International trade and industrial policy

4.4 Industrial policy

Individual activity: Promises and pitfalls of industrial policy

Many governments have had industrial policies or strategies favouring specific industrial sectors. Interventions have ranged from direct ownership to a wide range of other supports such as tax benefits, subsidies, export support and export zones, infrastructure investment and guaranteed markets.

Read the following three papers about the role and effectiveness of industrial policies.

Supplementary reading:

Read Paul Seabright’s ‘National and European champions – Burden or Blessing?’.

Group activity: Industrial policies

Should national governments engage in pro-active 'industrial policies'? Why (not)? Discuss on the Trade and policy forum.

Optional activity: Quick test

Answer the short self-marking multiple choice questions in the International trade quiz here.