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The effects of dynamic industrial transition on sustainable development

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  • Tsai, Diana H.A.

Abstract

This paper analyzes the dynamics of industrial development and structural changes, and its impacts on sustainable development. The weak form of the Porter Hypothesis is examined under industrial transition and structural changes. Explicitly incorporating the Markov regime switching mechanism in a productivity framework, we measure how sustainable development is affected and how firms are adjusted when facing industrial transition and structural changes. Applied to Taiwan manufacturing industries, the model is implemented to identify structural changes and to evaluate the viability of sustainable development under new constraints. This study suggests industries to adopt more sustainable practices which can promote and even improve industrial competitiveness. Such practices would empower economies to assess current structural changes and, based on the environmental implications, recommend future economic policy for sustainable development.

Suggested Citation

  • Tsai, Diana H.A., 2018. "The effects of dynamic industrial transition on sustainable development," Structural Change and Economic Dynamics, Elsevier, vol. 44(C), pages 46-54.
    • Handle: RePEc:eee:streco:v:44:y:2018:i:c:p:46-54
    DOI: 10.1016/j.strueco.2017.10.002
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    Cited by:

    1. Decheng Fan & Kairan Liu, 2021. "The Relationship between Artificial Intelligence and China’s Sustainable Economic Growth: Focused on the Mediating Effects of Industrial Structural Change," Sustainability, MDPI, vol. 13(20), pages 1-15, October.
    2. Luiz Fernando Rodrigues Pinto & Glória de Fátima Pereira Venturini & Salvatore Digiesi & Francesco Facchini & Geraldo Cardoso de Oliveira Neto, 2020. "Sustainability Assessment in Manufacturing under a Strong Sustainability Perspective—An Ecological Neutrality Initiative," Sustainability, MDPI, vol. 12(21), pages 1-40, November.
    3. Hou, Deshuai & Chan, Kam C. & Dong, Manru & Yao, Qiuge, 2022. "The impact of economic policy uncertainty on a firm’s green behavior: Evidence from China," Research in International Business and Finance, Elsevier, vol. 59(C).
    4. Xiongbin Lin & Ting Ren & Hao Wu & Youzhi Xiao, 2021. "Housing price, talent movement, and innovation output: Evidence from Chinese cities," Review of Development Economics, Wiley Blackwell, vol. 25(1), pages 76-103, February.
    5. Zhaopeng Chu & Changxin Liu & Gang Li & Kaixuan Guan, 2018. "Sustainable Development of the Economic Circle around Beijing: A View of Regional Economic Disparity," Sustainability, MDPI, vol. 10(10), pages 1-17, October.
    6. Hui Zou & Xiaohua Ma, 2021. "Identifying resource and environmental carrying capacity in the Yangtze River Economic Belt, China: the perspectives of spatial differences and sustainable development," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(10), pages 14775-14798, October.

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    More about this item

    Keywords

    Industry dynamics; Sustainable development; Industrial transition; Structural changes;
    All these keywords.

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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