The Return of Industrial Policy in Data

By Simon Evenett, Adam Jakubik, Fernando Martín, Michele Ruta

January 4, 2024

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Format: Chicago

Simon Evenett, Adam Jakubik, Fernando Martín, and Michele Ruta. The Return of Industrial Policy in Data, (USA: International Monetary Fund, 2024) accessed November 13, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

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:

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DOI:

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Issue:

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Series:

Working Paper No. 2024/001
Stock No:

WPIEA2024001
ISBN:

9798400260964
ISSN:

1018-5941

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