Growth Identification and Facilitation : The Role of the State in the Dynamics of Structural Change
Active economic policies by developing countries governments to promote growth and industrialization have generally been viewed with suspicion by economists, and for good reasons: past experiences show that such policies have too often failed to a...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100518154747 http://hdl.handle.net/10986/3798 |
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okr-10986-3798 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ADVANCED COUNTRIES ADVANCED ECONOMIES AGGREGATE LEVEL AGRICULTURE BENCHMARK BINDING CONSTRAINTS BUSINESS DEVELOPMENT CAPITAL ACCUMULATION CAPITAL GOODS CAPITAL INTENSITY CAPITAL INVESTMENT CARBON CHEMICAL FERTILIZERS COAL COMMUNICATION TECHNOLOGIES COMPARATIVE ADVANTAGE COMPARATIVE ADVANTAGES COMPETITIVE MARKET COMPETITIVE MARKETS COMPETITIVENESS COST OF CAPITAL COUNTRY REGRESSIONS CROSS-COUNTRY PERSPECTIVE DEBT DECISION TREE DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING WORLD DEVELOPMENT AGENCIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DEVELOPMENT STRATEGIES DEVELOPMENT STRATEGY DISEQUILIBRIUM DIVERSIFICATION DOMESTIC INDUSTRIES DOMESTIC SAVINGS ECONOMETRIC MODELING ECONOMIC CHANGE ECONOMIC CRITERIA ECONOMIC DEVELOPMENT ECONOMIC DEVELOPMENTS ECONOMIC EFFECTS ECONOMIC GROWTH ECONOMIC HISTORIANS ECONOMIC IMPACT ECONOMIC POLICIES ECONOMIC POWERHOUSES ECONOMIC PROGRAMS ECONOMIC SECTORS ECONOMIC THEORY ECONOMIES OF SCALE ECONOMISTS EFFICIENT MARKET EFFICIENT MARKETS ELASTICITY EMERGING MARKET EMERGING MARKET ECONOMIES EMPIRICAL EVIDENCE EMPIRICAL STUDIES ENVIRONMENTAL ENVIRONMENTAL PROTECTION EXCHANGE RATE EXPORT PROMOTION EXPORTS EXTERNALITIES EXTERNALITY FACTOR ENDOWMENTS FACTOR PRICES FACTORS OF PRODUCTION FAILURE OF STATE FINANCE CORPORATION FINANCIAL MARKETS FINANCIAL SUPPORT FINANCIAL SYSTEM FISHING FOREIGN EXCHANGE FOREIGN FIRMS FORESTRY FREE TRADE FULL EMPLOYMENT FUTURE GROWTH GDP GOVERNMENT ACTION GOVERNMENT INTERVENTION GOVERNMENT INTERVENTIONS GOVERNMENT SUBSIDIES GROSS DOMESTIC PRODUCT GROWTH LITERATURE GROWTH POTENTIAL GROWTH PROCESS GROWTH RATE GROWTH RATES GROWTH THEORY HIGH UNEMPLOYMENT HUMAN CAPITAL INCOME INCOME DISTRIBUTION INCOME ELASTICITY INCOME GROWTH INCOME GROWTH RATE INCOME LEVELS INDIVIDUAL COUNTRIES INDIVIDUAL FARMERS INDIVIDUAL FIRM INDIVIDUAL FIRMS INDUSTRIAL DEVELOPMENT INDUSTRIAL POLICY INDUSTRIALIZATION INFANT INDUSTRY ARGUMENT INFORMATION ASYMMETRY INFRASTRUCTURE REQUIREMENTS INTANGIBLE INTELLECTUAL PROPERTY INTEREST RATE INTERMEDIATE INPUTS INTERNATIONAL TRADE INVESTMENT CLIMATE INVESTMENT DECISIONS LABOR COSTS LABOR FORCE LEGAL FRAMEWORK LIVING STANDARDS LOW-INCOME COUNTRIES LOW-INCOME COUNTRY MACROECONOMIC MANAGEMENT MACROECONOMIC POLICY MACROECONOMICS MANUFACTURING INDUSTRIES MARGINAL COST MARKET ECONOMIES MARKET FAILURES MARKET MECHANISM MARKET SHARES MICROECONOMIC ANALYSES MONOPOLY MORAL RESPONSIBILITY NATIONAL DEVELOPMENT NATIONAL ECONOMY NATURAL MONOPOLIES NATURAL RESOURCES OUTPUTS PATENTS PER CAPITA INCOME PER CAPITA INCOMES PLANNED ECONOMIES POLICY DISCUSSION POLICY INSTRUMENTS POLICY INTERVENTIONS POLICY MEASURES POLICY OPTIONS POLICY PAPERS POLICY RESEARCH POLICY VARIABLES POLITICAL ECONOMY POLITICAL INSTABILITY POLITICAL SUPPORT POOR COUNTRIES POVERTY REDUCTION POWER PARITY PRICE ELASTICITY PRICE ELASTICITY OF DEMAND PRIVATE MARKET PRIVATE SECTOR GROWTH PRIVATIZATION PRODUCTION COSTS PRODUCTIVITY PRODUCTIVITY GROWTH PROPERTY RIGHTS PUBLIC DEBT PUBLIC GOODS PUBLIC SECTOR PUBLIC-PRIVATE PARTNERSHIPS PURCHASING POWER RATE OF INVESTMENT RATE OF RETURN REGRESSION ANALYSES REGULATORY REQUIREMENTS RENT SEEKING SCARCE CAPITAL SHADOW PRICES SKILLED WORKERS SMALL BUSINESSES SMALL ENTERPRISES SOCIAL CAPITAL STATE ENTERPRISES STATE INTERVENTION STATE INTERVENTIONS STATE-OWNED ENTERPRISES STRUCTURAL CHANGE SUSTAINABLE GROWTH TAX TAX CREDITS TECHNOLOGICAL CHANGE TECHNOLOGICAL INNOVATION TECHNOLOGY TRANSFER TELECOMMUNICATIONS TRADE POLICY TRANSACTION COSTS UNEMPLOYMENT UNSKILLED LABOR URBAN AREAS WEALTH WEALTH CREATION WORKING CAPITAL WORLD ECONOMIES |
| spellingShingle |
ADVANCED COUNTRIES ADVANCED ECONOMIES AGGREGATE LEVEL AGRICULTURE BENCHMARK BINDING CONSTRAINTS BUSINESS DEVELOPMENT CAPITAL ACCUMULATION CAPITAL GOODS CAPITAL INTENSITY CAPITAL INVESTMENT CARBON CHEMICAL FERTILIZERS COAL COMMUNICATION TECHNOLOGIES COMPARATIVE ADVANTAGE COMPARATIVE ADVANTAGES COMPETITIVE MARKET COMPETITIVE MARKETS COMPETITIVENESS COST OF CAPITAL COUNTRY REGRESSIONS CROSS-COUNTRY PERSPECTIVE DEBT DECISION TREE DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING WORLD DEVELOPMENT AGENCIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DEVELOPMENT STRATEGIES DEVELOPMENT STRATEGY DISEQUILIBRIUM DIVERSIFICATION DOMESTIC INDUSTRIES DOMESTIC SAVINGS ECONOMETRIC MODELING ECONOMIC CHANGE ECONOMIC CRITERIA ECONOMIC DEVELOPMENT ECONOMIC DEVELOPMENTS ECONOMIC EFFECTS ECONOMIC GROWTH ECONOMIC HISTORIANS ECONOMIC IMPACT ECONOMIC POLICIES ECONOMIC POWERHOUSES ECONOMIC PROGRAMS ECONOMIC SECTORS ECONOMIC THEORY ECONOMIES OF SCALE ECONOMISTS EFFICIENT MARKET EFFICIENT MARKETS ELASTICITY EMERGING MARKET EMERGING MARKET ECONOMIES EMPIRICAL EVIDENCE EMPIRICAL STUDIES ENVIRONMENTAL ENVIRONMENTAL PROTECTION EXCHANGE RATE EXPORT PROMOTION EXPORTS EXTERNALITIES EXTERNALITY FACTOR ENDOWMENTS FACTOR PRICES FACTORS OF PRODUCTION FAILURE OF STATE FINANCE CORPORATION FINANCIAL MARKETS FINANCIAL SUPPORT FINANCIAL SYSTEM FISHING FOREIGN EXCHANGE FOREIGN FIRMS FORESTRY FREE TRADE FULL EMPLOYMENT FUTURE GROWTH GDP GOVERNMENT ACTION GOVERNMENT INTERVENTION GOVERNMENT INTERVENTIONS GOVERNMENT SUBSIDIES GROSS DOMESTIC PRODUCT GROWTH LITERATURE GROWTH POTENTIAL GROWTH PROCESS GROWTH RATE GROWTH RATES GROWTH THEORY HIGH UNEMPLOYMENT HUMAN CAPITAL INCOME INCOME DISTRIBUTION INCOME ELASTICITY INCOME GROWTH INCOME GROWTH RATE INCOME LEVELS INDIVIDUAL COUNTRIES INDIVIDUAL FARMERS INDIVIDUAL FIRM INDIVIDUAL FIRMS INDUSTRIAL DEVELOPMENT INDUSTRIAL POLICY INDUSTRIALIZATION INFANT INDUSTRY ARGUMENT INFORMATION ASYMMETRY INFRASTRUCTURE REQUIREMENTS INTANGIBLE INTELLECTUAL PROPERTY INTEREST RATE INTERMEDIATE INPUTS INTERNATIONAL TRADE INVESTMENT CLIMATE INVESTMENT DECISIONS LABOR COSTS LABOR FORCE LEGAL FRAMEWORK LIVING STANDARDS LOW-INCOME COUNTRIES LOW-INCOME COUNTRY MACROECONOMIC MANAGEMENT MACROECONOMIC POLICY MACROECONOMICS MANUFACTURING INDUSTRIES MARGINAL COST MARKET ECONOMIES MARKET FAILURES MARKET MECHANISM MARKET SHARES MICROECONOMIC ANALYSES MONOPOLY MORAL RESPONSIBILITY NATIONAL DEVELOPMENT NATIONAL ECONOMY NATURAL MONOPOLIES NATURAL RESOURCES OUTPUTS PATENTS PER CAPITA INCOME PER CAPITA INCOMES PLANNED ECONOMIES POLICY DISCUSSION POLICY INSTRUMENTS POLICY INTERVENTIONS POLICY MEASURES POLICY OPTIONS POLICY PAPERS POLICY RESEARCH POLICY VARIABLES POLITICAL ECONOMY POLITICAL INSTABILITY POLITICAL SUPPORT POOR COUNTRIES POVERTY REDUCTION POWER PARITY PRICE ELASTICITY PRICE ELASTICITY OF DEMAND PRIVATE MARKET PRIVATE SECTOR GROWTH PRIVATIZATION PRODUCTION COSTS PRODUCTIVITY PRODUCTIVITY GROWTH PROPERTY RIGHTS PUBLIC DEBT PUBLIC GOODS PUBLIC SECTOR PUBLIC-PRIVATE PARTNERSHIPS PURCHASING POWER RATE OF INVESTMENT RATE OF RETURN REGRESSION ANALYSES REGULATORY REQUIREMENTS RENT SEEKING SCARCE CAPITAL SHADOW PRICES SKILLED WORKERS SMALL BUSINESSES SMALL ENTERPRISES SOCIAL CAPITAL STATE ENTERPRISES STATE INTERVENTION STATE INTERVENTIONS STATE-OWNED ENTERPRISES STRUCTURAL CHANGE SUSTAINABLE GROWTH TAX TAX CREDITS TECHNOLOGICAL CHANGE TECHNOLOGICAL INNOVATION TECHNOLOGY TRANSFER TELECOMMUNICATIONS TRADE POLICY TRANSACTION COSTS UNEMPLOYMENT UNSKILLED LABOR URBAN AREAS WEALTH WEALTH CREATION WORKING CAPITAL WORLD ECONOMIES Lin, Justin Yifu Monga, Celestin Growth Identification and Facilitation : The Role of the State in the Dynamics of Structural Change |
| geographic_facet |
The World Region The World Region |
| relation |
Policy Research working paper ; no. WPS 5313 |
| description |
Active economic policies by developing
countries governments to promote growth and
industrialization have generally been viewed with suspicion
by economists, and for good reasons: past experiences show
that such policies have too often failed to achieve their
stated objectives. But the historical record also indicates
that in all successful economies, the state has always
played an important role in facilitating structural change
and helping the private sector sustain it across time. This
paper proposes a new approach to help policymakers in
developing countries identify those industries that may hold
latent comparative advantage. It also recommends ways of
removing binding constraints to facilitate private firms
entry into those industries. The paper introduces an
important distinction between two types of government
interventions. First are policies that facilitate structural
change by overcoming information and coordination and
externality issues, which are intrinsic to industrial
upgrading and diversification. Such interventions aim to
provide information, compensate for externalities, and
coordinate improvements in the "hard" and
"soft" infrastructure that are needed for the
private sector to grow in sync with the dynamic change in
the economy s comparative advantage. Second are those
policies aimed at protecting some selected firms and
industries that defy the comparative advantage determined by
the existing endowment structure either in new sectors that
are too advanced or in old sectors that have lost
comparative advantage. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Lin, Justin Yifu Monga, Celestin |
| author_facet |
Lin, Justin Yifu Monga, Celestin |
| author_sort |
Lin, Justin Yifu |
| title |
Growth Identification and Facilitation : The Role of the State in the Dynamics of Structural Change |
| title_short |
Growth Identification and Facilitation : The Role of the State in the Dynamics of Structural Change |
| title_full |
Growth Identification and Facilitation : The Role of the State in the Dynamics of Structural Change |
| title_fullStr |
Growth Identification and Facilitation : The Role of the State in the Dynamics of Structural Change |
| title_full_unstemmed |
Growth Identification and Facilitation : The Role of the State in the Dynamics of Structural Change |
| title_sort |
growth identification and facilitation : the role of the state in the dynamics of structural change |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100518154747 http://hdl.handle.net/10986/3798 |
| _version_ |
1764388403882754048 |
| spelling |
okr-10986-37982021-04-23T14:02:12Z Growth Identification and Facilitation : The Role of the State in the Dynamics of Structural Change Lin, Justin Yifu Monga, Celestin ADVANCED COUNTRIES ADVANCED ECONOMIES AGGREGATE LEVEL AGRICULTURE BENCHMARK BINDING CONSTRAINTS BUSINESS DEVELOPMENT CAPITAL ACCUMULATION CAPITAL GOODS CAPITAL INTENSITY CAPITAL INVESTMENT CARBON CHEMICAL FERTILIZERS COAL COMMUNICATION TECHNOLOGIES COMPARATIVE ADVANTAGE COMPARATIVE ADVANTAGES COMPETITIVE MARKET COMPETITIVE MARKETS COMPETITIVENESS COST OF CAPITAL COUNTRY REGRESSIONS CROSS-COUNTRY PERSPECTIVE DEBT DECISION TREE DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING WORLD DEVELOPMENT AGENCIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DEVELOPMENT STRATEGIES DEVELOPMENT STRATEGY DISEQUILIBRIUM DIVERSIFICATION DOMESTIC INDUSTRIES DOMESTIC SAVINGS ECONOMETRIC MODELING ECONOMIC CHANGE ECONOMIC CRITERIA ECONOMIC DEVELOPMENT ECONOMIC DEVELOPMENTS ECONOMIC EFFECTS ECONOMIC GROWTH ECONOMIC HISTORIANS ECONOMIC IMPACT ECONOMIC POLICIES ECONOMIC POWERHOUSES ECONOMIC PROGRAMS ECONOMIC SECTORS ECONOMIC THEORY ECONOMIES OF SCALE ECONOMISTS EFFICIENT MARKET EFFICIENT MARKETS ELASTICITY EMERGING MARKET EMERGING MARKET ECONOMIES EMPIRICAL EVIDENCE EMPIRICAL STUDIES ENVIRONMENTAL ENVIRONMENTAL PROTECTION EXCHANGE RATE EXPORT PROMOTION EXPORTS EXTERNALITIES EXTERNALITY FACTOR ENDOWMENTS FACTOR PRICES FACTORS OF PRODUCTION FAILURE OF STATE FINANCE CORPORATION FINANCIAL MARKETS FINANCIAL SUPPORT FINANCIAL SYSTEM FISHING FOREIGN EXCHANGE FOREIGN FIRMS FORESTRY FREE TRADE FULL EMPLOYMENT FUTURE GROWTH GDP GOVERNMENT ACTION GOVERNMENT INTERVENTION GOVERNMENT INTERVENTIONS GOVERNMENT SUBSIDIES GROSS DOMESTIC PRODUCT GROWTH LITERATURE GROWTH POTENTIAL GROWTH PROCESS GROWTH RATE GROWTH RATES GROWTH THEORY HIGH UNEMPLOYMENT HUMAN CAPITAL INCOME INCOME DISTRIBUTION INCOME ELASTICITY INCOME GROWTH INCOME GROWTH RATE INCOME LEVELS INDIVIDUAL COUNTRIES INDIVIDUAL FARMERS INDIVIDUAL FIRM INDIVIDUAL FIRMS INDUSTRIAL DEVELOPMENT INDUSTRIAL POLICY INDUSTRIALIZATION INFANT INDUSTRY ARGUMENT INFORMATION ASYMMETRY INFRASTRUCTURE REQUIREMENTS INTANGIBLE INTELLECTUAL PROPERTY INTEREST RATE INTERMEDIATE INPUTS INTERNATIONAL TRADE INVESTMENT CLIMATE INVESTMENT DECISIONS LABOR COSTS LABOR FORCE LEGAL FRAMEWORK LIVING STANDARDS LOW-INCOME COUNTRIES LOW-INCOME COUNTRY MACROECONOMIC MANAGEMENT MACROECONOMIC POLICY MACROECONOMICS MANUFACTURING INDUSTRIES MARGINAL COST MARKET ECONOMIES MARKET FAILURES MARKET MECHANISM MARKET SHARES MICROECONOMIC ANALYSES MONOPOLY MORAL RESPONSIBILITY NATIONAL DEVELOPMENT NATIONAL ECONOMY NATURAL MONOPOLIES NATURAL RESOURCES OUTPUTS PATENTS PER CAPITA INCOME PER CAPITA INCOMES PLANNED ECONOMIES POLICY DISCUSSION POLICY INSTRUMENTS POLICY INTERVENTIONS POLICY MEASURES POLICY OPTIONS POLICY PAPERS POLICY RESEARCH POLICY VARIABLES POLITICAL ECONOMY POLITICAL INSTABILITY POLITICAL SUPPORT POOR COUNTRIES POVERTY REDUCTION POWER PARITY PRICE ELASTICITY PRICE ELASTICITY OF DEMAND PRIVATE MARKET PRIVATE SECTOR GROWTH PRIVATIZATION PRODUCTION COSTS PRODUCTIVITY PRODUCTIVITY GROWTH PROPERTY RIGHTS PUBLIC DEBT PUBLIC GOODS PUBLIC SECTOR PUBLIC-PRIVATE PARTNERSHIPS PURCHASING POWER RATE OF INVESTMENT RATE OF RETURN REGRESSION ANALYSES REGULATORY REQUIREMENTS RENT SEEKING SCARCE CAPITAL SHADOW PRICES SKILLED WORKERS SMALL BUSINESSES SMALL ENTERPRISES SOCIAL CAPITAL STATE ENTERPRISES STATE INTERVENTION STATE INTERVENTIONS STATE-OWNED ENTERPRISES STRUCTURAL CHANGE SUSTAINABLE GROWTH TAX TAX CREDITS TECHNOLOGICAL CHANGE TECHNOLOGICAL INNOVATION TECHNOLOGY TRANSFER TELECOMMUNICATIONS TRADE POLICY TRANSACTION COSTS UNEMPLOYMENT UNSKILLED LABOR URBAN AREAS WEALTH WEALTH CREATION WORKING CAPITAL WORLD ECONOMIES Active economic policies by developing countries governments to promote growth and industrialization have generally been viewed with suspicion by economists, and for good reasons: past experiences show that such policies have too often failed to achieve their stated objectives. But the historical record also indicates that in all successful economies, the state has always played an important role in facilitating structural change and helping the private sector sustain it across time. This paper proposes a new approach to help policymakers in developing countries identify those industries that may hold latent comparative advantage. It also recommends ways of removing binding constraints to facilitate private firms entry into those industries. The paper introduces an important distinction between two types of government interventions. First are policies that facilitate structural change by overcoming information and coordination and externality issues, which are intrinsic to industrial upgrading and diversification. Such interventions aim to provide information, compensate for externalities, and coordinate improvements in the "hard" and "soft" infrastructure that are needed for the private sector to grow in sync with the dynamic change in the economy s comparative advantage. Second are those policies aimed at protecting some selected firms and industries that defy the comparative advantage determined by the existing endowment structure either in new sectors that are too advanced or in old sectors that have lost comparative advantage. 2012-03-19T18:40:00Z 2012-03-19T18:40:00Z 2010-05-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100518154747 http://hdl.handle.net/10986/3798 English Policy Research working paper ; no. WPS 5313 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region |