Market failures provide a rationale for policy intervention. But policies are often hard to alter once in place. We argue that this inertia can result in well-intended policies having sizable negative long-run effects on aggregate output and productivity. In our theory, financial frictions...

After twenty-five years of economic transition economic performance varies considerably in transition countries, while in most cases current outcomes show that the desired effects have not been achieved. In this paper we elaborate on why industrial policy has been a key missing element in the...

The aim of this study is to consider the main factors affecting the industrial policy in Central and Eastern European Countries (CEECs) by elucidating the issues such as; the connection between competitiveness and industrial policy, innovation, manufacturing, green growth and environment. The...

This work considers the application of a platform strategy in order to promote the adoption of advanced network infrastructures by Small and Medium Enterprises (SMEs). First, we analyse the incentives of industrial players in a context where SMEs playing an important economic role and where...

Purpose – The purpose of this paper is to examine changes in manufacturing agglomeration in a small open economy over the last decade. This is done during a time when manufacturing in most developed countries is in relative decline. Design/methodology/approach – This work adapts the...

In this paper the total factor productivity (TFP) of the manufacturing sectors in Taiwan and the Republic of Korean was measured and compared using the growth accounting method. Through descriptive analysis, inefficiency in the Korean manufacturing sectors was revealed, especially for the period...

This paper discusses a possible case for industrial policy with special reference to the two emerging global giants, China and India. It begins with a clarification of the meaning of industrial policy, since not only does the term mean different things to different people, but the traditional...

Doubts exist in many Latin American countries regarding the possibility of successfully implementing policies to support productive development. After briefly presenting the theoretical background that justifies this kind of interventions, this document reports on the headway made in the...

Industrial policy has recently seen a renewed interest at both the political and the theoretical level, and has been much debated. This paper argues that an important research issue to address now is what industrial policy should be implemented, namely what set of instruments are to be applied...