Industrial Policy Research Articles

The Role of BIM 6D and 7D in Enhancing Sustainable Construction Practices: A Qualitative Study

The construction industry in Kuwait is experiencing a transformative shift with the adoption of Building Information Modeling (BIM) technologies, particularly BIM 6D for sustainability analysis and 7D for facility management. This study investigates the integration of these dimensions to address sustainability challenges in Kuwait’s construction sector, aligning practices with the United Nations’ Sustainable Development Goals (SDGs). Through qualitative interviews with 15 stakeholders—including architects, engineers, and contractors—and analysis of industry reports, policies, and case studies, the research identifies both opportunities for and barriers to BIM adoption. While BIM offers significant potential for lifecycle analysis, waste reduction, and energy efficiency, its adoption remains limited, with only 27% of construction waste recycled. Challenges include high initial costs, a shortage of skilled personnel, and resistance to change. The study highlights actionable strategies, including enhanced regulatory frameworks, university curriculum integration, and professional training programs led by the Kuwait Society of Engineers, to address these barriers. It also emphasizes the critical role of collaboration among government bodies, industry leaders, and institutions like the Kuwait Institute for Scientific Research. Drawing from successful international BIM projects, the findings offer a practical framework for improving sustainability in arid regions, positioning Kuwait’s experience as a model for other Middle Eastern and North African countries. This research underscores the transformative role of BIM technologies in advancing global sustainable construction practices and achieving a more efficient and eco-friendly future.

Intelligent manufacturing policy, ESG performance, and total factor productivity: Evidence from China.

Under the global wave of intelligence, intelligent manufacturing has become a crucial means of transforming and upgrading China's manufacturing industry. Accurate evaluation of the implementation effects of intelligent manufacturing industry policies is an urgent issue. This study uses the introduction of the "Made in China 2025" policy as a quasi-natural experiment and employs the difference-in-differences method to investigate the impact of intelligent manufacturing policies on firms' total factor productivity (TFP) and its mechanisms. These results indicate that implementing intelligent manufacturing policies significantly enhances firms' TFP. Mechanism analysis reveals that intelligent manufacturing policies can improve firms' ESG performance by enhancing green technology innovation capabilities, increasing capital market attention, and reducing internal control costs, thereby enhancing firms' TFP. Heterogeneity analysis finds that intelligent manufacturing policies have a more pronounced effect on promoting TFP in large-scale enterprises, labor-intensive enterprises, firms with higher technical employee levels, companies in highly competitive industries, and enterprises in regions with higher levels of digital infrastructure development and lower economic development as compared to their counterparts. This study provides evidence of how intelligent manufacturing policies drive the high-quality and sustainable development of enterprises and offers insights for future policy formulation and implementation.

Multi-Purpose Green Industrial Policy and the WTO: An Unavoidable Clash?

Abstract Amid a new era of disruption spawned by looming climate threats and significant geopolitical tensions, an increasing number of countries have favored a more robust green industrial policy (GIP) to reduce carbon emissions and achieve other economic, political, and geostrategic objectives. The use of multi-purpose GIPs not only raises questions regarding the policies' compatibility with the World Trade Organization (WTO) rules but also, more broadly, profoundly implicates the interface between energy, trade, and the environment. This article selects China, the United States, and the European Union as case studies and provides a thorough analysis of the specific text and context of their GIPs to identify the new trends that deviate from past practices in order to capture the policy transformation. It highlights the disruptively adverse implications of the multi-purpose GIPs on the multilateral trading system. However, the WTO has an opportunity to mitigate such disruptions and avoid a seemingly unavoidable clash by facilitating international cooperation and coordination in the design and implementation of multi-purpose GIPs, particularly among major clean energy producer countries. In doing so, the WTO can strengthen its credibility and stability while also minimizing the misalignment of the diverse objectives and ensuring the decarbonization efforts will not undermined.

From Smokestacks to Smart Factories: Improving the Quality of Environment and the Rise of Knowledge‐Intensive Activities

ABSTRACTIn the context of sustainable development goals, which aim to improve the quality of the environment, this study examines the impact of environmental quality on export sophistication. Better environmental performance can have positive effects on the competitiveness of companies and the perception of products by foreign consumers. The study uses a global sample of 115 countries and panel data models. A variety of methods are used to estimate the effect of environmental performance on export sophistication. These methods are robust and have been validated by other studies using comparative techniques. The results indicate that environmental performance has a significant positive effect on export sophistication. This effect is observed in both developed and developing countries, as well as in Christian, Muslim and Hindu majority countries. However, in countries with a majority of other religions, environmental performance has a negative effect on export sophistication. The positive effect of environmental performance on export sophistication can be explained by several factors. Companies that adopt sustainable environmental practices can improve their image and reputation with respect to foreign consumers. In addition, strict environmental regulations can encourage companies to innovate and develop better quality products. The negative effects observed in some countries can be explained by factors such as the structure of the industry, the level of technological development and the environmental policies in place. This study shows that improving the quality of the environment can be an effective way of improving the sophistication of exports. Industrial policies should therefore include environmental considerations to encourage companies to adopt sustainable practices.

The Limits to Food and Beverage Industry Influence over Fiscal and Regulatory Policy in Latin America

Context: Little is known about the political, institutional, and social contexts contributing to a decline in food and beverage industry power and influence over fiscal policy (soda taxes) and regulatory policy (sales/advertising restrictions and food labels). This article addresses this issue by exploring why Mexico and Chile eventually saw such a decline in the food and beverage industry's influence, whereas a similar decline did not occur in Brazil. The article argues that in Mexico and Chile, these outcomes are explained by presidential, congressional, and bureaucratic interests shifting to pursue policies that went against industry preferences. Methods: This article took a qualitative methodological approach to comparative historical research. Findings: Policy makers’ interest in pursuing stronger food and beverage regulations were shaped by economic and public health concerns, new electoral contexts, epidemiological information, and normative beliefs. In Mexico, the infiltration of nutrition researchers within government facilitated this process. By contrast, Brazil's government was divided about pursuing regulatory policies, with presidents favoring partnerships with industry to implement a popular antihunger program; industry's power endured there with limited progress in policy reforms. Conclusion: Governments can eventually overcome industry power and policy influence, but it depends on a whole-government commitment to reform.

Substantive change or strategic response? Digital industrial convergence policy and urban green innovation

To promote green innovation in China, the emphasis on digital industry integration is crucial. Using panel data from 283 cities (2005–2021), this study examines the impact of digital industry convergence (DIC) policy on urban green innovation (GI). The research employs the difference-in-differences (DID) model and spatial measurement techniques to analyze a quasi-natural experiment involving a “triple-network” convergence pilot. The results indicate that DIC successfully promotes urban GI. Robustness tests confirm its positive effects on GI vitality in the pilot and nearby cities, especially for substantial green innovation (GTI). Mechanism analyses show that DIC directly promotes high-quality GI and intermittently supports it through talent aggregation, entrepreneurial incentives, and industry upgrading. The enabling effect of DIC varies with economic growth, city grade, and resource endowment. The study suggests that DIC benefits medium-growth-rate, high-grade, and non-resource-based areas. The findings of this paper reveal how DIC policy affect the types of urban GI behaviors and their intrinsic mechanisms under different innovation motives, and provide empirical evidence for optimizing DIC with better incentives for GTI.

Provincial Industrial Policy and Corporate Emissions: Evidence From China

Provincial Industrial Policy and Corporate Emissions: Evidence From China

Industrial Policy in Post-Apartheid South Africa: An Outlook on Technology and Industrial Policy in the cases of Brazil and South Korea

South Africa is a country that has experienced premature deindustrialisation due to its inability to move out of middle-income status. The role of industrial policy in South Africa is pivotal to taking the country to greater economic heights and a higher-income status. South Africa’s historical context indicates that the country experienced its highest GDP growth rates during the apartheid economy.Since the demise of apartheid, the post-apartheid economy has experienced poverty and economic inequality that the South African government cannot eradicate. This research addresses the failure of South Africa to overcome premature deindustrialisation, and it discusses the state of the political economy and economic growth in a pre-apartheid and post-apartheid context. The thesis also addressed the significance of industrial policy through the establishment of the Industrial Policy Action Plan (IPAP). The shortcomings and successes of IPAP form a critical part of the research and present an analysis of different economic sectors. This research also assesses the state of industrial policy using two countries as case studies: Brazil and South Korea.

Addressing Competitiveness Concerns of EU exporters with Industrial Policy: The Role of Innovation Support

Addressing Competitiveness Concerns of EU exporters with Industrial Policy: The Role of Innovation Support

Critical Review of Halal Industry Policy in Indonesia

Indonesia, with the world's largest Muslim population, has seen significant growth in its halal industry driven by increasing awareness of Islamic ethical values and government initiatives. However, the regulatory framework governing halal certification remains fragmented and complex, leading to implementation challenges and legal uncertainty. This study critically examines Indonesia's halal industry policies, focusing on the Halal Product Assurance (JPH) Law and its alignment with Islamic principles of halal (permissible) and thayyib (wholesome). Employing a qualitative approach, this study analyzes legal documents and the existing literature to identify regulatory overlaps, institutional inefficiencies, and barriers for small and medium enterprises. The findings highlight the need for harmonization of regulations, clarity on the validity period of halal certificates, and improved coordination among government agencies. The study also evaluates the effectiveness of policies in achieving compliance, consumer trust, and socioeconomic benefits, revealing persistent gaps and inconsistencies in enforcement. By contextualizing the JPH framework within Gustav Radbruch's legal philosophy, this study underscores the importance of balancing legal certainty, expediency, and justice. The study concludes that comprehensive improvements in Indonesia's halal industry policies have the potential to enhance consumer confidence, product competitiveness, and the country's position as a global halal industry hub, while emphasizing the need for further empirical research to refine the understanding of the underlying Islamic values and sociocultural dynamics.

An Industrial Policy for Hairdressing?

AbstractIndustrial policy is undergoing a notable revival in Britain, as well as elsewhere. But what are the aims of such a policy? The current government's core statement wholly subordinates its industrial strategy to the pursuit of economic growth. Even leaving aside the questions about the wisdom of making this the overarching goal of economic policy, there are issues about how far industrial policy should be focussed on other objectives. If one sees ‘good jobs’ as such an objective, how far can industrial policy be used in its pursuit? This article takes hairdressing as a perhaps counter‐intuitive example of where industrial policy might usefully be applied.

Make in India for the world? —a study of industrial and trade policy effects on the Indian transport equipment sector

Make in India for the world? —a study of industrial and trade policy effects on the Indian transport equipment sector

The European Union’s management of the environment-trade nexus at the World Trade Organization before and after the European Green Deal

ABSTRACT This article discusses the European Union’s (EU) management of the environment-trade nexus at the World Trade Organization (WTO) before and after the initiation of the European Green Deal (EGD). It demonstrates that the EU has always assumed an ‘institutionalist’ position at the WTO, trusting that trade and environmental objectives can be reconciled within the organization. Before the introduction of the EGD, the EU’s institutionalist position leaned even more towards ‘market liberalism’, supporting accelerated liberalization of environmental goods as the best way for the WTO to contribute to environmental protection. The EGD has rendered the EU more active and vocal without radically shifting its substantial standpoints towards an ‘environmentalist’ position. The EU maintains that WTO members have the right to adopt stringent domestic environmental measures but must do so in a non-discriminatory and least trade-restrictive manner. This excludes instruments like local content requirements or export restrictions that are used regularly in green industrial policies, especially by developing countries. The EU’s position, is criticized by those countries as employing double standards and violating key multilateral trade and environmental principles (like special and differential treatment or common but differentiated responsibilities), thereby challenging the legitimacy and effectiveness of the EU’s multilateral environment-trade nexus management.

China’s Green Industrial Policy and World Trade Law

Abstract This article seeks to unpack China’s green industrial policy and explore its implications for world trade law. It argues that, first, central to China’s achievements in renewable energy is the role of state-level centralized green industrial policy. Second, China’s approach to renewable energy features a pragmatic attitude of subordinating climate commitment to economic development prerogatives. China’s pro-growth mentality has also shaped the international posture of China on climate change. Third, China’s domination in green technology has raised important policy questions for world trade law. In response to China’s green industrial policy, other countries are likely to enforce trade defense measures more aggressively against China and launch their own green industrial policy as a critical part of the re-balancing effort.

Analysing regional and sectoral productivity changes in the Indian economy

AbstractMotivationNumerous domestic and international studies have shown that India's business environment has shortcomings that have hindered and distorted investment, reducing growth and job creation. There is geographical variation in the distribution of sectoral and regional production in India. Therefore, it is necessary to investigate the role geography plays in evaluating the effects of shifts in aggregate and disaggregate productivity.PurposeThis research attempts to build a unified framework to consider regional and sectoral changes as heterogeneous factors affecting productivity in India. It explores whether the fundamental changes in productivity are locational or sectoral.Approach and MethodsThis article focuses on three aspects: (1) It identifies variables based on previous literature. The aggregate industry analysis for both Punjab and India is based on independent variables. The study uses the 2SLS‐estimator using STATA in a single‐step endogeneity problem. (2) For disaggregate or sectoral analysis, it identifies four industries across India and Punjab. We confine our analysis to these four industries since the present study is done at both aggregate and disaggregate levels covering national and state level analysis. (3) It sets out separate interpretations for the aggregate analysis, setting it apart from disaggregate analysis.FindingsFor aggregate industry analysis, the results for Indian and Punjab industry adhere to Verdoorn's law which states that in the long run productivity generally grows proportionally to the square root of output. In that value‐added growth is a major factor affecting total factor productivity for Indian firms across both regions. The Punjab group shows non‐linearity between productivity and concentration. Concentration leads to some increase in productivity but this then declines.Policy ImplicationsPolicy‐makers should promote the establishment of more medium‐sized firms to enhance productivity across all regions in India.The skilled‐labour ratio emerged as significant for the Punjab group, though this is because the state has a higher proportion of small‐scale industries which are more labour intensive than the overall India group. As such, specific policies should be aimed at the manufacturing sector at state level to enhance productivity, taking into consideration unique features of each group.Policy‐makers should address the inefficiency of the industrial policy overseen by the Ministry of Micro, Small and Medium Enterprises.

Government Intervention in Land Markets: The Role of Industrial Policies in Shaping Land Use Costs

ABSTRACTIndustrial policies influence national economic development by allocating industrial land resources. Unlike the market‐oriented industrial land transaction systems in developed countries, China's industrial land transactions are significantly influenced by governmental intervention. However, there is insufficient research on the extent and mechanisms of industrial policy's influence on land use costs in this context. Therefore, this study combines land transactions, industrial policy, urban statistics, and listed company data, creating a dataset of 9705 land transactions from 2011 to 2020 to analyze industrial policies' impact on land use costs. The findings are as follows: First, different industrial policies have differentiated effects on land use costs, with lower costs for key industries and higher costs for heavily polluting industries. Second, the impact is more pronounced when the land parcel is situated outside the development zone, transferred by the prefecture‐level city government, and the proportion of the tertiary industry in the province is relatively low. Third, local governments achieve regulation of land use costs through industrial policies by employing listing method and transferring land to state‐owned enterprises. Furthermore, subsequent investigations reveal that industrial policies can mitigate the decline in total factor productivity caused by increased land use costs for enterprises. This article holds significant implications for optimizing industrial land resource allocation and facilitating industrial transformation and upgrading in developing countries.

Subsidizing Unprofitable Industries: The Political Determinants of Agro‐Industrial Policy in French Overseas Departments

ABSTRACTWhy do states subsidize unprofitable industries? This paper applies the Programmatic Action Framework and adapts it to neocorporatist settings to uncover the political determinants of industrial policies. Empirically, it explores how a longstanding coalition of economic, administrative and political actors has maintained public funding for the sugarcane agro‐industry in French overseas departments, despite new policy objectives for agricultural diversification and subsidy reallocation. Drawing on extensive archival and interview data, I argue that this tripartite programmatic group has leveraged long‐term institutionalized structures to resist subsidy reform and secure support for sugarcane production. Through coordinated discursive strategies to counter “transformative” policy proposals, and relational tactics to exclude challenging actors from the policy venue, each subgroup of this coalition has preserved its social position and the associated political resources gained from policymaking. These findings suggest that innovative policy reform in such sectors will require new public‐private alliances capable of challenging entrenched programmatic groups.

The Nexus Between ICT Diffusion, Financial Development, Industrialization and Economic Growth: Evidence from Sub-Saharan African Countries

ABSTRACT This study examines the nexus between ICT diffusion, financial development, industrialization, and economic growth using a novel panel VAR approach in the generalized method of moments (GMM) estimation. Different proxies were used to measure the aforementioned variables, diverging from the commonly used measures in prior literature. Based on panel data covering 45 countries from 2000 to 2018, the empirical results suggest that there is bidirectional causality between ICT diffusion and economic growth, financial development and industrialization, financial development and economic growth, as well as industrialization and economic growth. The findings further provide evidence that financial development, levels of industrialization, and economic growth are not significant or positive predictors of ICT diffusion. The study’s implications for policy are profound, suggesting that SSA governments should adopt a holistic approach to economic policy development, integrating ICT, financial, and industrial policies to harness these interdependencies effectively.

Studying the cement industry's policy incentives and the optimization path for carbon neutrality technology based on an integrated model

Studying the cement industry's policy incentives and the optimization path for carbon neutrality technology based on an integrated model

The Landlord State: Land Allocation as a Tool of Industrial Policy in China

States routinely intervene in the pricing and allocation of capital and labor when engaging in industrial policy. Drawing on evidence from China, where a landlord state imposed a state monopoly on urban land, this article shows how interventions in the pricing and allocation of land can also be put into the service of industrial policy. Much like other tools of industrial policy, state pricing and allocation of land requires a strong state, manifested through state building efforts to impose control over land resources. In the case of China, these state building efforts spurred a broad growth coalition, spanning local governments, real estate developers, urban homeowners, and ultimately banks and even peri-urban villagers; the political breadth of this growth coalition redirected the landlord state away from its industrial policy origins and toward frenetic real estate investment.