Market competition and the failure of competitiveness enhancement policies in the United States.
Journal of Economic Issues › Vol. 28 Nbr. 2, June 1994
Linked as:
Extract
Market competition and the failure of competitiveness enhancement policies in the United States.
U.S. efforts to enhance the international competitiveness of its industries have largely been a failure. U.S. export market shares in most manufacturing industries have fallen steadily over the past 20 years as have the average earnings of U.S. workers. Competitive-enhancement policies have failed because of a narrow view of market competition on the part of policymakers. This has been particularly evident in the area of international trade policy, where protection and subsidies are provided to the private sector with no guarantee of effort to strengthen competitiveness. In this paper I present a two-pronged strategy for using trade policy to enhance international competitiveness. First, commercial policy should include a quid pro quo in which continued protection is contingent on the implementation of an adjustment plan aimed at meeting competitiveness targets and workplace reorganizatio...
See the full content of this document
Sponsored links
