Selective Industrial and Trade Policies in Developing Countries: Theoretical and Empirical Issues

Sanjaya Lall

QEH Working Papers from Queen Elizabeth House, University of Oxford

Abstract: This paper analyses the case for selective industrial and trade policies in Africa, drawing upon the lessons of East Asia. It reviews the theoretical arguments for government intervention in the context of technological learning, and relates this to the new environment of rapid technical change and globalisation of production. It also considers the risks of government failure in mounting selective policies, and concludes that the degree of selectivity has to be much less than in East Asia. The case for selective policies nevertheless remains strong, if Africa is to make any industrial progress.

New Economics Papers: this item is included in nep-ind, nep-pbe, nep-pol and nep-tid
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