Industrial Policy and the Great Divergence
CESifo, Munich, 2023
CESifo Working Paper No. 10675
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.
Public Finance
Trade Policy