The Visible Palm: Market Failures, Industrial Policy and the Malaysian Palm Oil Industry
(2007) In Lund Studies in Economic History- Abstract
- What role the state should and can play in bringing about economic development is one of the longest standing debates in the economic sciences. Yet, previous research has mostly focused on how a variety of industrial policies affect static efficiency. Few studies have tried to analyze how industrial policy and government intervention affects dynamic efficiency, i.e. an economy's ability to generate lasting economic growth.
The present study argues that interventionist industrial policy can only have a positive effect on dynamic efficiency if it manages to resolve market failures. This means that the question of whether a given set of government interventions and industrial policies have speeded up or slowed down... (More) - What role the state should and can play in bringing about economic development is one of the longest standing debates in the economic sciences. Yet, previous research has mostly focused on how a variety of industrial policies affect static efficiency. Few studies have tried to analyze how industrial policy and government intervention affects dynamic efficiency, i.e. an economy's ability to generate lasting economic growth.
The present study argues that interventionist industrial policy can only have a positive effect on dynamic efficiency if it manages to resolve market failures. This means that the question of whether a given set of government interventions and industrial policies have speeded up or slowed down development can be answered through a market failure approach. That is, by studying whether the policies could have resolved any market failures that negatively affect dynamic efficiency. The study also theoretically identifies a number of such generic market failures.
The study then uses a market failure approach to analyze Malaysia's industrial policies vis-à-vis the domestic palm oil industry. A previous study has claimed that the policies vis-à-vis this industry represent perhaps the foremost example of successful industrial policy in Malaysia. The present study challenges this view. It argues
that, while there are isolated examples of industrial policies vis-à-vis the palm oil industry that might have increased both static and dynamic efficiency by resolving market failures, it is at the moment not possible to conclude that the net effect of the policies have been positive, or that dynamic efficiency would have been significantly lower had the government opted for a laissez-faire industrial policy. (Less) - Abstract (Swedish)
- Popular Abstract in Swedish
Vilken roll staten kan och bör spela för att få till stånd ekonomisk utveckling hör till den ekonomiska vetenskapens äldsta debatter. Trots detta har tidigare forskning ofta fokuserat på hur en rad statliga interventioner påverkar den statiska effektiviteten. Få studier har försökt studera hur statlig intervention och en aktiv näringspolitik påverkar så kallad dynamisk effektivitet, det vill säga en ekonomis förmåga att generera ihållande ekonomisk tillväxt.
Denna studie hävdar att interventionistisk näringspolitik endast kan öka den dynamiska effektiviteten om den lyckas lösa marknadsmisslyckanden. Detta innebär att frågan om en viss samling statliga interventioner eller en... (More) - Popular Abstract in Swedish
Vilken roll staten kan och bör spela för att få till stånd ekonomisk utveckling hör till den ekonomiska vetenskapens äldsta debatter. Trots detta har tidigare forskning ofta fokuserat på hur en rad statliga interventioner påverkar den statiska effektiviteten. Få studier har försökt studera hur statlig intervention och en aktiv näringspolitik påverkar så kallad dynamisk effektivitet, det vill säga en ekonomis förmåga att generera ihållande ekonomisk tillväxt.
Denna studie hävdar att interventionistisk näringspolitik endast kan öka den dynamiska effektiviteten om den lyckas lösa marknadsmisslyckanden. Detta innebär att frågan om en viss samling statliga interventioner eller en viss näringspolitik har påverkat den ekonomiska utvecklingen eller tillväxten i positiv eller negativ bemärkelse kan besvaras genom ett angreppssätt som fokuserar på marknadsmisslyckanden. Det vill säga, genom att studera om politiken kan ha löst några marknadsmisslyckanden som kan leda till minskad dynamisk effektivitet och lägre tillväxt.
Denna studie identifierar en rad sådana marknadsmisslyckanden. Den använder sig sedan av ett angreppssätt som fokuserar på marknadsmisslyckanden för att analysera Malaysias näringspolitik gentemot den inhemska palmoljeindustrin. En tidigare studie har hävdat att näringspolitiken gentemot denna industri kan beskrivas som kanske Malaysias främsta exempel på en lyckad näringspolitik.
Föreliggande avhandling ifrågasätter denna syn. Den hävdar att, även om det är möjligt att hitta isolerade fall där näringspolitiken gentemot palmoljeindustrin kan ha löst vissa marknadsmisslyckanden och på så sätt både lett till en ökad statisk och dynamisk effektivitet, är det för närvarande inte möjligt att dra slutsatsen att nettoeffekten har varit positiv. Det är heller inte möjligt att dra slutsatsen att den dynamiska effektiviteten skulle ha varit väsentligt mycket lägre om staten hade fört en laissez-faire politik och inte intervenerat alls. (Less)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/598881
- author
- Gustafsson, Fredrik LU
- supervisor
- opponent
-
- Professor Khan, Mushtaq, Department of Economics, University of London
- organization
- publishing date
- 2007
- type
- Thesis
- publication status
- published
- subject
- keywords
- Social and economic history, Nutidshistoria (från 1914), Contemporary history (since 1914), developmental state, dynamic efficiency, public R&D, R&D, tariff protection, government intervention, palm oil, industrial policy, Malaysia, market failure, Ekonomisk och social historia, Economics of development, Utvecklingsekonomi
- in
- Lund Studies in Economic History
- pages
- 205 pages
- publisher
- Almqvist & Wiksell International
- defense location
- EC1: 135, Holger Craafords Ekonomicentrum
- defense date
- 2007-10-18 14:15:00
- ISSN
- 1400-4860
- ISBN
- 978-91-628-7264-9
- language
- English
- LU publication?
- yes
- id
- aca5da46-6e42-42bc-9c29-b0d87a499a84 (old id 598881)
- date added to LUP
- 2016-04-01 17:13:44
- date last changed
- 2019-05-21 18:56:49
@phdthesis{aca5da46-6e42-42bc-9c29-b0d87a499a84,
abstract = {{What role the state should and can play in bringing about economic development is one of the longest standing debates in the economic sciences. Yet, previous research has mostly focused on how a variety of industrial policies affect static efficiency. Few studies have tried to analyze how industrial policy and government intervention affects dynamic efficiency, i.e. an economy's ability to generate lasting economic growth.<br/><br>
<br/><br>
The present study argues that interventionist industrial policy can only have a positive effect on dynamic efficiency if it manages to resolve market failures. This means that the question of whether a given set of government interventions and industrial policies have speeded up or slowed down development can be answered through a market failure approach. That is, by studying whether the policies could have resolved any market failures that negatively affect dynamic efficiency. The study also theoretically identifies a number of such generic market failures.<br/><br>
<br/><br>
The study then uses a market failure approach to analyze Malaysia's industrial policies vis-à-vis the domestic palm oil industry. A previous study has claimed that the policies vis-à-vis this industry represent perhaps the foremost example of successful industrial policy in Malaysia. The present study challenges this view. It argues<br/><br>
<br/><br>
that, while there are isolated examples of industrial policies vis-à-vis the palm oil industry that might have increased both static and dynamic efficiency by resolving market failures, it is at the moment not possible to conclude that the net effect of the policies have been positive, or that dynamic efficiency would have been significantly lower had the government opted for a laissez-faire industrial policy.}},
author = {{Gustafsson, Fredrik}},
isbn = {{978-91-628-7264-9}},
issn = {{1400-4860}},
keywords = {{Social and economic history; Nutidshistoria (från 1914); Contemporary history (since 1914); developmental state; dynamic efficiency; public R&D; R&D; tariff protection; government intervention; palm oil; industrial policy; Malaysia; market failure; Ekonomisk och social historia; Economics of development; Utvecklingsekonomi}},
language = {{eng}},
publisher = {{Almqvist & Wiksell International}},
school = {{Lund University}},
series = {{Lund Studies in Economic History}},
title = {{The Visible Palm: Market Failures, Industrial Policy and the Malaysian Palm Oil Industry}},
year = {{2007}},
}