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Industrial policy in the shadow of conflict: lessons from the past

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  • Kelly, Morgan
  • O'Rourke, Kevin

Abstract

We discuss the industrial policies pursued by leading nations, on or close to the technological frontier, before and during the first and second industrial revolutions. The discussion is thematic rather than chronological due to space constraints. Industrial policy was the rule rather than the exception historically, and was often motivated by supply chain and strategic considerations. It was sometimes effective, and sometimes not, with the supply of appropriate skilled labour being an important constraint in several cases. British success in the late 18th century owed a lot more to activist policy, undertaken in an era of constant warfare, and a lot less to stable property rights, than is sometimes thought.

Suggested Citation

  • Kelly, Morgan & O'Rourke, Kevin, 2024. "Industrial policy in the shadow of conflict: lessons from the past," CEPR Discussion Papers 19372, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:19372
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    More about this item

    Keywords

    Industrial policy;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F52 - International Economics - - International Relations, National Security, and International Political Economy - - - National Security; Economic Nationalism
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • N40 - Economic History - - Government, War, Law, International Relations, and Regulation - - - General, International, or Comparative
    • N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General

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