ABSTRACT
Explicit industrial policy as a part of overall economic policy did not attract the attention of research interests in the industrialised countries with market-based economies until the mid-1970s. This can be explained by the underlying economic developments. During the 1960s and early 1970s the industrialised countries experienced relatively fast economic growth with low rates of both inflation and unemployment. The prices of raw materials were stable and relatively low, while labour was able to move without major disturbances from agriculture to the manufacturing and services sectors. Excess demand for labour was met by a steady inflow of labour from abroad. This period was also characterised by sporadic government intervention to influence the national geography of production in the manufacturing and services sectors. Relatively free markets were operating smoothly without significant disruption. During this period, the GATT was active in the lowering of tariffs.
