What are the underlying rationales for industrial policy? Does empirical evidence support the use of industrial policy for correcting market failures that plague the process of industrialization? To address these questions, the authors provide a critical survey of the analytical literature on...

Continued efforts to develop high-level industrial skills in Sub-Saharan African countries may be wasteful without a more competitive environment in the industrial sector. But lack of such skills may limit the benefits to the industrial sector from future liberalization. As a result, the supply...

The proximity of industries is strongly related to inter-industry labor mobility, and there is some evidence that workers who move to closely similar industries receive higher wages. Knowledge is transmitted more easily when industries operate, and workers work, in close physical proximity.Do...

Japan, South Korea, and Taiwan are regarded as primary examples of countries that have derived great benefits from increasing integration with the international economy, without surrendering national autonomy in the economic or cultural spheres, by pursuing decidedly nonneutral policies with...

While many analysts decry the lack of sufficient investment in Africa, we find no evidence that private and public investment are productive, either in Africa as a whole (unless Botswana is included in the sample), or in the manufacturing sector in Tanzania. In this restricted sense, inadequate...

Vertical international technology transfer may differ substantially from the horizontal technology transfer emphasized in the literature. In this model, a downstream firm benefits from the diffusion of knowledge it transfers to a developing country firm because diffusion increases demand for its...