Industrial success and government intervention: searching for the linksThe superiority of industrial performance in East Asian countries, particularly in the face of their counterparts in Latin America, had a strong impact on the debate about the relationship between state intervention and industrial performance. The structuralist paradigm was quickly replaced by a new orthodoxy whose recipe for success is a minimalist state and an open economy. This article seeks to show that, although the opening of the economy is a fundamental ingredient, its complement is not a minimalist state, but an interventionist one. Not the Latin American type, but one that restricts its actions to major market failures.
KEYWORDS:
Industrialization; Market failures; industrial policy; globalization; liberalization