We discuss recent work evaluating the role of the government in shaping the economy during the long 19th century, a practice we refer to as industrial policy. We show that states deployed a vast variety of different policies aimed at, primarily, but not exclusively, fostering industrialization....

We discuss recent work evaluating the role of the government in shaping the economy during the long 19th century, a practice we refer to as industrial policy. We show that states deployed a vast variety of different policies aimed at, primarily, but not exclusively, fostering industrialization....

We study infant industry protection using a dynamic model in which the industry’s cost is initially higher than that of foreign competitors. The industry can stochastically lower its cost via learning by doing. Whether the industry has transitioned to low cost is private information. We use a...

We study infant industry protection using a dynamic model in which the industry's cost is initially higher than that of foreign competitors. The industry can stochastically lower its cost via learning by doing. Whether the industry has transitioned to low cost is private information. We use a...

We study infant industry protection using a dynamic model in which the industry's cost is initially higher than that of foreign competitors. The industry can stochastically lower its cost via learning by doing. Whether the industry has transitioned to low cost is private information. We use a...

This paper uses history to explore the empirical content of two determinants of tariff policy that have a long pedigree: the Stolper-Samuelson corollary to the Heckscher-Ohlin theorem, and the infant-industry argument for protection. It reports a set of world tariff facts for the 150 years...

This paper examines the role of late nineteenth century U.S. tariffs in promoting infant industries by focusing on the much heralded example of the tinplate industry. After earlier failures, the tinplate industry became established and flourished after receiving protection in the McKinley tariff...

The authors predict that the Continental Customs Union (CCU) will injure some infant industries in smaller Member States and that, if not properly designed, the small States which have wholeheartedly embraced the African Continental Free Trade Area (AfCFTA) Agreement may actually hold little.The...

Countries have always looked for methods to improve the conditions of certain industries in order to increase their gross domestic production. Many have resorted to various trade protectionist policies in the form of quotas and tariffs to drastically reduce imports to develop the domestic...

In this article I examine the relevance of infant-industry promotion theory to South Sudan's economic revitalization efforts. As a newly formed state with jurisdiction over people with varied and often conflicting interests, the South Sudanese government will likely experience difficulty...

In an effort to provide an appropriate tribute to his wonderful career, this study develops a set of themes that have been at the centre of Dave Trubek's work for decades, including development economics and the roles of law in developing countries, the structure and regulation of legal...

The "three-child policy" is a unique population policy in China. Previous studies have shown that demographic policies are related to the performance of related stocks and affect economic development. I studied the impact of the introduction of the "three- child policy" on the stock performance...

This paper verifies the possibility of using Infant industry protection strategy to improve manufacturing competitiveness in developing countries. The main theoretical bases of this strategy are: its significant role in creating dynamic comparative advantages in manufacturing sector. This...

Using a political economy approach, the authors analyze the pattern of protection in Mexico's manufacturing sector during the period of trade policy reforms (1985-89), when Mexico experienced significant trade liberalization and an important inflow of foreign direct investment. They take into...

This extended book review of Creating a Learning Society by Joseph Stiglitz and Bruce Greenwald (2014) looks at the 700-page long scholarly work from a transition economy perspective. Using as a starting point Arrow's renowned concept of "learning by doing", the authors throw away the doctrines...

One rationale for the infant industry argument is that, by protecting domestic firms from foreign competition, this increases rents and investment in innovation and other growth enhancing measures. Using data on 4,750 firms across 13 developing countries, we examine whether protection via...

The article reviews literature on economic development, critiques neoliberal economic theories, and advances the theory of infant industry promotion as an alternative model for development in Africa. The essay argues that for developing countries to catch up to developed countries requires...

During a period of trade liberalization (1985-89), when Mexican manufacturing experienced an important inflow of foreign direct investment, manufacturing sectors with heavy foreign direct investment received greater protection in import-competing sectors. With the move toward greater openness,...

This paper explores the origins of Andorra’s financial cluster. It shows that the free movement of currency, the protection of infant industry, and geographical concentration lie at the foundation of the cluster’s competitive advantage. Drawing on a new set of data, the paper also provides...

Infant industries have come to be associated with behind the frontier technologies in developing countries. This paper takes a fresh look at the infant industry problem and in the more contemporary perspective of developed-emerging economy competition in lead markets such as for example the...

I argue that the 19th century Canadian cotton textile industry was an extremely successful infant industry. Judging the industry’s performance by seven widely-employed measures of success – growth in output, contemporary opinion, size, the use of the most modern machinery, exports, and...

This paper investigates the optimal dynamic paths of trade protection imposed on infant industries during the process of joining a free trade agreement. The framework is based on the dynamic learning-by-doing model developed in Melitz (2005), where industries are experiencing dynamic...

Although some theoretical models support the need to protect infant industries, empirical research finds no evidence that such a policy is effective and mainstream economics does not embrace the idea. Empirical research may not be robust, however, and ideology may account for some economists’...

A perennial case for industrial policy is based on the protection of young or emerging industries. Despite a natural association with concepts of life cycles, industrial policy has not been analyzed in the context of an industry life-cycle model. In particular, an important life-cycle...

This paper analyzes the effect of policies on the Japanese automobile industry before 1945. Japan achieved import substitution of trucks before World War II. It also exported small size passenger cars then. In the process of the development of automobile industry, the government policies seemed...

In industries with imperfect consumer information, the lack of a reputation puts latecomers at a competitive disadvantage vis-a-vis established firms. We consider whether the existence of such informational barriers to entry provides a valid reason for temporarily protecting infant producers of...

A difficulty with industrial policy regards the uncertainty about infant industries' long term potential. We argue that alternative commercial policy instruments may be associated with differences in the speed and accuracy with which the government learns about industry type

Economics

This paper uses history to explore the empirical content of two determinants of tariff policy that have a long pedigree: the Stolper-Samuelson corollary to the Heckscher-Ohlin theorem, and the infant-industry argument for protection. It reports a set of world tariff facts for the 150 years...

This paper analyzes time-consistent subsidies in industries with strong learning effects and frequent entry and exit. Structural dynamics create opportunities for strategic behavior: by influencing government policies, infant firms can reduce their tax burden and weaken future competitors. Two...