IDEAS home Printed from https://ideas.repec.org/a/wly/sustdv/v33y2025is1p594-614.html

The Dynamics of Industrial Resilience for Long‐Term Sustainability: Impacts of Economic Disruptions, Energy Efficiency, and Network Interactions

Author

Listed:
  • Adnan Khurshid
  • Khalid Khan
  • Abdur Rauf
  • Javier Cifuentes‐Faura

Abstract

Resilience is the capacity to adapt and thrive in uncertainty and risk, essential for long‐term sustainability. Energy efficiency and industrial connectedness, among other policies, significantly enhance resilience by reducing dependence on traditional energy sources, mitigating supply disruptions, and minimizing price volatility. This study examines the relationship in the global context. Similarly, considers the cases of five key economies, China, the US, Japan, India, and Spain, during 1995–2023 by using a novel model based on the Lotka‐Volterra approach. The findings show that energy efficiency improves industrial resilience; nevertheless, the effect is diminishing (Phase 1–8) due to rising energy demands. The outcomes are consistent in country‐specific cases. However, strong industrial network growth and economic efficiency boost industrial resilience. The US and China had the strongest interaction strength (network), which is critical for resilience. Japan and India followed them; however, Spain had weaker interactions. Global industrial resilience shifted from higher (H) to lower (L) levels during the study period due to diverse global uncertainties. Nevertheless, countries with more robust industrial linkages remained resilient in those conditions. These variations can be attributed to differences in network structure and efficiency. Therefore, the study emphasizes that resilience needs cooperative, dynamic frameworks suited to national industrial strengths, as well as a focus on energy efficiency and interaction strength to create systems that are robust to global disturbances.

Suggested Citation

  • Adnan Khurshid & Khalid Khan & Abdur Rauf & Javier Cifuentes‐Faura, 2025. "The Dynamics of Industrial Resilience for Long‐Term Sustainability: Impacts of Economic Disruptions, Energy Efficiency, and Network Interactions," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(S1), pages 594-614, November.
    • Handle: RePEc:wly:sustdv:v:33:y:2025:i:s1:p:594-614
    DOI: 10.1002/sd.70018
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/sd.70018
    Download Restriction: no
    File URL: https://libkey.io/10.1002/sd.70018?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Gillian Bristow & Adrian Healy, 2020. "Introduction to the Handbook on Regional Economic Resilience," Chapters, in: Gillian Bristow & Adrian Healy (ed.), Handbook on Regional Economic Resilience, chapter 1, pages 1-8, Edward Elgar Publishing.
    2. Di Tommaso, Marco R. & Prodi, Elena & Pollio, Chiara & Barbieri, Elisa, 2023. "Conceptualizing and measuring “industry resilience”: Composite indicators for postshock industrial policy decision-making," Socio-Economic Planning Sciences, Elsevier, vol. 85(C).
    3. Khurshid, Adnan & Khan, Khalid & Cifuentes-Faura, Javier & Rauf, Abdur, 2025. "Examining the nexus of clean energy access, adaptive governance and resilient futures for Africa: A novel empirical approach," Renewable Energy, Elsevier, vol. 239(C).
    4. Robert J. Gordon, 2002. "Technology and Economic Performance in the American Economy," NBER Working Papers 8771, National Bureau of Economic Research, Inc.
    5. Anis Omri & Fadhila Hamza & Sana Slimani, 2025. "The Role of Green Finance in Driving Artificial Intelligence and Renewable Energy for Sustainable Development," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(5), pages 6844-6870, October.
    6. Nicholas R. Lardy, . "Sustaining China’s economic growth after the global financial crisis," Proceedings, Federal Reserve Bank of San Francisco.
    7. Muhammad Saeed Meo & Solomon Prince Nathaniel & Muhammad Murtaza Khan & Qasim Ali Nisar & Tehreem Fatima, 2023. "Does Temperature Contribute to Environment Degradation? Pakistani Experience Based on Nonlinear Bounds Testing Approach," Global Business Review, International Management Institute, vol. 24(3), pages 535-549, June.
    8. Ron Martin & Peter Sunley & Peter Tyler, 2015. "Local growth evolutions: recession, resilience and recovery," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 8(2), pages 141-148.
    9. Jana Hojnik & Simona Kustec & Ana Zalokar & Mitja Ruzzier, 2025. "The Intersection of Digitalization, Innovation, and Information Technology: A New Era of Sustainable Development in EU," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(5), pages 6954-6967, October.
    10. Khurshid, Adnan & Chen, Yufeng & Rauf, Abdur & Khan, Khalid, 2023. "Critical metals in uncertainty: How Russia-Ukraine conflict drives their prices?," Resources Policy, Elsevier, vol. 85(PB).
    11. Khurshid, Adnan & Khan, Khalid & Cifuentes-Faura, Javier & Chen, Yufeng, 2024. "Asymmetric multifractality: Comparative efficiency analysis of global technological and renewable energy prices using MFDFA and A-MFDFA approaches," Energy, Elsevier, vol. 289(C).
    12. Cifuentes-Faura, Javier & Mohammed, Kamel Si & Alofaysan, Hind, 2024. "The connectedness and structural changes among green and conventional energy markets with CO2 emissions in the United States," Economic Analysis and Policy, Elsevier, vol. 83(C), pages 80-94.
    13. Duan, Wenqi & Khurshid, Adnan & Nazir, Naila & Khan, Khalid & Calin, Adrian Cantemir, 2022. "From gray to green: Energy crises and the role of CPEC," Renewable Energy, Elsevier, vol. 190(C), pages 188-207.
    14. Eichengreen, Barry & Park, Donghyun & Shin, Kwanho, 2024. "Economic resilience: Why some countries recover more robustly than others from shocks," Economic Modelling, Elsevier, vol. 136(C).
    15. Xiaohui Hu & Robert Hassink, 2017. "Exploring adaptation and adaptability in uneven economic resilience: a tale of two Chinese mining regions," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 10(3), pages 527-541.
    16. Jesse Sutton & Godwin Arku, 2022. "Regional economic resilience: towards a system approach," Regional Studies, Regional Science, Taylor & Francis Journals, vol. 9(1), pages 497-512, December.
    17. Zhiguo He & Wei Wei, 2023. "China's Financial System and Economy: A Review," Annual Review of Economics, Annual Reviews, vol. 15(1), pages 451-483, September.
    18. Fuyu Zhang & Qiang Wang & Rongrong Li, 2025. "Industrial Robots and Urban Carbon Emissions: Exploring Mechanisms and Implications," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(4), pages 5351-5373, August.
    19. Tehreem Fatima & Mohd Zaini abd Karim & Muhammad Saeed Meo, 2021. "Sectoral CO2 emissions in China: asymmetric and time-varying analysis," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 64(4), pages 581-610, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Khurshid, Adnan & Khan, Khalid & Cifuentes-Faura, Javier & Rauf, Abdur, 2025. "Examining the nexus of clean energy access, adaptive governance and resilient futures for Africa: A novel empirical approach," Renewable Energy, Elsevier, vol. 239(C).
    2. Olga A. Chernova, 2023. "The Resilience of Russia's Regions in the Conditions of Recovery Growth: Bouncing Forward or Bouncing Back?," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 22(2), pages 381-403.
    3. Afonso, António & Alves, José & Jalles, João & Monteiro, Sofia, 2025. "Energy price dynamics in the face of uncertainty shocks and the role of exchange rate regimes: A global cross-country analysis," The Journal of Economic Asymmetries, Elsevier, vol. 32(C).
    4. Andrés Maroto Sánchez & Juan Ramón Cuadrado-Roura, 2024. "Sectoral–regional resilience and productive specialization: a comparison among the last three crises," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 73(1), pages 61-86, June.
    5. Khurshid, Adnan & Khan, Khalid & Rauf, Abdur & Cifuentes-Faura, Javier, 2024. "Effect of geopolitical risk on resources prices in the global and Russian-Ukrainian context: A novel Bayesian structural model," Resources Policy, Elsevier, vol. 88(C).
    6. Michaela Trippl & Sebastian Fastenrath & Arne Isaksen, 2022. "Rethinking regional economic resilience: Preconditions and processes shaping transformative resilience," GEIST - Geography of Innovation and Sustainability Transitions 2022(02), GEIST Working Paper Series.
    7. Andrea Filippetti & Petros Gkotsis & Antonio Vezzani & Antonio Zinilli, 2020. "Are innovative regions more resilient? Evidence from Europe in 2008–2016," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(3), pages 807-832, October.
    8. Juntao Tan & Kevin Lo & Fangdao Qiu & Wenxin Liu & Jing Li & Pingyu Zhang, 2017. "Regional Economic Resilience: Resistance and Recoverability of Resource-Based Cities during Economic Crises in Northeast China," Sustainability, MDPI, vol. 9(12), pages 1-15, November.
    9. Azzam, Azzeddine & Gren, Ing-Marie & Andersson, Hans, 2023. "Comparative resilience of US and EU meat processing to the Covid19 pandemic," Food Policy, Elsevier, vol. 119(C).
    10. Javier Cifuentes-Faura & Hind Alofaysan & Magdalena Radulescu & Buhari Doğan, 2026. "Dynamic spillover effect among carbon finance, bitcoin, and green energy markets: a novel decomposed connectedness and portfolio analysis," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 12(1), pages 1-24, December.
    11. Hyoji Choi & Frank Neffke & Donghyeon Yu & Bogang Jun, 2024. "Close to Home: Analyzing Urban Consumer Behavior and Consumption Space in Seoul," Papers 2407.20587, arXiv.org.
    12. Gao, Wang & Zhang, Linlin & Zhang, Haizhen & Zhang, Hongwei, 2024. "The role of trade policy uncertainty on contemporaneous and lagged connectedness between critical raw materials and high-tech markets: Evidence from China," Resources Policy, Elsevier, vol. 98(C).
    13. Marina Capparucci & Emanuela Ghignoni & Alina Verashchagina & Natalia Vorozhbit, 2015. "The Drivers of Innovation in the Italian Manufacturing Sector," Economia & lavoro, Carocci editore, issue 3, pages 111-128.
    14. Ming Lu & Lijun Xia & Jinchuan Xiao, 2019. "Pro‐social leadership under authoritarianism : Provincial leaders’ educational backgrounds and fiscal expenditure structure in China," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 27(1), pages 5-30, January.
    15. Yang, Xiaoming & Islam, Md. Monirul & Mentel, Grzegorz & Ahmad, Ashfaq & Vasa, László, 2024. "Synergistic dynamics unveiled: Interplay between rare earth prices, clean energy innovations, and tech companies' market resilience amidst the Covid-19 pandemic and Russia-Ukraine conflict," Resources Policy, Elsevier, vol. 89(C).
    16. Dale W. Jorgenson & Mun S. Ho & Kevin J. Stiroh, 2005. "Growth of US Industries and Investments in Information Technology and Higher Education," NBER Chapters, in: Measuring Capital in the New Economy, pages 403-478, National Bureau of Economic Research, Inc.
    17. Guandong Song & Chengli Tang & Sheng Zhong & Liuguang Song, 2024. "Multiscale study on differences in regional economic resilience in China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(11), pages 29021-29055, November.
    18. Lee Branstetter & Kwon Hyeog Ug, 2004. "The Restructuring Of Japanese Research And Development: The Increasing Impact Of Science On Japanese R&D," Discussion papers 04021, Research Institute of Economy, Trade and Industry (RIETI).
    19. Ullah, Sana & Gozgor, Giray & Lu, Zhou, 2024. "How do conflicts affect energy security risk? Evidence from major energy-consuming economies," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 175-187.
    20. Pham, Linh & Hsu, Kuang-Chung, 2025. "Metals of the future in a world in crisis: Geopolitical disruptions and the cleantech metal industry," Energy Economics, Elsevier, vol. 141(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:sustdv:v:33:y:2025:i:s1:p:594-614. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-1719 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.