کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
964973 | 930672 | 2012 | 13 صفحه PDF | دانلود رایگان |
The role of the government in industrialization is heavily debated. Some claim that extensive government involvement is key to initiate a sustainable development process, others see the government as an obstacle to it, pointing to the importance of government failure. We formulate a model, which explains why even a highly inefficient industrial policy can successfully promote big-push development. Moreover, we show that extensive government intervention is more likely to be successful when the initial level of development is low.
► We develop a theoretical model analyzing the effectiveness of industrialization policy in a setting of policy inefficiencies.
► When market failures are severe, even imperfect policies can be better than no intervention to stimulate industrialization.
► Industrialization policies are likely to be more effective and less distortive in the least developed countries.
► In these countries, deregulation and privatization may be counterproductive.
Journal: Journal of the Japanese and International Economies - Volume 26, Issue 1, March 2012, Pages 129–141