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Industrial Policy for Overall Economic Development in Economics from HelpWithAssignment.com
by albertfrank on May 17, 2011
Industrial Policy:
Beyond support for basic science and technology, an aggressive approach has been proposed for encouraging technological development is industrial policy. Generally, industrial policy is a growth strategy in which the government – using taxes, subsidies, or regulation – attempts to influence the nation’s pattern of industrial development. More specifically, some advocates of industrial policy argue that the government should subsidize and promote “high-tech” industries, so as to try to achieve or maintain national leadership in technologically dynamic areas.
The idea that the government should try to determine the nation’s mix of industries is controversial. Economic theory and practice suggest that under normal circumstances the free market can allocate resources well without government assistance. Thus advocates of industrial policy must explain why the free market fails in the case of high technology. Two possible sources...Read More >>
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