Industrial Policy Effects and the Case for Competition
It is conventional wisdom that industrial policies can be at odds with competitive markets. This note examines the historical basis for industrial policy and empirical effects. Although the direct effects of industrial policy are mixed, the indirec...
| Main Authors: | , |
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| Language: | English |
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/548701601014977452/Equitable-Growth-Finance-and-Institutions-Insight-Industrial-Policy-Effects-and-the-Case-for-Competition http://hdl.handle.net/10986/34536 |
| Summary: | It is conventional wisdom that
industrial policies can be at odds with competitive markets.
This note examines the historical basis for industrial
policy and empirical effects. Although the direct effects of
industrial policy are mixed, the indirect effects often
involve market distortions. By contrast, the literature is
broadly united on the benefits of competition for
productivity and innovation. This review finds that the most
successful industrial policies reinforce competition,
suggesting that competition policy and certain types of
industrial policy can be crafted as complements. |
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