The NSE Special Issue on Industrial Policy edited by Justin Yifu Lin and Jiajun Xu has been published by “China Economic Review”
Justin Yifu Lin and Jiajun Xu from the Institute of New Structural Economics (INSE) edited a NSE Special Issue on Industrial Policy on “China Economic Review 48 (2018) ” They published the editorial introduction on CER: “Rethinking industrial policy from the perspective of new structural economics (Justin Yifu Lin Jiajun Xu)”.
Justin Yifu Lin and Jiajun Xu pointed out in their article: Industrial policy is back to the agenda of international development, as industrialization and economic structural transformation is at the heart of Sustainable Development Goals (SDGs) succeeding Millennium Development Goals (MDGs).
From the perspective of NSE, the effective implementation of industrial policy entails three essential elements. First, governments need to work together with private sectors to target industries compatible with the country's latent comparative advantages. Second, governments need to identify sector-specific binding constraints in a dynamic manner whose solution may go beyond the capacity of private firms themselves. Third, governments can play a facilitating role in mitigating the binding constraints and turning the latent comparative advantages into competitive advantages in the global economy.
To better understand the complexities and nuances of industrial policy making in order to make it work better, they have invited leading researchers to conduct case studies on industrial policy. All papers must have passed the standard double-blind review process of China Economic Review. Finally, two papers have been selected: one is by Professor Deborah Br?utigam, Toni Weis and Dr. Xiaoyang Tang on Ethiopia’s leather sectors, and the other is by Professor Vu Minh Khuong on Singapore’s petrochemical industry. The case selection here is well designed in order to cover both labour-intensive light manufacturing and capital-intensive heavy industry, as well as a catching-up industrializing economy and an advanced economy.
The three paper: “Rethinking industrial policy from the perspective of new structural economics(Justin Yifu Lin Jiajun Xu)”; “Latent advantage, complex challenges: Industrial policy and Chinese linkages in Ethiopia's leather sector (Deborah Brautigam, Toni Weis , Xiaoyang Tang）)” and “Embracing globalization to promote industrialization: Insights from the development of Singapore's petrochemicals industry (Khuong M. Vu)”are ready for downloading: