Industrial policies should support structural transformation from "summary" of The Industrial Policy Revolution II by J. Esteban,J. Stiglitz,Justin Lin Yifu
Industrial policies play a crucial role in shaping the economic structure of a country. The primary aim of industrial policies should be to support structural transformation. This entails facilitating the shift of resources from less productive to more productive sectors of the economy. By doing so, industrial policies can help countries achieve sustained growth and development. Structural transformation involves moving resources, such as labor and capital, from traditional, low-productivity sectors to modern, high-productivity sectors. This shift is essential for countries to boost their overall economic performance and improve living standards for their citizens. Industrial policies can play a key role in supporting this transformation by creating an enabling environment for industries to thrive. One way industrial policies can support structural transformation is by promoting investments in key sectors with high growth potential. By providing incentives and support to industries that have the capacity to drive economic growth, industrial policies can help shift resources towards more dynamic sectors. This can lead to increased productivity, innovation, and job creation, ultimately contributing to overall economic development. Furthermore, industrial policies can also focus on building the necessary infrastructure and institutional capacity to support the growth of new industries. This includes investing in education and skills development, improving access to finance, and enhancing regulatory frameworks. By addressing these key bottlenecks, industrial policies can help create a conducive environment for structural transformation to take place.- Industrial policies should be designed to support structural transformation by promoting the growth of dynamic industries, building essential infrastructure, and enhancing institutional capacity. By doing so, countries can unlock their potential for sustained economic growth and development.
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