Canadian industrial policy—simulation and analysis

Policy decisions require an assessment of a multiplicity of competing variables, some of which are difficult to formulate in precise numerical terms because of their subjective nature. In order to encompass such mental images into formal mathematical models a new simulation procedure, KSIM, has been developed. This procedure is geared to non-mathematical specialists who can readily become fluent and expressive in using it. As a specific illustration, the authors show how the procedures can be applied to basic questions involving Canadian Industrial Policy. In particular the key elements inhibiting the growth of competitive industries in Canada are considered. The resulting scenarios suggest that reduction of barriers on trade through international agreement may render the most effective stimulus for Canadian economic growth.