEL-codes: O14 O20 O33 O38 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jjieco:v:26:y:2012:i:1:p:129-141

DOI: 10.1016/j.jjie.2011.07.005

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