In this paper, we study the impact of government's budget constraint on the optimal industrial policy in industries with increasing returns to scale. We show that privatization is preferred to regulation for intermediate values of the shadow cost of public funds (i.e., the Lagrange multiplier of...

In the relatively new body of ideas dubbed "new economic geography" and "spatial economics," we find insights on the potentials of industrial agglomeration for regional and national economic development. This paper looked into the evolution of industrial development in the country as a means of...

The industry's lack of competitiveness, absence of economies of scale and a weak supply base are the fundamental issues that must be addressed in order to strengthen the industry and integrate it with regional production networks of foreign automakers. The entry of cheap, smuggled second-hand...

The experience of the Philippines shows that FDI spillover effects are not automatically generated. Opening up the economy to FDI has contributed to the country's exports of high-technology products and overall economic growth. However, the spillover effects of FDI to domestic firms have...

The purpose of this paper is to introduce a series of articles on the linksbetween innovation, the evolution of industry and employment. These relationsprovide the building blocks of a new industrial policy. The articles areincluded in Innovation, Industry Evolution and Employment published by...

Industrial agglomerations or `clusters` arise in the presence of industry-specific and local externalities, also called Marshallian externalities. The standard argument is that such externalities may justify a policy of infant-industry protection to allow and encourage clusters to emerge. This...

This survey of industrial policies in Latin American and the Caribbean makes two basic claims, namely: 1) that the late 1980s and the entire decade of the 1990s represented a transition from the industrial policies of the import substitution model to industrial policies suitable for open...