Driving Industrialization in Africa? The Impact of Industrial Policy on Moroccan Industry

By sorting out the important industries mentioned in China's “11th Five-Year Plan” and “12th Five-Year Plan” and utilizing inter-provincial OFDI panel data from 2006-2015, this paper examines whether industrial policies effectively promote reverse technology spillovers from OFDI channel through a linear regression using the fixed effects model. In addition, this paper also examines the heterogeneity of industrial policy implementation by policy sources and regions, proving the robustness of the results. The empirical results show that industrial preferential policies have significantly promoted local OFDI reverse technology spillover, and the effect differed significantly between regions. The rationalisation of industrial structure, the regional economic growth and regional openness all have a positive impact on OFDI reverse technology spillover. Finally, in order to contribute to China's high-quality economic development, this paper puts forward some suggestions on how to implement industrial policies more effectively.

Different countries, especially developing ones, have resorted since the middle of the last century to using industrial policy in order to expand the industrial base and push forward the economic development wheel. Tangible results have been achieved in many Asian countries, while no such results have been achieved in the countries of Latin America and Africa. Support has been dropped for the application of industrial policy since the mid-eighties of the last century because of the negative consequences resulting from it and then return again in the recent period.
 The research aims to analyze and discuss industrial policy and the extent of the need to use it in developing countries, it focuses on discussing the ideas and propositions of the two different approaches towards industrial policy. The first represents the position of those opposed to the industrial policy, and the second represents the position of those who support it. Those opposed to the industrial policy are the neoliberals in the United States of America who stress the role of the market in achieving development and point to the negative effects of industrial policy, while in favor of industrial policy book theoreticians Many economists because of the existence of globalization and the WTO rules and the changing nature of the global economy and that creates difficulties and impediments to developing countries and weaken the influence of industrial policy.
 Through analysis and discussion of the various propositions and evidence, the research ends with recommending the use of a carefully formulated industrial policy as a means to achieve economic development in developing countries and overcome the negative effects on them. With the call to adjust the policies and rules of the World Trade Organization and the global economic system in line with the need of developing countries for the development of industrialization and promoting economic development.

This study aims to explore the driving factors of green innovation, and uses the micro- and macro-data from China’s sports goods manufacturing industries. In particularly, sports goods manufacturing enterprises are identified by the textual analysis of information disclosure, and the competitive environment faced by each enterprise is built through their unique closest rivals. Empirically, this study finds that competition and policy can promote green innovation in sports goods manufacturing industries, and industrial policy can moderate the role of product market competition in promoting green innovation. Considering the characteristics of the Chinese market, more industrial policies may intensify the competition among manufacturing enterprises, forcing such enterprises to obtain competitive advantages through innovation outcomes. It is worth noting that the association between product market competition and green innovation changes as financial constraints increase, and this may be caused by the impact of industrial policy on the interactions among enterprises. After implementing the strict environmental policy, product market competition and industrial policy can both promote green innovation. In high-polluting industries, sports goods manufacturing enterprises get more social attention and suffer from higher penalties for environmental violations, so that such enterprises will get more motivations from industrial policies to support green innovation. In addition, we also find that there is a significant inverted-U shape relationship between industrial policy and green innovation in sports goods manufacturing industries. As financial constraints increase, the non-linear relationship between product market competition and green innovation converts from a U shape relationship to an inverted-U shape relationship. Our findings can provide a better understanding of the investment of sports goods manufacturing enterprises in green innovation.

This article theoretically describes the mechanism of the role of new infrastructure-related industrial policies on industrial structure optimization and upgrading and establishes a production function model for empirical analysis. This article innovatively collects the industrial policies introduced by Chinese provinces and cities from 1997-2021 and constructs a stock dataset of industrial policies related to new infrastructure construction. Combining the panel data on the scale of marketization, residential consumption, government expenditure, and human capital in each province and city, the generalized moment estimation method is used to test the role of national infrastructure construction-related industrial policies in promoting the rationalization and heightening of industrial structure, as well as the synergistic and complementary effects of national infrastructure construction-related industrial policies and the scale of marketization.The study finds that introducing and implementing new infrastructure-related industrial policies significantly contribute to the rationalization and heightening of industrial structure. The promotion effect of new infrastructure-related industrial policies on the optimization and upgrading of industrial structure is highly dependent on the degree of local marketization. Based on the above findings, the Chinese government should formulate and implement the new infrastructure-related industrial policies rationally based on the market mechanism and with the help of government capacity and policy tools to achieve industrial structure upgrading and market economy development.

However, industrial policy was just one component of a package of sound policies — for example, balanced government budgets, large infrastructure investments, and heavy investments in education and human capital — that the East Asian countries pursued. It is the entire package of growth-friendly policies that fostered growth rather than just industrial policy. Indeed the empirical evidence on the impact of industrial policy on East Asia’s economic performance is mixed at best, with some studies finding a beneficial effect, others a harmful effect, and yet others no effect. The lack of firm evidence in favor of industrial policy is hardly surprising. In fact, even in the absence of any sophisticated analysis by economists, it is clear that industrial policy is nonsense. Common sense alone suggests that industrial policy makes no sense. More precisely, there is a gaping hole in the basic logic of industrial policy — i.e. risk-averse government bureaucrats, rather than risk-taking, profit-seeking businessmen, determining which industries to invest in. In fact, the hole is so gaping that it would stump even the most ardent supporters of industrial policy. This fatal logical flaw casts serious doubt on whether even the very concept of industrial policy is meaningful or sensible…

This chapter discusses in detail the methodological issues involved in evaluating industrial policy in addition to the stated intentions of those who formulated industrial policy in Japan. The simultaneous occurrence of Japan's highly successful development with a widespread use of industrial policy does not in itself imply a causality between the two: growth might have been the result of favourable macroeconomic policy or expanding world trade, and industrial policy might have contributed little or nothing to Japan's development. Nevertheless, this apparent correlation is striking and worthy of investigation. To that end, this chapter outlines economic criteria, which are useful in assessing the possible impact of industrial policy on Japan's post-war growth. These criteria fall short of providing an empirically verifiable model, impossible given data limitations.

Effective industrial policies need to be implemented, particularly aligning with environmental protection goals to drive the high-quality growth of China’s economy in the new era. Setting up national high-tech zones falls under the purview of both regional and industrial policies. Using panel data from 163 prefecture-level cities in China from 2007 to 2019, this paper empirically analyzes the impact of national high-tech zones on the level of urban green innovation and its underlying mechanisms. It utilizes the national high-tech zones as a quasi-natural experiment and employs a double machine learning model. The study findings reveal that the policy for national high-tech zones greatly enhances urban green innovation. This conclusion remains consistent even after adjusting the measurement method, empirical samples, and controlling for other policy interferences. The findings from the heterogeneity analysis reveal that the impact of the national high-tech zone policy on green innovation exhibits significant regional heterogeneity, with a particularly significant effect in the central and western regions. Among cities, there is a notable push for green innovation levels in second-tier, third-tier, and fourth-tier cities. The moderating effect results indicate that, at the current stage of development, transportation infrastructure primarily exerts a negative moderating effect on how the national high-tech zone policy impacts the level of urban green innovation. This research provides robust empirical evidence for informing the optimization of the industrial policy of China and the establishment of a future ecological civilization system.

With China’s economic development entering a new normal, high-quality regional economic development has become an important goal of current economic development. As one of the important means to promote high-quality development of the regional economy, industrial policies are increasingly receiving attention in terms of their role and impact. This article mainly conducts an in-depth analysis of the mechanism and impact path of industrial policies, exploring the role and impact of industrial policies in promoting high-quality regional economic development. Firstly, industrial policies play an important role in promoting high-quality regional economic development. Secondly, the impact path of industrial policies on the high-quality development of the regional economy mainly includes promoting industrial structure upgrading, promoting technological innovation, guiding resource allocation, and enhancing enterprise competitiveness. Therefore, it is necessary to increase research and practice on industrial policies, continuously optimize policy measures, and promote high-quality development of the regional economy.

Export sector is considered as the backbone of any economy. The economy which is efficient and competitive in global market enjoys better export performance otherwise become dependence on foreign goods market. Pakistan being a developing economy faces worse export performance as compare to its past competitors and currently economy faces huge current account deficit. The current study made an attempt to check the relationship between Industrial Policy and export diversification using ARDL approach because of different integration nature of variables under consideration from 1980-2018. The findings of the study suggests that there is strong relationship between industrial Policy instruments and export diversification both in short run and long run and by enhancing strong and visionary Industrial Policies and less relying on imports, the economy can enjoy sufficient growth and diversify its export structure.

Against the backdrop of persistently high levels of poverty and inequality, critical environmental boundaries and increasing global economic interdependence, this book addresses the role and impact of industrial policies in developing countries. Accepting the reality of both market failure and policy failure, it identifies the conditions under which industrial policy can deliver socially desirable results. General conclusions on the political economy of development are complemented by country case studies covering Ethiopia, Mozambique, Namibia, Tunisia and Vietnam.

Cultivating strategic emerging industries (SEIs) is an important strategy for most countries around the world to seize the economic frontier. Academics have not yet reached a unified conclusion on whether the adoption of industrial policy from the government level can effectively promote its R&D and innovation behaviors and contribute to industrial upgrading. Based on the data regarding 33,425 Shanghai and Shenzhen A-share-listed companies from 2007 to 2020, this article employs the difference-in-difference model (DID) and the mediated effect model to identify the effect and mechanism of how industrial policy affects the innovation behavior of SEIs. The results of this study show that the promulgation and implementation of industrial policies can help stimulate enterprises to carry out R&D and innovation behaviors and improve the innovation level of SEIs. Its promoting effect on state-owned enterprises is more significant than that on non-state-owned enterprises, and its promoting effect on the eastern and central regions is more significant than that on the western region. Further analysis reveals that government subsidies and tax incentives are important transmission mechanisms through which industrial policy affects firms' innovation, with government subsidies playing a positive facilitating role and tax incentives having a negative impact.

List of Contributors. Preface. Part I: Introduction. 1. Overview: The Lessons from Taiwan: Relevance, Limitations and Transferability E. Thorbecke, H. Wan. 2. The 'Miracle' That Did Happen: Understanding East Asia in Comparative Perspective J. Bhagwati. Part II: Key Macro Policies and Reforms in Taiwan's Development. 3. Government Policy in the Taiwanese Development Process: The Past 50 Years S.W.Y. Kuo. 4. Taiwan's Industrialization Policies: Two Views, Two Types of Subsidy A.H. Amsden. 5. The Trade-Growth Nexus in Taiwan's Development G. Ranis. 6. A Balanced Budget, Stable Prices and Full Employment: The Macroeconomic Environment for Taiwan's Growth Tzong-shian Yu. 7. Comparative Advantage Development Strategy and the Economic Development of Taiwan J. Yifu Lin. Part III: The Liu-Tsiang Policy Proposals. 8. The Liu-Tsiang Proposals for Economic Reform in Taiwan: A Retrospective Jia-Dong Shea. 9. Liberalization Promotes Development: Evidence from Taiwan J.C.H. Fei, Yun-Peng Chu. Part IV: The Role of Agriculture, Industrial Policy, Human Capital and Labor Institutions in Taiwan's Development. 10. Agriculture as the Foundation for Development: The Taiwanese Story Tsu-tan Fu, Shun-yi Shei. 11. The Role of Industrial Policy in Taiwan's Development Pochih Chen. 12. Human Capital Creation and Utilization in Taiwan G. Ren-juei Tsiang. 13. The Labor Market in Taiwan: Manpower, Earnings, and Market Institutions W. Galenson. PartV: Relevance of the Taiwanese Experience to Other Third World Regions. 14. State and Market in the Economic Development of Korea and Taiwan I. Adelman. 15. Latin America and East Asia: Revisiting the Evidence A.C. Harberger. 16. What Can Sub-Saharan Africa Learn from the Taiwanese Development Experience? T. Ademola Oyejide. 17. The Relevance and Comparability of Taiwan's Development Experience to Indonesia M. Sadli, Kian Wie Thee. Part VI: Conclusions and Epilogue. 18. Some Further Thoughts on Taiwan's Development Prior to the Asian Financial Crisis and Concluding Remarks H. Wan, E. Thorbecke. 19. Epilogue: How Did Taiwan Withstand the Asian Financial Crisis? E. Thorbecke, H. Wan.

During the last fifteen years the American economy has been unable to continue the impressive growth that characterized the postwar quarter century. Particularly during the 1970s, the malaise that infected American society had been accentuated by the apparently superior performance of competing countries. First France, then Germany, and finally Japan appeared to have discovered, in turn, a unique policy that guaranteed economic growth and stable employment. Initially it was “Le Plan”, the indicative industrial planning by an elite Gaullist technocracy that assigned quantitative and qualitative investment targets to key industries, then German Codetermination,* and lastly the mysterious establishment of industrial strategies by Japan’s Ministry of Industry and Trade that were held responsible for the successive peak performances of these countries. The apparent common denominator of the French-German-Japanese experiences was government intervention in the market economy: industrial policy and employee-union participation in managerial decision making, that is, codetermination.

The synthetic control method (Abadie and Gardeazabal, 2003, American Economic Review 93: 113–132, Abadie, Diamond, and Hainmueller, 2010, Journal of the American Statistical Association 105: 493–505) is a popular method for causal inference in panel data with one treated unit that often uses placebo tests for statistical inference. While the synthetic control method can be implemented by the excellent command synth (Abadie, Diamond, and Hainmueller, 2011, Statistical Software Components S457334, Department of Economics, Boston College), it is still inconvenient for users to conduct placebo tests. As a wrapper program for synth, our proposed synth2 command provides convenient utilities to automate both in-space and in-time placebo tests, as well as the leave-one-out robustness test. Moreover, synth2 produces a complete set of graphs to visualize covariate or unit weights, covariate balance, actual or predicted outcomes, treatment effects, placebo tests, ratio of posttreatment mean squared prediction error to pretreatment mean squared prediction error, pointwise p-values (two-sided, right-sided, and left-sided), and the leave-one-out robustness test. We illustrate the use of the synth2 command by revisiting the classic example of California’s tobacco control program (Abadie, Diamond, and Hainmueller 2010).

Industrial policy for sustainable human development in the post-Covid19 era.