Policy Papers

Industrial Policy Coverage in IMF Surveillance—Broad Considerations

March 11, 2024

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Format: Chicago

Industrial Policy Coverage in IMF Surveillance—Broad Considerations, (USA: International Monetary Fund, 2024) accessed November 21, 2024

Summary

The paper aims to provide a conceptual framework and guiding principles for the coverage of Industrial Policy (IP) in IMF surveillance. It proposes a working definition of industrial policy, discusses its objectives and main instruments, and provides a brief review of academic literature on IP. The paper discusses the four broad sets of considerations for assessing IP: justification, design, cost-benefit assessment, and implementation. It stresses that IP should be covered in IMF surveillance when it is deemed macro-critical and/or has the potential to generate significant cross-border spillovers. The paper also discusses specific aspects of industrial policies, including trade-related IP, green IP, Special Economic Zones (SEZs), and State-Owned Enterprises (SOEs), and provides examples of the IP coverage in the Article IV consultations with China, Euro Area, Indonesia, Saudi Arabia, and the United States.

Subject: Balance of payments, Financial sector policy and analysis, Institutional View on capital flows, International trade, Monetary policy, Political economy, Special economic zones, Spillovers, Tax incentives, Taxes, Trade policy

Keywords: Global, Green Industrial Policy, Horizontal Policies, IMF surveillance, Industrial Policy, Institutional View on capital flows, IP definition, IP effectiveness, IP measure, IP type, Special Economic Zones, Spillovers, State-Owned Enterprises, Structural Policies, Tax incentives, Trade Policy, Transparency policy

Publication Details

  • Pages:

    38

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Policy Paper No. 2024/008

  • Stock No:

    PPEA2024008

  • ISBN:

    9798400266683

  • ISSN:

    2663-3493

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