Discussion paper

DP18489 Industrial Policy and the Great Divergence

We discuss recent work evaluating the role of the government in shaping the economy during the long 19th century, a practice we refer to as industrial policy. We show that states deployed a vast
variety of different policies aimed at, primarily, but not exclusively, fostering industrialization. We discuss the thin, but growing literature that evaluates the economic effects of these policies. We highlight some fruitful avenues for future study.


Juhász, R and C Steinwender (2023), ‘DP18489 Industrial Policy and the Great Divergence‘, CEPR Discussion Paper No. 18489. CEPR Press, Paris & London. https://cepr.org/publications/dp18489