Industrial Policy: A Missing Link in M exico's Quest for Export‐led Growth

Abstract

This article explores the need forMexican policymakers to add an active industrial policy as a key instrument to assist in the nation's so far failed quest for high and sustained economic growth.Mexico implemented drastic reforms in the mid‐1980s to open its markets to foreign competition and to reduce the state's intervention in the economy, but these reforms failed to ensure robust economic growth. The article explores myths and facts of the theory and practice of industrial policy. It identifies what type of industrial policy the new administration, which took office inDecember 2012, will apparently implement during 2013–2018 and how it may, or may not, help to putMexico onto a path of high, sustained economic expansion.

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