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CHAPTER 2, Picture1 - Coggle Diagram

- - - - Have other ways of exchanging info
        
        Diverse cooperation forms among firms
    - - Weaker
        => Gov intervention :right-facing_fist: coordination
  - - - raising capital
      - Allocate it
      - Spreading risks
    - - :arrow_right: adverse selection
      - Prevails between lender & borrower
      - Gov may intervene in financial market
- - - - Accumulation
      - Allocation efficiency
      - Technical efficiency
    - - Fundamental policy
        
        :right-facing_fist: growth sources = market mechanism
      - Selective interventions
        
        also alter market incentives
      - Institutions
    - - Export push:
        
        allowing manufactured exporters access to duty free import
        
        Offering subsidized credit for export
      - Financial repression: controlling interest rates on deposits and lending
      - Directing credits: to some activities (Agri, SMEs...)
      - Industrial policy: selectively promoting certain target industries, ownership groups & firms
- - - - mostly manufactured exports
      - A firm's success in export
        
        :arrow_right: Eco efficiency (> Success in domestic market)
  - - - Enforcing rules
      - Administer rewards
      - Discourage cheating
  - - - fair competition
        
        Institutional basis is key
        
        effective intervention