Industrial Policy debate

This is another topic which never goes out if fashion. There is one difference though. You find many economists against it and most of the time Dani Rodrik defending it. 

In this recent debate at economist, Ridrik debates industrial policy with Josh Lerner of Harvard. Rodrik in his blog cheekily says that in the debate he and Lerner pretend to disagree.

Both give examples with Lerner showing how industrial policy has failed in several places. Rodrik says true there are examples of failure but we cannot say that it ahs failed always. He quotes from a book by Lerner which shows how Department of Defence was a critical catalyst to growth of Silicon Valley! Then there are examples of POSCO, Brazil aircraft industry, China auto industry etc.

Rodrik closes his side of debate saying debatable question about industrial policy is not whether but how.

Interesting debate as always..

2 Responses to “Industrial Policy debate”

  1. uk lingerie brands Says:

    interesting comments made in the article although reading the papers recently on the subject quite a few of them disagree with you. Are you going to write an update to your article to address these?

  2. Industrial Policy revisited « Mostly Economics Says:

    […] to government funding of these projects in their earlier forms. I r’ber reading Dani Rodrik saying similar things about US industrial […]

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