Economic Development and Industrial Policy

The author compares the industrial policies of five large, newly indstrialized countries and argues that comparative advantage in heavy and industrial chemicals (HCI) has been passing to such countries. The policies adopted to accelerate the process have been disappointing in most cases, their premature imposition creating HCI sectors which have become increasingly burdensome to the rest of the economy. The book traces the adverse economic impact of such policies on Brazil, Mexico, India and China through postwar years, in contrast to the more successful Korean experience. In-depth analyses of steel, petrochemicals and automobile assembly are given.