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India actually _didn't_ try this approach. Nearly all our industries were corrupt government owned 'public sector' industries. The idea using this approach is t

India actually _didn't_ try this approach. Nearly all our industries were corrupt government owned 'public sector' industries. The idea using this approach is to develop innovative, private industry in a regulatory-friendly environment while providing proper trade protection and financing. Automobile Industry In Japan was heavily protected http://www.americanautocouncil.org/sites/aapc2016/files/Japans%2BProtected%2BAuto%2BMarket.pdf http://www.americanautocouncil.org/sites/aapc2016/files/Japa... https://www.huffingtonpost.com/ian-fletcher/japan-the-forgotten-prote_b_850269.html https://www.huffingtonpost.com/ian-fletcher/japan-the-forgot... South Korean industry was heavily protected from 1960-90 and now is well-protected through unique Korean mandatory standards (nice WTO loophole).

fellellor 9y ago
I'm not sure about the other Asian countries mentioned, but in India we kind of messed up when public sector companies were competing with privately owned companies in the same sphere. The government always bailed out the public companies whenever they messed up, but the private companies themselves have managed to set up organized anti-competitive cartels wherever possible. But that said, tariffs alone can't explain how some economies succeed or fail. There are a lot of other variables which tend to be ignored in such simplistic thesis about macroeconomic outcomes, as there always are.