Manufacturing Revolutions: Industrial Policy and Industrialization in South Korea

I study the impact of industrial policy on development by considering a canonical intervention. Following political crisis, South Korea dramatically altered its strategy with sector-specific policy: Heavy and Chemical Industry (HCI) drive, 1973-1979. With newly assembled data, use sharp introduction withdrawal policies to impacts policy---during after intervention period. show (1) HCI promoted expansion dynamic comparative advantage directly targeted industries. (2) Using variation in exposure through input-output network, indirectly benefited downstream users intermediates. (3) find direct indirect benefits persisted even end HCI, following 1979 assassination president. These effects include eventual exporters their counterparts. Together, my findings suggest that temporary drive shifted Korean manufacturing into more advanced markets created durable change. clarify lessons drawn from East Asian growth miracle.