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This book assesses developmental experience in different countries as well as British expansion following the industrial revolution from a developmental perspective. It explains why some nations are rich and others are poor, and discusses how manufacturing made economies flourish and spur economic development. It explains how today's governments can design and implement industrial policy, and how they can determine economically strategic sectors to break out of Low and Middle Income Traps.
Closely linked to global trade and (im)balances, industrialization was never an accident. Industrialization explains how some countries experience export-led growth and others import-led slowdowns. Many confuse industrialization with the construction of factory buildings rather than a capacity and skill building process through certain stages. Industrial policy helps countries advance through those stages.
Explaining technical concepts in understandable terms, the book discusses the capacity and limits of the developmental state in industrialization and in general in economic development, demonstrating how picking-the-winner type focused industrial policy has worked in different countries. It also discusses how industrial policy and science, technology and innovation policies should be sequenced for best results.
List of contents
1. The Old World Order: Trade before the empires on which the sun never set.- 2. The Pre-Industrial New World Order: Colonial empires on which the sun never set.- 3. British Colonial Empire and Industrial Policy: Protection, Monopolized Trade and Industrialization.- 4. How Industrialized Nations Industrialized.- 5. The "Why" of manufacturing.- 6. Global Imbalances: Export-led growth vs import-led slow down.- 7. Value Added and the GDP: The smart vs the donkey.- 8. The industrialization process: A streamlined version.- 9. The Industrial Layer.- 10. Industrialization as capacity building: Skills, technical progress and technical capabilities.- 11. The State and State Capacity.- 12. The "How" of manufacturing: Industrial Policy.- 13. Industrial Policy: Some Case Studies from Today's World.- 14. Putting it all together: How nations succeed through industrial policy.
About the author
Murat A. Yülek is the Director of the Centre for Industrial Policy and Development at Istanbul Commerce University and has also taught at Georgetown University. A widely published former IMF economist and a corporate executive, he has had responsibilities that include corporate finance, development and macroeconomic policy in various countries.
Summary
This book assesses developmental experience in different countries as well as British expansion following the industrial revolution from a developmental perspective. It explains why some nations are rich and others are poor, and discusses how manufacturing made economies flourish and spur economic development. It explains how today’s governments can design and implement industrial policy, and how they can determine economically strategic sectors to break out of Low and Middle Income Traps.
Closely linked to global trade and (im)balances, industrialization was never an accident. Industrialization explains how some countries experience export-led growth and others import-led slowdowns. Many confuse industrialization with the construction of factory buildings rather than a capacity and skill building process through certain stages. Industrial policy helps countries advance through those stages.
Explaining technical concepts in understandable terms, the book discusses the capacity and limits of the developmental state in industrialization and in general in economic development, demonstrating how picking-the-winner type focused industrial policy has worked in different countries. It also discusses how industrial policy and science, technology and innovation policies should be sequenced for best results.
Additional text
“The book provides contemporary case studies of successful episodes of industrial policy, such as Sweden’s Saab, Europe’s Airbus and South Korea’s automobile and nuclear reactor industries. Overall, this book is an excellent volume on industrial development and sustainable policies to drive this. One can only expect that the book will have a wide readership, and the information contained within it will be able to change perspectives of the industrial process.” (Uchenna R. Efobi, LSE Review of Books, blogs.lse.ac.uk, March 21, 2019)
Report
"The book provides contemporary case studies of successful episodes of industrial policy, such as Sweden's Saab, Europe's Airbus and South Korea's automobile and nuclear reactor industries. Overall, this book is an excellent volume on industrial development and sustainable policies to drive this. One can only expect that the book will have a wide readership, and the information contained within it will be able to change perspectives of the industrial process." (Uchenna R. Efobi, LSE Review of Books, blogs.lse.ac.uk, March 21, 2019)
