Industrial targeting, experimentation and long-run specialization
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Despite the existence of market failures, the outcome of the learning process through private experimentation without any assistance from the government can yield outcomes that are closer to the full information social optimum.
“He goes on to show that despite the existence of market failures, the outcome of the learning process through private experimentation (without any assistance from the government) can yield outcomes that are closer to the full information social optimum.”
From Is There a Case for Industrial Policy? A Critical Survey (2006) · cites this paper as Klimenko (2004)
An optimally designed industrial policy can lead a country to specialize in sectors in which it does not have comparative advantage.
“He shows that an optimally designed industrial policy can lead a country to specialize in sectors in which it does not have comparative advantage.”
From Is There a Case for Industrial Policy? A Critical Survey (2006) · cites this paper as Klimenko (2004)
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Rice Farming, Financial Development and the Patterns of Industrial SpecializationPreprint
Guo, T., Hu, J., Zhang, B., & Zhang, P. (2025) · SSRN Electronic Journal · doi:10.2139/ssrn.5125085
- Authors
- Klimenko, M. M.
- Affiliations
- University of California San Diego (US)
- Corresponding author
- Klimenko, Mikhail M.
- ORCID
- Klimenko, Mikhail M.
- Venue
- Journal of Development Economics
- Publisher
- Elsevier BV
- Published
- 2004-02
- Volume
- 73
- Issue
- 1
- Pages
- 75-105
- ISSN
- 0304-3878 (ISSN-L)
- OpenAlex
- W3124742849
- Cited by
- 38
- References
- 72
- Citations by year
- 2025: 1 · 2023: 1 · 2022: 1 · 2020: 21 · 2019: 1 · 2018: 1 · 2016: 2 · 2013: 3 · 2012: 1
- FWCI
- 2.03
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Journal of Development Economics (publishedVersion)
- Topics
- Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Global trade and economics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic and Technological Innovation
- Social Sciences › Business, Management and Accounting › Strategy and Management › Global Trade and Competitiveness
- Keywords
- industrial policy, comparative advantage, multi-armed bandits, Bayesian learning, experimentation, firm entry, industrial specialization, small open economy, policy uncertainty, learning costs
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