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By Rock M.T., Angel D.P.

'Grow first, freshen up later' environmental ideas within the constructing economies of East Asia pose a severe nearby and worldwide sustainability problem during this quarter of continuous swift urban-based business progress that is the main polluted area on the planet. utilizing targeted case stories and rigorous empirical analyses Rock and Angel express that East Asian governments have chanced on institutionally exact how one can triumph over the sustainability problem, hence proving a big antidote to those that argue that bad international locations can't manage to pay for to scrub up their surroundings when their economies stay under-developed. The authors, top specialists within the box, exhibit that low source of revenue economies outdoor East Asia may also use an identical coverage integration successfully.

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Extra resources for Industrial Transformation in the Developing World

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05 level. While this set of Wndings may appear surprising to some, it is consistent with that in Rodrik et al. (2002: 31) who Wnd that in a two-stage least squares (TSLS) regression of real GDP per capita on openness and institutions, institutions ‘trump . . openness’ (ibid. 8). Taken together, these Wndings oVer powerful support for our claim that eVective institutions are a critical driver of industrial competitiveness. But some might argue that our industrial policy/institutions variable does not capture directly government support for the technological upgrading activities of indigenous Wrms.

This equation tests for the relative inXuence of openness and institutions on competitiveness. The third and fourth equations are given by CIPi ¼ b0 þ b1 TRDYi þ b2 WSi*Di þ b3 DOLLARi þ b4 TELHMINDEXi þ ei where TRDYi, WSi*Di, and ei are as deWned in equation 1, DOLLARi is our measure of macro-stability, and TELHMINDEXi is our composite physical infrastructure/human skills index. Because of possible endogeneity between the government support for the industrial development variable and several of the right-hand-side variables, equations 2 and 4 are estimated by two-stage least squares (TSLS), while equations 1 and 3 are estimated by ordinary least squares (OLS).

These include a composite index of physical infrastructure and human capital (TELHMINDEX)2 and a measure of macroeconomic stability (the dollar index). Four regression equations are estimated by ordinary least squares (OLS) and two-stage least squares (TSLS). The Wrst two equations are: 1 We reviewed the published literature on each country in our sample to obtain a qualitative indication of whether the government in each country possessed and implemented a coherent industrial development strategy based on technological catch up.

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