Picking winning industries versus building capabilities - the two development strategies have different failure modes

Popularity Index: 0 Updated at 2026-10-11 14:39 UTC

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Why does import substitution industrialization tend to stall? How do local content requirements interact with trade rules? How do local governments compete for investment with tax breaks? Why do industrial parks built on tax breaks empty out once the breaks expire? Why does large scale aid sometimes keep a government from taxing its own citizens? How much of an industry cluster's advantage is suppliers and how much is just cheap land? Foreign direct investment sometimes creates enclaves with almost no local spillover Is import substitution ever a workable development strategy? What makes a green industrial policy different from a traditional one? How do you measure well-being instead of output without smuggling GDP back in?

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