Industrial Policy, Information, and Government Capacity

Governments are resource and bandwidth constrained, and hence need to prioritize productivity-enhancing policies. To do so requires information on the nature and magnitude of market failures on the one hand, and government’s capacity to redress the...

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Main Authors:	Maloney, William F., Nayyar, Gaurav
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2017
Subjects:	INDUSTRIAL POLICY MARKET FAILURES GOVERNMENT FAILURES GOVERNANCE CAPTURE
Online Access:	http://documents.worldbank.org/curated/en/345771494517558184/Industrial-policy-information-and-government-capacity http://hdl.handle.net/10986/26735

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recordtype	oai_dc
spelling	okr-10986-267352021-06-08T14:42:46Z Industrial Policy, Information, and Government Capacity Maloney, William F. Nayyar, Gaurav INDUSTRIAL POLICY MARKET FAILURES GOVERNMENT FAILURES GOVERNANCE CAPTURE Governments are resource and bandwidth constrained, and hence need to prioritize productivity-enhancing policies. To do so requires information on the nature and magnitude of market failures on the one hand, and government’s capacity to redress them successfully on the other. The paper reviews perspectives on vertical (sectoral) and horizontal (factor markets, cluster) policies with an eye to both criteria. It first argues that the case for either cannot be made on the basis of the likelihood of successful implementation: for instance, educational and picking the winner types of policies both run the risks of capture and incompetent execution. However, the profession has been able to establish more convincing market failures for horizontal policies than for vertical policies. Most of the recent approaches to identifying failures around particular goods, the paper argues, are of limited help. Hence, for a given difficulty of execution, the former are generally to be preferred. A second critical message is that improving the quality of governance in terms of collecting information, coordination ability, and defending against capture is critical to successful implementation of productivity policies and should be central on the policy agenda. 2017-05-23T22:28:55Z 2017-05-23T22:28:55Z 2017-05 Working Paper http://documents.worldbank.org/curated/en/345771494517558184/Industrial-policy-information-and-government-capacity http://hdl.handle.net/10986/26735 English en_US Policy Research Working Paper;No. 8056 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	INDUSTRIAL POLICY MARKET FAILURES GOVERNMENT FAILURES GOVERNANCE CAPTURE
spellingShingle	INDUSTRIAL POLICY MARKET FAILURES GOVERNMENT FAILURES GOVERNANCE CAPTURE Maloney, William F. Nayyar, Gaurav Industrial Policy, Information, and Government Capacity
relation	Policy Research Working Paper;No. 8056
description	Governments are resource and bandwidth constrained, and hence need to prioritize productivity-enhancing policies. To do so requires information on the nature and magnitude of market failures on the one hand, and government’s capacity to redress them successfully on the other. The paper reviews perspectives on vertical (sectoral) and horizontal (factor markets, cluster) policies with an eye to both criteria. It first argues that the case for either cannot be made on the basis of the likelihood of successful implementation: for instance, educational and picking the winner types of policies both run the risks of capture and incompetent execution. However, the profession has been able to establish more convincing market failures for horizontal policies than for vertical policies. Most of the recent approaches to identifying failures around particular goods, the paper argues, are of limited help. Hence, for a given difficulty of execution, the former are generally to be preferred. A second critical message is that improving the quality of governance in terms of collecting information, coordination ability, and defending against capture is critical to successful implementation of productivity policies and should be central on the policy agenda.
format	Working Paper
author	Maloney, William F. Nayyar, Gaurav
author_facet	Maloney, William F. Nayyar, Gaurav
author_sort	Maloney, William F.
title	Industrial Policy, Information, and Government Capacity
title_short	Industrial Policy, Information, and Government Capacity
title_full	Industrial Policy, Information, and Government Capacity
title_fullStr	Industrial Policy, Information, and Government Capacity
title_full_unstemmed	Industrial Policy, Information, and Government Capacity
title_sort	industrial policy, information, and government capacity
publisher	World Bank, Washington, DC
publishDate	2017
url	http://documents.worldbank.org/curated/en/345771494517558184/Industrial-policy-information-and-government-capacity http://hdl.handle.net/10986/26735
_version_	1764462738159960064

Industrial Policy, Information, and Government Capacity

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