Light Industrial Sectors Research Articles

What Drives the Transfer of Embodied Pollutant Emissions in International Trade? Evidence from the Light Industry Sector

What Drives the Transfer of Embodied Pollutant Emissions in International Trade? Evidence from the Light Industry Sector

Activity of light industry in Russia in the conditions of mobilization events in the field of economy

The purpose of the article is to establish the principles of organizing the light industry and adjacent sectors of the Russian economy in the context of mobilization activities in the economy, in order to ensure the uninterrupted supply of products to meet the needs of the troops within the framework of the state order. Methods. The industry analysis is carried out under two main assumptions: a) the industry should be reformed, on the terms of public-private mobilization partnership (PPMP); b) relations between the light industry and related economic sectors should be built on the terms of an inter-industry syndicate (cluster, strategic alliance). The assessment of the stability of companies in the light industry sector is carried out on the basis of a matrix aggregate calculator (MAC). The return on equity of companies is analyzed using the DuPont formula. Results. Based on the simulation results, it is shown that the industry maintains economic stability provided that three basic conditions are met: a) it maintains an irreducible net profitability at the level of 5–7 %; b) forms an irreducible turnover of its assets at the level of 1.5 times a year; c) is credited by the state under the supplier’s factoring scheme, which gives a level of financial leverage of about 1.6. All this together should lead to a return on industry equity (ROE) of about 20 % per annum, which guarantees a rapid attraction of private capital to the industry, with the issuance of additional state guarantees for capital protection (a real option for business). Discussion. A more detailed modeling of sectoral economic stability requires the correct selection of modeling factors by groups: Threats, Opportunities, BSC, Risks, Chances, Decisions. A special modeling of the industry corporate culture is needed, using the approaches of related specialties. Conclusion. The GFMP principle guarantees the sustainable functioning of the Russian economy in the conditions of a period of maximum and medium levels of response and high readiness. The conventional wisdom that it is possible to ensure the sovereignty of the country by keeping the peacetime economy in the rear is untenable.

Measurement of Carbon Total Factor Productivity in the Context of Carbon–Electricity Market Collaboration: An Application of Biennial Luenberger Productivity Index

China’s industrial sector generally relies on electricity as its main source of energy, and industrial production can be affected if there are problems with the electricity supply. In order to deal with the uncertain electricity supply and achieve the “dual carbon” target, the industrial sector needs to take effective measures to enhance carbon total factor productivity (CTFP). We use the biennial Luenberger productivity index (BLPI) to try to provide strategies for low-carbon industrial development in China. The results indicate that the overall CTFP of China’s industrial sector showed an increasing trend from 2006 to 2019. Technology change was the main contributor to the change in CTFP, but fluctuations in efficiency change remained a challenge. Differences were observed between the light industry sector (LIS) and the heavy industry sector (HIS) in terms of changes in CTFP, with LIS showing more stable changes and HIS experiencing larger fluctuations. Most sub-sectors showed increased CTFP during the sample period. R&D investment and R&D personnel have a positive impact on CTFP, while energy structure is found to hinder CTFP. According to the research results of this study, we offer the corresponding policy implications. This study is the first to explore the balance between low-carbon goals and industrial production from the perspective of improving CTFP, providing a new viewpoint on the contributions of technological innovation to solving socio-economic issues.

The role of the industry marketing model in increasing the internal cost of light industry products of the Republic of Kazakhstan

Kazakhstan economy is now deeply entwined with the global economic relations framework. An increase in the amount of imports into the nation is a result of economic progress, which draws in capital and technology as well as increasing consumer spending. The needs of economy for consumer, investment, and intermediate products are all met by the expansion in import deliveries, which puts some strain on the balance of payments' current account. This begs the question of how reasonable the current level of imports in relation to other nations is at this point in the country's development. Increasing the domestic value added to this sector's products is a major way to boost its economic impact. The goal of the article is to assess the light industry and develop a marketing strategy to raise the value of goods inside the nation. This article is centered on the creation and execution of strategies to enhance domestic value in the Republic of Kazakhstan (RK) light industry sector. These strategies are in line with the country's objective of attaining a minimum of 90% share of domestic purchases by 2021. The research focuses on the five safeguards included in the "Kazakhstan–2050" development plan, which are meant to support and preserve regional producers.

ANALYSIS OF THE NON-PITCH MIDDLE GROUND OF THE FUNCTIONING OF LIGHT INDUSTRY ENTERPRISES FROM THE POSITION OF A MARKETING APPROACH

The article identifies the main trends in the development of light industry in Ukraine in a historical context. It has been reported that behind the development of globalization processes, the center for the production of clothing, and other goods in widespread use, has moved to the extremes of Western and Central Asia, Western America. The current business environment of the country was analyzed and changes were made to the main macroeconomic indicators of the development of the Ukrainian economy. When forming a significant number of light ratings for 2023, the development of the Ukrainian economy will not be considered important for military activities on its territory. Due to the development of the light industry sector, until 2022 it was actively developing and formed almost 1 hundred percent of the region’s industrial production industry. It has been established that, regardless of the popular mind, light industry enterprises have been gradually increasing their sales obligations since 2010. Period 2010-2021 Characteristic: development of distribution channels, online trading; more active use of marketing tools for the distribution of goods from the agricultural sector; branding. The COVID-19 pandemic and quarantine brought about a surge in digital marketing tools, which led to increased trade. It has been established that the core of the functioning of light industry enterprises is characterized by the presence of fierce competition, the need to react quickly to changes in the market situation, the presence of external a threat to ensuring competitive advantages, which necessitates the need for a variety of marketing tools for the development of government entities and the provision of their economic security.

Embodied carbon emissions generated by international trade of China's light industry sector based on global supply chains perspective

Accurate measurement of the embodied carbon emissions (ECE) generated by international trade is the basis for formulating fair and objective global carbon emission control strategies. This paper proposed an improved multi-regional input-output model and applied it to analyze production and consumption activities related to China's light industry sector based on its position within the global supply chain. It was found that manufacturing of light industry general equipment was the most important contributor to increased ECE, and 13 of China's 16 light industries for which data were available were a net carbon sink generated by international trade. Further, it was also revealed that China received a net transfer of carbon emissions from 12 countries, such as Indonesia, South Korea and Japan. China, as an exporter of carbon emissions, was also responsible for increasing the ECE generated by the international trade of China's light industry sector in 27 countries. Such findings provide an empirical basis for revised international trade strategies and policies to improve energy conservation and reduce carbon emissions.

ГОСУДАРСТВЕННОЕ РЕГУЛИРОВАНИЕ ПРОЦЕССОВ ИМПОРТОЗАМЕЩЕНИЯ И ДИВЕРСИФИКАЦИИ В ЛЕГКОЙ ПРОМЫШЛЕННОСТИ

The textile industry, which originated in the first quarter of the 18th century, has undergone significant changes since the time of Peter the Great and was closely connected with the development of the state. The light industry, as well as other sectors of the economy, is influenced by both domestic and foreign policy of the state, which reflects the conditions for the development of the economy. At the present stage of development, the trend of transformation of economic sectors is import substitution and diversification of industries associated with economic and political sanctions. The basis for the implementation of such processes are innovations. The article discusses the most important problems of the light industry sector associated with high wear and tear of fixed production assets, lack of working capital, dependence on imported raw materials and equipment. It is proposed to use the experience of foreign countries in matters of state regulation of the development of the industry. The issues of interstate integration with the countries of the near abroad, clustering as a key attribute of an innovative economy is considered.

Patterns of embodied pollutant emissions along the global light industrial chain: A complex network perspective

With the upgrading of consumer goods and accelerating trade globalization, enormous amounts of pollution related to the light industry sector's production are transferred across borders along the global industrial chain, but their network patterns and evolution remain unclear. Here, we developed an analytical framework for trade-embodied pollutant emissions transfer (TPET) network by combining complex network theory and input– output theory to analyze the network of 16 light industries in 43 economies from 2000 to 2014. We revealed the critical economies, key industries, critical paths and their evolution trends. The light industry sector's total TPET was consistently large, but many factors (e.g., upgrading consumer goods, increasing trade volume, the 2008 financial crisis) caused large fluctuations. The network densities remained relatively high, with an obvious small-world property and significant centralization. Large economies (especially the world's top 10 economies with a total GDP exceeding US $1.86 trillion in 2014) were critical nodes due to their stable and dominant importance, but played opposite roles (i.e., net TPET importers vs. net exporters). Due to large differences in domestic demand, and environmental regulations, high-income economies (e.g., the U.S., and Germany) were the leading net TPET exporters, whereas low- or middle-income economies (e.g., China, Russia) were the dominate net importers; TPET therefore primarily flowed from high-income to low- or middle-income economies, with substantial growth over time. The electricity, gas, steam and air conditioning supply industry, the manufacture of other non-metallic mineral products, the manufacture of basic metals, and the fishing and aquaculture industry together accounted for 81.2 and 89.0% of total trade-embodied NOX and SOX emissions, respectively; they were thus key industries. To reduce emissions, critical economies should consume more environment-friendly products, strengthen technological innovation and pollution control in key industries, and expand environmental cooperation with other countries. Our results provide insights into the global light industry sector's TPET characteristics and reduction strategies. They also provide a reference for adjusting trade patterns and industrial structures.

An evaluation of the international trade-related CO2 emissions for China's light industry sector: A complex network approach

The aim of this paper is to evaluate China's local implied carbon emission (ICE) caused by the international trade of light industrial products. To do that, a multiregional-multisectoral evaluation model was proposed based on complex network theory. We constructed weighted network of China's imports and exports of light industrial products, and calculated the ICE associated with the trade flows. Then an evaluation index system was proposed based on four indicators: in-strength, out-strength, implied CO2 in import, and implied CO2 in export. Next, three multi-attribute decision-making methods and the minimum-deviation method were used to form a multiregional-multisectoral evaluation model, obtaining the level of the ICE coming from trade. We found that the United States, India, the Netherlands, the United Kingdom, and Mexico were the five countries that caused the most serious ICE in China. Within the light industry sector, the most significant light industries responsible for China's local carbon emissions was the household electrical appliances industry. Such results may provide a reference for formulating light industry strategies to have a positive impact on the socio-economic landscape and encourage sustainable development.

Can Regional Market Integration Improve the Capacity Utilization of Enterprises

For Chinese enterprises, which are in a situation of great change that has not been seen in a century, improving capacity utilization is not only an important way to enhance sustainable viability and comprehensive competitiveness, but also the key to optimize the allocation of social resources and improve economic resilience. Especially in recent years, governments have continuously deepened the supply-side structural reform, promoted the “three removal, one reduction and one compensation”, and regarded the “removal of production capacity” as one of the important tasks to achieve high-quality economic development. However, the overcapacity of Chinese enterprises has not been fundamentally solved, which has become a deep-seated problem hindering the sustainable development of China’s economy. Therefore, identifying the key factors affecting the improvement of capacity utilization of Chinese enterprises and exploring the path of optimizing enterprise capacity decision-making are still an important issue worthy of attention.In recent years, accelerating the regional coordinated development and building a unified domestic market have gradually attracted extensive attention. Governments have successively issued a variety of measures to eliminate local protectionism and market segmentation to promote regional market integration. At the same time, they have accelerated the construction of transportation infrastructure such as high-speed railway and improved the interconnection between different regions. China’s domestic market is undergoing an important transformation from segmentation and fragmentation to integration. In the continuously integrated domestic market, the market space of enterprise products is broader, and the efficiency of resource allocation is improved, which will have an important impact on enterprise capacity decision-making and capacity utilization.From the perspectives of market demand effect and resource allocation effect, this paper investigates the impact of regional market integration on enterprise capacity utilization, and empirically analyzes the effect by using the micro data of Chinese industrial enterprises. It is found that regional market integration significantly improves the capacity utilization of enterprises. Regional market integration not only improves the market demand of enterprise products, but also promotes the effective supply of factors and the optimal allocation of resources, which has a positive effect on the improvement of enterprise capacity utilization. Enterprises with high tax base and high employment contribution and state-owned enterprises are more sensitive to regional market integration; the effect of regional market integration on the capacity utilization of enterprises in heavy industry sector is also higher than that in light industry sector; regional market integration significantly improves the capacity utilization of enterprises in the central and western regions, while the effect in the eastern region is not significant. This paper not only helps to further enrich the research on the formation mechanism of overcapacity, but also provides useful enlightenment for exploring the path of unblocking the domestic circulation and improving the quality of economic development.

The sectorally heterogeneous and time-varying price elasticities of energy demand in China

The price elasticities of energy demand are intrinsically sectorally heterogeneous and time-varying, which is crucial for policy assessment, yet little studied. Therefore, in this study, we apply a semiparametric model that allows the coefficients to vary with continuous and categorical attributes to explore the sector-specific and year-specific price elasticities. We take China as an example, covering 32 industrial sectors from 1999 to 2015. Two main results have been found: (a) yearly average elasticities increased during the sample period and experienced faster growth since the 11th Five-Year-Plan period; and (b) the price elasticities showed significant sectoral heterogeneity in their magnitude, range, and trend. Nonmetal products (e.g., cement), metals, and chemicals have the largest elasticities. The mining and equipment manufacturing sectors are close to the sample average value. The light industry sector has the largest heterogeneity. The weighted mean of our results is consistent with those in the existing literature but provides more sector-specific information.

How to Allocate Carbon Emission Permits Among China’s Industrial Sectors Under the Constraint of Carbon Intensity?

With the official launch of China’s national unified carbon trading system (ETS) in 2017, it has played an increasingly important role in controlling the growth of carbon dioxide emissions. One of the core issues in carbon trading is the allocation of initial carbon emissions permits. Since the industry emits the largest amount of carbon dioxide in China, a study on the allocation of carbon emission permits among China’s industrial sectors is necessary to promote industry carbon abatement efficiency. In this study, industrial carbon emissions permits are allocated to 37 sub-sectors of China to reach the emission reduction target of 2030 considering the carbon marginal abatement cost, carbon abatement responsibility, carbon abatement potential, and carbon abatement capacity. A hybrid approach that integrates data envelop analysis (DEA), the analytic hierarchy process (AHP), and principal component analysis (PCA) is proposed to allocate carbon emission permits. The results of this study are as follows: First, under the constraint of carbon intensity, the carbon emission permits of the total industry in 2030 will be 8792 Mt with an average growth rate of 3.27%, which is 1.57 times higher than that in 2016. Second, the results of the carbon marginal abatement costs show that light industrial sectors and high-tech industrial sectors have a higher abatement cost, while energy-intensive heavy chemical industries have a lower abatement cost. Third, based on the allocation results, there are six industrial sub-sectors that have obtained major carbon emission permits, including the smelting and pressing of ferrous metals (S24), manufacturing of raw chemical materials and chemical products (S18), manufacturing of non-metallic mineral products (S23), smelting and pressing of non-ferrous metals (S25), production and supply of electric power and heat power (S35), and the processing of petroleum, coking, and processing of nuclear fuel (S19), accounting for 69.23% of the total carbon emissions permits. Furthermore, the study also classifies 37 industrial sectors to explore the emission reduction paths, and proposes corresponding policy recommendations for different categories.

Convergence analysis of China's energy intensity at the industrial sector level.

China's industrial energy consumption accounted for approximately 70% of national energy demand in the past four decades. Regarding energy demand and environmental pollution, success in controlling energy demand and reducing energy intensity for industrial sectors in China would play a crucial role for the country's sustainable growth problems. To formulate targeted energy plans, the features and characters of China's industrial energy intensity should be carefully evaluated. In this study, a carefully designed econometric model that considers different technological factors including indigenous R&D and technology spillovers from foreign direct investment and trade under a united framework is applied to investigate the β-convergence characteristics for China's industrial energy intensity by employing a panel dataset covering China's 34 industrial sectors over 2000-2010. The results verify the existence of β-convergence in industrial energy intensity during the sample period. For the industrial sectors overall and the light industrial sectors, the empirical results indicate that indigenous R&D and technology spillovers from FDI and imports are beneficial in curbing energy intensity. However, technology spillover through exports makes it harder to reduce energy intensity. In addition, not all technological factors have played a significant role in reducing energy intensity for the heavy industrial sectors.

Energy efficiency in China's industry sectors: A non-parametric production frontier approach analysis

There is increasing recognition of the importance of energy productivity in China due to the considerable growth in industrial energy consumption in the past several decades. Energy productivity improvements should be approached through changes in factors such as efficiency, technology use and factor substitution. Thus, the aim of this study is to decompose the energy productivity rate of change in a non-parametric framework. We combine data envelopment analysis (DEA) and the Malmquist index, using a data set of 35 two-digit industries in China from 1998 to 2011. The conclusions highlight three key points. First, the dynamic DEA reveals that technical progress is the primary source of energy productivity improvement. Technical efficiency plays a promoting role. The contribution from factor substitution is the least. Second, regarding change, from 1998 to 2003, the positive effect of technology progress was very prominent; however, technological efficiency played a small role and may have even impeded progress. From 2007 to 2010, technology progress had insufficient power; however, the role of efficiency improvement was obvious. The dynamic changes between technology progress and efficiency improvement result in a wide range of technological innovations and efficiency improvements in the entire industry. Third, factor substitution has a prominent positive contribution in light industrial sectors but hinders the improvement of energy productivity in heavy industrial sectors. The most efficient industry is telecommunications equipment, computer and other electronic equipment. This study concludes that China should raise the relative cost of energy consumption and optimize energy allocations and other production factors.

ОБҐРУНТУВАННЯ ЕФЕКТИВНИХ РІШЕНЬ У КОНТЕКСТІ СТРАТЕГІЧНОГО УПРАВЛІННЯ ВИТРАТАМИ ПІДПРИЄМСТВ ЛЕГКОЇ ПРОМИСЛОВОСТІ НА ОСНОВІ АНАЛІЗУ ЛАНЦЮЖКА ЦІННОСТЕЙ

The paper offers argument-based provisions in the application of value chain analysis for making effective decisions on strategic cost management of light industry enterprises, revealing the essence of the value chain concept as well as its specifics in the light industry sector. The key steps in value chain creation for light industry enterprises are suggested along with identifying the methods to gain competitive advantages for enterprises of consumer goods industry. Corporate strategy implications to increase profits are provided. The value chain components for core activities of light industry enterprises are demonstrated. The study also presents a clear methodology to increase profits in the context of value chain model application. The case of the return on assets per unit of light industry output together with profit creation within the value chain is discussed. A matrix of the correlation of market size expansion and market share is displayed.

Regional technology gap in energy utilization in China's light industry sector: Non-parametric meta-frontier and sequential DEA methods

Abstract China is now faced with severe environmental pollution and energy scarcity. Targeted measures with regard to industrial and regional heterogeneity are essential for a “green” transformation. Energy consumption in China's light industry sector exceeded 300 million tons of standard coal equivalents in 2014, accounting for 8% of total energy use and almost the same as South Korea's total energy consumption. Based on the data of 30 provinces from 2005 to 2014, this paper used meta-frontier method to investigate technology gap in energy utilization in different regions. The main findings are that the eastern region has the most advanced technology, and promoting dissemination of new technology from the eastern to the central region can be effective. Also, infrastructure construction and public services related to energy conservation should be prioritized in the western region. Low labor cost in the central and western regions contributes to a large proportion of SMEs, which threatens the promotion of new energy conservation technology. The inadequate financing system for SMEs worsens the situation.

Energy conservation in China’s light industry sector: Evidence from inter-factor and inter-fuel substitution

Following the impressive economic achievements in the past decades, China is faced with energy and environmental challenges. To carry out more effective and targeted energy policies, the heterogeneities of different industrial sectors are of great importance. The energy consumption of China’s light industry in 2012 was 316 million tons of coal equivalents, which is about the energy consumption of South Korea. The paper explored the substitution relationships between various input factors and fuel sources, and showed that electricity price reform is crucial for energy conservation in China’s light industry. Then, the dynamics of energy intensity change is examined by decomposing energy intensity into budget effect, substitution effect, output effect and technology advance effect. The result revealed that the substitution effect between input factors is a key driving force. However, technology progress seems to contribute very little. For future energy policy alternatives, promoting the implementation of new conservation technology and electricity price reform may be effective measures.

The green efficiency of industrial sectors in China: A comparative analysis based on sectoral and supply-chain quantifications

Industry is a main energy consumer and environmental polluter in modern society. The performance of China’s industrial development should therefore be integratively measured in economic, environmental as well as energy and resource contexts. This study employs the directional slacks-based inefficiency model to calculate sectoral and supply-chain green efficiency (SGE and SCGE respectively) of 37 industry sectors in China. Energy and water consumption are selected as the model inputs. Output considerations include value-added (desirable output), and SO2, NOx and CO2 emissions (undesirable outputs). Sectoral statistics data are used to calculate SGE while an input-output (I-O) analysis model, using China’s 2012 economy benchmark data, is employed to quantify SCGE. Furthermore, the sectors that significantly contribute indirect energy consumption to China’s industrial system are identified, and determinants of their SCGE are analyzed using the Tobit model. Results show that light industrial sectors present higher SGE but lower SCGE compared to that of heavy industrial sectors. Environmental regulation and independent innovation capacity promote industrial sectors’ SCGE, while capital-labor ratio and foreign direct investment exert inhibiting effects. Based on model results, policy suggestions are presented to advance green industry transition in China.

Energy Consumption and Carbon Emission Based Industrial Productivity in China: A Sustainable Development Analysis

AbstractThe paper investigates the determinants of productivity growth in China. It also analyses the sustainability of the country's industrial growth by estimating sectoral productivity, accounting for energy usage and emission since the market‐oriented reforms launched in the late 1970s. The empirical analysis indicates that productivity is the most significant driver of growth. The substantial productivity improvement of China's industry is mainly attributable to high‐tech light industrial sectors. Heavy industry lags behind in terms of productivity and overall technical change.

Energy consumption restricted productivity re-estimates and industrial sustainability analysis in post-reform China

This paper investigates the impact of energy on China's industrial sustainability by using a novel approach to estimate real total factor productivity. The growth accounting indicates that the substantial industrial reforms in China have led to productivity growth. Energy and capital are also important factors driving China's industrial growth. Productivity growth in China's industry is mostly attributable to the high-tech light industrial sectors.