Industrial Policy Research Articles

New industrial land use policy and firms’ green technology innovation in China—an empirical study based on double machine learning model

New industrial land use policy and firms’ green technology innovation in China—an empirical study based on double machine learning model

Does industrial sustainable development policy act as a booster for urban economic growth? Evidence from China's eco‐industrial parks

AbstractEco‐industrial parks (EIPs), which reduce pollution and transform the industrial sector to be more environmentally benign, represent the industrial sustainable development policy. However, little research has concentrated on its economic effects. We explore the impacts of 93 national demonstration EIPs on urban economic development using time‐varying difference‐in‐difference, based on panel data from 330 Chinese cities from 1995 to 2018. We show that EIPs have contributed to an economic growth range between 7.47% and 7.61% in pilot cities, with robustness considering price deflators and alternative satellite data on night lights. Structure, technological, and scale effects help explain the mechanisms. Further estimates show that EIPs have had mixed success in addressing the resource curse, where they only alleviate the curse for growing resource‐based cities. We argue that the industrial sustainable development policy not only conveys significant economic benefits but also holds the potential to address the resource curse.

Stock market reaction to new energy vehicle industry development plan: an event study in China

ABSTRACT The targets of energy conservation, decarbonization, and industry reinvigoration have significantly influenced the design of China’s new energy vehicle (NEV) industrial policies and nationwide electrification. As a monumental policy framework for energy transition in transportation sector, the NEV industry development plan plays an influential role in promoting cleantech diffusion and enhancing NEV competitiveness. This study employs an event study method to investigate the stock market reaction to the NEV plan shocks. The NEV plan announced in 2020 receives a markedly positive stock price effect of 3.72% in the 6-day event window. Heterogeneity tests on subsamples indicate that state-backed entities exhibit a similar effect to the total sample, while the automotive manufacturing class and original equipment manufacturers see a significantly higher market value gain of 6.56% and 13.34%, respectively. However, battery manufacturers, as one of the key participants in the NEV value chain, experience an insignificant stock price effect. This study documents the financial consequences of clean energy policies specific to the emission-intensive automotive manufacturing sector, highlights the effectiveness of government-to-investor signalling in a cleantech diffusion context, and reveals the implications to other economies seeking to deploy clean transport and enhance environmental sustainability.

The Belt and Road Initiative and Dynamics of Structural Transformation

AbstractStructural transformation is among the core questions in development economics, but in recent decades, the discipline has shifted its focus away from production and transformation in favour of analyses on exchange, growth and productivity. Yet, the structural transformation question remains central, and needs to be confronted with the main changes in the global economic and political landscape, such as the emergence of the Belt and Road Initiative (BRI). With its emphasis on an infrastructure-based connectivity agenda, the BRI opens the space for a paradigm shift in development, and for a renewed emphasis on structural transformation. This article introduces a special issue that explores the role of the BRI in promoting structural transformation in low- and middle-income countries, to understand if and under which conditions the BRI creates pathways that can change the structure of the economies. Through an explicit focus on the role of BRI on transformation in low- and middle-income countries, this special issue examines how domestic institutions regulate and coordinate production diversification, national and international sectoral specificities, and drivers and barriers to technological innovation and trade. In this sense, the special issue sheds light on new conceptualisations and empirical examples of industrial policies.

Reassessing Cohesion Policy Through the Lens of the New EU Industrial Policy

AbstractThe research note explores the role of cohesion policy in the emerging EU industrial agenda with the view to anchor it in the new industrial policy paradigm. The first part discusses the historical evolution of EU industrial policy and presents the main features of the conceptual perspective loosely referred to as ‘new industrial policy’. Then, the note investigates the main tensions between cohesion policy's rationales and instruments and the new industrial policy perspective, for instance in relation to the use of experimentation and directionality, and outlines pathways to address them through different lines of research. In conclusion, the note discusses positive avenues to tackle the identity crisis facing cohesion policy thanks to the new industrial policy perspective.

Analysis on Lean Management of Real Estate Projects Oriented by Target Cost Management

At present, the state has more and more regulatory policies for the real estate industry, and the regulatory intensity is also greater. With the introduction of national policies and the impact of the downturn in the real estate market, industry competition has become increasingly fierce. Under this situation, if real estate companies want to avoid being eliminated by the market, they must rely on their own efficiency levels and management capabilities. Therefore, strengthening cost control on projects is an inevitable choice and important means for real estate companies. In recent years, with the slowdown of economic growth and the state's regulation of the real estate industry, the sustainable development of the real estate industry has faced increasing challenges. This article is oriented by target cost management and focuses on the lean process of real estate development projects. The key points of management and its management strategies are discussed to provide industry reference.

Productivity of the Korean Biopharmaceutical Industry: Exploring the Effect of Business Model and Open Innovation

The biopharmaceutical industry in Korea is considered a key strategic industry following the semiconductor industry. However, success in the biopharmaceutical industry depends on the outcome of research and development processes that require long periods and substantial investment, resulting in a success rate of only around 2.5%–4% for new drug development. Consequently, rational strategic choices, such as determining key capabilities to pursue business, deciding where to position within the value chain and identifying collaboration partners and strategies, are more crucial in the biopharmaceutical industry compared to other industries. In this study, we divided Korean biopharmaceutical companies into research and development groups and Integrated groups, which perform both research and production, and compared their productivity using the meta-frontier methodology to verify the significance of technology gap ratio (TGR) values between groups. We also investigated the influence of open innovation activities, including the type, partners and timing, on the TGR of each group with Tobit analysis. The investigation revealed that productivity and its influencing elements varied depending on the business model. This finding suggests that this information can be utilised to develop efficient industrial policies.

Africanization of Developmental State Model: On Rwanda’s Industrial Policy and Institutional Arrangements

ABSTRACT We examine whether the Rwandan state’s choices emulate the East Asian model of developmental state. Our study unveils that Rwanda possesses a central developmental state feature—industrial policy with institutional arrangements—with an Africanization of the developmental state concept. We challenge opinions that oppose the replicability of this model outside East Asia by highlighting the importance of the cross-cutting feature of adaptation. Rwanda followed aflexible approach that allowed adjusting to its own context instead of sticking to a stricteconomic plan. The unique policy independence case of Rwanda raises questions about the possibility for other African nations to imitate its developmental experience.

For the greater good: modern China’s struggle on housing shortage

The examination of housing shortages in China presents a fascinating subject that is rarely directly addressed. This topic not only captures our interest due to the irony in a communist country but also in light of the profound transformation of Chinese society, evolving from an agrarian civilization to a modern industrialized state. The objective of this essay is to establish a comprehensive framework that encompasses economic, social, and architectural narratives as an integrated whole. This essay delves into the historical trajectory of housing shortages in modern China, tracing the evolution of this issue within Chinese society since the founding of the communist regime in 1949. Given China’s unique industrial and residential policy framework, housing provision is intrinsically linked to state-owned factories and residential certification, commonly referred to as hukou. As the political and economic foundations have shifted over time, so too has the root cause of housing shortages. In addition to general historical and theoretical research, we have undertaken an in-depth examination of Lanxi City, one of the industrial clusters established in China. The case study of Lanxi City involves a series of visits and interviews conducted within local factories and communities. Our analysis identifies two distinct phases in this evolution: the “fundamentalist communist era” and the transitional period toward a market economy. Each of these eras can be further subdivided into four distinct phases, providing a more nuanced perspective. Our findings reveal that various housing distribution mechanisms have contributed to the issue of housing shortages. During the first era, housing shortages were primarily a result of hukou restrictions, industrial disparities, sluggish construction processes, and corporate profit considerations. In the latter phase, spanning the 1980s and 1990s, housing shortages were exacerbated by escalating costs and a slow rate of housing unit replenishment. As the new millennium unfolded, real estate bubbles compounded the housing crisis, with older neighborhoods ill-suited for modern living. Our interviews and visits complemented our literature research, offering valuable insights into the systemic exploitation of specific groups in pursuit of broader goals, hence the title. This paper underscores the housing shortage in China as a consequence of economic disparities between urban and rural regions, as well as between the prosperous East coast and the underdeveloped West hinterland.

The Effects of the Development Zone Upgrading on the Diversification of Firm’s Product Exports: Evidence from Chinese Exporters

Against the backdrop of frequent international trade frictions, reducing external risks in export trade through industrial policies has become crucial for China’s high-quality and steady foreign trade development. This paper examines the impact of development zone upgrading policies on the diversification of firm product exports by using a time-varying difference-in-differences model. We find that after the upgrading of development zones, the diversification of firm product exports increases by 2.13%, and concentration decreases by 1.33%. Moreover, this policy has a stronger impact on the diversification level of product exports for firms upgraded to customs special supervision areas, located inland, and engaged in general trade. These conclusions remain robust even after conducting additional robustness tests using alternative measures of the dependent variable, different identification methods for development zone upgrading, and controlling for other industrial policy effects. Furthermore, the upgrading of development zones improves export diversification through three main channels: enhancing firm innovation capabilities, optimizing management efficiency, and providing financial support to firms.

Strategies of Green Industrial Policy: How States Position Firms in Global Supply Chains

The resurgence of industrial policymaking—particularly for emerging low-carbon industries—challenges social science theories that expect such interventions from centralized states or suggest that different kinds of states specialize in various forms of innovation policy. Interventionist forms of industrial policy have made a comeback among liberal economies. Coordinated economies now make use of market-driven strategies. This paper argues that the new generation of industrial strategies is shaped by the industrial development challenges that policymakers face at the sectoral level. It proposes a new theoretical framework that distinguishes between the policy orientation (targeted or open-ended) and the central agents driving financial and technological decision-making (governments or firms). We show that the choice of strategy is shaped by the level of uncertainty and the position of the domestic industry in global supply chains, that is, whether global supply chains are emerging or mature and whether the domestic industry is an entrant or incumbent.

Medium- and Long-Term Electric Vehicle Ownership Forecasting for Urban Residents

With the rapid development of electric vehicles (EVs) in Chinese cities, accurately forecasting the number of EVs used by urban residents in the next five years and more long term is beneficial for the government to adjust industrial policies of EVs, guide the rational planning of urban charging facilities and supporting distribution network, and achieve the rational and orderly development of the EV industry. The paper considers the advantages of using the grey GM(1,1) prediction model to predict the short-term ownership of EVs by urban residents. Then, by forecasting the number of EV users in a certain city in the future and predicting the number of private vehicles in the future, the boundary conditions for long-term year ownership of EVs by residents are determined. Combined with historical data and short-term forecast data generated by the grey prediction model, the model parameters that include the innovation coefficient and imitation coefficient of the Bass model are trained using a genetic algorithm. Finally, the Bass model is used for medium- to long-term ownership forecasting from 2023 to 2040. The prediction error for the target year is provided. The simulation results indicate that the ownership of resident EVs in this city will experience rapid growth in the next five years.

Dynamic capabilities and competitiveness: Relationship among industrial policy, structural transformation, and economic growth in Indonesian regional industries

The complex interactions of industrial Policy, structural transformation, economic growth, and competitive strategy within regional industries are examined in this research. Using a dynamic capabilities framework, the study examines the mediating roles of organizational innovation and adaptability in the link between competitiveness and macroeconomic variables. A two-way fixed effects model is used in this study to examine the influence of structural transformation (ST) on Industrial Policy (IP). Using regional data covering the years 2010 to 2022, the research undertaken in this paper explores the dynamics of the Indonesian economy by empirically assessing the consequences of structural change on industrial Policy. In order to establish a comprehensive model that clarifies the mechanisms through which industrial policies and structural shifts impact the development of dynamic capabilities, ultimately influencing competitiveness strategies, this research draws on a large amount of empirical data and integrates insights from seminal works. Our research adds to our knowledge of strategic management in regional industries by providing detailed information on how economic development and policy interventions influence businesses’ ability to adapt and gain a competitive edge. In addition to advancing scholarly discourse, this study offers business executives and politicians valuable insights for managing the intricacies of global economic processes.

Made in India: Industrial Policy in a Changing World

Made in India: Industrial Policy in a Changing World

The electric vehicle sector in Brazil, India, and South Africa: Are there green windows of opportunity?

Abstract The shift to electric mobility is driving disruptive transformations in the automotive sector worldwide. It poses significant but different opportunities and challenges to incumbents and latecomers at both the firm and country levels. China’s green industrial policy has facilitated its rapid catching up and even leapfrogging in some domains of electromobility. This article asks whether the exploitation of this window of opportunity can be replicated in other latecomer countries. Accordingly, it provides a comparative analysis of the automotive green window of opportunity in Brazil, India, and South Africa, three emerging economies with long established but structurally different automotive industries. To do so, it examines domestic preconditions, policy and enterprise responses, and preliminary industrial development outcomes. Although all the three countries face constraints in replicating China’s relative success, the article shows how green opportunities and threats are unequally divided between the three countries.

A systematic framework for compilation of critical raw material lists and their importance for South Africa

Mineral resources are important contributors to the global economy and societal wellbeing. Directly, they provide employment, revenue and taxes through the extraction, processing and sale of minerals. Indirectly, they are essential to all modern industries, including: energy, manufacturing, construction, biotic and abiotic resource extraction and agriculture. The principle that ‘one cannot understand the value of what they have until they measure it’ is particularly relevant with critical raw materials (CRMs). CRM is a concept that categorises select resources (mainly minerals and metals) as critical in the sense that, at a national level, they are essential and difficult to replace, and their supply is prone to disruption. It is becoming increasingly recognised that the continuity of civilisation and living standards as some have envisioned them in the future is constrained by the quality and quantity of various minerals. National-level strategic planning, including energy policy, foreign relations policy, geopolitical operations, national defence, education and infrastructure planning, among others, all require knowledge of the requirement and supply of raw materials towards a practical strategic implementation. Hence, a national CRM framework is essential for a prosperous, productive and stable future. To effectively manage the supply and use of CRMs, it is important to comprehend both their formal (e.g., economic) and informal (e.g., social and environmental) values, and to measure and monitor these values effectively over time. This study examines international practices and methodologies as components of a comprehensive CRM framework. We then propose a prototype CRM framework for South Africa as such a framework is currently missing.All CRM frameworks feature one or more rating schemes to identify the degree of criticality of raw materials. The actual rating metrics are divided into dimensions (or factors), such as: socio-economic importance, technological importance, environmental, social and governance risks. Such dimensions are important due to the following reasons.•Delineating criticality from non-criticality: by rank-ordering CRMs based on various factors, a country can identify which ones are the most important for its economy, industry and national security. This information can help policymakers prioritise the development of domestic production and secure a stable supply of CRMs.•Assessing resource sustainability and supply stability: by rating CRMs based on environmental, social and ethical factors, a country can assess the sustainability of its resource use and identify areas for improvement. This information can help policymakers develop strategies to mitigate resource depletion, and supply chain disruption, minimise negative environmental and social impacts, and promote responsible resource management.•Supporting informed decision-making: an ordered ranking of CRMs provides quantitative and qualitative information to governmental bodies, industry and other stakeholders to support informed decision-making, including strategic planning. This information can help stakeholders make informed choices about the sources and types of CRMs they use and the sustainability of their resource use.•Promoting transparency and accountability: adopting suitable business ethical dimensions, such as through a corporate social responsibility framework, enables a country to promote transparency and accountability in its resource use and supply chains. This approach can help reduce illicit financial flows, corruption, and abuse of power, while increasing trust and confidence in the resource sector.•Innovation and investment opportunities: a CRM framework enables a nation to establish policy conditions that foster innovation and investment in key activities such as measuring, monitoring, sustainability, extracting, responsible processing, and efficient use of CRMs.Findings from this study underscores the necessity of a structured CRM framework in South Africa to effectively manage the complexities of resource management, economic ground, and sustainability. Integrating these frameworks into national policies can enable South Africa to secure a sustainable, economically viable, and environmentally responsible future. Such strategic initiatives are impor tant for national security, industrial policy, structural transformation, and economic stability, as well as aligning with global initiatives for responsible sourcing and climate change.

Research on the Impact of ESG Disclosure on Green Bond Issuance in New Energy from the Perspective of Carbon peak

With the goal of carbon peaking, low-carbon green development has become the main theme of economic development. In this context, while pursuing economic benefits, it is also necessary to take into account environmental benefits. Industrial development policies and matching funding strategies related to low-carbon green are called for, and sustainable economic strategies will make the industry move forward steadily. On the basis of foreign scholars' research on green bonds and industrial ESG, this project is based on the new energy industry, organizing and researching the information disclosed by its ESG, exploring in depth the influence of this information on the issuance of green bonds by the new energy industry, and exploring whether there is any positivity in this influence. The ESG information disclosed by the new energy industry can, on the one hand, help investors better understand ESG governance and the green bond market in the new energy industry, and guide them to make rational investments; on the other hand, it can help the government better formulate policies to improve the perfection of the green bond-related standards, including the evaluation system and certification system, as well as the quality of the industry's information disclosure.

Creating Low‐Carbon Economies: Probing Transition Dynamics through the Lens of Field Theory

AbstractWe employ field theory as an approach to analysing sustainable regional development by reconciling funding needs and funding procurement. Initial expectations that private capital would bridge the financial gap to decarbonize our economies and societies have not materialized. Instead, state‐led coalitions increasingly introduce spatialized decarbonization strategies in which public development banks are pivotal, yet underappreciated, actors. Field theory provides a fresh perspective for mapping the particular context in which regional industrial policies intersect with broader national and supra‐national investment programmes and funding needs for these long‐term initiatives. Transitions are typically directed but open‐ended social processes, necessitating agency to both alter context and institutions and stabilize the emerging new structures. Field theory can surpass limitations in approaches like transition studies and integrate change mechanisms across scales.

EMPLOYEE TURNOVER AND THEIR IMPACT ON THE ORGANIZATIONAL PERFORMANCE OF THE HOSPITALITY INDUSTRIES OF NEPAL

Purpose: The main objective of this research is to determine the effect of employee turnover on the performance of the organization in the hospitality industry in Nepal. Research on employee turnover and performance in the hospitality industry has rarely been found in the Nepalese context. This research tries to explore the effect of employee turnover on the performance of organizations in Nepal. Methodology: This research uses descriptive and causal-comparative research design. Three independent variables i.e., psychological, demographic & economic factors, and one moderating variable i.e., employee turnover and organizational performance as dependent variables have been used for the study. Data were collected from the 150 respondents through the open-ended questionnaire. Descriptive and inferential statistics have been used to analyze the information. Findings and Conclusion: The study found that there is a positive and significant effect of psychological and demographic factors on the performance of the hospitality industries but economic factor has an insignificant negative effect on the performance of hospitality industries in Nepal. Practical and Social Implication of Research: The outcome of the research can apply to the Nepalese hospitality industry effectively. Improvement of the Psychological and social values of employees can reduce employee turnover and it will help to enhance the performance of the hospitality industry in Nepal. Originality Value: This research concluded that the author's words like; Economic Factors, demographic factors, and Psychological Factors have a significant positive relation although employee turnover, Hospitality Industries, and Performance have insignificant and negative relations with economic factors. The value of this research is to prepare the plan and policy for the hospitality industries in Nepal to maximize profit with the help of minimizing employee turnover. The study supports financial and economic stability in the organization.

Geo-Economic Changes in the Development of the Financial and Credit Policy of the Agro-Food Industry of Ukraine

The article examines effective measures for the development of the financial and credit policy of the agro-food industry of Ukraine in the geo-economic space. Proved that financialization in geo-economics has a global vector of development, which transforms the models of the general balance of financial and credit flows. The geo-financial ap-proach is presented. A detailed analysis of Ukraine's foreign trade with the EU was carried out, and the specific structure of exports of agro-food products was determined. The geographical structure of the geo-financial system of Ukraine. The influence of currency risks on the export of grain crops on average per subject of the agro-food industry of Ukraine was calculated. The dynamic fluctuations of the inflation rate. The structure of the sources of the formation of the financial and credit system of the agro-food industry of Ukraine by global financial institutions during the period of martial law is given. Received: 20 February 2024 / Accepted: 26 April 2024 / Published: 5 May 2024