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Book: India’s Industrial Policy and Performance

The recently published book, India’s Industrial Policy and Performance (2021), by Dr. Nitya Nanda (Director, Council for Social Development- a New Delhi-based think tank) assesses the performance of Indian industries from the perspectives of trade, investment, policy, and development incentives. Excerpts from its abstract:

“The book examines India’s key policy initiatives and economic and institutional plans through many decades and examines their short and long-term effects on industrial environment and performance. It measures India’s strategic policies and efforts to promote industrialization against similar initiatives in countries like Germany, Japan, South Korea, and Taiwan. The volume also contextualizes the performance of different sectors of industry such as automobiles, electronics and information technology, and pharmaceuticals, among others, within the larger framework of global economic scenario and competition.”

It also discusses issues like the benefit foreign direct investment brings to developing countries (Loungani and Razin, 2001), changes in foreign equity norms in India and their role in shaping industrial policy, etc.

Click here to access the full book online.

The recently published book, India’s Industrial Policy and Performance (2021), by Dr. Nitya Nanda (Director, Council for Social Development- a New Delhi-based think tank) assesses the performance of Indian industries from the perspectives of trade, investment, policy, and development incentives. Excerpts from its abstract:

“The book examines India’s key policy initiatives and economic and institutional plans through many decades and examines their short and long-term effects on industrial environment and performance.

Read the full article…

Posted by at 7:35 AM

Labels: Book Reviews

Industrial Policy Makes A Comeback in Africa

Max Walter, the executive director of Centre for Development Alternatives (a Uganda based independent think tank) writes for the Brookings Institution about the revival of industrial policy for pushing growth in Africa. Governments across the continent are using industrial policy tools to push for industrialization through agro-processing, labour-intensive light manufacturing, natural resource extraction and value addition, some knowledge-intensive manufacturing, and “industries without smokestacks” such as high-value agriculture and tradable services.

The article explores reasons which may have driven this revival and then moves on to explain some notable examples. From Uganda’s National Development Plan (2020) which focuses on the use of several industrial policy tools for bolstering supply chains of cocoa production, to Morocco and South Africa’s policies to upgrade automobile manufacturing industries- examples are aplenty.

The article also delves into the importance of failures of such policies for evidence-based strategic policymaking.

Click here to read the full column.

Max Walter, the executive director of Centre for Development Alternatives (a Uganda based independent think tank) writes for the Brookings Institution about the revival of industrial policy for pushing growth in Africa. Governments across the continent are using industrial policy tools to push for industrialization through agro-processing, labour-intensive light manufacturing, natural resource extraction and value addition, some knowledge-intensive manufacturing, and “industries without smokestacks” such as high-value agriculture and tradable services.

The article explores reasons which may have driven this revival and then moves on to explain some notable examples.

Read the full article…

Posted by at 1:05 PM

Labels: Inclusive Growth

When industrial policy worked: The case of South Korea

Source: VoxEU

In a recent paper, economists Choi and Levchenko (2021) study firm-level industrial policy measures in South Korea in the 1970s to examine their impact on the South Korean economy.

“South Korea’s experience with industrial policy is important to understand, as it is one of the ‘growth miracle’ economies of the post-war era, known for its rapid transformation from a commodity and light manufacturing producer to a heavy manufacturing powerhouse. It has been argued that industrial policy played a central role in this transformation, with the temporary subsidies having had a large and statistically significant effect on firm sales as long as 30 years after they ended.”

The authors conclude that South Korea’s activist industrial policy appears to have succeeded even after taking into account its fiscal costs and general equilibrium effects. However, they also add a word of caution with this encouragement, that today’s policymakers face the same challenge as policymakers in the past: to identify conditions – such as dynamic productivity effects or externalities – under which activist industrial policy is welfare-improving. 

Click here to read the full article.

Source: VoxEU

In a recent paper, economists Choi and Levchenko (2021) study firm-level industrial policy measures in South Korea in the 1970s to examine their impact on the South Korean economy.

“South Korea’s experience with industrial policy is important to understand, as it is one of the ‘growth miracle’ economies of the post-war era, known for its rapid transformation from a commodity and light manufacturing producer to a heavy manufacturing powerhouse.

Read the full article…

Posted by at 9:15 AM

Labels: Inclusive Growth

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