NATIONAL INDUSTRIAL POLICY AND ECONOMICALLY DISTRESSED COMMUNITIES

In: Policy studies journal: the journal of the Policy Studies Organization, Band 10, Heft 2, S. 220-235

Abstract

ABSTRACTIndustrial policy refers to deliberate government actions to affect the growth or decline of firms or industries for the sake of aggregate national prosperity and international competitiveness. This paper presents empirical evidence that policies designed to promote these objectives would be targeted differently from those designed to promote development of economically‐distressed regions and communities. Facing multiple objectives, it is difficult for the public sector to pursue industrial growth directly as effectively as can private entrepreneurs. However, government aid to economically‐distressed locales and dislocated workers and firms may indirectly support national industrial policy goals.