In this chapter we explore the popular but controversial idea that developing countries
benefit from abandoning policy neutrality vis-a-vis trade, FDI and resource allocation across …

This paper reviews implications of recent research on competitiveness and clusters for
regions and regional policy. A new framing of competitiveness clarifies the role of regions. Its …

Much of the analysis of economic growth has focused on the study of aggregate output.
Here, we deviate from this tradition and look instead at the structure of output embodied in …

In One Economics, Many Recipes, leading economist Dani Rodrik argues that neither
globalizers nor antiglobalizers have got it right. While economic globalization can be a boon …

This paper evaluates the role of regional cluster composition in regional industry
performance. On the one hand, diminishing returns to specialization in a location can result …

What are the underlying rationales for industrial policy? Does empirical evidence support
the use of industrial policy for correcting market failures that plague the process of …

I study the impact of industrial policy on industrial development by considering a canonical
intervention. Following a political crisis, South Korea dramatically altered its development …

A quantitative model brings together theories linking international trade to quality,
technology, and demand for skills. Standard effects of trade on importers and exporters are …

Countries differ markedly in the diversification of their exports. Products differ in the number
of countries that export them, which we define as their ubiquity. We document a new stylized …

Does what economies export matter for development? If so, can industrial policies improve
on the export basket generated by the market? This book approaches these questions from …