Global Value Chains and Regionally Coordinated Industrial Policy

The well-documented failures of the liberal policy regimes of the period 1980–2007 to generate sustained economic growth and development have led in the past ten years to a renewed interest in industrial policy. The re-emergence of industrial policy occurs in a new world of well-developed GVCs in major industries with integrated regional economies. This chapter assesses the success of industrial policy in this context by considering the case of the Association of Southeast Asian Nations (ASEAN). After laying out the case for industrial policy in regionalized GVCs, we find that ASEAN, a regional trade bloc, has helped to coordinate regional production integration and promoting industry competitiveness for member states in several strategic industries. We conclude that the future success of ASEAN industrial policy will hinge on continued growth in Chinese demand and the ability of ASEAN countries to build some globally competitive, lead firms in key industries.

Business · Commercial policy · Context (archaeology) · Economic geography · Economics · Economy · Free trade · Geography · Industrial policy · International trade · Political science · Regional Integration · Regional Policy · Regional trade · Asian Industrial and Economic Development · Global trade and economics