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Development Economics
» Productivity of firms »
Industrial policy: evidence
» Industrial policy: evidence - Practice Questions
Industrial policy: evidence - Practice Questions
1. Studies of industrial policy indicate that protectionist policies
*
are good for overall economic growth
hinder economic growth
are good for economic growth if the economy is based in agriculture, but harm countries who tend to engage in more manufacturing
2. When industrial policy is effective (e.g. South Korea, Singapore, etc.) it may be attributed to:
*
strong investments in education
widespread undervalued resources
both a. and b.