Pro-industry Policies, Sustainability and Industrial Growth

The objective of this chapter is two-fold: (1) to explore how pro-industry policies and environmental sustainability impact on industrial growth, and (2) to examine how industrial growth responds to pro-industry policies in countries with varying environmental records. In line with the so-called Porter Hypothesis, our findings indicate that a high environmental performance is indeed consistent with industrial development. In addition, we find that pro-industry policies and environmental sustainability are substitutes rather than complements in their effect on industry. We identify some policy measures which policy-makers could undertake to make the two complementary in their effect on industrial growth.