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The Corporatist Foundations of State Industrial Policy

Virginia GRAY and David LOWERY
Social Science Quarterly
Vol. 71, No. 1 (March 1990), pp. 3-24
Stable URL: http://www.jstor.org/stable/42863583
Page Count: 22
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Abstract

In recent years the American states have begun to adopt new types of economic development policies, variously called "demand side" policies, industrial policy, or interventionist policy. In this paper the authors discuss the emergence of these policies and the political and economic changes in states which led to their consideration. Two explanations for their adoption are developed—the business capture hypothesis and the meso-corporatist hypothesis. These differing interpretations are tested with data on state interest groups, government capacity, and economic stress. Data on policy adoptions by 1986 show that the meso-corporatist model provides a better account of industrial policy than does the business capture hypothesis.

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