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Industrial Policy Coverage in IMF Surveillance—Broad Considerations
Author:
International Monetary Fund
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Series:
Policy Papers
Volume/Issue:
Volume 2024: Issue 008
Language:
English
Publication Date:
11 Mar 2024
DOI:
https://doi.org/10.5089/9798400266683.007
ISBN:
9798400266683
ISSN:
2663-3493
Pages:
38
Keywords:
Industrial Policy; Horizontal Policies; Structural Policies; Trade Policy; Green Industrial Policy; Special Economic Zones; State-Owned Enterprises; IP measure; IMF surveillance; IP effectiveness; IP definition; transparency policy; IP type; Spillovers; Institutional View on capital flows; Tax incentives; Global
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The paper aims to provide a conceptual framework and guiding principles for the coverage of Industrial Policy (IP) in IMF surveillance. It proposes a working definition of industrial policy, discusses its objectives and main instruments, and provides a brief review of academic literature on IP. The paper discusses the four broad sets of considerations for assessing IP: justification, design, cost-benefit assessment, and implementation. It stresses that IP should be covered in IMF surveillance when it is deemed macro-critical and/or has the potential to generate significant cross-border spillovers. The paper also discusses specific aspects of industrial policies, including trade-related IP, green IP, Special Economic Zones (SEZs), and State-Owned Enterprises (SOEs), and provides examples of the IP coverage in the Article IV consultations with China, Euro Area, Indonesia, Saudi Arabia, and the United States.
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Cover Policy Papers
Policy Papers
ISSN:
2663-3493
Publisher:
International Monetary Fund