Industry and Industrial Policy - the Phoenix of Economies

Discussion about the falling importance of industrial policy and industry as a dominant sector of economies is related mainly to the process of deindustrialisation. In our empirical part, we examined the change of production structure and production generated by final demand in four Central European countries in a dataset from 2000 to 2014. Our results suggest that there is no evidence of decreasing importance of industry and relevant policy. Moreover, because of its extensive benefits, e.g. R&D, high productivity and linked services, the studied sector should be even after the drop in the years of crisis considered as the key sector for development.