TY - JOUR AU - Kagami, Mitsuhiro PY - 1995/01/01 Y2 - 2024/03/29 TI - The role of industrial policy: Japan’s experience JF - Brazilian Journal of Political Economy JA - BJPE VL - 15 IS - 1 SE - DO - 10.1590/0101-31571994-0670 UR - https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/1229 SP - 121-136 AB - <p>There are two views on “industrial policy”, negative and positive. Negative<br />views say the market mechanism is the best way to allocate resources efficiently. Thus, government<br />policy with preferential treatment for a specific industry hinders this market force<br />and leads to a misallocation of resources. On the other hand, positive views say that state<br />intervention is necessary since market forces sometimes fail to allocate resources efficiently.<br />Broadly speaking, this is an issue on relationships between the state and the market, or to<br />what extent we can rely on the “invisible hand” of Adam Smith.</p><p><strong>JEL Classification:</strong> L60; L52; N15.</p> ER -