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The Practice of Industrial Policy: Government–Business Coordination in Africa and East Asia

John Page and Finn Tarp


This is an open access title available under the terms of a CC BY-NC-SA 3.0 IGO licence. It is free to read at Oxford Scholarship Online and offered as a free PDF download from OUP and selected open access locations.

Much of the information relevant to policy formulation for industrial development is held by the private sector, not by public officials. There is therefore fairly broad agreement in the development literature that some form of structured engagement — often referred to as close or strategic coordination — between the public and private sectors is needed, both to assist in the design of appropriate policies and to provide feedback on their implementation. There is less agreement on how that engagement should be structured, how its objectives should be defined, and how success should be measured. In fact, the academic literature on close coordination provides little practical guidance on how governments interested in developing a framework for government—business engagement should go about doing it. 

The burden of this lack of guidance falls most heavily on Africa, where — despite 20 years of growth — lack of structural transformation has slowed job creation and the pace of poverty reduction. Increasingly, African governments are seeking to design and implement policies to encourage the more rapid growth of high productivity industries and in the process confronting the need to engage constructively with the private sector. These efforts have met with mixed results. For sustained success in structural transformation, new policies and new approaches to government-business coordination will be needed.

In 2014 the Korea International Cooperation Agency and UNU-WIDER launched a joint research project on ‘The Practice of Industrial Policy’. The objective of the project was to help African policy-makers develop better coordination between the public and private sectors in order to identify the constraints to faster structural transformation and to design, implement, and monitor policies to remove them. This book, written by national researchers and international experts, presents the results of that research.





Downstream activities: The possibilities and the realities

Olle Östensson, Anton Löf

UNU-WIDER working paper 113/2017

The paper discusses the practical possibilities of achieving increased downstream processing and the policies that are commonly used for this purpose. It reviews the reasons why forward vertical integration is not always an optimal choice for extractive industry companies. It finds little support for the argument that differences in market power dictate the geography of downstream processing.

Tariffs on processed products may also play only a limited role. The degree of vertical integration varies and appears to be mainly driven by production economics. Market determined processing margins fluctuate, which raises the risks of investing in downstream processing capacity.

Policies for downstream processing are discussed based on experiences in four countries: India, Indonesia, Zambia, and Tanzania. In most of these cases, a very limited amount of analysis appears to have been undertaken to design the policies. Results so far seem to indicate that a number of unintended consequences dominate the outcomes.



Economic and Political Weekly, Vol. 52, Issue No. 21, 27 May, 2017


Lessons from ‘Coalgate’

In the Name of the Mother


Naxalbari and After—Unfinished History

Strategic Affairs

A Disjointed Doctrine – Reviewing the Military’s Joint Doctrine by Ali Ahmed


URL: http://www.epw.in/journal/2017/21

Courtesy: EPW

National Bureau of Economic Research Latest Working Papers during the week of June 05, 2017

The following NBER Working Papers were released in electronic format this week. Abbreviations in parentheses refer to NBER Research Programs. (visit http://www.nber.org/programs for Program information.)

1.  The Effects of School Reform Under NCLB Waivers: Evidence from Focus Schools in Kentucky by Sade Bonilla, Thomas Dee #23462 (ED) http://papers.nber.org/papers/w23462?utm_campaign=ntw&utm_medium=email&utm_source=ntw

2.  Taper Tantrums: QE, its Aftermath and Emerging Market Capital Flows by Anusha Chari, Karlye Dilts Stedman, Christian Lundblad #23474 (AP IFM ME) http://papers.nber.org/papers/w23474?utm_campaign=ntw&utm_medium=email&utm_source=ntw

3.  Acquiring Banking Networks by Ross Levine, Chen Lin, Zigan Wang #23469 (CF IO) http://papers.nber.org/papers/w23469?utm_campaign=ntw&utm_medium=email&utm_source=ntw

4.  Did the Affordable Care Act Young Adult Provision Affect Labor Market Outcomes? Analysis Using Tax Data by Bradley Heim, Ithai Lurie, Kosali Simon #23471 (CH HC HE) http://papers.nber.org/papers/w23471?utm_campaign=ntw&utm_medium=email&utm_source=ntw

5.  Access and Use of Contraception and Its Effects on Women’s Outcomes in the U.S. by Martha J. Bailey, Jason M. Lindo #23465 (CH DAE HC HE LS PE) http://papers.nber.org/papers/w23465?utm_campaign=ntw&utm_medium=email&utm_source=ntw

6.  Insurgent Learning by Francesco Trebbi, Eric Weese, Austin L. Wright, Andrew Shaver #23475 (DEV POL) http://papers.nber.org/papers/w23475?utm_campaign=ntw&utm_medium=email&utm_source=ntw

7.  Who Is Screened Out? Application Costs and the Targeting of Disability Programs by Manasi Deshpande, Yue Li #23472 (AG LS PE) http://papers.nber.org/papers/w23472?utm_campaign=ntw&utm_medium=email&utm_source=ntw

8.  Differentiated Accountability and Education Production: Evidence from NCLB Waivers by Steven W. Hemelt, Brian Jacob #23461 (CH ED LS PE) http://papers.nber.org/papers/w23461?utm_campaign=ntw&utm_medium=email&utm_source=ntw

9.  Quantifying the Life-cycle Benefits of a Prototypical Early Childhood Program by Jorge Luis Garcia, James J. Heckman, Duncan Ermini Leaf, Maria Jose Prados #23479 (CH ED) http://papers.nber.org/papers/w23479?utm_campaign=ntw&utm_medium=email&utm_source=ntw

10.  Governance and Stakeholders by Vikas Mehrotra, Randall Morck #23460 (CF) http://papers.nber.org/papers/w23460?utm_campaign=ntw&utm_medium=email&utm_source=ntw

11.  An Evaluation of Bias in Three Measures of Teacher Quality: Value-Added, Classroom Observations, and Student Surveys by Andrew Bacher-Hicks, Mark J. Chin, Thomas J. Kane, Douglas O. Staiger #23478 (CH ED LS PE) http://papers.nber.org/papers/w23478?utm_campaign=ntw&utm_medium=email&utm_source=ntw

12.  The Long-Run Dynamics of Electricity Demand: Evidence from Municipal Aggregation by Tatyana Deryugina, Alexander MacKay, Julian Reif #23483 (EEE IO PE) http://papers.nber.org/papers/w23483?utm_campaign=ntw&utm_medium=email&utm_source=ntw

13.  School Performance, Accountability and Waiver Reforms: Evidence from Louisiana by Thomas Dee, Elise Dizon-Ross #23463 (ED) http://papers.nber.org/papers/w23463?utm_campaign=ntw&utm_medium=email&utm_source=ntw

14.  Measuring and Bounding Experimenter Demand by Jonathan de Quidt, Johannes Haushofer, Christopher Roth #23470 (DEV LS) http://papers.nber.org/papers/w23470?utm_campaign=ntw&utm_medium=email&utm_source=ntw

15.  International Monetary Relations: Taking Finance Seriously by Maurice Obstfeld, Alan M. Taylor #23440 (IFM ME) http://papers.nber.org/papers/w23440?utm_campaign=ntw&utm_medium=email&utm_source=ntw

16.  Tax Advantages and Imperfect Competition in Auctions for Municipal Bonds by Daniel Garrett, Andrey Ordin, James W. Roberts, Juan Carlos Suarez Serrato #23473 (IO PE) http://papers.nber.org/papers/w23473?utm_campaign=ntw&utm_medium=email&utm_source=ntw

17.  Upstart Industrialization and Exports, Japan 1880-1910 by Christopher M. Meissner, John P. Tang #23481 (DAE) http://papers.nber.org/papers/w23481?utm_campaign=ntw&utm_medium=email&utm_source=ntw

18.  Flexibility of Adjustment to Shocks: Economic Growth and Volatility of Middle-Income Countries Before and  After the Global Financial Crisis of 2008 by Joshua Aizenman, Yothin Jinjarak, Gemma Estrada, Shu Tian #23467 (IFM) http://papers.nber.org/papers/w23467?utm_campaign=ntw&utm_medium=email&utm_source=ntw

19.  Exit, Voice or Loyalty? An Investigation into Mandated Portability of Front-Loaded Private Health Plans by Juan Pablo Atal, Hanming Fang, Martin Karlsson, Nicolas R. Ziebarth #23468 (HC HE IO PE) http://papers.nber.org/papers/w23468?utm_campaign=ntw&utm_medium=email&utm_source=ntw

20.  Complex Asset Markets by Andrea L. Eisfeldt, Hanno Lustig, Lei Zhang #23476 (AP CF EFG) http://papers.nber.org/papers/w23476?utm_campaign=ntw&utm_medium=email&utm_source=ntw

21.  Disability Benefits, Consumption Insurance, and Household Labor Supply by David Autor, Andreas Ravndal Kostol, Magne Mogstad, Bradley Setzler #23466 (AG LS PE) http://papers.nber.org/papers/w23466?utm_campaign=ntw&utm_medium=email&utm_source=ntw

22.  Robust Bond Risk Premia by Michael D. Bauer, James D. Hamilton #23480 (AP EFG ME) http://papers.nber.org/papers/w23480?utm_campaign=ntw&utm_medium=email&utm_source=ntw

23.  Are U.S. Companies Too Short-Term Oriented?  Some Thoughts by Steven N. Kaplan #23464 (CF PR) http://papers.nber.org/papers/w23464?utm_campaign=ntw&utm_medium=email&utm_source=ntw

24.  Per Capita Income and the Demand for Skills by Justin Caron, Thibault Fally, James Markusen #23482 (ITI)

25.  World War II and the Industrialization of the American South by Taylor Jaworski #23477 (DAE) http://papers.nber.org/papers/w23477?utm_campaign=ntw&utm_medium=email&utm_source=ntw


Courtesy: NBER

When Do Firms Undertake International Open Innovation?

Xiaolan Fu,  Yawen Li, Jizhen Li and  Henry Chesbrough

TMCD Working Paper: TMD-WP-75, 2017

In this study, we examine the characteristics of firms and their surrounding environment and investigates their likelihood to develop the international openness in innovation. Our survey contains data on 1,408 manufacturing firms’ in China which conduct open innovation activities, and the research span extends from 2005 through 2007.Using the Heckman model, we examine the factors which influence the firms to undertake international open innovation (OI), such as the dynamic environment, the uncertainty faced by firms, the different strategies of firms and government support received by firms. It turns out that there is a direct positive relationship between international orientation and international OI. The technology dynamics and endogenous uncertainty also significantly explains the improvements in firms’ international open innovation performance.Discussions and analyses are given to these findings. All these findings extend the literature
in organizational learning and supplement the resource-based view with the external environment. Both managerial and academic implications are presented for further study.



Measuring Malnutrition and Dietary Diversity: Theory and Evidence from India

Christian Oldiges

OPHI Working Paper : 108, 2017

Adequate nutrition constitutes one of the most basic dimensions of human well-being. Ample evidence exists for the functional link between a diverse diet and health outcomes or economic performance. However, a concise measure to capture nutritional diversity that utilizes typical household-level data, often the only data available in developing countries, is yet to be developed. In this paper, I propose a theoretical framework for such a measure by extending the Alkire-Foster (AF) methodology. The new framework enables the calculation of both the incidence and intensity of nutritional deprivation. Applying this framework, I construct a Nutritional Deprivation Index (NDI) for Indian states using household survey data on food consumption. The NDI is unique, and, compared to existing measures, it is more effective in both identifying the inadequately nourished and revealing the extent of food deprivation.

URL: http://www.ophi.org.uk/measuring-malnutrition-and-dietary-diversity-theory-and-evidence-from-india/

Courtesy: OPHI

The global evolution of travel visa regimes: An analysis based on the DEMIG VISA database

Mathias Czaika, Hein de Haas and María Villares-Varela

Working paper No.  134, 2017

Drawing on the new DEMIG VISA database which covers global bilateral travel restrictions from 1973 to 2013, this paper explores patterns and trends in international visa regimes. We construct indices of cross-regional inbound and outbound travel restrictiveness to investigate (i) the extent to which different world regions and regional unions have opened or closed to other regions and (ii) the ways in which the formation of regional unions or the disintegration of countries or unions of countries (e.g. the USSR) has affected international visa regimes. Generally, the analysis challenge the idea of a growing global mobility divide between ‘North’ and ‘South’, and yields a more complex image reflecting the rather multi-polar and multi-layered nature of international relations. While the strongest change has been the decreasing use of exit restrictions, the level of entry visa restrictiveness has remained remarkably stable at high levels, with currently around 73 per cent of country dyads being visa-restricted. While predominantly European and North American OECD countries maintain high levels of entry visa restrictiveness for Africa and Asia, these latter regions have the highest levels of entry restrictions themselves. Although citizens of wealthy countries generally enjoy greatest visa-free travel opportunities, this primarily reflects their freedom to travel to other OECD countries. Visa-free travel is mostly realised between geographically proximate countries of integrated regional blocs such as ECOWAS, the EU, GCC and MERCOSUR. Analyses of global dynamics in visa reciprocity show that 21 per cent of the country dyads have asymmetrical visa rules, but also show that levels of reciprocity have increased since the mid-1990s. Our analysis shows that visas are not ‘just’ instruments regulating entry of visitors and exit of citizens, but are manifestations of broader political economic trends and inequalities in international power relations.

URL: https://www.imi.ox.ac.uk/publications

Courtesy: IMI