Industry and Policy III: Subsidies, Technology and Government Purchasing

  • Keith Hartley
  • Nick Hooper
Part of the Macmillan Texts in Economics book series (TE)


Competition and privatisation are not the only instruments of industrial policy. Governments have available a range of other instruments which can affect the performance of firms and industries. These include subsidies which can also be used as instruments of regional and technology policy and as a means of correcting for beneficial externalities (a source of market failure). The UK Department of Trade and Industry (DTI) is responsible for policy towards firms, industries, regions, science and technology, with a budget of £3,275 million in 1995–96. Government is also a major buyer of goods and services and its purchasing or procurement policy can also affect industry performance. This chapter shows how economists analyse this range of policy instruments, starting with subsidy policy.


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Copyright information

© Keith Hartley and Nick Hooper 1997

Authors and Affiliations

  • Keith Hartley
  • Nick Hooper

There are no affiliations available

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