Title: Evidence on the Efficacy of Industrial Policy During the High-Growth Period
Abstract:Abstract This chapter correlates policy measures with the economic criteria which must have been fulfilled in order for industrial policy to have positively affected Japan's economic recovery and grow...Abstract This chapter correlates policy measures with the economic criteria which must have been fulfilled in order for industrial policy to have positively affected Japan's economic recovery and growth. If Japanese industrial policy is to be considered to have helped foster successful economic development, it must satisfy two necessary conditions. First, industrial policy must be rational. It must serve an economic purpose which in the absence of policy would be unfulfilled. Otherwise, government intervention can only lower the growth potential of an economy. The usual competitive economic paradigm is of little use in analysing this issue, since the assumption of perfectly competitive markets is equivalent to asserting that industrial policy cannot be important in economic development. It has been observed here that if industrial policy matched market failures and externalities, it was rational and possibly served a useful function.Read More
Publication Year: 1995
Publication Date: 1995-10-26
Language: en
Type: book-chapter
Indexed In: ['crossref']
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