Edited by Oliver Morrissey and Michael Tribe
Chapter 1: Introduction: evaluating the relationship between economic policy and manufacturing sector performance
Oliver Morrissey and Michael Tribe 1 INTRODUCTION One of the principal issues associated with the analysis of the relationship between economic policy and manufacturing sector performance lies in the deﬁnition of ‘economic policy’. The term ‘economic policy reform’ has, in recent years, been linked in the literature principally with macroeconomic stabilisation, trade and exchange rate liberalisation, ﬁnancial market liberalisation, and the removal of a wide range of controls and distortions that had become entrenched in many developing and transitional economies. However, ‘economic policy’ is a broader concept than this. Many countries have attempted to introduce policy instruments which extend beyond the conventional view of macroeconomic policy, especially, from our perspective, into areas of industrial policy (one could also include labour policy). The essays in this volume do not attempt to employ a uniform deﬁnition of economic policy. Rather, they take as their focus an aspect of the performance of the manufacturing sector, and attempt to assess how and which economic policies have affected performance. From this perspective, some lessons for economic policy towards manufacturing can be drawn. The geographical range of the studies is intentionally wide. Although the majority of chapters relate to countries in sub-Saharan Africa (SSA), we include cases in South and East Asia, South America and the Middle East (thereby extending the study of Jalilian et al., 2000). Furthermore, the chapters focus on various aspects of manufacturing – small enterprises, technology, the exporting sector and manufacturing in general. In this introduction we attempt to highlight some...