Lederman, DanielMaloney, William F.2012-07-022012-07-022012978-0-8213-8491-6https://hdl.handle.net/10986/9371Does the content of what economies export matter for development? And, if it does, can governments improve on the export basket that the market generates through the shaping of industrial policy? This book considers these questions by reviewing relevant literature and taking stock of what is known from conceptual, empirical, and policy viewpoints. A large literature answers affirmatively to the first question and suggests the characteristics that distinguish desirable exports. More prosaically, but no less controversially, goods which are intensive in unskilled labor are thought to promote 'pro-poor' or 'shared growth,' whereas those which are skilled-labor intensive are thought to generate positive externalities for society as a whole. Concerns about macroeconomic stability have led to a focus on the overall composition of the export basket. This book revisits many of these arguments conceptually and, wherever possible, imports heuristic approaches into frameworks where, as more familiar arguments, they can be held up to the light, rotated, and their facets examined for brilliance or flaws. Second, the book examines what emerges empirically as a basis for policy design. Specifically, given certain conceptual arguments in favor of public sector intervention, do available data and empirical methods allow for actually doing so with a high degree of confidence? In asking this question, the book assumes that policy makers are competent and seek to raise the welfare of their citizens. This assumption permits sidestepping the debate about whether government failures trump market failures generically: In this sense, the book attempts to 'give industrial policy a chance.'CC BY 3.0 IGOACCOUNTINGAGRICULTURAL COMMODITYAGRICULTUREAUTOMOBILESBARRIER TO ENTRYBARRIERS TO ENTRYBASKET OF GOODSBENCHMARKBEST PRACTICESBIDCAPABILITIESCAPITAL MARKETCAPITALISMCELL PHONECELL PHONESCOMMODITIESCOMMODITY PRICESCOMPARATIVE ADVANTAGECOMPETITIVE MARKETCOMPUTERSCOORDINATION MECHANISMCORPORATIONCREDIT MARKETSDATA MANIPULATIONSDEBTDEBT OVERHANGDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPMENT ECONOMICSDEVELOPMENT POLICYDISPLACEMENTDIVERSIFIED PORTFOLIODRIVERSDUMMY VARIABLEDUMMY VARIABLESE-MAILECONOMETRIC ANALYSESECONOMIC COMPLEMENTARITYECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC MODELSECONOMIC RENTSECONOMICS RESEARCHECONOMIES OF SCALEEFFICIENCY WAGESELECTRONICS INDUSTRYEQUIPMENTESPEXCESS DEMANDEXCHANGE RATEEXPORTERSEXPORTSEXTERNALITYFACTORS OF PRODUCTIONFINANCIAL DEVELOPMENTFINANCIAL MARKETSFOREIGN DEBTGDP PER CAPITAGLOBAL SUPPLY CHAINGOVERNMENT INTERVENTIONGROSS DOMESTIC PRODUCTGROWTH RATEHOMOGENEOUS GOODSHUMAN CAPITALINCOMEINCOME DISTRIBUTIONINCOME GROWTHINCREASING RETURNSINCREASING RETURNS TO SCALEINCUMBENTINDUSTRIAL STRUCTUREINDUSTRIAL STRUCTURESINDUSTRIALIZATIONINFORMATION TECHNOLOGIESINNOVATIONINTERNATIONAL BANKINTERNATIONAL COMPARISONINTERNATIONAL TRADEINVENTIONINVESTMENT RATESKNOWLEDGE ECONOMYLABOR FORCELABOR MARKETLABOR MOBILITYLICENSELICENSESMACROECONOMIC POLICIESMACROECONOMIC POLICYMACROECONOMIC STABILITYMACROECONOMIC VOLATILITYMANUFACTURINGMANUFACTURING INDUSTRIESMARGINAL COSTMARKET DATAMARKET FAILUREMARKET FAILURESMARKET PRICEMARKET STRUCTUREMARKETINGMATERIALMATURE MARKETSMONETARY FUNDMONOPOLIESMONOPOLYMONOPOLY RENTSMULTIPLE EQUILIBRIANATIONAL ECONOMYNATIONAL INCOMENATURAL ENDOWMENTSNATURAL RESOURCENATURAL RESOURCESNEGATIVE EXTERNALITYNET EXPORTSNPLPATENTSPER CAPITA INCOMEPOLITICAL ECONOMYPOLITICAL INSTITUTIONSPOLITICAL STABILITYPORTFOLIOPORTFOLIO DIVERSIFICATIONPOSITIVE COEFFICIENTPOSITIVE EXTERNALITIESPRICE VOLATILITYPRIVATE SECTORPRODUCT CATEGORIESPRODUCT DIFFERENTIATIONPRODUCT INNOVATIONPRODUCTION PROCESSPRODUCTION PROCESSESPRODUCTIVITYPRODUCTIVITY GROWTHPROTECTIONISMPUBLIC SECTORPURCHASING POWERQUERIESRANDOM WALKRATE OF RETURNRATES OF RETURNREAL GDPREAL WAGESREGIONAL DUMMYRENT SEEKINGREPUBLICRESERVESRESULTRESULTSRETURNSILICONSKILLED WORKERSSOCIAL NETWORKSSPECIALIZATIONTECHNOLOGICAL ADVANCESTELECOMTELECOMMUNICATIONSTELEPHONETELEVISIONTELEVISIONSTIME PERIODTOTAL FACTOR PRODUCTIVITYTOTAL FACTOR PRODUCTIVITY GROWTHTRADE NETWORKSTRADE POLICIESTRADE POLICYTRADE REGIMESTRADE STRUCTURETRANSLATIONTRUST FUNDUNSKILLED LABORUNSKILLED WORKERSVALUE ADDEDWAGE STRUCTUREWAGESWEALTHWEALTH OF NATIONSWorld Bank10.1596/978-0-8213-8491-6