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Industrial policy in developing economies: developing dynamic comparative advantage in the South African automobile sector

Barnes, Justin; Kaplinsky, Raphael and Morris, Mike (2004). Industrial policy in developing economies: developing dynamic comparative advantage in the South African automobile sector. Competition and Change, 8(2) pp. 153–172.

DOI (Digital Object Identifier) Link: http://dx.doi.org/10.1080/1024529042000271416
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Abstract

Mainstream economics and the Washington Consensus caution against industrial policies that target sectors, firms and regions. At the most they favour cross-sectoral policies which address generalized market failures. This paper analyses the success of an industry-specific policy, South Africa's Motor Industry Development Programme. It documents significant learning processes and shows the impact of the sector's growth on macroeconomic performance. It also addresses the 'costs' of industrial policy and shows how well-designed scale-enhancing selective policies can provide domestic consumers with global-quality products at global-price levels, without subsidy from the exchequer. The conclusion addresses the relevance of such selective policies to other developing economies, arguing the case for intelligent and appropriately crafted industrial policy.

Item Type: Journal Article
Copyright Holders: 2004 Maney Publishing
ISSN: 1477-2221
Keywords: industrial policy; market failure; automobile and components sector; Washington Consensus; South Africa
Academic Unit/Department: Mathematics, Computing and Technology > Engineering & Innovation
Interdisciplinary Research Centre: Innovation, Knowledge & Development research centre (IKD)
Related URLs:
Item ID: 5871
Depositing User: Raphael Kaplinsky
Date Deposited: 14 Nov 2006
Last Modified: 12 Feb 2014 11:50
URI: http://oro.open.ac.uk/id/eprint/5871
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