Sustainable Development

Series Editors Parkash Chander Jindal School of Government and Public Policy NCR, India Euston Quah Department of Economics Nanyang Technological University Singapore, Singapore Sustainable development is world’s most comprehensive reference resource on the subject. Each of the ten volumes in the series deals with an important issue in natural resource economics. The series spans across key concepts and questions in the arena of sustainable development, ranging from climate change and low-carbon economies to sustainability and education; climate ﬁnancing to industrial policy. Available in both print and online formats, the dynamic online format will be continuously updated to stay relevant in decades to come. Each volume is edited by internationally well-respected environmental economists and authored by well- regarded experts. Sustainable development is an important resource to practitioners; government policy makers; industry specialists; university students, researchers, and faculty members taking courses on environment, resource management, ecology, economics, environmental science, and urban and resource planning; and non- government organizations.

Titles in the series:

• Industrial Policy and Sustainable Development • Green, Low-Carbon Development: Theory, Methodology, and Application • Sustainability and Education • Catastrophes and Natural Disasters • Food, Energy, and Water • Green Finance for Sustainable Development Through Hometown Investment: Boosting Local Economies Through Development and Climate Finance • Environmental Law • Environmental Agreements and Climate Change • Sustainability from Multidisciplinary Perspective

More information about this series at http://www.springer.com/series/15042 Murat A. Yülek Editor

Industrial Policy and Sustainable Growth

With 92 Figures and 67 Tables Editor Murat A. Yülek Center for Industrial Policy and Development Istanbul Commerce University Istanbul, Turkey

ISBN 978-981-10-5740-3 ISBN 978-981-10-5741-0 (eBook) ISBN 978-981-10-5742-7 (print and electronic bundle) https://doi.org/10.1007/978-981-10-5741-0

Library of Congress Control Number: 2017949287

# Springer Nature Singapore Pte Ltd. 2018 This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Printed on acid-free paper

This Springer imprint is published by Springer Nature The registered company is Springer Nature Singapore Pte Ltd. The registered company address is: 152 Beach Road, #21-01/04 Gateway East, Singapore 189721, Singapore To my parents, wife and children Series Preface

The term “sustainable development”–ﬁrst coined by former Norwegian Prime Minister Harlem Brundtland in 1987 in the World Commission on Environment and Development report – has been used and misused over the years to justify many actions or causes. Sustainability, in the context of that report, is deﬁned as “development that meets the needs of the present without compromising the ability of the future to meet their own.” This concept, while noble and caring for the environment and that for the future generation, has however come to mean different things to different people. To some, it implies a greater awareness of environmental issues, while to others it means a coordinated, organized, and systematic evaluative theory for economic and public policy. Much intellectual debate on sustainability also stems from whether society allows for substitution between natural capital (green areas, fossil fuels, and forests) and man-made capital (buildings and other infrastructure) in the course of economic growth and development. Still others would be happy with efforts to measure sustainability by way of human progress, welfare, and income growth. For much of environmental management, one clear focus is to achieve environmental quality by reducing man-made pollution to a level that is acceptable to society. In all, sustainability is a nebulous but attractive concept with an important guiding principle and essentially asks the basic question for any activity: “Can this activity continue?” There exists many works on sustainability, most of which are related to global sustainability, as well as sustainability in the Western world. In contrast, many Asian countries are still prioritizing strong, yet possibly unsustainable, economic growth. Majority of these developing Asian countries are economically far behind the developed world. Some of these countries are experiencing pockets of abject poverty, struggling to meet the needs of the present in areas such as sanitation and education. It is evident that strong economic growth remains paramount to improving living standards in many Asian regions, but we cannot overlook the fact that growth carries its own costs to the natural environment and to peoples’ health. The true success of growth thus hinges on whether “sustainable development” has been achieved and whether Asian countries are able to balance the twin goals of economic growth and environmental protection.

vii viii Series Preface

The MRW series on Sustainable Development explores and examines a range of sustainability questions as follows, with each book dealing with a particular topic.

1. The origins and definitions/meanings of the term “sustainable development”; the relationship between sustainability and economic efficiency/growth; sustainability theories and models; sustainability criteria including concepts of weak and strong sustainability; other key conditions required to achieve sustainable development; approaches to measuring sustainability. 2. The roles of various economic agents in sustainable development. What can and what should producers, consumers, and governments do? 3. How has sustainability policies and measures been implemented in developed economies? What are the lessons for Asia? 4. How does sustainability feature in the Asian environment? How is sustainability perceived and understood by Asian countries? What has the region achieved thus far? What are the strengths or weaknesses/limitations of currently adopted policies and approaches? 5. Economic tools in sustainability, including cost-benefit analysis, environmental impact assessment, economic appraisal techniques, methods to deal with uncer- tainty and risks, and other methods to evaluate the impacts of policy instruments applied by governments to sustainability issues. 6. International policies and sustainability, including international institutions to resolve sustainability related issues, and the history of international negotiations, agreements, and actions. 7. Charting the future for sustainability: What lies ahead? What are the future challenges, new solutions, and technological innovations? 8. Sustainability in megacities. 9. Balancing environment and economic growth, including the complexity of sustainable development in the Asian context. 10. Climate change and international agreements to tackle it. 11. The problem of Southeast Asia haze and its possible solutions. 12. Economic instruments and mechanisms for achieving sustainability and related goals.

Potential Collaborators (Volume Editors/Authors)

• Dr. Aneta Nikolova (Environment and Sustainable Development, UNESCAP) • Professor N. Yoshino, Dean, ADBI (Tokyo) • Bard Harstad (Chicago University) • Charles D. Kolstad (Santa Barbra) • Charles F. Mason (University of Wyoming) • Professor Clem Tisdell (University of Queensland) • Dr. Xiaolan, Fu, Fellow, Green-Templeton College, University of Oxford • Professor Jinhua Zhao, Director, Environmental Science and Policy, Michigan State University Series Preface ix

• Professor Jinjun, Xue, Director, Low Carbon Economy Programme, Nagoya University • Professor Scott Barrett (Columbia University) • Professor N van Long (Macgill University) • P. Dasgupta (Cambridge University) • Professor Carlo Carraro (Venice University) • Professor Shih-Hsun, Hsu, Dean, Department of Agricultural Economics, National Taiwan University • Rae Kwon Chung, Director, Environment and Development, UNESCAP • Professor W. McKibben, Head, Department of Economics, Australian National University • Professor James Sweeney, Stanford University • Tae Yong Jung, Deputy Executive Director, Global Green Growth Institute, Korea • Professor J. Zhang (Nanyang Technological University, Singapore) • Professor P.K. Dutta (Columbia University) • Professor R. Radner (Columbia University)

Audience Practitioners; government policy makers; industry specialists; university students, researchers, and faculty members taking courses on environment, resource management, ecology, economics, environmental science, urban and resource planning, etc.; NGOs; and others.

Jindal School of Government and Public Policy Parkash Chander NCR, India Department of Economics Euston Quah Nanyang Technological University Singapore, Singapore Volume Preface

There has been a dichotomy in the discussion of sustainable development and industrial policy, which has even led to an assumption in some quarters that the objectives of the two involve a trade-off. In contrast, this volume is based upon the idea that these two important concepts are highly interrelated, and that effectiveness of efforts to achieve sustainable development and industrial development are facil- itated when their interrelatedness is appreciated. In accordance with this line of reasoning, this volume examines the critical issues of industrial policy and sustainability with a view to combining the two seemingly independent avenues. Consequently, key questions handled in this volume are:

• Broader, more comprehensive deﬁnition(s) of sustainability • From the perspectives of both developed and developing countries, how sustainability concerns can be integrated cohesively into the industrial policy set (and vice versa), and how this should be effected • How the following issues are, or can be, handled under a coordinated approach to industrial policy and sustainability: – Middle income trap and policies to escape the trap – Greening of industries and the energy sector – Deindustrialization, industrialization, and reindustrialization; distribution of manufacturing activities among nations and regions – The developmental state – Firms and their behavior toward sustainability and competitiveness – Analysis of sector and country-speciﬁc policy case studies – Trade policies and their impact on industry and environment – Financial, infrastructure, and regulatory aspects

The Chapters

The book is organized in two parts. Part I broadly covers sustainability, industrial policy, planning, and transition to a greener economy. For sustainability to be achieved, it has to be comprehensively and consistently deﬁned. Policies should

xi xii Volume Preface be coherently designed, implemented, and monitored at the national and regional level. The challenges arising in different realms (sectors such as industry, energy, or education; phenomena such as environmental degradation, the middle income trap, or digitalization; factors such as capacity for innovation or competitiveness) should be faced dynamically. Part I also examines the effects of economic and industrial growth on the environment and how transition efforts to a green economy and industries have to be integrated into policy design. In the first chapter, Murat A. Yülek examines the development of the concept of sustainable development and argues the need for a comprehensive definition of sustainability in which industrial policy can fit. He emphasizes that whereas, until recently, sustainable development has mostly focused on the protection of environment and natural resources and on poverty, it should be redefined to cover macroeconomic, financial, social, and infrastructural dimensions as well. Industrial policy then fits integrally into the “comprehensive-sustainability” concept. The main con- clusion is that industrial policy can and should work in tandem with the sustainability context. In ▶ Chap. 2, Barış Alpaslan and Abdilahi Ali examine the effects of industrial policy and environmental sustainability on industrial growth. They conclude that industrial development does not warrant a trade-off with environmental performance. Their study reveals, however, that proindustry policies and environmental sustainability are substitutes rather than complements in their effect on industry. That means that there is a need for policy to reverse this relationship. In ▶ Chap. 3, Diana V. Barrowclough and Richard Kozul-Wright again emphasize the need for the cohesiveness of industrial policy and sustainability; she argues that “for industrial policy to be sustainable, it must be embedded in an integrated framework that is coherent with other policies relating to trade, competition, the financial sector, fiscal structures, labour and the macro-economy.” In ▶ Chap. 4, Hakan Lucius outlines how sustainability challenges affect competitiveness. He examines the limits of the traditional approaches to industrial competitiveness and related policies and describes the necessary paradigm shift for the twenty-first century to incorporate sustainability into technological development and innovation. Using examples to describe the effects, he concludes that, going forward, only those industries and companies that integrate sustainability into the core of their business model will be at the cutting edge of innovation and technology. In ▶ Chap. 5, Diana V. Barrowclough and Richard Kozul-Wright discuss the “institutional geometry” of industrial policy. They contend that the success of industrial policies requires institutions of sufficient quality, and thus simply copying industrial policies from other countries may not yield the intended results. They identify three pillars of a successful structural transformation: a competent and supportive developmental state; a network of intermediary institutions that enable government and business to share information, articulate common goals, encourage learning, and manage trade-offs and conflicting interests; and mechanisms of “recip- rocal control,” which ensure that when government supports business, it is translated into the desired outcomes. Volume Preface xiii

In ▶ Chap. 6, Patrizio Bianchi and Sandrine Labory examine the territorial aspects of industrial policy and argue for the role of regional industrial policies. They also underline the need for a comprehensive definition of industrial policy, especially relative to learning processes and education. They conclude that ongoing structural changes present opportunities for peripheral regions to overcome loca- tional disadvantages. In ▶ Chap. 7, Franco Mosconi examines the evolution of the industrial sector in Emilia-Romagna, one of the most advanced regions in Italy, in the light of the “green economy” policies recently introduced by the regional government. Under the challenges of technological innovation and globalization, both the traditional and the high-tech manufacturing firms in the region are continuing to transform them- selves in order to increase the levels of value added. The chapter reviews the greening and sustainability process and their effects on firms and industrial districts (clusters), using two case studies: the ceramic tile industry and the food industry. In ▶ Chap. 8, Mun Heng Toh examines how the digital age changes the environment for the design and implementation of public policies, including industrial policy. He argues that easy access to information through the World Wide Web has diminished the power of the government and has also given way to disruptive innovations. He thus argues that industrial policy should change; the government should do more policy experimentation and act like a venture capitalist, rather than picking the winners in the old way. In his view, industrial policy should help closer coordination between economic agents. In ▶ Chap. 9, Elif Nuroğlu and Robert M. Kunst review the behavior of income inequality and environmental quality in relation to industrialization and economic growth. The Kuznets Curve hypothesis suggests that, as an economy grows, income inequality will increase up to a certain income level, after which it will decline. Also, according to the environmental Kuznets Curve hypothesis, pollution will increase up to certain income levels as the country undergoes the industrialization process, after which it may level or fall. Their results suggest that neither of the Kuznets hypotheses are supported by data; however, they find that pollution and inequality are correlated. In some countries, both pollution and equality are increasing, while in others environmental quality has been improving while income inequality has worsened. Based on their results, they conclude that policies should be optimized to reach acceptable pairs of environmental quality and income inequality. In ▶ Chap. 10, Humayun I. Azad demonstrates that the lack of reliable and sustainable electricity supply in developing countries negatively affects the growth of economic activity and employment. After reviewing renewable energy policies in the USA, India, and China, he suggests that “given the availability of renewable resources for power generation, the potential exists for low income countries to leapfrog through early, often expensive, stages of development and deployment, and catch up to higher income countries through the deployment and manufacturing of renewable energy equipment.” Thus, in line with the Porter hypothesis, the chapter argues that innovation (or development of manufacturing capabilities) and environmental sustainability can go hand in hand. He thus concludes that appropriate xiv Volume Preface

(green) industrial policy in support of local renewable energy manufacturing and power generation capacity is warranted. In ▶ Chap. 11, Mustafa Yağcı and Natasha Ardiani draw on the experience of Malaysia and Indonesia in dealing with the resource curse. They argue that the two countries now face the middle income trap and consider differences in their development strategies, including industrial policy. They conclude that “effectiveness of government policies in attaining sustainable growth and maximizing the utilization of natural resources depend not only on development planning but also on policy consistency, coherence, coordination and implementation.” In ▶ Chap. 12, Sasho Kjosev analyzes how the sustainable development concept is currently integrated into the economic planning process in the Republic of Macedonia. He discusses the features of economic planning for sustainable development that is needed in developing countries. He also discusses how the tools of the social accounting matrix (SAM) and the national accounting matrix, including environmental accounts (NAMEA), can be used in developing countries to support economic planning for sustainable development. In ▶ Chap. 13, Sanja Jelisavac Trošić examines the role of the state in Serbia, a transition country, in reaching the strategic goals of sustainable growth and economic development. The industrial sector in Serbia faces challenges in compet- ing in the global market. It must go through a successful structural change, which has a bearing on the country’s macroeconomics and on the accession negotiations with the WTO and EU. In ▶ Chap. 14, Hüseyin Oğuz Genç and K. Ali Akkemik examine the case of China in terms of its concepts of industrial policy, green economy, and the developmental state. They compare, review, and analyze the history of Chinese economic development from the perspective of the developmental state, including institutions and policies. They attempt to answer the question of whether the Chinese developmental state is still alive and use recent green policies as a case in answering the question. In ▶ Chap. 15, Norbert Edomah underlines the importance of policy enforcement in the energy sector and its effects on deindustrialization. Energy is a key input to industrial production. The chapter sheds light on how poorly implemented energy infrastructure policies have harmed industrialization in Nigeria and assesses how they have impacted sustainable industrial growth. He also proposes policies that would support reindustrialization. In ▶ Chap. 16, Ludmilla Petrashko reviews the industrial sector and industrial policy in Ukraine. Her research suggests that corporate partnership models based on common interests and values can be effective in enhancing sustainable development. She argues that relationships of trust between the government, firms, and civil society are critical for sustainable development. In ▶ Chap. 17, Kapil Gupta and R.F. Laubscher define green economy as a pathway to sustainable development. They examine green economy transition initiatives in South Africa. The South African government defines that transition as “a just transition to a resource-efficient, low carbon and pro-employment growth path.” Volume Preface xv

In ▶ Chap. 18, Arnab Adhikari and Shromona Ganguly compare green industrial policies in India and China in terms of regulations, government programs, economic policies, and research and development policies. They propose a framework that encompasses drivers and policy reforms, as well as barriers to green industrial policies. Analyzing India and China in the context of policy reforms, they discuss challenges associated with green industrial policies and how these issues can be addressed. In ▶ Chap. 19, Sergii Denysiuk and Galperina Liubov discuss green industrial development and the methods used to identify strategic priorities for the implementation of green industrial policy in Ukraine and their justification through empirical research. They review features of the Ukrainian economy, natural resources, and environment. They employ a “Pressure-State-Response” (PSR) model to assess the social, technological, and economic impacts of green industrial development. In ▶ Chap. 20, Yoshihisa Godo examines the role of education in economic catch-up and development, drawing on stock education data for Japan, Korea, the Philippines, the USA, and Taiwan. This paper provides nearly 100 years of detailed estimates of education stock in these countries. His results indicate that Japan, Korea, and Taiwan achieved economic growth with a smaller education stock than the United States during their miraculously high economic growth periods, where they enjoyed latecomer advantages. He also concludes that Japan’s poor economic performance since approximately 1990 is attributable to its insufficient investment in tertiary education. Part II of the book deals with trade, finance, infrastructure, and regulatory aspects relative to sustainable development and industrial policy. In ▶ Chap. 21, Syed F. Mahmud and Davron Ishnazorov examine the trade-growth nexus and how it is impacted and complemented by industrial policy in developing countries. They test the hypothesis of a heterogeneous trade-growth nexus relative to the role of industrial policy, given the country’s structural characteristics (competitive industrial environment, labor market flexibility, and investment and business regulatory framework). Their analysis, which is based on quantile and GMM models employing data on 54 developing countries for the 2006–2013 period, suggests that trade is bene- ficial but alone cannot contribute to higher economic growth. Other levers are necessary in realizing the benefits of trade liberalization: a complementary regulatory framework (such as a free labor market, financial depth, and a regulatory framework for business) and a competitive industrial environment. In ▶ Chap. 22, Ali Arı and Raif Cergibozan examine the causal relationship between economic growth, renewable energy consumption, trade openness, financial development, and capital in the case of Turkey. Their results suggest that in the long run, causality runs from renewable energy consumption, trade openness, financial development, and capital use to economic growth, while in the short run there exists a bidirectional causal relationship between economic growth as the dependent variable and explanatory variables. In the short run, a bidirectional causal relationship among the other variables, except for trade openness and renewable energy, is also detected. This shows the dynamic and endogenous character of economic xvi Volume Preface growth in the Turkish economy. The results also provide some important policy recommendations, in particular for the implementation of future policies on promoting energy use from renewable sources. In ▶ Chap. 23, Olha Yatsenko and Yuliya Zavadska examine the relationship of trade policies and sustainable development. Examining how economic growth has impacted the environment, their analysis reveals that decoupling growth from environmental pressures has not occurred in Ukraine. They conclude that (i) decoupling should be a policy priority for the country and that (ii) “taking into account existing international obligations and principles in the greening of international trade, the domestic economic policy requires development and implementation of new effective levers for its management at the national, regional and local levels.” In ▶ Chap. 24, Nurullah Gür examines the role of the financial system in achieving sustainable economic growth. He argues that an evolving financial system is necessary to achieve sustainable growth. Moreover, bank-based or market-based financial systems have different features that provide benefits at different stages of economic development. He argues that at the low and medium level of economic development, a well-functioning banking system plays a crucial role in promoting economic growth. In the later stages of economic development, a market-based financial system is superior to a bank-based one for fostering innovation and technological progress. Thus, venture capital, capital markets, and improvements in corporate governance become important drivers of economic development in the later stages. In ▶ Chap. 25, José Manuel Saiz-Alvarez argues that information and communication technology can continue to play a significant role in economic transformation and growth. He proposes an ICT-based strategy complemented by microfinance and corporate social responsibility to drive sustainable development that benefits social groups in the middle of the pyramid. In ▶ Chap. 26, Turan Erol underlines the importance of infrastructure and its financing in the industrialization process and technology-oriented development, as it provides the basis for further private investments, capacity expansion, and competitiveness. He argues that planning and implementation of infrastructure investments should be an integral part of industrial policy design. The quality of the policies is also important. Efficiency of infrastructure investing at almost every stage, from feasibility to construction and operation, can be increased through careful analysis and planning. Private sector involvement through public–private partnership models can bring additional gains, especially in the financing and construction phases. He discusses how infrastructure policies fit into industrial policies by the way the infrastructure policies are prioritized and financed. In ▶ Chap. 27, Murat A. Yülek, Mete Han Yağmur, and Koray Göksal discuss the effects on growth of physical infrastructure investment, an important topic of discussion since the 2007–2008 global financial crisis. It featured prominently during the USA presidential elections in 2016 as part of the policies proposed by President-elect Trump. After presenting a selective literature survey, the authors Volume Preface xvii introduce a methodology and estimate the theoretical multipliers of physical infrastructure investment on sustained growth in terms of value-added generated. In ▶ Chap. 28, Sencer Ecer and David T. Seymour examine the current state of regulation and key issues in the nonmanufacturing sectors of the telecommunications, electricity, and air transport industries in Turkey. They propose policies to remedy outstanding issues. In ▶ Chap. 29, Belmondo Tanankem Voufo, Efobi Uchenna, Vivien Nnetu- Okolieuwa, and Anaduaka Uchechi S. Anaduaka elaborate on the relationship between business environment, competitiveness, innovation, and industrial policies. They emphasize how innovation thrives in a favorable business environment. They also explain that while firm productivity has received important empirical attention in Africa, sustainability and innovation, whether at the macro or micro level, have not received as much attention. After providing a diagnostic, they argue that appropriate industrial policies and a better business environment may be instrumen- tal in driving innovation and sustainability in Africa. They conclude that the African governments should continue to improve the environment for business, including infrastructure, and should utilize industrial policy to encourage manufacturing, while upholding sustainability principles. In ▶ Chap. 30, Murat Kasimoğlu develops a conceptual framework and discusses factors that determine organizational sustainability: How long do organizations remain in the market? And why do they withdraw from the market? He uses survival analyses in order to create a framework that helps identify the factors that influence organizational sustainability, including corporate strategy. In ▶ Chap. 31, Ildikó Kertai-Kiss emphasizes that sustainability and security are closely interrelated. Economic development and globalization have brought new risks and challenges to economic activity and made security a critical factor for sustainability. She thus argues that “sustainable development is not plausible without a safety conscious behaviour.” The safety-focused approach in organizational behavior and the enhancement of safety awareness have become indispensable.

Center for Industrial Policy and Development Murat A. Yülek Istanbul Commerce University Istanbul, Turkey Acknowledgments

This book has benefited from discussions with various people. Above all, I should mention Euston Quah (National University of Singapore), Franco Mosconi Sandrine Labory, Michael Peneder, Turan Erol, Kaoru Natsuda, and Ertan Zencir. I thank Nazım Ekren, the President of Istanbul Commerce University, and the management of the university in providing support for the book. Mete Han Yağmur and İsrafil Boyacı of the Center for Industrial Policy and Development have provided valuable assistance. I am grateful for the support of A. Akif Demirbaş and Arif Can Asal of the Strategy Department of the Istanbul Commerce University, as well as Zehra Akan, Mustafa Reşit Bulut, Kadriye Baş, and Doğkan Aygün for their valuable assistance. I also thank Springer’s team for their efficient handling of the book production, in particular, Rukmani Parameswaran, Neha Thapa, and Keerthi Sudevan. Finally, I thank TÜBİTAK for their financial assistance (Project No. 114K583), which was supportive in the production of this book.

xix Contents

Part I Sustainability, Industrial Policy, Planning, and Greening of the Economy ...... 1

1 Industrial Policy and Sustainable Development ...... 3 Murat A. Yülek 2 Pro-industry Policies, Sustainability, and Industrial Growth ..... 27 Abdilahi Ali and Barış Alpaslan 3 Integrated Industrial Policy ...... 51 Diana V. Barrowclough and Richard Kozul-Wright 4 Sustainability Challenges Shaping Competitive Advantages in Technology and Innovation ...... 69 Hakan Lucius 5 Institutional Geometry of Industrial Policy in Sustainable Development ...... 85 Diana V. Barrowclough and Richard Kozul-Wright 6 Industrial Policies for Peripheral Regions in a Globalized World: Territory and Innovation ...... 109 Patrizio Bianchi and Sandrine Labory 7 Sustainable Development and the Emilian Model ...... 127 Franco Mosconi 8 Development Strategies and Industrial Policies Amidst the Pervasive Use of Internet ...... 155 Mun Heng Toh 9 Kuznets and Environmental Kuznets Curves for Developing Countries ...... 175 Elif Nuroglu and Robert M. Kunst 10 Renewable Energy and Green Industrial Policy: Opportunities for Developing Countries ...... 189 Humayun I. Azad

xxi xxii Contents

11 National Development Planning, Industrial Policy, and Sustainable Growth Challenges in Indonesia and Malaysia: A Comparative Historical Analysis ...... 213 Mustafa Yağci and Natasha Ardiani 12 Sustainable Development Planning: Republic of Macedonia ..... 243 Sasho Kjosev 13 Serbia’s Sustainable Development Strategy and Industrial Policy for the European Union and the World Trade Organization ..... 263 Sanja Jelisavac Trošić 14 Developmental State, Industrial Policy, and Green Growth in China ...... 285 Hüseyin Oğuz Genç and K. Ali Akkemik 15 Deindustrialization and Effects of Poorly Implemented Energy Policies on Sustainable Industrial Growth ...... 311 Norbert Edomah 16 Industrial Policy for a Sustainable Growth Path in Ukraine ..... 323 Ludmila Petrashko 17 South African Government Initiatives Toward a Transition to Green Economy ...... 343 Kapil Gupta and R.F. Laubscher 18 A Comparative Analysis Between Green Industrial Policies of India and China: Review and Implications ...... 357 Arnab Adhikari and Shromona Ganguly 19 Green Industrial Development in Ukraine ...... 375 Sergii Denysiuk and Galperina Liubov 20 Catch-Up Sustainable Economic Growth and Education Stock in East Asia ...... 401 Yoshihisa Godo

Part II Trade, Finance, Infrastructure, and Regulation ...... 413

21 Trade-Growth Nexus and Industrial Policy ...... 415 Syed F. Mahmud and Davron Ishnazorov 22 Sustainable Growth in Turkey: The Role of Trade Openness, Financial Development, and Renewable Energy Use ...... 435 Ali Ari and Raif Cergibozan 23 Environmental Perspective of Ukrainian Trade Policy ...... 457 Olha Yatsenko and Yuliya Zavadska Contents xxiii

24 Financial System and Sustainable Growth ...... 469 Nurullah Gur 25 Information and Communication Technology Based Microﬁnance Model and Catch-Up Strategy: Latin America ...... 483 José Manuel Saiz-Alvarez 26 Infrastructure Investment in Industrial Policy Design ...... 501 Turan Erol 27 Long-Term Effects of Fiscal Policy: Public Infrastructure Investment and Sustained Growth ...... 519 Murat A. Yülek, Koray Göksal, and Mete Han Yağmur 28 Regulatory Reform in Selected Network Industries: Lessons from Turkey ...... 533 Sencer Ecer and David T. Seymour 29 A Diagnostic of Business Environment, Industrial Policies, and Innovation in Africa ...... 555 Belmondo Tanankem Voufo, Efobi Uchenna, Vivien Nnetu- Okolieuwa, and Anaduaka Uchechi S. Anaduaka 30 Sustainability of Organizational Strategy: A Conceptual Framework ...... 575 Murat Kasimoglu 31 Organizational Safety Culture and Sustainability ...... 593 Ildikó Kertai-Kiss Index ...... 619 Series Editors Biographies

Parkash Chander is Professor of Economics and Exec- utive Director, Center for Environmental Economics and Climate Change at Jindal School of Government and Public Policy, is a Fellow of the Econometric Soci- ety, an Associate Editor of Journal of Public Economic Theory, a member of the Advisory Board of Journal of Economic Surveys, and a member of the International Advisory Board of Singapore Economic Review. He has previously held professorial positions at Indian Statisti- cal Institute, Delhi, and National University of Singa- pore (in reverse order). He was formerly Head of Indian Statistical Institute, Delhi, and Head of Department of Economics, National University of Singapore. He has researched primarily in the areas of public economics, environmental economics, and game theory and its applications to climate change. His publications include articles in Econometrica, Review of Economic Studies, Journal of Economic Theory, and other leading journals in economics. He has recently completed a book on climate change, to be published in 2017. He has also written on policy matters in national newspapers and magazines. Professor Chander has held visiting appointments at Johns Hopkins University, California Institute of Technology, University of Pennsylvania, Vanderbilt Univer- sity, CORE (Louvain-la-Neuve), and Nanyang Technological University, among other institutions.

xxv xxvi Series Editors Biographies

Euston Quah Professor Euston Quah is Head, Depart- ment of Economics at the Nanyang Technological Uni- versity (NTU), Singapore, and an Adjunct Principal Research Fellow of the Institute of Policy Studies at the National University of Singapore (NUS). He was formerly Chair, School of Humanities and Social Sci- ences at NTU; Vice-Dean, Faculty of Arts and Social Sciences; Deputy Director of the Public Policy Program (now called the Lee Kuan Yew School of Public Policy); and headed the economics department at NUS. A pro- lific writer, Professor Quah had published over 100 papers in major internationally refereed journals and opinion pieces. His most recent works are a paper in an international publication on cost-benefit analysis for Oxford University Press, 2013, and a lead journal article in The World Economy in 2015. Two books on cost-benefit analysis were published by Routledge, UK, in 2007 and 2012, respectively. His work on cost-benefit analysis (with E.J. Mishan) was recommended for reference by the US White House, Office of Management and Budget for use by government agencies applying for project grants. He was coauthor of an Asian edition of the best selling Principles of Economics text with Gregory Mankiw of Harvard University, now a second edition in 2013. Professor Quah advises the Singapore government in various ministries and was a member of the recent Prime Minister’s Economic Strategies Sub-Committee on Energy and the Environment. He had served on the Boards of Energy Market Authority, Fare Review Mechanism Committee of the Ministry of Transport, and presently sits on the Boards of the Energy Studies Institute at NUS and the Energy Market Company. In 2016, Professor Quah was appointed a member of the Social Sciences Research Council of Singapore. He is also a review panel member for the Bill and Melinda Gates Foundation project hosted by the Overseas Development Institute, London; and in 2015 was inducted as a Fellow Member of the prestigious learned society, European Academy of Science and Arts. Professor Quah is Editor of the Singapore Economic Review (since 2002) and the President of the Economic Society of Singapore since 2009. He has been invited by Stanford University, Princeton University, the USA Inter-Pacific Bar Association, WWF for Asia, UNESCAP, Earth Institute of Columbia University (Asian Meetings), and ADBI and ADB to speak at their functions and conferences, and he is one of the most highly cited and influential university economists in Singapore. About the Volume Editor

Murat A. Yülek is a Professor of Economics at Istanbul Ticaret University and the Director of the Center for Industrial Policy and Development. He is also a partner at PGlobal Global Advisory and Training Services, Inc. Previously, he was Vice Rector and Dean of the Faculty of Business Administration at THK University, Ankara. He has also served as member and chairman of boards of directors, as well as CEO of financial and nonfinancial institutions. He has taught at various universities, including at Georgetown University, and served as consultant at the World Bank, the Islamic Development Bank, and UNCTAD, among others. These responsibilities have exposed him to various development issues, and he has published widely in that field. He holds Ph.D. and M.A. degrees in Economics from Bilkent University, Ankara; an M.B.A. degree from Yale University, USA; an MSM (Management) degree from Boston University; and a B.Sc. degree (Mechanical Engineering) from Boğazici University, Istanbul.

xxvii About the Authors

Arnab Adhikari is a researcher. His research articles have appeared in several well- regarded international journals, such as INFORMS Transactions on Education and American Journal of Operations Research. His research interests include supply chain coordination, green supply chain, green industrial policies, macro-level policy of emerging economy countries, etc. He worked in industry as an SAP consultant. He holds a Bachelor of Technology degree in Electronics and Communication Engineering from the National Institute of Technology, Durgapur, India. He received the equivalent degree of Ph.D. in Operations Management from the Indian Institute of Management, Calcutta, and has been awarded the degree Fellow of Indian Institute of Management, Calcutta.

K. Ali Akkemik is an Associate Professor of Economics at Kadir Has University, Turkey. His research interests include industrial policies, Asian economies (Japan in particular), quantitative development policy analysis based on SAM and CGE models, development economics, and behavioral economics. He is the author of Industrial Development in East Asia: A Comparative Look at Japan, Korea, Taiwan, and Singapore (World Scientiﬁc, 2009) and coeditor of Doğu Asya’nın Politik Ekonomisi: Japonya, Çin ve Güney Kore’de Kalkınma, Siyaset ve Jeostrateji (Boğaziçi University Press, 2015). He has published numerous book chapters about Asian economies and articles in academic journals, including Journal of International Development, Socio-Economic Review, Energy Economics, Journal of Economic Psychology, and European Journal of Operational Research. He holds a B.Sc. degree from the Middle East Technical University, Ankara, and a Ph.D. degree from Nagoya University, Japan.

Abdilahi Ali is a Lecturer in Economics and Director of Postgraduate Studies for the Economics, Accounting and Finance Theme of Aberystwyth Business School, Aberystwyth University, UK. He is a Senior Research Associate and Head of Research and Outreach at the Somali Centre for Social and Economic Empowerment (SCSEE) in Mogadishu. He is also an External Research Associate at the Global Development Institute, the University of Manchester, and at the China and Emerging Economies Centre, Northampton Business School, UK. He is a Fellow of the UK Higher Education Academy. Previously, he worked as a professional economist and taught at the universities of Manchester and Northampton. He holds an M.Sc. with

xxix xxx About the Authors distinction in Development Economics and a Ph.D. in Economics from the Univer- sity of Manchester, UK. Barış Alpaslan is an Assistant Professor of Economics at Ankara Yildirim Beyazit University, Department of Public Finance. He is also a Research Associate at the Global Development Institute (GDI), University of Manchester, and at the Centre for Applied Macroeconomic Analysis (CAMA), Australian National University. Previ- ously, he was a Graduate Teaching Assistant at the University of Manchester. His research interests focus broadly on the macroeconomics of growth, inequality, and development. He completed his M.Sc. degree in Economics, on which he received an award of distinction, and his Ph.D. in Economics under the supervision of Professor Pierre-Richard Agénor. Anaduaka Uchechi S. Anaduaka is a Lecturer and researcher in the Department of Economics, University of Nigeria, Nsukka. She holds an M.Sc. (Economics) degree from the University of Warwick, UK, and a B.Sc. honours (Economics) degree from the University of Nigeria, Nsukka. Her areas of interest are environment, energy, health, time series analysis, panel analysis, and growth economics, in which subjects she has published internationally. Natasha Ardiani has taken on a number of roles in public administration, including serving as Assistant Deputy Chief of Staff at the Executive Office of the President of Indonesia, Assistant to the Head of the National REDD+ Management Agency, and Associate Director for the President’s Delivery Unit for Development Monitoring and Oversight, all in Indonesia. Her work has focused on the post-2015 development agenda – from conducting outreach efforts nationally and internationally to drafting national inputs on sustainable development goals and negotiations on behalf of the Indonesian government at United Nations headquarters. She was the lead outreach coordinator for President Yudhoyono when co-chairing the High-Level Panel of Eminent Persons on the Post-2015 Development Agenda in 2013, along with President Sirleaf of Liberia and Prime Minister Cameron of the United Kingdom. She holds a Master’s Degree in Public Administration from Columbia University. Ali Arı is an Associate Professor of Economics and the Director of the Center for European Studies, Kirklareli University, Turkey. Previously, he served as chair of the Department of Economics at Kirklareli University. He received his B.A. in Politics in 2002 from Marmara University, Turkey, and both his M.A. and Ph.D. in Eco- nomics in 2003 and 2009, respectively, from Toulon University, France. His main research interests are financial crises, international finance, and the Turkish economy, topics on which he has published three books and contributed articles to several international journals. Dr. Arı is a member of a number of editorial and advisory boards of international journals and the Founding Editor of the Journal of European Theoretical and Applied Studies (JETAS). Humayun I. Azad is a renewable energy (RE) consultant in Pakistan, specializing in the project development of utility scale RE projects and other technical RE policy- related issues. He is a regional head at Renewable Resources (Pvt.) Ltd., an RE About the Authors xxxi advisory firm, and has served on various RE technical and policy advisory consor- tiums for financial institutions, including the International Finance Corporation (IFC), Overseas Private Investment Corporation (OPIC), Asian Development Bank (ADB), as well as advisor to the government of Pakistan for the upgrade of the electricity transmission network. His research is focused on the propagation of RE through technology transfer, manufacturing, and deployment, toward a sustainable and economical energy mix in developing countries. He received his Bachelor’s Degree in Electrical Engineering from Carleton University, Canada, and his Master’s Degree in Engineering from University Tenaga National, Malaysia. Diana V. Barrowclough is a senior economist at the United Nations Conference on Trade and Development (UNCTAD), where she was a coauthor of the annual Trade and Development Report, writing on globalization and development strategies. She is also leading research on south-south regional integration. Before joining the UN, she was a Lecturer in Economics at the University of Cambridge, where she was elected a Fellow of St John’s College. She has also advised national and suprana- tional governments and the private sector on institutional investment, privatization, regulation, and economic development. She is a member of the Cambridge Centre for Economic Policy Research and has published individually and jointly on issues relating to industrial policy, fiscal policy, international finance and investment, and the use of quantitative methods in economics. She holds a Ph.D. in Economics from the University of Cambridge, UK. Patrizio Bianchi is a Full Professor of Applied Industrial Economics at the Univer- sity of Ferrara, Italy, and has been, since 2010, Councilor for Education and Research for the Regional Government of the Emilia-Romagna region. After graduating in political science-economics from the University of Bologna, Italy, and the London School of Economics and Political Science, he built an academic career in various universities and returned to Bologna in 1990 as Full Professor of European economics and policy. In 1996, he moved to the University of Ferrara to found the Faculty of Economics, where he was Dean from 2000 to 2004, and then Rector until 2010. He has been an advisor to Italian institutions, such as the Prime Minister’s Office, the Minister of Industry Cabinet, and the Regional Government of Emilia- Romagna, and international institutions, such as the European Commission, the BID, and UNIDO. He was appointed economic advisor to the governor of Guangdong Province, China, in 2000. He has more than 200 publications, including books and articles in scientific journals. His publications on industrial policy include the International Handbook of Industrial Policy (2006, Edward Elgar; edited with Sandrine Labory) and Industrial Policy after the Crisis: Seizing the Future (2011, Edward Elgar; written with Sandrine Labory).

Raif Cergibozan is an Assistant Professor of Economics at Kırklareli University, Turkey, and a Research Associate at the Center for European Studies in Kirklareli University. He earned his Bachelor’s Degree in Economics from Marmara Univer- sity, Turkey, in 2009, received a Master’s Degree in Economics from Istanbul Technical University in 2011, and completed his Ph.D. degree in Economics at xxxii About the Authors

Galatasaray University, Turkey. His areas of special interest are financial crises, labor markets, international trade, time series analysis, and macroeconometric models, topics on which he has published in international journals. Sergii Denysiuk is a Professor of Electrical and Power Engineering at the Kyiv Polytechnic Institute of the National Technical University of Ukraine and the Director of the Institute of Energy Saving and Energy Management. He is a member of various committees and associations, including the Association of Energy Engi- neers (AEE) and the Business Committee of Commerce and Industry of Ukraine, and the Committee on Energy at the Chamber of Ukraine. He served as an advisor to the chairman of the State Committee of Ukraine and to the Committee on Fuel and Energy Complex, Nuclear Policy and Nuclear Safety of the Ukrainian Parliament. He has authored numerous publications and is the recipient of the award of the National Academy of Sciences of Ukraine named for S. Lebedev. His research concentrates on development power engineering, smart grid technology, energy efficiency, and energy management. He received the Doctor of Science degree in Specialty from the National Technical University of Ukraine. Sencer Ecer is an industrial organization economist with 15 years of international experience in academic teaching and research, as well as consulting. His research focuses on the welfare effects of merger policy and his practice focuses on international arbitration, competition policy, and regulation. He is currently a Professor of Economics at Istanbul Technical University and has also taught at Georgetown University, USA; Koc University, Turkey; the University of Texas, USA; and Sabanci University, Turkey. He holds a Ph.D. degree in Economics from the University of Texas at Austin, USA. Norbert Edomah is a Lecturer and researcher at the Pan-Atlantic University, Lagos, Nigeria. His current research focuses on the influences underlying changes in the energy supply infrastructure and the interconnections between energy infrastructure provisions and policymaking. His expertise is in energy and sustainability, with specific focus on energy demand management, energy economics and security, energy conservation/efficiency, energy policy, and energy transitions. Prior to joining the Pan-Atlantic University, Dr. Edomah worked in business development for engineering/technology services and solutions within the West African region. He holds a Ph.D. degree in Sustainable Energy Systems and Policy from the Global Sustainability Institute, Anglia Ruskin University, UK. Turan Erol is a Professor of Economics at Istanbul Sabahattin Zaim University. He has served as the President of the Capital Markets Board of Turkey and as chief advisor to the Turkish Prime Minister. He was also actively involved in the corporate sector as board member or chairman of different companies, including Turkish Airlines, Inc. He has a broad specialization in corporate management, financial markets, and economic policies. He has also been a member of committees at several nonprofit organizations, such as the Istanbul Chamber of Commerce (advisory committee) and the Scientific and Technological Research Council of Turkey (executive committee on investment funds). He has participated in numerous international About the Authors xxxiii conferences, workshops, and specialized committees of international organizations, such as the Islamic Development Bank (IDB), International Organization of Secu- rities Commissions (IOSCO), World Bank, European Development Bank (EBRD), and European Investment Fund (EIF). He led the European Union capital markets harmonization program with Germany and the Netherlands. He has a number of publications in national and international journals and received the award for the best Turkish economy research in 2003. He holds a Ph.D. degree in Economics from Erasmus University, the Netherlands. Shromona Ganguly is a Research Officer in the Department of Economic and Policy Research (DEPR), Reserve Bank of India. As a member of the Banking Research Division, she has worked extensively on India’s policies for development of the financial sector. She was part of the research team that published the Report of the Working Group to Study the Issues Related to Gold Imports and Gold Loans by NBFCs, Reserve Bank, 2013. She has also taken part in various outreach and financial inclusion programs organized by the Reserve Bank of India. She is a Doctoral Scholar in Economics at the Indian Institute of Management, Calcutta. Her research interest lies in industrial policy, structural issues, and financial markets of developing countries. She is a Junior Associate of the Indian Institute of Banking and Finance. Hüseyin Oğuz Genç is a graduate student at the Yenching Academy of Peking University, with a concentration in macroeconomic monetary policy. He holds a Bachelor’s Degree in Engineering and an M.A. in Asian Studies from Boğaziçi University, Turkey. His research concentrates on industrial policies and the politics of economic development in China and Japan. His most recent research in Yenching Academy focuses on rebalancing debt currently allocated to unproductive high growth. Yoshihisa Godo is a Professor of Economics at Meiji Gakuin University, Tokyo. His research fields include development economics and agricultural economics. He coauthored Development Economics (3rd edition, published by Oxford University Press in 2005) with Yujiro Hayami. In 2006, his book Nihon no Shoku to Nou (Food and Agriculture in Japan) received the 28th Suntory Book Prize, which is one of the most prestigious academic book prizes in Japan. Three of his books have been translated into Chinese and published by Chinese publishers. He currently serves as a special councilor to the Kagoshima prefectural government. Previously, he worked as a member of the operating committee of Osaka Dojima Commodities Exchanges, a member of the Council for Food Security (a working group in the Japanese Ministry of Foreign Affairs), a member of the Evaluation Committee for Special Reform Zone (an advisory board for the Japanese Prime Minister), and a member of the Council for Regulatory Reform (an advisory board for the Japanese Prime Minister). He received his Ph.D. degree from the University of Kyoto, Japan, in 1992. Koray Göksal is a faculty member at Yildirim Beyazit University, Turkey, Depart- ment of Economics. His research interests include competition and regulatory xxxiv About the Authors economics, economic impact analyses, and behavioral economics. He has published articles in various academic journals, primarily devoted to the telecommunications and energy markets, including Utilities Policy, Journal of International Develop- ment, Energy Economics, Applied Energy, Renewable and Sustainable Energy Reviews, and Journal for the Study of Religions and Ideologies. He holds B.A. and M.A. degrees in Economics from Hacettepe University, Turkey, and Middle East Technical University, Turkey, respectively. He also holds an M.A. degree in Operational Research from the Turkish Military Academy. He received his Ph.D. in Economics from Yildirim Beyazit University, Turkey. Kapil Gupta is a Senior Lecturer in the Department of Mechanical Engineering Technology at the University of Johannesburg, South Africa. He has over 6 years of academic and research experience. His main research fields are sustainable manufacturing with special focus on environmentally benign machining of titanium alloys and sustainable production of gears; advanced machining processes; sustainable manufacturing; microfabrication; and precision engineering. Dr. Gupta has published several articles in international journals and conference proceedings. He has been an invited reviewer for various international journals. He recently published a book on hybrid machining processes (Springer International Publishing, Switzer- land). He received his Ph.D. in Mechanical Engineering from the Indian Institute of Technology, Indore, India, with specialization in advanced manufacturing. Dr. Nurullah Gür is currently a faculty member in the Department of Economics and Finance of Istanbul Medipol University. His research focuses on economic development and finance-real sector relations. His research has been published in journals such as Progress in Development Studies, Eurasian Economic Review, Economics Letters, Applied Economics Letters, and Emerging Markets Finance and Trade. He received his B.A. and M.A. degrees in Economics from Marmara University, Turkey, and holds a Ph.D. degree from the University of Essex, UK. Davron Ishnazarov is a Research Associate at the Statistical, Economic and Social Research and Training Centre for Islamic Countries (SESRIC). His research and publications focus on economic growth, trade, aid effectiveness, and development. In addition, he has contributed to various SESRIC flagship reports and country specific studies. Currently, he is coordinating several statistical research and capacity building projects from SESRIC for Organization of Islamic Cooperation (OIC) member countries. He obtained his M.A. from the Economic Governance and Development Programme of the Organization for Security and Cooperation in Europe Academy, Kyrgyz Republic (magna cum laude – valedictorian). Murat Kasimoglu is a Professor of Management and Organization at the Istanbul Commerce University. He received his Ph.D. degree in Business at the Istanbul University in Istanbul, Turkey. He worked on management projects with companies, NGOs, and for various organizations around the world. Dr. Kasimoglu has made research for various issues including sustainability of the organizational strategy. His research has focused on management, business strategy, and organization theory at the national and global level. Publications on sustainability and competitive About the Authors xxxv strategies include Strategies for Tourism Industry – Micro and Macro Perspectives (2012, edited with Handan Aydin) and Visions for Global Tourism Industry – Creating and Sustaining Competitive Strategies (2012). Ildikó Kertai-Kiss is a Lecturer on organizational behavior (applied psychology) at Óbuda University and Károli Gáspár University in Budapest. She is a business and executive coach and supervisor. Her main areas of research are the characteristics of enterprises in the digital era; organizational culture; organizational knowledge shar- ing; soft competencies in leadership; and decision support. She is a member and a board member of the Business Coach Association, Hungary. She holds an M.A. in European Affairs from the Budapest University of Economic Sciences and another M.A. from the Public Administration University, Budapest. She also holds a postgraduate degree in executive coaching from Budapest Tech Keleti Károly and another from the Institute of Psychology at KRE University, Budapest. Sasho Kjosev is a Full Professor at the Faculty of Economics of the Ss. Cyril and Methodius University in Skopje, Republic of Macedonia. He is an independent member of the supervisory board of a commercial bank and a nonexecutive member of the board of directors at the Central Securities Depository. He has worked at the World Bank (1997–1998) and at the National Bank, Macedonia. He has been a member of the Macedonian Academy of Sciences and Arts (1996–1998). He has participated in more than 30 EU, UNDP, and World Bank funded projects in the country, including the preparation of the National Development Strategy and National Sustainable Development Strategy for Macedonia. He has published seven books and more than 60 articles in domestic and international journals and conference proceedings. His professional fields of interest include macroeconomic (development) planning, development planning techniques, national accounting, sustainable development, regional and local economic development, labor economics, and agricultural policy. He earned his Ph.D. degree from the Faculty of Economics in Skopje; he has also completed the Graduate Diploma Programme in Development Planning Techniques at the International Institute of Social Studies (ISS) of Erasmus University, Rotterdam. Richard Kozul-Wright is the Director of the Globalization and Development Strategies Division of UNCTAD (United Nations Conference on Trade and Devel- opment). He has worked at the United Nations in both New York and Geneva. He has published widely on economic issues, including inter alia, in the Economic Journal, the Cambridge Journal of Economics, the Journal of Development Studies, and the Oxford Review of Economic Policy. His latest book is the Resistible Rise of Market Fundamentalism (with Paul Rayment); he has also edited volumes on transnational corporations and the global economy, economic insecurity and development, securing peace, climate protection and development, and industrial policy. He holds a Ph.D. in Economics from the University of Cambridge, UK. Robert M. Kunst is a Professor of Economics at the University of Vienna and a Fellow of the Institute for Advanced Studies, Vienna. He holds a doctorate degree in mathematics from the Vienna University of Technology and a venia docendi in xxxvi About the Authors econometrics. He is the coordinating editor of the Journal of Empirical Economics. His main research interests are time-series econometrics and empirical macroeconomic analysis. He has published approximately 40 articles in various journals, such as the Review of Economics and Statistics, the Oxford Bulletin of Economics and Statistics, and the International Journal of Forecasting. Sandrine Labory is an Associate Professor of Applied Industrial Economics at the University of Ferrara, Italy. She received her Ph.D. degree in Economics at the European University Institute in Florence, Italy, after which she moved to Brussels to work as a researcher for the Centre for European Policy Studies, before starting her academic career in Italy. Her research has focused on industrial policy issues, at the European, national, and regional level. Dr. Labory has performed research for the European Commission and regional governments in Italy on various issues, including production and innovation processes at the firm and territorial levels, intangible assets, and clusters. Publications on industrial policy include International Hand- book of Industrial Policy (2006, Edward Elgar; edited with Patrizio Bianchi) and Industrial Policy after the Crisis: Seizing the Future (2011, Edward Elgar; co-authored with Patrizio Bianchi). Rudolph F. Laubscher is currently an Associate Professor in the Department of Mechanical Engineering Science at the University of Johannesburg. He was chairman of the department between 2002 and 2007. He obtained his doctorate in mechanical engineering from the Randse Afrikaanse Universiteit in 1997 and was registered as a professional engineer with ECSA in 2002. His main research interests are in manufacturing (metal cutting), structural integrity, finite element analysis, and sustainable manufacturing. He has consulting widely in industry as regards to structural integrity evaluation and failure analysis. Galperina Liubov is a Professor at the Department of International Management of Kyiv National Economic University, Ukraine, named after Vadym Hetman. She was a Project Manager in more than 20 R&D projects and has authored over 120 scientific and methodological works. She has participated in more than 40 international, scientific and methodological conferences, symposiums, seminars, and round tables. She received her Ph.D. from the Institute of World Economy and International Relations of the National Academy of Sciences of Ukraine. Hakan Lucius is a Professor of Finance and Management. Prof. Lucius has lectured in the USA and Europe, and currently teaches master’s classes at SciencesPo in Paris, the Welch MBA program in Luxembourg, and the Executive MBA at the Frankfurt School of Finance in Germany. He lectures in parallel to his position as a division head at the European Investment Bank, the bank of the EU, covering stakeholder engagement and sustainability dimensions, and possesses wide financial experience. A key highlight was the financing of the first Bosporus tunnel project, a $1.246 bn flagship, and a sustainable transport investment. Prof. Lucius has published articles in multiple languages and is fluent in English, French, German, and Turkish. He is a member of the European Investment Bank’s Pension Board, the board of trustees of the Frankfurt School of Finance, co-chairs the Fin-Tech working About the Authors xxxvii group of the Association of the Luxembourg Fund Industry, and is a member of their eligibility committees for the Environmental and the ESG fund labels. He received his Ph.D. degree with distinctions in Industrial Economics and Technological Development, and his M.B.A. from INSEAD, France. He also holds an M.Sc. degree in Engineering from Vienna Technical University. Syed F. Mahmud is a Professor of Economics at Bilkent University, Turkey. He has over 35 years of experience in both teaching and academic research. His earlier research was primarily on applied microeconomics, using both parametric and nonparametric econometric techniques. In recent years, his research has concen- trated on banking and finance. He has a keen interest in developing macroeconomic models based on the System Dynamic Approach and using it to evaluate the workings of alternative banking proposals, including equity-based financial systems. He has taught various courses at both graduate and undergraduate levels and has supervised master’s and Ph.D. theses. He has published many papers in leading journals of economics. He holds a Ph.D. degree in Economics from McMaster University, Canada. Franco Mosconi is Associate Professor of Industrial Economics at the University of Parma, Italy, where, since 2003, he has held the Jean Monnet Chair. He also teaches at the European College of Parma and at the School of Journalism of the University of Bologna. Previously, he was Adjunct Professor in Industrial Economics at the Forlì-based Faculty of Economics of the University of Bologna, and he has worked as a Research Assistant at the Centro di Economia e Politica Industriale of the same University. From 1996 through 1998, he served as an economic adviser to Italy’s President of the Council of Ministers, Professor Romano Prodi, while from 1999 to 2001 he was a member of the President’s Cabinet at the European Commission in Brussels. He is a member of the editorial board of L’Industria: Rivista di Economia e Politica Industriale, published by Il Mulino. His main areas of interest are European industrial policy, the “Emilian model” of SMEs and clusters. He has recently published The New European Industrial Policy: Global Competitiveness and the Manufacturing Renaissance (Routledge, 2015). After graduating in economics and business from the University of Bologna (Laurea magna cum laude), he went on to specialize as a research student in economics at the London School of Economics under Professor John Sutton’s supervision. Vivien Nnetu-Okolieuwa is a Lecturer and researcher at the Department of Eco- nomics, University of Nigeria, Nsukka. Her research focuses on special interest institutions, income inequality, time series analysis, and the economics of growth. She has published internationally in these fields. She holds an M.Sc. degree in Development Economics from the University of Birmingham, UK, and a B.Sc. degree (honours) in Economics from the University of Nigeria, Nsukka. Elif Nuroğlu is an Associate Professor of Economics at the Turkish-German University, Istanbul, and the Head of the Department of Economics. She previously taught at the International University of Sarajevo. She holds a Ph.D. degree in Economics from the University of Vienna and a venia docendi in international xxxviii About the Authors economics. Her research concentrates on the gravity model, international trade, empirical macroeconomic analysis, and neural networks modeling. She coedited the books Turkish-German Affairs from an Interdisciplinary Perspective (Peter Lang) and Turkish-Balkans Relations: The Future Prospects of Cultural, Political and Economic Transformations and Relations (TASAM Publications). Ludmila Petrashko is a Professor of International Management in the Kyiv National Economic University named after Vadym Hetman (KNEU) and an expert in the Institute of Global Economic Policy under KNEU. She is also the academic coordinator of the joint project of the KNEU, the Jean Monnet Fund and the Education, Audiovisual and Culture Executive Agency under the European Com- mission. She has developed the curriculum for a number of different master level programs. Her main research areas are on international management, cross-cultural management, project management, corporate culture, corporate social responsibility, and global leadership, and she has published widely in these fields. She holds Ph.D. and D.S. degrees in World Economy and International Economic Relations from the Kyiv National Economic University named after Vadym Hetman. José Manuel Saiz-Álvarez is a Professor at TEC de Monterrey, Mexico, and a Visiting Professor at the Catholic University of Santiago de Guayaquil, Ecuador. He is also an Honorary Professor at the Autonomous University of Madrid, Spain. He has also been the Academic Director for Business Administration Doctoral Studies at Nebrija University, Spain. He holds a Ph.D. degree in Economics and Business Administration from the Autonomous University of Madrid, Spain, and another in Political Science and Sociology from Pontifical University of Salamanca, Spain. He also holds a Certificate of Recognition from the Capitol House of Representatives of Puerto Rico and a Diploma of Honor from Valahia University of Targoviste, Romania. He is a member of editorial boards and referee for numerous journals. He has given a wide range of lectures in Europe and America and authored or coauthored more than 200 publications. David T. Seymour is an Associate Professor at Istanbul Technical University. His research interests are applied microeconomic theory and industrial organization, with a focus on issues in transportation-related topics. He holds a Ph.D. from Boston University, USA. Mun-Heng Toh is a Professor of Economics specializing in the quantitative evaluation and assessment of public policies and programs. He currently teaches at the Department of Strategy and Policy, NUS Business School, Singapore. His research interests and publications are in the areas of development strategies of the emerging economies in the Asia Pacific, econometric modeling, input-output analysis, international trade and investment, human resource development, and productivity mea- surement. He has substantial experience as an economic consultant for international organizations, private enterprise, and governmental agencies. He has coauthored or edited several titles, including The Economics of Education and Manpower Devel- opment: Issues and Policies in Singapore; Health Policies in Singapore; Public Policies in Singapore: A Decade of Changes; Challenge and Response: Thirty Years About the Authors xxxix of Economic Development Board; ASEAN Growth Triangles; Competitiveness of the Singapore Economy; Production Networks and Industrial Clusters: Integrating Economies in Southeast Asia; Productivity in Singapore’s Retail and Food Services Sectors. Professor Toh obtained his doctoral degree in economics and econometrics from the University of London, London School of Economics. Sanja Jelisavac Trošić is a Research Fellow and the Head of the International Law and Economics Department at the Institute of International Politics and Economics in Belgrade, Serbia. She is also Deputy Editor-in-Chief of the journal The Review of International Affairs and Deputy Chairman of the Scientific Council of the Institute. Previously, she worked at the Ministry of Information, Republic of Serbia. Her main areas of research are global economy, international trade, regional economic cooperation (Western Balkans), intellectual property, WTO, and the development of Serbia. She has published three books and more than 100 articles in national and international journals, thematic proceedings, and proceedings from conferences. She holds a Ph.D. degree in Economics from the Faculty of International Economics of the Megatrend University in Belgrade. She holds M.Sc. and B.Sc. degrees from the University of Belgrade. She has completed specialization studies at the University of Bari, Italy, as well as the course on diplomacy and the Internet at the Diplomatic Academy, Malta. Efobi Uchenna is a researcher and a member of the faculty of the College of Business and Social Sciences, Covenant University, Nigeria. His fields of research are institutional, applied, and development economics, including governance, behavioral, and household/firm analysis. His research has received a joint award from the Global Trade Alert and the African Centre for Economic Transformation, as well as recognition from the FLACSO-WTO, the African Growth and Development Policy Modeling Consortium, the UNCTAD Virtual Institute, the Brown Interna- tional Advanced Research Institute (BIARI), Brown University, USA, and the Covenant University Centre for Research and Development. Belmondo Tanankem Voufo is a Research Officer in the Department of Analysis and Economic Policies of the Ministry of Economy, Planning and Regional Devel- opment of Cameroon, where he is involved in carrying out studies for policy and decision-making. He has experience in research and consultancy, specializing in policy analysis, quantitative modeling, and econometric applications. His areas of interest include labor and education economics, international trade and development, inequalities and gender, as well as industrial policies and structural transformation. He has authored a number of articles in journals and books on these areas and has presented research papers at various local and international conferences. He holds a Statistician Economist Engineer Diploma from the Subregional Institute of Statistics and Applied Economics of Cameroon. Mustafa Yağcı is an Assistant Professor of International Relations at İstinye Uni- versity, İstanbul. He is a researcher in economics and political science. His research interest lies in the intersection of international and comparative political economy, political economy of development, and public policy. He completed his Bachelor’s xl About the Authors

Degree in Economics at Istanbul Bilgi University and the London School of Economics (external degree). Previously, he worked as a banker. He completed his Master’s Degree in Economics at the University of Iowa, where he worked as a Teaching Assistant. Mete Han Yağmur is an Assistant Professor in the Economics Department at Istanbul Commerce University. His research interest and publications are primarily focused on macroeconomics and monetary policy. He received his B.A. degree in Economics from Bilkent University, Turkey, and his M.Sc. degree in Economics from Aarhus University, Denmark. He holds a Ph.D. degree in Economics from University of Siena, Italy. Olha Yatsenko is a Professor of Economics in the Department of International Trade at the Kyiv National Economic University named after Vadym Hetman (KNEU). Previously, she worked in Zhytomyr National Agroecological University, Ukraine. Currently, she is a member of the working group of the Ministry of Agrarian Policy and Food (Ukraine) and the Head of the economic commission of Ukraine’s global nongovernmental agricultural organization Apimondia. She also serves on the editorial boards of different academic journals and as the scientific coordinator of cooperation between KNEU and universities in Lithuania and Georgia. She is a full member of the International Academy of Socio-Economics, Georgia. Her fields of research are global trade policy, economic and commercial diplomacy, international trade in agriculture and food products, and export and import dependence of countries in the agrarian market. She received her Ph.D. degree from Zhytomyr National Agroecological University. Yuliya Zavadska is a Lecturer in the Department of International Economics and Economic Diplomacy, Diplomatic Academy of Ukraine, Ministry of Foreign Affairs of Ukraine. She is also a Senior Executive in operations at Exponential, Ukraine. She holds a Ph.D. in Economics from the National Scientific Center, Institute of Agrarian Economics, Kyiv, Ukraine. Contributors

Arnab Adhikari Department of Operations Management, Indian Institute of Management Ranchi, Ranchi, Jharkhand, India

K. Ali Akkemik Faculty of Economics, Yamaguchi University, Yamaguchi, Japan Abdilahi Ali Aberystwyth Business School, Aberystwyth University, Aberyst- wyth, UK

Barış Alpaslan Faculty of Political Sciences, Ankara Yildirim Beyazit University, Ankara, Turkey Anaduaka Uchechi S. Anaduaka Department of Economics, University of Nige- ria Nsukka, Nsukka, Nigeria Natasha Ardiani Economic and Political Development, Columbia University, New York, NY, USA

Ali Ari Department of Economics, Kirklareli University, Kofcaz, Kirklareli, Turkey Humayun I. Azad Karachi, Pakistan Diana V. Barrowclough United Nations Conference on Trade and Development, Geneva, Switzerland

Patrizio Bianchi University of Ferrara, Ferrara, Italy Raif Cergibozan Department of Economics, Kirklareli University, Kofcaz, Kirklareli, Turkey

Sergii Denysiuk Institute of Energy Saving and Energy Management, National Technical University of Ukraine Igor Sikorsky Kyiv Polytechnic Institute, Kyiv, Ukraine

Sencer Ecer Department of Economics, Istanbul Technical University, Istanbul, Turkey

xli xlii Contributors

Norbert Edomah Information Systems Academy, Pan-Atlantic University, Lagos, Nigeria Turan Erol Department of Economics, Istanbul Zaim University, Istanbul, Turkey Shromona Ganguly Department of Economic and Policy Research (DEPR), Reserve Bank of India, Mumbai, Maharashtra, India Indian Institute of Management Calcutta, Calcutta, West Bengal, India Hüseyin Oğuz Genç Yenching Academy, Peking University, Beijing, China Yoshihisa Godo Meiji Gakuin University, Minato, Japan Koray Göksal Yıldırım Beyazıt University, Ankara, Turkey Kapil Gupta Department of Mechanical and Industrial Engineering Technology, University of Johannesburg, Johannesburg, South Africa Nurullah Gur Department of Economics and Finance, School of Business and Management Sciences, Istanbul Medipol University, Istanbul, Turkey Davron Ishnazorov The Statistical, Economic and Social Research and Training Center for Islamic Countries, Ankara, Turkey Murat Kasimoglu Istanbul Commerce University, Istanbul, Turkey Ildikó Kertai-Kiss Department of Business and Management, Óbuda University, Doctoral School on Safety and Security Sciences, Budapest, Hungary Sasho Kjosev Faculty of Economics, Ss. Cyril and Methodius University, Skopje, Republic of Macedonia Richard Kozul-Wright United Nations Conference on Trade and Development, Geneva, Switzerland Robert M. Kunst Institute for Advanced Studies, Vienna, Austria Department of Economics, University of Vienna, Wien, Austria Sandrine Labory Department of Economics and Management, University of Ferrara, Ferrara, Italy R. F. Laubscher Department of Mechanical Engineering Science, University of Johannesburg, Johannesburg, South Africa Galperina Liubov International Management Department, Kyiv National Economic University named after Vadym Hetman, Kyiv, Ukraine Hakan Lucius European Investment Bank, Luxembourg City, Luxembourg INSEAD, Luxembourg, Luxembourg SciencesPo, Paris, France Welch College of Business, Sacred Heart University, Fairﬁeld, CT, USA Contributors xliii

Syed F. Mahmud Department of Economics, Bilkent University, Ankara, Turkey Franco Mosconi Department of Economics and Management, Università di Parma, Parma, Italy Vivien Nnetu-Okolieuwa Department of Economics, University of Nigeria Nsukka, Nsukka, Nigeria Elif Nuroglu Economics and Administrative Sciences, Turkish-German Univer- sity, Istanbul, Turkey Ludmila Petrashko Department of International Management, Kyiv National Economic University named after Vadym Getman, Kyiv, Ukraine José Manuel Saiz-Alvarez EGADE Business School, Tecnologico de Monterrey, Guadalajara, Mexico David T. Seymour Department of Economics, Istanbul Technical University, Istanbul, Turkey Belmondo Tanankem Voufo Department of Analysis and Economic Policies, Ministry of Economy, Planning and Regional Development, Yaoundé, Cameroon Mun Heng Toh Department of Strategy and Policy, National University of Singa- pore, Singapore, Singapore Sanja Jelisavac Trošić Department of International Law and Economics, Institute of International Politics and Economics, Belgrade, Serbia Efobi Uchenna School of Business, Covenant University, Ota, Nigeria Mustafa Yağci University of İstinye, İstanbul, Turkey Mete Han Yağmur Department of Economics, Istanbul Ticaret University, Istanbul, Turkey Olha Yatsenko Department of International Trade, Kyiv National Economic University named after Vadym Hetman, Kyiv, Ukraine Murat A. Yülek Center for Industrial Policy and Development, Istanbul Commerce University, Istanbul, Turkey Yuliya Zavadska Department of International Economics and Economic Diplo- macy, Diplomatic Academy of Ukraine Ministry of Foreign Affairs of Ukraine, Kyiv, Ukraine