The U.S. Response to Foreign Industrial Targeting

Value Creation and Trade in 21st Century Manufacturing

“…In what follows, we emphasize the role of external economies of scale, agglomeration rents, and monopoly power in creating above‐normal rewards to employed factors. These economic factors were widely discussed in the 1980s and early‐1990s “targeting” literature (see Krugman, , ; Tyson, ) but which have rarely been applied in the analysis of value chains.…”

UK Competitiveness Policyvs. Japanese Industrial Policy

“…47–8) are of the opinion that ‘Government intervention generally has tended (and intended) to accelerate trends already put in motion by private market forces … Careful examination of Japan's post‐war trade and industrial development in comparison with general world performance indicates that the Japanese pattern was not unique at all’. Others, such as Patrick (1983), Saxonhouse (1983) and Krugman (1984), argue that an increase in Japanese competitiveness has been achieved primarily through the actions and efforts of private individuals and enterprises responding to opportunities provided by the free market, i.e. the Japanese government did no more than provide a favourable institutional and market environment conducive to economic growth.…”

International Competition in the Products of U.S. Basic Industries

“…The recent debate over the extent and effectiveness of foreign industrial targeting and export subsidization focuses on the latter set of influences. Following Krugman (1984), it is useful to distinguish three categories of policy: financial support (such as tax relief and privileged access to capital markets), control of product market access (through tariffs, quantitative restrictions, and adrninistrative guidance), and government control of industry conduct (through the encouragement of mergers, joint ventures, and collusive pricing policies).…”