Developed Economies Research Articles

Supply Shocks in Global Value Chains and Export Performance: Evidence from Bangladesh Using Triple Difference-in-Differences

In this paper, we evaluate how supply shocks in global value chains, such as the lockdown in China during the coronavirus pandemic, affected firm-product-level export performance in Bangladesh, which is a least-developed country where domestic inputs are inadequate due to capacity constraints. Transaction-level customs data on the universe of Bangladeshi apparel manufacturing firms are used in the analysis. We apply a triple difference-in-differences approach to compare the woven apparel exports of the firms that relied on China for inputs before and after the lockdown with those of knit apparel and firms that depended on the rest of the world as a comparison group. The results show that firms exposed to the Chinese input supply shock experienced a 36.5% decline in woven apparel exports after the lockdown. A plausible explanation for the decline in exports is the reduced shipment size driven by the constrained production capacity due to the shortage of inputs from China. We also find that exposed firms whose exports were highly concentrated in the European Union and the United States incurred an additional 18% decline compared to other firms.

The relationship between foreign direct investment and trade openness: Evidence from six developed economies

Abstract Subject and purpose of work In recent years, the competition for economic dominance globally has led developed economies increasingly to focus on outward foreign direct investment (FDI) and exports to other developing nations. However, there has been a notable research gap, with most studies concentrating on assessing the significance of FDI and trade openness in developing countries, while less attention has been paid to developed countries. This study explores the relationship between FDI and trade openness with economic growth in six developed economies. Material and methods Utilising annual data spanning from 1990 to 2022 from the World Bank, the study employs the panel Autoregressive Distributed Lag (ARDL) method for analysis. Results The estimated results indicate a negative long-run relationship and a positive short-run effect of FDI in the selected economies. Furthermore, the findings reveal a positive long-run association and a negative short-run impact of trade openness. The causality test indicated a bidirectional relationship between trade openness and economic growth. Conclusions The study suggests that various governments should enhance their investment environments to leverage the benefits of FDI inflows.

Is nutrition‐sensitive fish farming a panacea for Africa's increasing malnutrition burden? The case of Sierra Leone

AbstractFish is vital for reducing hunger and malnutrition. However, the combined impact of climate change and overfishing is increasing the hunger and malnutrition burden on the African continent and its population of over 200 million people who depend on marine capture fishing and related activities for survival. Fish farming was introduced to alleviate these problems, and our study assessed the extent to which current fish farming activities in the least developed countries (LDCs) like Sierra Leone provide sufficient micro‐ and macro‐nutrients for local communities. The present study which is based on data from 300 survey questionnaires and 77 semi‐structured interviews administered in three communities in Sierra Leone, and from two expert judgments which investigated the nutritional impact of fish farming activities in Sierra Leone, revealed that (1) there is a range of sub‐standard fish farming activities from sampled farms; (2) that these activities could diminish the nutritional quality of farmed fish; and (3) that coastal communities were suspicious of eating or investing in fish farming. To alleviate Africa's increasing malnutrition, burden, our research highlights the need for investment in nutrition‐sensitive fish farming – a refocus from an emphasis on increasing production and income. The nutritional quality of farmed fish is a more basic consideration than the quantity of production for securing a healthy and economically viable fish farming sector for LDCs like Sierra Leone.

How will global trade patterns evolve in the long run?

AbstractIn this paper, the evolution of global trade patterns until 2050 is projected with a recursive dynamic computable general equilibrium (CGE) model. Feeding the model with exogenous projections on macroeconomic, demographic, sectoral and trade cost variables, the evolution of trade patterns emerges endogenously from the model. The approach is innovative in both modelling approach and exogenous inputs. GDP growth emerges endogenously in the model because of diffusion of ideas as a result of international trade and trade cost changes are based on estimates of technology and trade policy changes. The projections indicate that (i) because of projected reductions in trade costs, trade will grow more than GDP, generating a global trade‐to‐GDP growth rate of 1.1; (ii) because of structural change, the global share of manufacturing trade falls from 64% in 2020 to 52% by 2050, whereas the share of services trade rises substantially from 24% to 38%; and (iii) because of technological catch‐up, the share in global trade of both developing and least‐developed countries (LDCs) will rise (with developing countries overtaking developed economies around 2035), the share of intra‐developed country trade will fall, whereas the share of intra‐developing country trade and those between developing and developed countries will rise.

Prevalence and Determinants of Stunting-Anemia and Wasting-Anemia Comorbidities and Micronutrient Deficiencies in Children Under 5 in the Least-Developed Countries: A Systematic Review and Meta-analysis.

Despite shifting from addressing isolated forms of malnutrition to recognizing its multifaceted nature, evidence on the prevalence and determinants of micronutrient deficiencies, and their coexistence with undernutrition in children under 5, remains insufficient, unsystematic, and incohesive. The aim of this systematic review and meta-analysis was to assess the prevalence and determinants of stunting-anemia and wasting-anemia comorbidities and micronutrient deficiencies in children under 5 in the least-developed countries (LDCs). Electronic searches took place from January 15, 2023, to February 14, 2024, across multiple databases, including PubMed, Embase, Web of Science, SCOPUS, African Index Medicus (AIM), World Health Organization's Institutional Repository for Information Sharing (IRIS), and African Journals Online. The search spanned the years 2000 to 2024, yet it yielded eligible full-text English research articles from only 2005 to 2021 conducted in LDCs. Studies lacking quantitative data on malnutrition types and their determinants were excluded. Two independent authors assessed articles for bias and quality using Hoy et al's 10-item scale and Newcastle-Ottawa Scale (NOS) criteria. Prevalence and other details were extracted using a Joanna Briggs Institute Excel template. Authors extracted adjusted odds ratios (aORs) for determinant factors such as sex and vitamin A and iron supplementation. The search yielded 6248 articles from 46 LDCs. Sixty-nine articles, with a total sample size of 181 605, met inclusion criteria for the final meta-analysis. Vitamin A deficiency affected 16.32% of children, and iodine deficiency affected 43.41% of children. The pooled prevalence of wasting-anemia and stunting-anemia comorbidity was 5.44% and 19.47%, respectively. Stunting was associated with vitamin A deficiency (aOR: 1.54; 95% CI: 1.01-2.37), and not taking vitamin A supplementation was associated with iron-deficiency anemia (aOR: 1.37; 95% CI: 1.21-1.55). A significant proportion of children under 5 in LDCs experienced stunting-anemia and wasting-anemia comorbidities and micronutrient deficiencies. This study underscores the urgent need to address factors driving these burdens. PROSPERO registration no. CRD42023409483.

Urbanization inequality: evidence from vehicle ownership in Chinese cities

Unequal outcomes resulting from urbanization can pose a significant challenge to sustainable development. Vehicles are an important urbanization dimension as a critical component of urban infrastructure by providing mobility and accessibility to social services. China’s vehicle ownership (referred to as in-use vehicle stocks) has been growing quickly since 2000, but its per capita stocks are still much lower than that in developed economies. This raises the question of whether and when China’s vehicle stocks will reach a peak level close to that in the developed countries. By analyzing vehicle stocks in 283 Chinese cities during 2001–2018, we have the following findings: (1) vehicle stocks are predominantly distributed in northern and eastern coastal cities and provincial capital cities; (2) inequality in vehicle ownership rates between cities shows a declining trend at both national and region scales; (3) the growth of vehicle ownership rates follows an S-shape curve and most cities are still at the early stage of motorization; (4) China is likely to have a lower saturation level of vehicle ownership rate. These results could help to accurately forecast future vehicle demand in China, estimate the resulting environmental impacts, and explore strategies to achieve carbon neutrality in transportation.

Analysing inhibitors to BIM implementation: a social network theoretical perspective

Purpose Building information modelling (BIM) implementation in the design, construction and operations (DCO) industry is increasingly becoming essential. While BIM has been adopted on a larger scale in many developed economies, its acceptance is still in the embryonic phases for developing nations in the DCO industry. This study aims to identify the inhibitors to BIM implementation through the social network theoretical lens, intending to understand the associations among the barriers in the Indian context. Subsequently, recommend strategies to mitigate the barriers from the academic practitioner’s perspective. Design/methodology/approach A mixed methods research was adopted, commencing with comprehensive literature reviews to recognise various inhibitors to BIM implementation. These identified barriers were further examined through the questionnaire survey (n = 71). BIM implementation barrier network (BIBN) was created using University of California at Irvine Network (UCINET) is a powerful social network analysis software that functions on the principle of social network theory. The experts’ opinions were captured through the BIBN network through interviews. Network properties such as eigen vector centrality, betweenness centrality, degree centrality, in-degree and out-degree and clustering coefficient were computed, and the metrics were analysed further. Findings Twenty-six BIM implementation barriers were initially identified. A questionnaire survey was conducted. The chain reaction can be minimised by prioritising and regulating these barriers. The issues were categorised into fourfold clusters (standardisation, policy and process, cultural and human resources, change management and operational) issues were generated from the exploratory factor analysis (EFA). The obstacles and barriers resulting from the other main barriers associated with it can be minimised by reducing the challenges with high eigenvector centrality but low betweenness importance. Practical implications This study proves to accelerate sustainable BIM implementation growth in developing nations; this research study assists BIM stakeholders in developing coping mechanisms to monitor and remove BIM implementation barriers. Originality/value Analysing the associativity of the BIM implementation barriers through sociograms for developing nations is a novel concept with this research.

Determinants of internet of things (IoT) smart home technology (SHT) adoption behavior of consumers: Empirical evidence from a least developed country (LDC)

Though millions of users in developed countries utilize IoT smart home technology, its applicability in underdeveloped countries is limited. This study addresses this gap by unveiling the determinants of IoT smart home technology adoption behavior among consumers in the least developed country. The study has extended the unified theory of acceptance and use of technology (UTAUT) by including perceived hedonism, lifestyle, and well-being constructs in the research framework. Data from 355 IoT smart home users were analyzed using structural equation modeling (SEM). The findings reveal that performance expectancy, facilitating conditions, perceived hedonism, and lifestyle positively affect behavioral intention. Moreover, behavioral intention positively affects use behavior. In the post-adoption stage, use behavior positively affects multifaceted user well-being. However, effort expectancy and social influence did not affect behavioral intention. The study has a novel theoretical contribution to the extant literature and significantly contributes to technology designers, marketers, elderly users, and government agencies.

Producer Support Estimate Effects in Terms of Commodity Production – An Empirical Investigation

The agriculture sector has steadily enjoyed government support for a relatively long period, especially in developed economies. Considerations relate to strategic behavior of countries’ leadership, in that ensuring food security is essential to avoid dependence on other countries for food supply. However, recent decades’ objectives have been focused on farmers’ income stability as well as on the environmental impacts of agriculture. While there is a consensus on the depressing effects on consumers’ and taxpayers’ welfare, the discussions on the public policy impacts on the agricultural outcome are of a wider range. Empirical studies at the farm level doubt the positive effect of farm support on their technical efficiency. This paper provides an analysis of the role of Producer Support Estimate (PSE) as a source of assistance on a commodity basis in a group of OECD and other big agricultural traders. With a special focus on the Producer Single Commodity Transfer (PSCT) effect on the countries’ commodity production levels, the general finding is that the government intervention in specific commodities investigated here may not be efficient.

Does strategic coupling of TNCs affect their exit from host regions: Empirical analysis of the exit of Taiwanese enterprises from mainland China.

This study aims to investigate the temporal and spatial attributes of the exit of Taiwanese enterprises from mainland China between 2001 and 2021, by applying enterprise database data. Furthermore, the influence of strategic coupling on Taiwanese enterprises' exit from mainland China was also investigated. The following are the key findings: The spatial distribution pattern of the exit rate of Taiwanese enterprises in mainland China varied at different phases. In contrast, the inland regions of the country's central and western zones, which are characterized by comparatively less developed economies, maintained consistently high exit rates, whereas the eastern coastal region retained a low exit rate. Particularly, the relationship between Taiwanese enterprises and the invested areas changed from Captive coupling to Cooperative coupling and subsequently to Absorptive Coupling. Similarly, the coupling modes significantly influenced the exit of Taiwanese enterprises from mainland China. Moreover, the COVID-19 pandemic has contributed to the backward connection of Taiwanese corporations, which have become more reliant on the mainland China market and local suppliers than earlier. Taiwan-favoring policies and the regional innovation environment have consequently emerged as the primary locational advantages for retaining Taiwanese enterprises in the aftermath of the global financial crisis. Therefore, the aforementioned factors may help to reduce the Taiwanese enterprises' exit from mainland China and possess valuable policy implications for Taiwan investment zones in mainland China.

#1559 Using nephrology clinic data to emulate cohorts: a comparison between an electronic health records service and Chronic Renal Insufficiency Cohort

Abstract Background and Aims The amount of data contributed to evidence-synthesis is inequitably distributed among various countries in a way that most of the data is emerged from developed and/or upper middle and high income countries. One efficient and low-cost solution can be the implementation of scattered electronic health records (EHR) sources in those countries into emulated cohort studies. We aim to compare the characteristics of a custom-built nephrology clinic electronic health records (CBNC-EHR) service that is in practice for more than 13 years with Chronic Renal Insufficiency Cohort (CRIC) study which has approximately the same span and enrollment to find out about the feasibility, strengths, and challenges of the proposition. Method We compared measured variables of baseline characteristics and follow-up strategy of CRIC study with the data provided by CBNC-EHR to estimate if the care-centered database is capable of emulating a cohort study. Results Among variables of socioeconomic information at CRIC study, CBNC-EHR provides 33% at full, 33% are “partially available or easily accessible” (PAEA), and 33% are not available. 71% of variables of medical history are fully available for all patients, while only 14% are PAEA, and 14% are not available. For kidney function measures, CBNC-EHR provides 55% of variables completely, while the remaining 45% are PAEA. Obviously, no blood or urine sample were collected during ambulatory care, and no questionnaire on different aspects of health were used to gather supplementary data, contrary to CRIC study. Compared to follow-up strategy of CRIC study, which indicated Annual visits and laboratory tests and 6-month telephone follow-ups, CBNC-EHR yields data only upon personally-decided attention of patients for follow-up care, which varies widely from one patient to another. Nevertheless, the majority of patients have at least one office visit in a year, accompanied by relevant laboratory tests. CBNC-EHR provides a complete list of risk factors and comorbidities of each patient, which makes it suitable for subgrouping, as was designed in CRIC study regard the diabetes status of patients. CBNC-EHR currently has data of 6481 individuals with renal failure, compared to 3000 enrollment goal of CRIC study. However, much higher rates of dropout (estimated to be approximately 20%) and utilization of inclusion and exclusion criteria will contribute to the actual available cases to emulate a cohort study. Conclusion Implementing a care-centered database into emulation of a cohort study, is challenging and complicated. Lack of consistency, high dropout rates, imperfect baseline and complementary information, and need for extensive data cleaning are all difficulties. However, contribution to equitability of data share in evidence-synthesis, extremely lower cost of conduction, and less heterogeneity are strengths of this procedure which can have a remarkable effect on transforming medical data from less-developed countries (which understandably prioritize healthcare to research due to scarcity of resources) to effective research studies. In this paper, we compared a renowned nephrology cohort with a private nephrology clinic EHR in a developing country and showed virtual availability of data to emulate a cohort study based on the care-centered database.

An inquiry into the drivers of an entrepreneurial economy: A Bayesian clustering approach

AbstractUnderstanding the worldwide drivers of qualified entrepreneurship is a key issue in economic policy design. To help policy decisions exert their intended impact, we aim to cluster a wide range of countries on the basis of their levels and trends in self-employment productivity using a finite mixture model applied to a new large dataset of 121 countries covering the period of 1991–2019. Our results point to three groups of high-, medium-, and low-productive means and tendencies, the geographical distribution of which suggests that they can be reinterpreted using the three stages of economic development, namely, innovation-, efficiency-, and factor-driven economies. Notably, we find that widespread digitalization and low unemployment enhance the probability of transitioning into a highly productive cluster. However, we failed to find that industry weight or employment protection legislation strictness serve as determinants in the transition between groups. Suggestive rationales for these results and implications for the entrepreneurship policy agenda are also provided.

Determinants of the growing material footprints along the Belt and Road

AbstractThe Belt and Road Initiative (BRI) has induced immense material consumption and environmental threats while fostering economic development along participating countries. Quantifying recent trends of the material footprint of BRI economies and identifying potential drivers are vital to inform sustainable resource use. However, an assessment on the determinants of BRI material consumption from an economic system viewpoint is lacking in the literature. To fill this gap, this study proposes a multi‐region structural decomposition analysis model to assess the drivers of material footprints in BRI economies. To scrutinize the effects of transitioning economic structures, the effects of domestic and cross‐border production activities are separated. The latter is further characterized by production technology and sourcing structure. Using global multi‐region input–output tables of 2005–2015, this study reveals that shifting international sourcing patterns boosted BRI material footprint, with rising intermediate goods and services sourced from BRI regions substituting those from North America and the European Union. Capital formation in the construction sector took the primary role in driving BRI material footprint growth, followed by manufacturing sectors, especially since 2013. Disparities in the key drivers of material footprints have been identified among developed, emerging, and least developed economies. The results have relevant policy implications regarding alleviating BRI material pressure, including fostering material‐efficient demand patterns, facilitating environmental technology improvements in local countries, and establishing stringent governance on material usage.

The Nexus of Artificial Intelligence and Green Innovation: a Cross-Density Analysis at the Country Level

AbstractThis study explored the synergistic effects of artificial intelligence (AI) on green innovation at the national level by identifying three core activities in green innovation: entry, exit, and sustained specialization in green technologies. Employing a comprehensive three-way fixed-effects panel model, we analyzed green innovation trends in 139 countries over a 30-year period. Our findings emphasize that technological capability, especially in green and AI technologies, is more pivotal than economic wealth in securing comparative advantages in green technologies. One notable observation is the path-dependent development of green technology, which suggests a propensity for nations to build new technologies based on existing strengths. A key contribution of this study is the development of the “AI-Green Cross-Density” model. This innovative method quantifies the interactions between green and AI technologies and highlights the role of AI in promoting green innovation. The influence of AI on the introduction of new green technologies has become more pronounced in recent years, particularly in economically less-developed countries. Our findings indicate that the integration of modern AI can significantly enhance green technology sectors in mid-to-low-income countries, providing vital insights for policymakers striving to foster a sustainable and technologically advanced future.

China’s space sector, firm CSR and patent quality

PurposeThis paper examines firm-level accountability and performance implications under a state-dominated institutional environment, China, for firms engaged in the space economy. Extant studies on the rapidly evolving civil space economy predominantly focus on developed Western economies at national or sector levels, frequently ignoring alternative institutional contexts. Additionally, limited attention has been given to firm-level empirical evidence and analysis, including corporate social responsibility (CSR) practice-R&D quality relationships in the space economy. The paper addresses each of these areas.Design/methodology/approachThis paper utilises multiple regression, propensity score matching and split sampling methods applied to a proprietary dataset of Shanghai and Shenzhen Stock Exchange-listed A-share firms. Results are robust to endogeneity issues, alternative measurement of dependent variables and sampling.FindingsChina’s space firms demonstrate superior CSR performance to their counterparts in other sectors, supporting CSR‘s role in maintaining legitimacy. Their CSR practices also positively contribute to firm patent quality. The link is more pronounced among firms facing higher economic policy uncertainty and for state-owned enterprises (SOEs). The latter is due to SOEs’ government support, advantages in financing and attracting and retaining a high-quality workforce.Originality/valueThis paper adds to discussion on major space power’s, by examining China’s state-dominated civil space sector. It also addresses a lack of empirical firm-level evidence on space firm behaviour by examining the impact of firm-level CSR practices on R&D quality outcomes, areas in which there is a limited literature.

Exempting Least Developed Countries from Border Carbon Adjustments: Simple Economically but Complex Legally

AbstractThe EU has introduced a Carbon Border Adjustment Mechanism (CBAM), which extends its carbon prices to imported products in some sectors. Increasingly considered by other countries, such border carbon adjustments (BCAs) are facing a global backlash against the lack of consideration of the adverse impacts on developing countries and particularly, least developed countries (LDCs). This article first argues that small overall import volumes support the conclusion that exempting or lessening BCA requirements from LDCs would not undermine developed countries' climate-related objectives in practical terms. An economic analysis of EU and UK trade in relation to a CBAM supports this assertion. However, legally, such an exemption or development-based preferential treatment is difficult under existing multilateral trade rules and jurisprudence, owing to the legal characterization and objectives of BCAs; their interaction with existing special and differential treatment (SDT) provisions; and complexity of available policy options. We thus highlight the gap between normative aims of SDT provisions to support development, and current WTO law and jurisprudence which expose WTO members providing preferential treatment to allegations of discrimination. With increasing unilateral climate action, an inability to integrate SDT more meaningfully into WTO non-discrimination frameworks risks further weakening of international cooperation on climate and trade.

Reservoir Filling Up Problems in a Changing Climate: Insights From CryoSat‐2 Altimetry

AbstractRecent droughts have severely threatened water security in many regions worldwide. Reservoirs, designed to combat droughts and secure water supply partially, are reported failing to fill up to the total capacity due to severe droughts. How bad is climate affecting reservoir filling up on a global scale? This issue has not been studied. We present a big picture of reservoirs in crisis using satellite altimetry. Thanks to the unique characteristics of CryoSat‐2, 525 reservoirs worldwide were investigated during 2010–2022. Results show that most reservoirs (93%) are found not fully filled up at least once. About 21% of reservoirs, which are mainly located in the Southern Hemisphere, show a significant decline in water levels. Moreover, about 20% of reservoirs with larger level fluctuations (>3 m) are located in less developed economies, indicating informed operation rules are needed. Further analyses indicate reservoirs are largely affected by extreme climate events, such as ENSO.

A longitudinal examination of anti-corruption disclosure in the banking sector of a least-developed economy: does board composition make a difference?

PurposeThis study focuses on anti-corruption disclosure (ACD) as a critical indicator of a bank’s commitment to combat corruption. It seeks to measure the level of ACD in banking companies. Emphasizing the pivotal role of board directors in ensuring corporate accountability and transparency, the study further explores the connection between board composition and ACD.Design/methodology/approachThis study adopts automated content analysis (using keyword search) to measure the level of ACD in the annual reports of listed banks in Bangladesh. Drawing upon agency theory and resource-dependence theory, the study proposes that the collective monitoring and resources facilitated by a well-structured board (size, gender diversity and independence) significantly influence a bank’s commitment to combat corruption. The paper employs linear regression to examine the hypotheses. The reliability of the findings is further validated through the application of the Generalized Method of Moments (GMM) and Quantile Regression.FindingsThe results indicate a steady rise in ACD over the sample period (2014–2022). The analysis establishes that larger board sizes and a greater presence of female directors are positively associated with ACD. Notably, the study identifies a critical mass of at least three female directors for a significant positive relationship between gender diversity on the board and ACD. However, no significant relationship is observed between board independence and ACD.Practical implicationsThe study sheds light on the current state of ACD within the banking companies of a least-developed country. The findings carry significant implications for regulators to gauge banks' dedication to anti-corruption efforts and make informed decisions on issuing guidance for enhanced ACD. These findings can also assist regulators in assessing the implications of board composition and formulating guidelines within the corporate governance code.Originality/valueThis study contributes to the literature on ACD in the context of a least-developed economy. Notably, the study fills a research gap by exploring ACD in the banking industry. A key aspect of this study is its exploration of the determinants of ACD, explicitly emphasizing how board composition is likely to influence ACD.

Online advertisement in a pink-colored market

It is surprising that women are often charged more for products and services marketed explicitly to them. This phenomenon, known as the pink tax, is a major issue that questions women’s buying power. Nevertheless, it is not just limited to physical products – even online advertising can be subject to this type of gender-price discrimination. That is where our research comes in. We have developed a new methodology to measure what we call the digital marketing pink tax – the additional expense of delivering advertisements to female audiences. Analyzing data from Facebook advertising platforms across 187 countries and 40 territories shows this issue is systematic. Particularly, the digital marketing pink tax is prevalent in 79% of audiences across the world and 98% of audiences in highly developed countries. Therefore, advertisers incur a median cost of 30% more to display advertisements to women than men. In contrast, advertisers have to pay less digital marketing pink tax in less-developed countries (5%). Our research indicates that countries in the Middle East and Africa with a low Human Development Index (HDI) do not experience this phenomenon. Our comprehensive investigation of 24 industries reveals that advertisers must pay up to 64% of the digital marketing pink tax to target women in some industries. Our findings also suggest a connection between the digital marketing pink tax and the consumer pink tax – the extra charge placed on products marketed to women. Overall, our research sheds light on an important issue affecting women worldwide. Raising awareness of the digital marketing pink tax and advocating for better regulation.

Bridges over troubled waters: Climate clubs, alliances, and partnerships as safeguards for effective international cooperation?

Driven by the motivation to raise the ambition level of climate action and to foster the transformation of economies, current climate policy discourse revolves around ways to improve cooperation between industrialized countries and emerging economies. We identify three broad types of initiatives—multilateral-cross sectoral, multilateral, sector specific, and climate and development partnerships—and assess them for potentials to deliver on such objectives with a specific focus on industry transformation. This paper provides new reflections on the institutionalization of international climate cooperation. Specifically, we demonstrate the urgent need to understand what values, norms, and underlying principles drive a cooperation in order to draw conclusions on how to best institutionalize climate cooperation rules.in-use. We conclude that an overemphasis on a CO2 price and on carbon border adjustment mechanisms, such as in the context of the initial proposals for a cross-sectoral climate club envisaged by G7 countries, would have contributed to a further polarization of the international landscape. We find, however, that multilateral, sectoral alliances play an important role for international goal setting and the convergence on standards, metrics, and benchmarks. Based on our analysis, we recommend strengthening multilateral, sector-specific partnerships. These can be focused on sectoral topics as a connector between countries, allowing for a strategically-aligned, increasingly deep collaboration. However, for any initiative to succeed, processes of international institutionalization will be needed in order to agree on rules for implementation based on aligned interests and equity. Building such institutions may well serve as a steppingstone toward more durable cooperation structures between developed economies and emerging economies. In sum, no existing cooperation approach is perfect, but three actions may be taken to move the agenda forward: First, reform of the carbon border adjustment mechanism and removing it from the center of climate club discussions, second, coupling sectoral alliances with climate and development partnerships, and three, designing them in a way to address fears of political influence seeking and superimposition of global north agendas on the global south.