Manufacturing Revolutions - Industrial Policy and Industrialization in South Korea (2019)
[Previously titled: Manufacturing Revolutions - Industrial Policy and Networks in South Korea]
Abstract - I study the impact of industrial policy on industrial development through a canonical intervention. Following a political crisis in 1972, South Korea dramatically altered its development strategy with a new sector-specific policy: the Heavy Chemical and Industry (HCI) drive. With newly digitized data, I use the sharp introduction and withdrawal of HCI trade policy and investment incentives to study its impacts. (1) I show HCI successfully promoted the evolution of directly treated industries. Next I provide evidence for two key justifications of industrial policy: network and dynamic externalities. (2) Using variation in exposure to policies through the input-output network, I show HCI indirectly benefited (non-treated) downstream industry. (3) Finally, I show both direct and indirect benefits of HCI persist even after the policy is withdrawn, following the 1979 assassination of President Park. Together, my findings suggest that the temporary drive helped shift the economy into higher value-added activity.
The New Empirics of Industrial Policy (Updated, 2019) - Review article, requested for Dani Rodrik's volume of Journal of Industry, Competition and Trade.
Abstract - Nations have and will continue to shape their economies through industrial policy. Nevertheless, the empirical literature on these interventions is thin, dwarfed by the attention these policies receive by policymakers across the world. In this paper, I discuss the difficulties of empirically studying industrial policy, and review how new econometric work is confronting these issues. Through careful research design and attention to institutional detail, I argue that emergent evaluations are rapidly expanding what we know—and updating what we thought we knew—about these policies. This review is a proposal to take industrial interventions, along with all their complexities, more seriously as objects of inquiry. Doing so requires more serious evaluations of past policy, but also a reevaluation of prior empirical work and consensus.
with Melissa Dell and Pablo Querubin. (2018). "The Historical State, Local Collective Action, and Economic Development in Vietnam." Econometrica, 2018, Vol.86(6), p.2083(39).
Information is Power - Monopoly Power, Technology, and the Rise of the Digital State - with Weijia Li
Mapping the Digital State - with Klaus Ackerman, Simon Angus, Weijia Li, and Paul Raschky [And related projects.]
Market Returns and Assassinations of Environmental Activists - Evidence from the Developing World - with David Kreitmeir and Paul Raschky
Managing Export-led Industrialization - Evidence from South Korea's Export Promotion Meetings - with Changkeun Lee
Labor Repression, Democracy, and Growth in South Korea - with Daron Acemoglu and Changkeun Lee
UNSW Dept. of Economics - October 3rd
OzClio 2019 - Sydney October 4th
University of Technology Sydney - October 9th.
European Bank for Reconstruction and Development (EBRD) - Nov. 20th.
Oxford University - Nov. 21st
ANU, Research School of Economics - Nov. 25th
ANU, ACDE - Nov. 26th.