The main purpose of industrial policy is to speed up the process of structural change towards higher productivity activities. This paper builds on our earlier writings to present an overall design for the conduct of industrial policy in a low- to middle-income country. It is stimulated by the...

The theoretical case for industrial policy is a strong one. The market failures which industrial policies target - in markets for credit, labor, products, and knowledge - have long been at the core of what development economists study. The conventional case against industrial policy rests on...