What can Uzbekistan tell us about industrial policy that we did not already know?
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This paper discusses Uzbekistan’s recent experience with structural shifts and industrial policy and the larger implications for existing theories of industrial policy. The paper has a particular focus on various industry policy instruments.
Two major hypotheses are discussed: (1) the hypothesis of Haussmann, Hwang and Rodrik (the more technologically sophisticated the export structure, the better for growth) and (2) the hypothesis of Justin Yifu Lin (export specialization should build on existing comparative advantages and not jump over the necessary technological stages).
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