I study the impact of industrial policies on industrial development by considering an important episode during the East Asian miracle: South Korea’s heavy and chemical industry (HCI) drive, 1973–1979. Based on newly assembled data, I use the introduction and termination of industrial policies to study their impacts during and after the intervention period. (1) I reveal that heavy-chemical industrial policies promoted the expansion and dynamic comparative advantage of directly targeted industries. (2) Using variation in exposure to policies through the input-output network, I demonstrate that the policy indirectly benefited downstream users of targeted intermediates. (3) The benefits of HCI persisted even after the policy ended, as some results were slower to appear. The findings suggest that the temporary drive shifted Korean manufacturing into more advanced markets and supported durable change. This study helps clarify the lessons drawn from the East Asian growth miracle.

中文翻译：

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制造业革命：韩国的产业政策与工业化

我通过考虑东亚奇迹期间的一个重要插曲来研究产业政策对工业发展的影响：1973-1979 年韩国的重化学工业 （HCI） 运动。根据新收集的数据，我使用产业政策的引入和终止来研究它们在干预期间和之后的影响。（1） 我揭示了重化工产业政策促进了直接目标行业的扩张和动态比较优势。（2） 利用通过输入-输出网络对策略的敞口变化，我证明该政策间接地使目标中间体的下游用户受益。（3） 即使在保单结束后，HCI 的好处仍然存在，因为有些结果出现得较慢。研究结果表明，这种暂时的驱动力将韩国制造业转移到更先进的市场，并支持了持久的变革。本研究有助于阐明从东亚增长奇迹中吸取的教训。