Industrial policy for growth

Kristine Farla

No 2012-039, MERIT Working Papers from United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT)

Abstract: This study distinguishes between industrial policy that stimulates incumbent industry development, `pro-business policy', and industrial policy that promotes the development of free markets, `pro-market policy'. We find that there is a positive relation between the level of countries' implementation of these policies. However, we find opposite effects of pro-business and pro-market policies when estimating the policy effect on growth and income level. Pro-business policy has a positive effect on economic development, and pro-market policy has a negative effect on economic development.

Keywords: Industrial Policy; Industrial Development; Economic Development; Economic Growth (search for similar items in EconPapers)
JEL-codes: L50 O11 O25 O43 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (3)

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Journal Article: Industrial Policy for Growth (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:unm:unumer:2012039

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