{"id":9401,"date":"2022-07-27T07:04:41","date_gmt":"2022-07-27T07:04:41","guid":{"rendered":"https:\/\/depocen.org\/publications\/public-policy-and-industrial-transformationin-the-process-of-development\/"},"modified":"2022-07-27T07:04:41","modified_gmt":"2022-07-27T07:04:41","slug":"public-policy-and-industrial-transformationin-the-process-of-development","status":"publish","type":"publications","link":"https:\/\/depocen.org\/en\/publications\/public-policy-and-industrial-transformationin-the-process-of-development\/","title":{"rendered":"Public Policy and Industrial Transformation\r\nin the Process of Development"},"content":{"rendered":"<p>This paper studies the role of public policy in promoting<br \/>\nindustrial transformation from an imitationbased,<br \/>\nlow-skill economy to an innovation-based, high-skill<br \/>\neconomy, where technological progress now occurs<br \/>\nthrough the domestic invention of ideas. Industrial<br \/>\ntransformation is measured by changes in an index of<br \/>\nindustrial structure, defined as the ratio of the variety<br \/>\nof imitation- to innovation-based intermediate goods.<br \/>\nA key mechanism through which productivity increases<br \/>\ninitially in both the imitation and innovation sectors<br \/>\nis through a knowledge externality associated with learning by doing in the imitation sector. The process<br \/>\nof industrialization increases the demand for high-skill<br \/>\nlabor, inducing individuals to invest in education. The<br \/>\nmodel also emphasizes the distinction between basic<br \/>\nor core infrastructure, which promotes imitation, and<br \/>\nadvanced infrastructure, which promotes innovation. A<br \/>\ncalibrated version for a low-income country is used to<br \/>\nperform several policy experiments, including an increase<br \/>\nin investment in infrastructure, a reduction in the cost of<br \/>\ntraining, and improved enforcement of property rights.<\/p>\n","protected":false},"featured_media":0,"template":"","cate_publications":[],"author_publications":[2016,2017,2018,2019],"topic_publications":[],"class_list":["post-9401","publications","type-publications","status-publish","hentry","author_publications-pierre-richard-agenor","author_publications-hinh-t-dinh","author_publications-pierre-richard-agenor-en","author_publications-hinh-t-dinh-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/depocen.org\/en\/wp-json\/wp\/v2\/publications\/9401","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/depocen.org\/en\/wp-json\/wp\/v2\/publications"}],"about":[{"href":"https:\/\/depocen.org\/en\/wp-json\/wp\/v2\/types\/publications"}],"wp:attachment":[{"href":"https:\/\/depocen.org\/en\/wp-json\/wp\/v2\/media?parent=9401"}],"wp:term":[{"taxonomy":"cate_publications","embeddable":true,"href":"https:\/\/depocen.org\/en\/wp-json\/wp\/v2\/cate_publications?post=9401"},{"taxonomy":"author_publications","embeddable":true,"href":"https:\/\/depocen.org\/en\/wp-json\/wp\/v2\/author_publications?post=9401"},{"taxonomy":"topic_publications","embeddable":true,"href":"https:\/\/depocen.org\/en\/wp-json\/wp\/v2\/topic_publications?post=9401"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}