Industrial Policy
Market Failure, Not Technology, Is Slowing the Green Transition
The green transition is faltering in both advanced and developing economies. While politics and market risk is stalling private investment in clean energy in advanced economies, an imbalanced global value chain is preventing investment in clean energy in developing countries, write Piergiuseppe Fortunato and Verena Hitner Barros.
Chinese Industrial Policy Triggers Duties, Reducing the Benefit of Subsidies
In new research, Yusheng Feng, Haishi Li, Siwei Wang, and Min Zhu show that higher industrial subsidies raise the likelihood and severity of foreign antidumping and countervailing duties. These retaliatory duties wipe out roughly a quarter of the revenue growth the subsidies would otherwise create for firms. Failing to address the potential consequences of subsidies may lead governments to overstate the net benefits of industrial policy and fuel deeper trade frictions.
Whither Pro-Competitive Industrial Policy?
Laura Phillips-Sawyer writes that history shows that antitrust and industrial policy have often served as complements to one another. Industrial policy has succeeded when it has targeted specific industries to invest in their ability to compete, rather than protect them from competition.
Markets Have Always Needed the State
The following is an excerpt from Chris Hughes’ new book, “Marketcrafters: the 100-Year Struggle to Shape the American Economy,” now out at Simon & Schuster. You can listen to Hughes discuss his book with Bethany McLean and Luigi Zingales on a new Capitalisn't episode here.
Data Suggests Not All Industrial Policy Sacrifices Competition by Design
In new research, Petros Boulieris, Bruno Carballa-Smichowski, Maria Niki Fourka and Ioannis Lianos analyze industrial policy from around the world to understand how policymakers are rethinking policy goals. The authors create a set of metrics to measure how different policy orientations improve or sacrifice competition.
Don’t Dismantle America’s Audit Regulator—It’s a Strategic Asset Against China
Congress is considering eliminating the Public Company Accounting Oversight Board, the independent federal agency that “audits the auditors.” Karthik Ramanna and Nemit Shroff write...
Creating a Robust Economy Requires a Corporate-Governance Policy Response
William Lazonick writes that recent United States industrial policy initiatives miss the centrality of corporate resource allocation for creating a robust economy, characterized by...
Taiwan’s Industrial Policy After the 2024 Presidential Election
Taiwan has a history of implementing industrial policies to successfully encourage the development of internationally competitive high-tech firms. However, the new administration’s efforts to reorient industrial policy to achieve Taiwan’s commercial-cum-defense goal risks harming its economic resiliency.
What’s Ahead For The U.K.’s Industrial Policy Under Labour
The United Kingdom has struggled to implement long-term industrial policies in recent decades, writes Diane Coyle, a trend the new Labour Party promises to...
The Increasing Cost of Buying American
‘Buy national’ provisions serve as non-tariff barriers to trade and are often defended as tools for job creation and industrial policy. This column examines...
