Industrial Selection and Growth

Authors

Keywords:

industrial policy, targeting, learning externalities, productivity growth, economic growth, selective intervention

Abstract

The paper provides an argument for how selective industrial policies (targeting) can produce faster productivity growth. A model is developed to show that when learning externalities are present, targeting can increase the amount of learning that is produced and shared within the targeted sector. This effect will raise the sectoral and the economy-wide average productivity growth rates. The paper also discusses how targeting can speed output growth by raising the incentives to learn and by reducing investment risk.

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References

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Published

1999-04-30

How to Cite

Echecopar, G. (1999). Industrial Selection and Growth. Economic Analysis Review, 14(1), 53–66. Retrieved from https://www.rae-ear.org/index.php/rae/article/view/109

Issue

Vol. 14 No. 1 (1999)

Section

Articles

License

Copyright (c) 1999 German Echecopar

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

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