Industrial policy and the great divergence

Juhasz, R. & Steinwender, C. (2023). Industrial policy and the great divergence. (CEP Discussion Papers CEPDP1949). London School of Economics and Political Science. Centre for Economic Performance.
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We discuss recent work evaluating the role of the government in shaping the economy during the long 19th century, a practice we refer to as industrial policy. We show that states deployed a vast variety of different policies aimed at, primarily, but not exclusively, fostering industrialization. We discuss the thin, but growing literature that evaluates the economic effects of these policies. We highlight some fruitful avenues for future study.

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