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date: 26 January 2020

Abstract and Keywords

This chapter offers a new perspective on analyzing industrial policy, using Taiwan as a case study. It provides quantitative examination of the impacts of industrial policy on Taiwan’s economic growth experience and discusses counterfactual evolution of the Taiwanese economy’s sectoral production structure. It suggests that one percentage point of average growth may be attributed to industrial policy defined as sectoral targeting and identifies other contributors to Taiwan’s growth. These include physical and human capital accumulation, good macroeconomic policies, and overall innovation.

Keywords: industrial policy, Taiwan, economic growth, sectoral production structure, sectoral targeting, human capital accumulation, macroeconomic policies, innovation

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