IMF Working Papers

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Simon Evenett, Adam Jakubik, Fernando Martín, and Michele Ruta. The Return of Industrial Policy in Data, (USA: International Monetary Fund, 2024) accessed December 5, 2024

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Summary

This paper introduces the New Industrial Policy Observatory (NIPO) dataset and documents emergent patterns of policy intervention during 2023 associated with the return of industrial policy. The data show that the recent wave of new industrial policy activity is primarily driven by advanced economies, and that subsidies are the most employed instrument. Trade restrictions on imports and exports are more frequently used by emerging market and developing economies. Strategic competitiveness is the dominant motive governments give for these measures, but other objectives such as climate change, resilience and national security are on the rise. In exploratory regressions, we find that implemented measures are correlated with the past use of measures by other governments in the same sector, pointing to the tit-for-tat nature of industrial policy. Furthermore, domestic political economy factors and macroeconomic conditions correlate with the use of industrial policy measures. We intend for the NIPO to be a publicly available resource to help monitor the evolution and effects of industrial policies.

Subject: Export subsidies, Exports, Financial institutions, Imports, International trade, Securities, Technology

Keywords: Asia and Pacific, Central Asia, Data, Export subsidies, Exports, Global, Imports, Industrial Policy, NIPO database, North America, Policy activity, Policy instrument, Policy measure, Policy tool, Securities, South Asia, Trade Policy

Publication Details

  • Pages:

    31

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2024/001

  • Stock No:

    WPIEA2024001

  • ISBN:

    9798400260964

  • ISSN:

    1018-5941

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