Pro-industry policies, sustainability, and industrial growth

Ali, A; Alpaslan, B

Abstract

This study examines how pro-industry policies and environmental sustainability relate to industrial growth in countries with varying environmental records using a large panel dataset on 104 developing and developed countries over the period 2002–2012. Employing both the conditional and unconditional quantile regression estimators as well as the fixed effects panel estimator, the study finds that pro-industry policies in the form of improved legal and property rights, favorable trade, and business environments are associated with higher industrial growth and development. In line with the so-called Porter hypothesis, the findings indicate that a high environmental performance is indeed consistent with industrial development. In addition, the results show that pro-industry policies and environmental sustainability are substitutes rather than complements in their effect on industry. The study identifies some important policy measures which policy-makers could undertake to make the two complementary in their effect on industrial growth.

Citation

Ali, A., & Alpaslan, B. (2017). Pro-industry policies, sustainability, and industrial growth. In M. Yülek (Ed.), Industrial Policy and Sustainable Growth (1-23). Springer. https://doi.org/10.1007/978-981-10-3964-5_8-2

• Acceptance Date: Mar 5, 2017
• Online Publication Date: Jun 22, 2017
• Publication Date: Jun 22, 2017
• Deposit Date: Mar 29, 2021
• Publisher: Springer
• Pages: 1-23
• Series Title: Sustainable Development
• Book Title: Industrial Policy and Sustainable Growth
• ISBN: 9789811039645
• DOI: https://doi.org/10.1007/978-981-10-3964-5_8-2
• Publisher URL: https://doi.org/10.1007/978-981-10-3964-5_8-2
• Related Public URLs: https://doi.org/10.1007/978-981-10-3964-5