Competition Policy and Industrial Policy: Time for Reconciliation

15 Pages Posted: 15 Apr 2015

See all articles by Juan Delgado

Juan Delgado

Global Economics Group; Universidad Carlos III de Madrid - Economics Dpt.

Date Written: December 31, 2011

Abstract

Industrial policy has a bad name. It is commonly identified with policies directed to prevent competition and to pick winners (or save losers) in a discretionary fashion. The recent economic and financial crises have shown that governments lack of policy instruments to enhance growth and help the economy to recover. A massive amount of state funds have been dedicated to the rescue of troubled banks following in many cases the conventional industrial policy rationale and distorting the competitive level playing field. Not much support is available for the rest of the economy. It is time to rethink industrial policy. The combination of active competition policies and policies directed to the maximisation of positive externalities and spillovers can configure a crisis resilient, growth-enhancing and competition-friendly industrial policy.

Keywords: Industrial policy, competition policy, Antitrust, National Champions

JEL Classification: L4, L52, H12, H32

Suggested Citation

Delgado, Juan, Competition Policy and Industrial Policy: Time for Reconciliation (December 31, 2011). Available at SSRN: https://ssrn.com/abstract=2593958 or http://dx.doi.org/10.2139/ssrn.2593958

Juan Delgado (Contact Author)

Global Economics Group ( email )

Calle Santa Engracia 46
Madrid, 28010
Spain

HOME PAGE: http://www.globaleconomicsgroup.com

Universidad Carlos III de Madrid - Economics Dpt. ( email )

CL. de Madrid 126
Madrid, Madrid 28903
Spain

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