The main tenets of industrial policy

Radovanović, Bojana and Đukić, Mihajlo (2015) The main tenets of industrial policy. In: New еconomic policy reforms. Belgrade, Belgrade Banking Academy, pp. 418-429. ISBN 978-86-7852-036-5

Preview

Text New Economic Policy final.418-429.pdf - Published Version Available under License Creative Commons Attribution Non-commercial No Derivatives. Download (145kB) | Preview

Abstract

The aim of this paper is to discuss the main tenets of industrial policy. Industrial policy, as a conscious effort on the part of government to encourage and promote activities specific, industry or sector with an array of policies, through the process of cooperation and coordination with the private sector, is an indispensable tool for steering economic development. It is needed both for developing and developed countries. Due to the information and coordination externalities, the productive forces cannot be developed through the market mechanism itself and the intervention on the part of government is needed. The programmes of an industrial policy need to be tailor made and country specific. However, some of the programmes have been historically shown as effective. Those programmes are: Subsidizing costs of “self-discovery”, Developing mechanisms for higher risk finance, Internalizing coordination externalities, Public R&D, Subsidizing general technical training, Taking advantage of nationals abroad (Rodrik 2004). Serbia as a country that has experienced the process of deindustrialisation needs an industrial policy that will take into account the main tenets of the concept of industrial policy.

Actions (login required)

View Item