Industrial Policy

Tag: industrial policy

  • The impact of international relations on industrial policy

    Most mainstream economists go to great lengths to ignore the impact of politics on economic decisions. If anything, they malign the negative impact of political decisions that otherwise deny the glory and truth of economic “laws.” Vivid imaginations indeed! Sensible people know better. When looking at the current state of industrial policy, they realize that…

  • Uncertainty as a justification for industrial policy

    Sorry folks – haven’t posted in a while. Been busy reading and working on some other stuff. One of the areas I’ve been brushing up on has been Keynesian economic theory. No, not the “neoclassical synthesis” of the Paul Samuelson variety. I mean what did John Maynard Keynes actually say about economics/economic theory etc. As…

  • Does culture explain variations in industrial policy?

    I have never been a fan of culture as an explanatory variable for most social phenomena. (Clearly, I am not a sociologist.) While I find the study of culture fascinating, too many times I have seen culture used as a variable in theories that seem to defy logic. The clearest example to me of this is the “clash…

  • What’s in store for industrial policy for 2024?

    As we close out 2023, it’s time to turn to prognostication. I guess it would be more logical if I did a comprehensive analysis of 2023 and major industrial policy trends throughout the year – however, to do that justice, it will take some time, so I will try to do that shortly. So your guess…

  • Friend-shoring is great until it fails

    The recent diplomatic spat between India and Canada that has also enmeshed Five Eye partner countries is the canary in the coal mine for friend-shoring. While a noble sentiment, many others have already pointed this out, but I will join the chorus from an industrial policy angle – “who is a friend?” To quote Lord…

  • Industrial policy as the cure for globalization

    The neoliberal era likely began with the first oil shock in 1973. Eventually, the slowdown in economic growth and the rise of inflation in the developed world required a solution – export employment and import deflation in the form of cheap goods (and services like holidays) obtained from developing countries. To quote The Matrix, “Fate,…

  • Industrial policy vs. corporate welfare

    For those particularly on the political right or in the mainstream of economic thought, industrial policy inevitably equals direct funding to businesses. As discussed in previous posts, this is a vast oversimplification. Direct subsidies to businesses, particularly in the form of a grant is but one tool in the industrial policy toolkit. (Those on the…

  • Global trade as the solution to global trade

    Don’t have a lot to say on this article, but I am supremely dumbfounded that Canada’s “industrial policy” budget has been followed up with a return to trade negotiations with Mercosur. While I have nothing against Mercosur, it seems like the Canadian government has not received the memo that the neoliberal era is over. Even…

  • Rationales for activist industrial policies

    A question I had in my head today that I thought would be good to write about is this – why do some countries/jurisdictions engage in activist or interventionist industrial policies, as opposed to pacifist industrial policies a la neoclassical economics? While this is not strictly based on the academic evidence, my research and thinking…

  • Canada and innovation – mediocre industrial policy at its finest

    Canada’s national newspaper has published a new article on the “state of innovation” in the country. Quite similar to many past articles it has published on this topic in the past, but let’s explore some of the highlights and then dig into them. A lot to dig into, but let’s expand on some of this…