Industrial Policy in the 21st Century

Chang, Ha-Joon; Andreoni, Antonio

Abstract

Industrial policy is back at the centre stage of policy debate, while the world is undergoing dramatic transformations. This article contributes to the debate by developing a new theory of industrial policy, incorporating some issues that have been neglected so far and taking into account the recent changes in economic reality. The authors explore how the incorporation of some of the neglected issues — commitments under uncertainty, learning in production, macroeconomic management (especially demand management), and conflict management — changes the theory. They then examine how the theory of industrial policy should be modified in light of recent changes in economic reality: the rise of the global value chain, financialization and new imperialism. This contribution aims at promoting a pragmatic approach to industrial policy and pointing to new areas for policy intervention in a changing world.

Citation

Chang, H.-J., & Andreoni, A. (2020). Industrial Policy in the 21st Century. Development and Change, 51(2), 324-351. https://doi.org/10.1111/dech.12570

• Journal Article Type: Article
• Acceptance Date: Nov 19, 2019
• Online Publication Date: Jan 11, 2020
• Publication Date: Jan 11, 2020
• Deposit Date: Dec 9, 2019
• Publicly Available Date: Jan 15, 2020
• Journal: Development and Change
• Print ISSN: 0012-155X
• Electronic ISSN: 1467-7660
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• Volume: 51
• Issue: 2
• Pages: 324-351
• DOI: https://doi.org/10.1111/dech.12570