•Ethiopia’s sustainable industrial transition experiment could become a model for other African countries.•Green transition is sought by articulating pressure from global decarbonisation agenda as ...opportunity for economic growth.•With industrial clustering and eco-industrial parks, Ethiopia is taking significant steps down a low-carbon pathway.•Strong political will is yielding progress, but limited human and financial resources remain a formidable challenge.•The institutional framework for coordinating a sustainable industrial transition needs to be strengthened further.
The concept of ‘sustainable industrialisation’ is now integral to the UN’s Sustainable Development Goals. However, there are no historical examples or current models to emulate. Scholarly analyses of putative initiatives to green industrialisation, especially in developing countries, are few and limited. This article explores the conception and implementation of green industrialisation in Ethiopia, one of the world’s poorest nations, where an ambitious Climate Resilient Green Economy (CRGE) strategy has been created, alongside a multi-sectoral Growth and Transformation Plan (GTP), to leapfrog environmentally unsustainable development and bring the country to middle-income status by 2025. Using the socio-technical transition (STT) perspective and in particular Smith, Stirling, and Berkhout (2005) framework for assessing sustainable transition programmes, it analyzes the ‘selection pressures’ on the industrial ‘regime’ and its ‘adaptive capacity’. It finds: (i) clear articulation of the imperative for climate change mitigation and economic growth; (ii) strong high-level government commitment to a greening agenda within the context of accelerated industrialisation; and (iii) a nascent innovation system that is beginning to evolve according to these priorities. However, the analysis also identifies important challenges, including: coordination mechanisms between different stakeholders; framing issues; availability of resources; and ongoing tension between addressing climate change and promoting economic growth. It also highlights the importance of the availability of cross-border resources for purposive sustainability transition within low-income countries.
Industrialization in East Java Province Istifadah, Nurul; Maryunani; Ananda, Candra Fajri ...
JDE (Journal of Developing Economies),
06/2023, Letnik:
8, Številka:
1
Journal Article
Recenzirano
Odprti dostop
The manufacturing industry’s contribution to East Java’s economy is high. Still, the trend continues to decline, while the contribution of the trade, hotel, and restaurant sectors is increasing. This ...indicates that there has been a shift in the economic structure from industry to trade. This research uses a quantitative approach based on the classification carried out by UNIDO (United Nations Industrial Development Organization) and the World Bank. The results of secondary data from Central BPS and East Java Province BPS show that East Java Province is categorized as a semi-industrial area. East Java’s industrial development is experiencing a decline from the “semi- industrialization” stage to the “towards industrialization” stage. This is an early indication of a decline in industrialization or deindustrialization in East Java. If the stages of industrialization in East Java have decreased, but not for commodity industrialization (the ratio of the manufacturing industry’s contribution to the commodity sector). The value of commodity industrialization continues to increase. The commodity sector includes agriculture, mining, industry, construction, electricity, gas & drinking water.
•Manufacturing shares in developing countries have not changed since 1970.•Premature deindustrialization is not attributed to sector-specific factors.•It is due to a concentration of manufacturing ...activities in specific countries.•Path of industrialization will likely remain important for developing countries.
Manufacturing has traditionally played a key role in the economic development of developing countries. In recent years, it has been argued that the importance of manufacturing has diminished over the last 20–25years, resulting in premature deindustrialization or non-industrialization in developing countries. This study explores whether the low levels of industrialization in developing countries are attributable to long-term changes in opportunities available to the sector around the globe. The study’s findings show that the manufacturing sector’s value added and employment contribution to world GDP and employment, respectively, have not changed significantly since 1970. The declining manufacturing value added and manufacturing employment share in many developing countries has not been caused by changes in the sector’s development potential but has instead resulted from a shift of manufacturing activities to a relatively small number of populous countries, thus resulting in a concentration of manufacturing activities in specific developing countries. As was the case in the last millennium, industrialization has continued to play a key role in the growth of developing countries, which have sustained rapid and long-term growth for the last 25years. Achieving economic development by following the path of industrialization will likely remain important for low-income countries because they are able to take advantage of their backwardness relative to those countries which have already experienced rapid industrialization with a disproportionately large share of manufacturing activities, and could soon enter a mature stage of industrialization.
The global apparel industry has been a gateway to industrialization, but changes in the global economy have eroded the benefits from participating in apparel global supply chains, leading to thin ...industrialization in low-income countries where suppliers firms are squeezed between low prices and high requirements. More recently, buyers added improved environmental performance as a new requirement for their suppliers, seeking to avoid brand risks in their supply chains due to consumer awareness. This environmental upgrading focused on eco-efficiency gains, which increased productivity among suppliers while using fewer resources, but buyers captured most of the benefits in terms of maintaining low prices due to market power imbalances. This article aims to shift the debate on the limits of participating in global supply chains by conceptualizing the opportunities available to late industrializing countries from embedding the environmental upgrading of individual supplier firms within a broader green industrialization process, which offers more opportunities for value capture and inter-industry linkages through circular industrial economies. We use this conceptual approach to examine the newest apparel sourcing location, Ethiopia, and the government's green industrial policy that aimed to spur industrialization through apparel specific eco-industrial parks.
•Proposes a Ray slack-based model drawing on polar coordinates theory.•Evaluates China's provincial environmental efficiency using Ray slack-based model.•Environmental efficiency is the highest in ...the east and lowest in central regions.•Detects environmental efficiency–economic growth relationship with spatial effect.•Identifies ways to develop environmental efficiency and regional economies.
The Chinese economy has been experiencing rapid growth since the implementation of the reform and opening-up policy. However, at the same time, it faces issues regarding resource savings and environmental protection, which are important aspects of the new industrialization. Therefore, this study conducts data envelopment analysis (DEA) to evaluate the environmental efficiency of Chinese regions. Certain existing DEA models account for undesirable outputs and do not elucidate the weak disposable relationship between undesirable and desirable outputs. Thus, polar theory is introduced among the DEA modeling in this study. First, drawing on stochastic frontier analysis, Ray stochastic frontier analysis, and DEA, we propose a Ray slack-based model (RSBM) to evaluate provincial environmental efficiencies in China from 2004 to 2012. Subsequently, an RSBM-Malmquist–Luenberger (total factor productivity) index is structured. Finally, economic growth, environmental efficiency, and energy consumption are analyzed using spatial panel econometrics. As this study treats industrial waste as undesirable outputs, the RSBM results show that the environmental efficiencies in the east are the highest, while those in the central regions are the lowest. The spatial econometric analysis reveals that the ratios of direct to total elasticity and those of direct to total effect for capital, labor, and energy input variables are fixed. Furthermore, the study provides policy implications and suggestions for future research.
This study examines the significance of foreign direct investment (FDI) and market characteristics both within and across industries in determining the productivity and efficiency of firms. This ...study also measures the total factor productivity (TFP) growth and its components for both foreign and domestic firms. Using Indonesian annual medium and large manufacturing establishments surveys, wholesale price index, and input-output (I-O) table, the authors calculate the horizontal and vertical spillovers and undertake stochastic frontier analysis to estimate the production and inefficiency function. The results show that the less concentrated market of domestic firms within the industry and suppliers reduces productivity and efficiency, while domestic buyers’ less concentrated markets could have the opposite effect. Most domestic and foreign firms still experience deterioration in TFP growth. The policy recommendation is to encourage firms to improve technological progress, such as upgrading machines and investing in human resources, by providing training workers aiming at mastering better managerial expertise. Policymakers should also ensure that the benefits of FDI spillovers outweigh their disadvantages.
Unlike economies as a whole, manufacturing industries exhibit strong unconditional convergence in labor productivity. The article documents this at various levels of disaggregation for a large sample ...covering more than 100 countries over recent decades. The result is highly robust to changes in the sample and specification. The coefficient of unconditional convergence is estimated quite precisely and is large, at between 2–3% in most specifications and 2.9% a year in the baseline specification covering 118 countries. The article also finds substantial sigma-convergence at the two-digit level for a smaller sample of countries. Despite strong convergence within manufacturing, aggregate convergence fails due to the small share of manufacturing employment in low-income countries and the slow pace of industrialization. Because of data coverage, these findings should be as viewed as applying to the organized, formal parts of manufacturing.
The electrochemical carbon dioxide reduction reaction (CO2RR) provides an attractive approach to convert renewable electricity into fuels and feedstocks in the form of chemical bonds. Among the ...different CO2RR pathways, the conversion of CO2 into CO is considered one of the most promising candidate reactions because of its high technological and economic feasibility. Integrating catalyst and electrolyte design with an understanding of the catalytic mechanism will yield scientific insights and promote this technology towards industrial implementation. Herein, we give an overview of recent advances and challenges for the selective conversion of CO2 into CO. Multidimensional catalyst and electrolyte engineering for the CO2RR are also summarized. Furthermore, recent studies on the large‐scale production of CO are highlighted to facilitate industrialization of the electrochemical reduction of CO2. To conclude, the remaining technological challenges and future directions for the industrial application of the CO2RR to generate CO are highlighted.
The selective electrochemical reduction of CO2 to CO provides a promising approach to realize a sustainable, carbon‐neutral economy. This Review gives a comprehensive overview focusing on catalyst and electrolyte design, and their integration with electrolyzer technology towards industrial implementation. The current challenges in the commercial use of CO2 electrolysis to generate CO are also presented to enable future developments.
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