Revisiting trade and industry policy

Fenna, Alan

doi:10.1080/10361146.2016.1239566

Cited by 3 publications

(1 citation statement)

References 34 publications

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“…Another critique of this type of policy is that vertical industrial policies can lead to lower investments and lead to firms losing their competitive drive (Farla, 2015). Vertical policies have therefore been besmirched with the notion of “picking winners” where the argument is that “Governments cannot pick winners” (Wade, 2012, p. 225), and sometimes, after selection, governments often “stay with – losers” (Fenna, 2016, p. 685). This issue of “picking winners” is viewed as the major challenge of vertical policies, mainly due to “the informational constraints facing policymakers” (Pack and Saggi, 2006, p. 273).…”

Section: Literature Reviewmentioning

confidence: 99%

Building apparel manufacturing competitiveness through policy–a system dynamics approach

Wilson

2020

JFMM

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PurposeThe purpose of this paper is to examine the role of Government via its industrial policy aimed at building competitiveness in apparel manufacturing in a developing country.Design/methodology/approachA conceptual framework that proposes the causal relationships between policies and competitiveness is applied to the apparel manufacturing sector in Trinidad and Tobago. The study utilises primary data from interviews and observations, and secondary data sources inclusive of industry and fashion companies reports. Data analysis of four vertical policies is performed via the use of system dynamics modelling and simulation.FindingsThe four vertical policies were found to impact three interrelated elements in the apparel manufacturing sector: the market, apparel products and productive resources. Policies that intentionally focussed on improving market attractiveness benefited wide segments of the industry. However, policies that focussed on product and resource attractiveness that were designed as direct support for selected firms had a lower impact on overall industry competitiveness than those that had an industry-wide focus.Research limitations/implicationsA single industry in a small developing island state limits the generalisability of the research findings. Additionally, non-reporting of export data and aggregation of industry data limits the conclusions that can be drawn regarding the impact of the vertical policies on the apparel industry. 10; 10;Practical implicationsPolicy-makers should consider the scope of the vertical policies in terms of the number of firms in the industry to benefit, and the need for complementary horizontal policies for creating enabling environments for competitiveness.Originality/valueThe paper proposes a conceptual framework to capture relationships between vertical policy and competitiveness.

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