Background Papers
Issues in Industrial Policy Design and Implementation: Definitions, Pigovian Policymakers and Institutional Architectures
Abstract: Debates on industrial policy design are marked by a contrast between those who believe governments should concentrate on building a suitable institutional setup, and those with more pragmatic views, [...]
Diagnostics for Industrialization: Growth, Sectoral Selection, and Constraints on Firms
Abstract: This paper reviews methods that have been put forth by the development literature on diagnostics. We sub-divide the variety of diagnostics into three types: revealing the most binding constraints [...]
Firms, Productivity Dispersion and Reallocation: Some Implications for Industrial Policy in Developing Countries
Abstract: A recent, dynamic research programme has uncovered the extent to which the misallocation of factors of production can reduce aggregate productivity. The evidence suggests that the incidence of misallocation [...]
How do the Goods a Country Produces Affect its Growth? Implications for Sectoral Selection
Abstract: This paper discusses different theories bearing on the question of how sectoral specialization affects an economy’s growth prospects, a matter of great relevance for governments thinking of targeting particular [...]
What should be the Role of FDI in African Development Strategies? Reviewing Theory and Historical Experience
Abstract: This paper explores lessons from the academic literature on the conditions required for a country to maximize the benefits from FDI for industrialization. We first outline the different modalities [...]
Political Strategies for Industrial Development: Theories, Concepts and Praxis
Abstract: This paper reviews research on the political economy of industrial policy and discusses its implications for the formulation of development strategies. The research has been marked by a succession [...]