Industrial policy, collective action, and the direction of technological change

Tugrul Temel ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper studies patterns of technological change under two scenarios. In Scenario I, a distorted government is open to the influence of producers' collective action, while in Scenario II a benevolent government operates to maximize national income. The paper draws attention to the role that institutional arrangements and asymmetries in sectoral technology absorption play in shaping the path of technological change. Simulation results are threefold. First, biased institutions under Scenario I might help drag the economy towards the right trajectory, with current generations experiencing welfare loss. Secondly, the benevolent government under Scenario II supports the path of capital-augmenting technological change, which is also supported by the distorted government only when institutions deliberately favor the investment goods producing sector. Thirdly, sectoral asymmetries in technology assimilation do not help industries overcome disadvantageous situations in the political market, and hence do not in�uence the direction of technological developments.

Keywords: Technological change; industrial policy and lobbying; political-economic equilibrium. (search for similar items in EconPapers)
JEL-codes: O33 O38 P26 (search for similar items in EconPapers)
Date: 2011-06-29
New Economics Papers: this item is included in nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/31917/1/MPRA_paper_31917.pdf original version (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:pra:mprapa:31917

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().