Industrial policy and development in late industrializing countries: a case study of the motor industry

摘要

In recent times, literature - favouring a neo-classicaludperspective - on industrialization in developing nationsudhas been the subnect of increasing criticism. The opponents of the neo-classical approach argue that outward-looking free market policies do not offer the best prospects for self-sustaining growth. In a straight forward manner, Chapter 1 airs the views of economists of both perspectives. Subsequently, a framework for a general discussion is provided.ududOutward-looking industrial policies m Ireland, haveudled to the emergence of a vibrant foreign-owned manufacturing sector. As Chapter 2 points out, there isudconsiderable evidence that outward-looking industrializationudhas thus far been unsuccessful in developing strong native companies capable of entering export markets. Chapter 3 suggests that this may be a common experience among late industrializing countries (LICs). In fact, the creation of a competitive indigenous manufacturing base may be contingent upon a departure from strict neo-classical guidelines.ududChapter 4 shows that the development of the motor industryudin LICs has usually taken place under the auspicesudof large transnational corporations (TNCs) from developedudcountries. Only with active state intervention haveuddomestic firms - with the assistance of foreign capitaludand technology - shown an ability to compete on theudworld market. As Chapter 5 indicates, assembly ofudmotor vehicles in Ireland was dominated by the subsidiariesudof foreign companies. This is also true of the Irish automotive components sector, which has evolved in recent years. The analysis of this sector, contained m Chapter 5, is based largely on unpublished material. It is clear that this industry suffers from many of the short-comings often associated with foreign dominated sectors of Irish manufacturing.ududBy way of a conclusion, Chapter 6 argues that a roleudexists for more state intervention. However, it warnsudthat government intervention in the system is not withoutudrisk. The task facing policy makers is to design a constructive role for the state. With respect to the Irish manufacturing industry, m the absence of more state intervention, the development of export markets will remain beyond the reach of most indigenous producers.