Industrial Policy Research Articles

Article: Green Regionalism: US Strategies to Ensure Secure and Reliable Supplies of Critical Minerals

Critical Minerals are essential constituents for numerous modern technologies from computers, and modern cars to household appliances. Most critical minerals are also key inputs in technologies that are crucial for clean energy transitions such as batteries, electric vehicles (EV), wind turbines, solar panels etc. Global trends indicate that the race for ensuring a secure and reliable supply of critical minerals is being furthered through industrial policy, domestic regulations as well as international economic law instruments. More recently these three aspects have been characterized by increasing securitization as seen through attempts to friendshore and reshore supply chains and capacities. This paper peruses the recent Critical Material Transparency and Reporting of Advanced Clean Energy (Critical Material TRACE) Bill which focuses on implementing a digital identifier system for advanced energy systems including batteries and battery components. The paper looks at the bill in connection with other initiatives aimed at creating United State (US) led critical mineral value chains. These include industrial policy measures including the Inflation Reduction Act (IRA) as well as international initiatives such as the Mineral Security Partnership (MSP) and the Indo-Pacific Economic Framework (IPEF) inter alia. In our examination, the focus is on analysing the progress made under the US-led MSP and the potential coverage and implication of the Critical Material TRACE Bill. We also examine if such steps by the US further promote green regionalism or are necessary to break the dominance of a few countries (mainly China) in leading the critical minerals supply chain.

A POLYCENTRIC APPROACH TO THE GREEN ENERGY TRANSITION IN BULGARIA

Ostrom’s polycentric model for the governance of social systems has been gaining popularity as an alternative approach to the low-carbon energy transition in recent years. This article considers its potential application to three issues in Bulgaria’s green energy transition: finding substitutes for coal-based electricity production in the Maritsa-East lignite complex, providing new employment opportunities for workers affected by the transition, and understanding the broader social impacts of moving away from the traditional hierarchic model in the energy sector. It is important to note that while polycentric organizing is intended to support low-carbon solutions, it could also serve the interests of coal energy actors, who may prioritize short-term gains over the long-term public interest. Overcoming inertia is a major challenge for adopting the polycentric principle as part of Bulgaria’s industrial policy, particularly in implementing decentralized low-carbon energy solutions.

Made in South Asia: Centering Labor in Textile and Garment Manufacturing Work, 1970s to 2020s

Abstract Labor in the textile and garment industry is at the heart of a series of recent books on South Asia. Together these books document the different scales at which textile and garment work has been structured and restructured over the last century, and its implications for workers, their health as well as collective solidarity. Across the countries of Bangladesh, India, Nepal, and Sri Lanka, the industry developed and declined in vastly different temporalities and rhythms. Yet, as these works reveal, workers have often been confronted with similar challenges brought on by the boom-and-bust cycles of industrial development. In each case, textile and garment workers have been forced to navigate transitions to premature deindustrialization, closure, or national/transnational industrial policy changes. The books center workers and their long “post”-industrial or industrial “afterlives,” as they cope with the dramatic changes in the global manufacturing of textile and garment.

Making sense of the interaction between geopolitics and middle-technology trap: evidence from China’s catching-up CNC machine tool industry

This study proposes a framework to analyze the interaction between geopolitics and the Middle-Technology Trap, drawing on evidence from China's CNC machine-tool industry. Qualitative methods such as interviews have been utilized to identify geopolitical variables that have driven the development of the Chinese CNC machine tools industry. To explore the combined effects of the Middle-Technology Trap and the intense competition between China and the West, this article focuses on an industry that has been significantly influenced by the economic decoupling between China and the US, a phenomenon deeply rooted in recent great power competition. While several industries may illustrate the new status quo of the Middle-Technology Trap, the CNC machine-tool industry is particularly exemplary due to its close interrelation with geopolitics. Accordingly, this study presents a catch-up case that incorporates technology-oriented aspects and factors from strategic competition, underlining three scenarios that geopolitics could influence the result of addresing the Middle-Technology Trap, respectively technological decoupling, the relocation of supply chain, and industrial policy.

The Monetary Policy of Real Estate Industry Implemented by the Government under the Covid-19

Abstract: Recently, the real estate become more and more prosperous and turn out the mainstay industry of Chinas economy. And monetary policy is a wise choice to control the development of the real estate industry. In the history of the development of Chinas real estate industry, different periods have different monetary policies implemented by the government. Recently, with the influence of COVID-19, the real housing industry has been in a recession. This essay summarizes the past monetary policies implemented by government and extends to the status quo of the real housing industry to find out the fitting monetary policy which can relieve the pressure brought by the COVID-19. The expansive monetary policy would reduce the bubbles of real estate industry while the constrictive monetary policy would enhance the real estate industry. And finally get the conclusion that government should choose to implement a tight monetary policy to boost the economy of the property sector.

Modelling Climate Change Impacts on Location Suitability for Cultivating Avocado and Blueberry in New Zealand

Regional suitability for growing avocados and blueberries may alter with climate change. Modelling can provide insights into potential climate change impacts, thereby informing industry and government policy decisions to ameliorate future risks and capitalise on future opportunities. We developed continuous/sliding-scale models that used soil, terrain and weather data to assess location suitability for cultivating avocado and blueberry, based on physiological and phenological considerations specific to each crop. Using geographical information system (GIS) data on soil, slope and weather, we mapped cultivation suitability for avocado and blueberry across New Zealand, and, for accuracy, “ground-truthed” these maps in an iterative process of expert validation and model recalibration. We modelled the incremental changes in location suitability that could occur through climate change using “future” GIS-based weather data from climate model simulations for different greenhouse gas (GHG) pathways that ranged from stringent GHG mitigation to unabated GHG emissions. Changes in maps over time showed where suitability would increase or decrease and to what extent. These results indicate where avocado and blueberry might replace other crops that become less suitable over time, and where avocado might displace blueberry. The approach and models can be applied to other countries or extended to other crops with similar growing requirements.

Iron and steel workers acquiring a factory in exchange for a single coin: a genuine people’s sector

ABSTRACT The iron and steel industry, a cornerstone of industrialization, is vital for economic growth and infrastructure development, particularly in Turkey, where it has been central to industrial policy. This study explores how the Karabük Iron and Steel Factories, known as ‘the factory of factories,’ were transferred to workers for a symbolic price of 1 Turkish Lira (TL) following worker protests against privatization. The study focuses on the strong labor movement and social cohesion among the iron and steel workforce, using the 8 November 1994, protests as a case study. It evaluates how the structural characteristics, societal concerns, and outcomes of these protests differ from other labor movements. By highlighting these differences, the study aims to contribute to the literature on labor movements and protest dynamics. The November 8 protests were significant in raising awareness of workers’ rights and union struggles through media and public attention, while also shedding light on the state and public authorities’ strategies for maintaining social order. Moreover, the study links the achievements of these protests to the concept of the people’s sector. One key conclusion is the relationship between the iron and steel sector and the people’s sector, emphasizing the role iron and steel workers have played in fostering social stability and solidarity.

Exploring the Dynamic Link Between Trade Openness, External Debt, and Economic Growth in Sub-Saharan Africa: Challenges and Considerations

This study investigates the dynamic relationship between trade openness, external debt, and economic growth in Sub-Saharan Africa, focusing on the period from 1990 to 2023. The research examines how trade openness and external debt impact regional economic performance by employing Panel Autoregressive distributed lag (ARDL) techniques utilizing the pool mean group and mean group estimator’s approach. The analysis reveals that while trade openness does not stimulate economic growth, external debt similarly has significant challenges, often hindering long-term development prospects within Sub-Saharan African countries. The findings underscore the importance of managing debt sustainably and aligning trade policies with growth-enhancing strategies. Additionally, human capital and institutional quality are essential endogenous growth factors that significantly influence economic growth in Sub-Saharan Africa. The study recommends that while trade openness alone may not directly drive economic growth, its benefits can be amplified by complementary strategies such as investing in human capital, technological adoption, and industrial policy. The study concludes with policy recommendations to enhance economic resilience and foster sustainable growth, such as attracting foreign direct investment, combined with infrastructure development and sound fiscal management.

Exchange rate fluctuations and industrial production in Malaysia: evidence from dynamic simulated ARDL analysis

Contemporary literature argues that the exchange rate serves as an important instrument of industrial policy to boost economic growth. However, it is difficult to design effective exchange rate policies owing to the uncertainty shrouding the outcomes of the exchange rate movement for industrial growth. Therefore, this study uses a dynamic simulated autoregressive distributive lags approach to study the impact of positive and negative changes in the real effective exchange rate on industrial production of Malaysia for the period 1970–2022. We employ an extended production function to study this relationship by incorporating capital, labour and globalisation as additional explanatory variables. The findings suggest that positive (negative) changes in real effective exchange rate are followed by positive (negative) changes in economic growth in the long run. Furthermore, positive changes in capital affect economic growth positively and significantly in both the short and long run. Finally, positive (negative) movement in labour and globalization positively (negatively) and significantly affect industrial production in the long run respectively. Policymakers should depreciate currency to expand industrial production in Malaysia. Moreover, to boost industrial production, short-term loans should be introduced for capital accumulation.

Regional variations in energy efficiency: Modifying China's industrial approaches to meet sustainability goals

China has devoted much attention to the “carbon peaking” and “carbon neutrality” objectives, the related research focuses on renewable energy, carbon removal, electrification, and hydrogen technologies. Yet, energy efficiency, especially in resource-based and older industrial cities continue to be a research gap in this regard. This study fills this research gap by assessing the role of China's national Industrial Transformation and Upgrade Demonstration Zones (ITUDZ) in energy conservation from 2010 to 2021. In this paper, applying the time-varying Difference-in-Differences (DID) method, we confirm that ITUDZ effectively decreases the energy utilization of these cities. These tests are reliable based on the results obtained above. Mechanism assessments show that the ITUDZ does so through enhancing green innovation and adjusting industrial patterns and that marketization enhances the energy-saving impacts. Geographical heteroscedasticity tests also show that the effects are significant for multi-urban areas and eastern China but weaker for central-western and single-urban city areas. Therefore, this study serves to add to the existing knowledge regarding place-based industrial policies and their contribution towards the realization of China's sustainable development agenda.

Levelling up as green industrial policy

ABSTRACT The emergence of green industrial policy globally signals a growing awareness of climate action as central to policies that address regional economic disparities. In the UK, the newly elected Labour government’s economic vision of ‘securonomics’ corresponds with such an approach: positioning net zero as a key policy goal and the next terrain of ‘levelling up’ in the UK. Any green industrial policy in the UK will be place-based: with net zero both enabling and complicating how economic policy takes shape in regional and local contexts. This commentary highlights the key spaces in which net zero will take shape across the UK, with different communities experiencing processes of deindustrialisation or reindustrialisation as sectors decline and emerge. In advocating for a place-sensitive green industrial policy, it details how green jobs and skills will play a key role in any future just transition. With the regional geographies of net zero already taking shape, it highlights that climate action will be linked to patterns of emergence, change and decline that inscribe regional economies with new vulnerabilities, tensions and futures.

Construction of a Multi-Level Strategic System for Cultivating Cultural Industry Management Talents in Colleges and Universities

Through SWOT (strengths, weaknesses, opportunities, and threats) and PEST (political, economic, social, and technological) analysis, this study discusses the construction of a multi-level strategic system for the cultivation of cultural industry management talents in colleges and universities. First of all, based on SWOT analysis, it is found that colleges and universities have rich educational resources and policy support, but they face challenges such as insufficient practical teaching and intensified international competition. External opportunities come from the rapid development of the cultivation of cultural industry management talents and policy promotion, while threats come from global market competition and talent flow. Secondly, PEST analysis reveals the key factors in the macro-environment: at the political level, the state vigorously supports the cultivation of cultural industry management talents; at the economic level, the market demand for cultural industries is strong; at the social level, the public cultural consumption is upgraded; at the technological level, digital transformation promotes industry innovation. On this basis, this paper puts forward a multi-level strategic system covering theoretical education, practical skill improvement, interdisciplinary integration, and international vision training. The system aims to solve the problems existing in talent training in colleges and universities and cultivate high-quality cultural industry management talents with theoretical knowledge, practical skills, and global vision, so as to adapt to the increasingly complex and diversified cultural industry management talents market demand and promote the long-term development of the industry.

Decent Work Practices Incorporated in the Collective Bargaining Agreements of Unionized Firms

We investigated the decent work practices related to employment at work, rights at work, social protection, and social dialogue incorporated in the Collective Bargaining Agreements (CBAs) of unionized firms. We analyzed qualitatively the various provisions of each of the 20 CBAs of unionized firms from diverse industries in the Philippines that come from manufacturing, hotels, resorts, health, education, telecommunication, and public utilities. Findings revealed that the CBAs' provisions articulate many significant provisions on decent work practices. Specifically, the employment-at-work provisions revealed 14 main themes related to benefits, employee classification, wages, work hours, and opportunities for advancement. Eight key themes were identified on rights at work provisions: employee development, protection against discrimination, safeguards against company closure, sale, lease, transfer, or merger, protection against lay-offs and retrenchment, shared social responsibility, and the ban on labor contracting. On social protection provisions, twelve main themes emerged: maternity benefits, other social security benefits, job security, extended financial assistance and loan benefits, and medical/health care incentive programs. On social dialogue provisions, 11 main themes evolved about union-management communication, acknowledging the current labor union as the sole bargaining representative, the institution of grievance machinery, the union's right to information and consultation, as well as the presence of the Labor-Management Committee. The overall results underscored the important role of the union through its collective bargaining power in ensuring that decent work thrives in the workplace. We recommend implementing the “one union one industry policy” as stipulated in the Labor Code; strengthening the conceptual, technical, and behavioral skills of the union leaders; treating unions as social partners; and undertaking research studies that can benefit both the union and management during their CBA negotiations. These efforts can open more opportunities for unions and those workers covered by CBAs to actualize the ILO conventions of guaranteeing decent work that will transform people and organizations toward a sustainable mindset that includes justice, peace, and equality for the common good of the future generation of working people.

Oil and Gas Industry of India: Russian Aspect

Rather high rates of GDP growth (compared to the world average and other Asian countries) and real incomes of the population, combined with ongoing policies of industrialization and urbaniza-tion, make India one of the most attractive markets for commodities. The country needs natural resources, mainly oil and gas. Among the key areas of development of the national economy are the oil and gas producing and processing industries. Cooperation in the energy sector between Russia and India is developing steadily and progressively, important joint projects are also being implemented. The Russian Federation exports all types of raw materials, with the exception of pipeline natural gas. In 2023, oil imports from Russia, according to the Ministry of Commerce and Industry of India, amounted to 82.21 million tons (about 1.64 million barrels per day), which is 2.61 times higher than in 2022. During the same period, 9.09 million tons of Russian oil prod-ucts were delivered (+2.39 times to the level of 2022), more than 70 % of which were fuel oil. India is also among the largest importers of Russian coal and СNG. In 2023, India imported about 23.21 million tons of Russian coal (+28.8 % to the level of 2022) and 0.41 million tons of CNG (equal to the level of 2022). As you can see, Russia is interested in increasing the export of commodities to India due to the fact that the latter is an emerging economy and acts as an ex-panding market for natural fuels for the needs of households and industry. In addition, owing to the sanction restrictions imposed on Russian companies and the need to diversify supplies, in terms of foreign economy Russia takes particular interest in cooperation with Indian partners. Let’s study India’s energy policy, especially its oil and gas market, below.

Health impact of environmental and industrial noise - a narrative review.

Industrial noise sources are among the environmental noise sources that are ranked second among the causes of ill health in Europe by the World Health Organization. The aim of this paper is to summarize and review of published information focusing on noise annoyance from industrial activities and mining. A search for articles was performed using the bibliographic databases platforms. The epidemiological evidence shows that environmental noise may be associated with cardiovascular and metabolic diseases, impaired cognitive development in children, mental health, post-irritability, and sleep disturbances. As a result of efforts to minimize the effects of industrial noise on human health, the New South Wales Environment Protection Authority published A Guide to the Noise Policy for Industry in 2017, which sets out recommended noise levels, methods, and procedures for noise management based on the latest scientific evidence. Social networks can be used to assess the population's noise annoyance and to verify the effectiveness of the measures. The industrial noise sources are typically defined by low-frequency noise. Low-frequency noise has very low attenuation and is only slightly affected by obstacles, therefore it can be a major cause of night noise annoyance. An association was confirmed between exposure to low-frequency noise and sleep disturbance, psychological problems, cognitive impairment, increased social conflicts, anxiety, emotional instability, nervousness, and reduced mental performance - concentration, and visual perception. In view of the long tradition of mining and industry, the assessment of noise from these activities from the perspective of its impacts on human health is an inherent part of legislative processes. Med Pr Work Health Saf. 2024;75(5).

Path to sustainable development: The effect of China's innovative industrial clusters pilot policy on prefecture-level cities' green total factor productivity

To enhance industrial production efficiency and promote sustainable social development, the Chinese Ministry of Science and Technology announced the innovative industrial clusters pilot (IICP) policy and named three batches of pilot cities in 2013, 2014, and 2017. Whether this significant industrial policy has promoted green total factor productivity (GTFP) is a meaningful but under investigated question in the literature. This study thus explores the above question using a multiperiod spatial difference-in-differences approach and panel data from 273 prefecture-level cities covering 2007–2021. The super slacks based measure and Dagum Gini coefficient are first utilized to assess city-level GTFP and evaluate its spatiotemporal evolutionary features. The intraregional and interregional differences of GTFP reveal expanding trends, with contribution rates to the overall difference above 30%. Benchmark and robustness tests demonstrate promotional direct and spatial spillover effects of the IICP on GTFP. We also employ several additional tests for deeper exploration, determining that a) the direct effect of IICP gradually increases over time, with an evident a time-lag effect, and the positive spatial spillover effect has fluctuated since the policy was enforced; b) the heterogeneity effects of the IICP on GTFP was detected; c) green scientific and technological innovation is an important mechanism of how IICP implementation affects cities' GTFP; and d) the promotional effect of the IICP on GTFP significantly increases when industrial structure upgrading exceeds certain threshold values. The empirical findings of this study not only provide theoretical and practical recommendations for Chinese policymakers to enhance the IICP's policy effect, but also offer suggestions for other emerging markets to develop similar policies for sustainable social development.

Middle spacepowers’ integration with the global supply chain for the space industry: Taiwan and Thailand

Abstract Space as a domain of economic and security competition between great powers has risen to become an arena of active statecraft for middle powers in the twenty-first century. It has set a high-stake stage for not only continuing struggles for catch-up industrialization of late developers but also offering opportunities to capture commercial gains of technological breakthroughs and globalization of markets. We examine these challenges for Taiwan and Thailand, surveying major trends in the emerging space industry and exploring four analytical perspectives on how government-business relations shape adaptive national industrial policies in high-technology sectors with proliferating end-users. We argue that the Asian developmental state model is evolving in response to specific challenges of a global supply chain for commercial space activities dominated by leading space firms and government regulatory actions in the United States. Significant differences in Taiwan’s and Thailand’s space and industrial policy approaches will likely create divergent technological trajectories and reinforce current constraints on improving national security. The longer-term prospect for middle spacepowers remains contingent on the space race between the United States and the People’s Republic of China.

Industrial Policy Environment and Private Equity Placement: Evidence from Chinese Real Estate Firms

Over the past four decades, China’s real estate industry has experienced rapid growth, accompanied by frequent regulatory interventions. These shifts present an ideal context for examining the characteristics of private equity placements (PEPs) under varying industrial policy environments. This study examines the PEPs of Chinese real estate firms from 2006 to 2023, calculating the cumulative abnormal returns during announcement periods and the transaction discounts across various regulatory phases. The analysis reveals significant positive announcement effects, even in times of policy tightening, with these effects becoming more pronounced during periods of policy relaxation. However, regression analyses suggest that the policy environment does not significantly impact the announcement effects. Contrary to traditional views, PEP discounts tend to be shallower during policy tightening and deeper during policy loosening. Further analysis indicates that investors are willing to accept smaller discounts in exchange for more valuable investment opportunities.

Balancing economic efficiency and national security: Industrial policy at the nexus of geopolitics and globalisation

This article examines the resurgence of industrial policy in the EU, with a particular focus on its evolving rationale in the context of geopolitical fragmentation and economic security concerns. It explores how recent global events, including the Covid-19 pandemic and Russia’s invasion of Ukraine, have intensified debates about government intervention in the economy and led to a renewed focus on strategic autonomy. The paper analyses the key EU industrial policy initiatives and their implications, particularly in sectors such as energy, defence and critical technologies. Special attention is given to the challenges and opportunities presented by Ukraine’s reconstruction, including potential adaptations to EU state aid rules. The article concludes by proposing principles for effective industrial policy design and implementation, emphasising the importance of maintaining single-market integrity, ensuring transparency and accountability, and balancing interventions with sound macroeconomic policies.

Exploring the impact of industrial environment uncertainty on export sophistication

A favorable industrial environment is important for increasing the sophistication and competitiveness of a country’s exports. However, a country’s industrial environment is bound to change dynamically. Therefore, this study explores the impact of industrial environment uncertainty on export complexity. Through an empirical analysis of panel data from 76 countries from 2010 to 2020, we find that political and social uncertainty significantly inhibits exports, while an uncertain economic environment significantly complicates exports. Moreover, uncertainty in the industrial environment affects high- and middle-income countries more than low-income countries. Furthermore, the analysis of regulatory effects shows that political uncertainty and social uncertainty have a substitution relationship in inhibiting export complexity. This study affirms the impact of industrial environment uncertainty on a country’s export capabilities and provides a reference for countries with different incomes to formulate and modify their industrial environment policies.