Revisiting Industrial Policy and Strategic Coupling Strategy Under the Era of Hyperglobalization

Abstract

In a more independent and interdependent world, some suggest that in order for states to be successful in economic development, one must connect with the world capitalist economy. Although there is no explicit law enforcing this rule, Khong (2018) argues that the experience of the last sixty years provides a clear answer, and even a “tested maxim” that in order for nations to climb the ladder of economic prosperity, the only way is to link up with the world capitalist economy. However, as opposed to “passive integration”, it is pointed out that “active strategic integration” will be a better option to protect the negative offshoots of hyperglobalization. What level of “activeness” is considered appropriate? How “strategic” should it be to reap the benefits of global economy while not suffering as much from the adverse impacts? This paper aims to provide a critical review on globalization, and further elaborate different strands of “active strategic integration”, namely industrial policy, strategic coupling, and counteracting premature deindustrialization.



Author Information
Chean Chung Lee, National University of Singapore, Singapore

Paper Information
Conference: ACSS2019
Stream: Economics and Management

This paper is part of the ACSS2019 Conference Proceedings (View)
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Posted by James Alexander Gordon