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The purpose of this study is to explore the impact of environmental pollution and industrial structure upgrading on environmental pollution in different stages based on the temporal and spatial heterogeneity of economic development level and industrial structure upgrading level in eastern, central and western regions of China and discuss whether there is adjustment effect and threshold effect in the process of economic growth affecting environmental pollution, and finally realizes sustainable economic development.

Based on panel data from 30 provincial-level administrative regions of China (excluding Tibet and Hong Kong, Macao and Taiwan) from 2000 to 2019, this paper uses the environmental Kuznets curve, regulating effect model and panel threshold model to analyze the impact of economic growth and industrial structure upgrading on environmental pollution.

The results present that the uneven distribution of natural resources leads to different levels of economic development and industrial structure upgrading in eastern and western regions, and its impact on environmental pollution is also different. Economic growth and industrial structure upgrading have a positive effect on environmental pollution, and the relationship between economic growth and environmental pollution is inverted U-shaped. At present, the eastern, central and western regions of China are at the right end of the inverted U-shaped relationship. In general, industrial structure upgrading in eastern, central and western regions has a significant inhibitory effect on environmental pollution. Industrial structure upgrading has a negative moderating effect on the relationship between economic growth and environmental pollution, and the regulating effect is most significant in the central region, followed by the eastern region, and not significant in the western region. The results of panel threshold model show that the industrial structure upgrading can slow down the positive impact of economic growth on environmental pollution and strengthen the negative moderating effect of industrial structure upgrading on economic growth and environmental pollution.

The innovation of this study is to bring economic growth, industrial structure upgrading and environmental pollution into a unified analytical framework, analyze the impact of economic development and industrial structure upgrading levels in different periods on environmental pollution, and select industrial structure upgrading as the moderating variable and threshold variable. It provides a thought for the influence mechanism of different levels of industrial structure upgrading on economic growth and environmental pollution. Based on the panel data in China, this study emphasizes the concept of sustainable development, adheres to green development and proposes relevant policies to improve environmental pollution. And this paper proposes relevant policies to improve environmental pollution from the perspective of transforming economic growth mode and optimizing industrial structure in China, which also has reference significance for developing countries to realize sustainable economic development.

This study presents evidence on the relations of stock market performance and industrial production growth for a group of 20 industrial markets. Evidence supports the notion that an increase in stock returns or a rise in the market value of stocks contributes positively to industrial production growth. Evidence suggests that stock market risk has a significantly negative effect on production growth for advanced markets. The Granger test finds a unidirectional causality running from stock returns or stock volatility to industrial growth. However, the United States shows a bilateral causality between stock volatility and industrial production growth.

The purpose of this paper is to extend the theory of services‐led industrial policy in services dominated but industrially lagging developing Asian economies and discuss its implications for employment, competitiveness, and diversification.

An inductive approach using qualitative methodology is adopted reviewing the available literature and evidence from Pakistan. The critical synthesis of the history of economic growth and industrial policy has followed Kuhn's paradigm approach.

Focusing on Pakistan, the paper synthesizes the history of industrial policy to identify the major paradigm shifts, especially the structural reforms era of the 1990s. The evidence suggests that the reforms under the structural adjustment program (SAP) have proved to be the necessary but not sufficient conditions for inclusive growth and industrial competitiveness in services dominated economies. Services‐led growth without an integrated and competitive industrial sector can lead to severe external accounts deficits and unemployment. The traditional role of services as “driver of demand/growth” is extended as “driver of productivity/competitiveness” through forward linkages with other sectors of the economy. The services sector's enabling role as the “software” of the economy and its impact on total factor productivity growth, diversification, and inclusive growth is postulated.

A quantification of forward and backward linkages is needed to identify the potential of services sub‐sectors in driving growth and productivity, respectively.

The paper identifies the need to match the existing industrial policy regimes with the economic structures in services‐dominated developing economies. The role of forward linkages in the productivity growth has implications for measurement of services output in national accounts in order to fully capture the contribution of this sector.

This paper aims to explore the interplay between industrial diversity and sustainable economic development in US counties.

Among other popularly used measures, this study uses an underused measure, Hachman index, to gauge the degree of industrial diversity in the models. To capture the impact of industrial diversity on the local community, this study estimates the relationship of two diversity measures to four traditional socioeconomic indicators: per capita personal income growth, gross domestic product per worker, income inequality ratio and poverty rate.

Statistical results suggest that industrial diversity, which is measured by Hachman index, is significantly related to the four socio-economic indicators. Industrial diversity can positively contribute to regional per capita personal income growth and mitigate income inequality and poverty stress; however, it is negatively related to the gross domestic product (GDP) per worker, which means industrial specialization may contribute to GDP per worker growth.

The findings of this study show that there is a nonlinear relationship between industrial diversity and all socioeconomic indicators. Most of the control variables, human capital variables and business and industry profile variables also display significant and positive impacts on economic development.

This study investigates the existence of Marshall, Jacob and Porter’s type of externalities in Mexico. We measure the impact of industrial specialization, competition and diversity on employment growth for the period 2004 to 2008.

The analysis is based on data from 41 highly dynamic industrial clusters originally obtained by applying Porter’s (1998) methodology. We use a cross-section specification estimated via instrumental variables and two-stage least square estimation (2SLS) to control for endogeneity.

On average, we find that industrial specialization exerts a negative impact on employment growth within states and within clusters, indicating that traded industries in Mexico carry very little innovation, operate in early stages of the life cycle, face high costs of employment reassignation or exhibit low adaptability. A negative impact of specialization on employment conforms with Jacobs (1969) type of externalities and confirms what other studies have found in France (Combes, 2000), Korea (Lee et al., 2005) and the USA (Delgado et al., 2014). The authors also find that competition generates more employment.

Industrial data at the sub-branch level were obtained from the Economic Census (EC) of the National Institute of Geography and Statistics (INEGI). The EC information for 2004 was still not fully compatible with the North America Industry Classification System (NAICS), with 262 of the 309 data at the fourth-digit level aligned to the USA. In addition, industrial information from the EC is recorded every four years, which prevents this study to use panel data techniques and it makes it impossible to use time series methods.

Policymakers can clearly identify competition forces having a significant impact on employment growth. This can orient policymakers to implement measures to encourage the development of some of these clusters, as well as to identify some of the sources that drive specialization, competition and diversity.

This paper contributes to the debate on the existence of Marshallian (MAR), Jacobian and Porter externalities. This is the first study using the definition of traded clusters in Mexico, which allows the authors to identify how specialization, competition and diversity forces drive the dynamics of regional employment growth.

This study aims to examine the relationships between aggregated and disaggregated energy use in the industrial sector, carbon emissions and industrial output in China.

The study utilizes annual frequency data for the period of 1984-2015. The unit root properties of data are tested using augmented Dickey–Fuller and Phillips and Perron unit root tests. Furthermore, the Zivot–Andrew structural breaks unit root test is used to detect the structural breaks steaming into series. The autoregressive distributed lag bound test and newly developed Bayer–Hanck combined cointegration are used to check the existence of a cointegration relationship between underlying variables. Last, the direction of causality is determined applying vector error correction model (VECM) Granger causality.

The results confirm the existence of a long-run relationship in the presence of structural breaks. The authors conclude that aggregated and disaggregated energy consumption in the industrial sector increases CO₂ emission in both long and short run. The VECM Granger causality analysis indicates the bidirectional relationships between CO₂ emission, industrial growth and aggregated and disaggregated (coal, oil and natural gas) energy consumption.

Based on the empirical results mentioned above, the study proposes the recommendation that China should focus on the use of natural gas in the industrial sector instead of coal and oil consumption. The most potent reasons for such a transformation are twofold: natural gas is much more environment-friendly, thus being a much lesser polluting source of energy, and, most significantly, such a change would have no adverse impact upon the output level.

This study contributes to the existing literature on estimating CO₂ emission by using aggregated and disaggregated energy consumption in case of China. Notwithstanding, it also adds to the existing applied literature by using newly developed combined cointegration to confirm and substantiate the cointegration relationship between the underlying variables. Moreover, this study incorporates the role of structural breaks while investigating CO₂ emission function, which helps in providing more valuable policy suggestions.

The trade–growth nexus has been researched during the past few decades. However, the impact of trade openness on different sectors of the economy is not well explored. The purpose of the current study is to focus on developing countries to examine the impact of trade openness on three main sectors: industrial, service and agricultural.

The study applied econometric techniques that control unobserved heterogeneity and endogeneity to obtain robust and reliable results.

The results revealed that trade openness impacts different sectors differently. Trade openness positively impacts agriculture and industrial sectors, whereas it negatively affects the service sector. A similar trend is observed with regard to employment as it affects service sector negatively and creates a positive impact on other sectors, namely, agriculture and industrial sectors. Furthermore, it was found that human capital has a negative effect on all sectors, whereas financial development has positive effects on service and industrial sectors and negative effect on agriculture sector. The results are robust because of the method of estimation and the addition of some relevant variables.

The policymakers should focus on trade in agricultural and industrial sectors and should discourage trade in the service sector.

This study has examined the impact of trade openness on sectoral growth by focusing on the developing world, which is an under-researched area in the literature.

This paper aims to focus on the contribution of segregated renewable energy (RE) sources such as solar, wind, bagasse, biomass, small hydropower (SHP) and waste to heat in driving sustainable industrial production in India.

This study uses non-linear modelling techniques such as quantile regression and the non-linear Granger causality test to explore the interplay between segregated RE generation and industrial production in India.

The study findings support the role of segregated RE sources generation, especially SHP and bagasse, on industrial production in India. This paper finds unidirectional non-linear Granger causality running from segregated RE sources to industrial production. Bidirectional non-linear Granger causality has been established from biomass, waste-heat to index of industrial production and vice versa, supporting an asymmetric feedback hypothesis.

The study findings will aid the energy policymaker in framing policies for RE sources, especially bagasse-based and SHP generation for the sustainable industrial growth of India.

To the best of the authors’ knowledge, this is one of the first studies to explore the role of segregated RE sources generation to drive sustainable industrial growth in India using non-linear techniques.

Most studies on electricity-economic growth nexus in the literature are preoccupied with causality, with little attention paid to the transmission mechanisms. The orientation of most of these studies is obviously predicated on their assumption that electricity enters the production function in a Hicks-neutral fashion. Based on the assumption that productivity of capital is affected by electricity supply, this study estimates a production function in which electricity enters the model in capital-augmenting style. The study aims to examine the transmission channels in the electricity-economic growth nexus.

Using monthly data on Nigeria from 1980 to 2013, the study uses the three-stage least square regression technique, which not only controls for possible endogeneity in the model but also allows for tracing the transmission linkages to estimate the relationship between electricity and economic growth in Nigeria.

This study establishes that electricity positively affected economic growth in Nigeria however through its positive effects on industrial output. The direct effect of electricity on economic growth was insignificant. This study thus concluded that the transmission mechanism in electricity-economic growth nexus is the electricity-induced industrial growth.

Nigeria should increase her electricity supply (for increased electricity consumption) because this would significantly stimulate her industrialization and economic growth.

This study differs from earlier studies in that it did not primarily focus on causality; it examined the transmission channels in the electricity-economic growth nexus. Moreover, it differs from them on the implicit assumptions made by earlier studies that electricity enters the production function in a Hicks-neutral fashion. It rather estimated a model in which electricity enters the production function in capital-augmenting fashion because the study assumed that productivity of capital is affected by electricity supply.

Structural economists have been amongst the foremost proponents of a pro‐active industrial policy as the mechanism for promoting rapid economic growth (Lewis, 1956; Myrdal, 1957; Kaldor, 1967; Thirlwall, 1989). This is substantiated by the argument that manufacturing being characterised by increasingly specialised inter‐related activities, radiates tremendous impulses both intra and inter sectorally (Young, 1928: 527–42). Using a sample of 12 developed countries, Kaldor (1967:3–23; 1975:891–6; 1979; 1989:282–310) attempted an empirical study to support this relationship. A positive correlation between manufacturing growth and that of the economy has been defended on the grounds that manufacturing growth increases static (relate to size and scale of production units and are characteristic largely of manufacturing where in the process of doubling the linear dimensions of equipment, the surface increases by the square and the volume by the cube), as well as dynamic (relate to increasing returns brought about by ‘induced’ technical progress, learning by doing, external economies in production, etc.) returns (Thirlwall, 1989: 60). Since manufacturing also produces capital goods that are used in different industrial branches and other sectors, it is seen as a powerful mechanism for transmitting technical change (Weiss, 1988). It is for these reasons, structuralists generally prescribe government policies that favour manufacturing expansion. Malaysia is a good example of a natural resource rich country that has made manufacturing its main plank of economic growth especially since the launching of the New Economic Policy (NEP) in 1971 (see Malaysia, 1976). However, as industrial policy in each socio‐political space offers state‐specific characteristics, we will analyse industrialisation within Malaysia's setting.