State intervention in industrialization hinders growth in developing countries.
Many developing countries have tried to boost their industries by having the government step in and control certain aspects like public companies, industrial permits, and prices. The key is finding a balance between government involvement and letting businesses operate freely. Some countries have gone too far with government control. The research suggests that developing countries should allow more interaction between the government and market forces to create an environment where both public and private sectors can work together for economic growth.