Date of Defense
20-11-2025 12:00 AM
Location
Building H3 – Room 2021
Document Type
Dissertation Defense
Degree Name
Doctor of Business Administration (DBA)
College
College of Business and Economics
Department
Management
First Advisor
Dr. Amany El Anshasy
Keywords
Industrial Policy, Domestic Industrial Economy, Economic Openness, Foreign Direct Investment, Inter-Sectoral Topology, Economics Network Theory, Econometric Analysis, Kruskal-Wallis Test.
Abstract
While controversial, industrial policy propose a compelling argument for the government role in stimulating economic growth. The “new industrial policy” approach proposes a shift from a “Why” to “How” should industrial policy be implemented. Building upon this, in line with the increased utilization of network theory in economic research, this research examines network analysis as an econometric diagnostic tool asking, “How network analysis could be utilized in understanding the domestic economy and designing industrial policy?”. The study utilizes country input-output tables to calculate centrality measures corresponding to different connectivity concepts, and explore the dependency between domestic industries. The research demonstrated a three steps method of utilizing network analysis in industrial policy design. First, the study examined domestic industries’ positions and identified misalignments and underutilized industries that could be the focus of industrial policy makers. Then moved toward enriching policy makers’ understanding of the expected evolutionary behavior of each sector within each developmental stage by conducting an independent-samples Kruskal Wallis test. Finally, the research focused on examining the impact of some broad policy economic outcomes on industries’ centrality measures utilizing panel data models. The study contributes to a world-wide ongoing debate, paying special attention to exploring the effect of Economic Openness, in terms of both international trade and foreign direct investment, on the domestic inter-sectorial topology. The initial descriptive analysis of a sample of eight countries has shown that industries have inherited attributes corresponding to their role in the economy. The disposition of an industry centrality value provides a key insight to policy makers in identifying the underutilization of some industries or the over-dependency on others in the domestic economy. While absolute connectivity didn’t show significance across development stages in the Kruskal-Wallis Test, supply and demand connectivity and dependency measures show that that domestic inter-sectorial linkages become more specialized as economies develop. This transition involves early volatility in primary industries and reach a climax in the tertiary sector of developed economies. The panel analysis has shown that the effects of openness and other economic policy outcomes vary across industries and developmental stages. Overall, connectivity is found to be positively associated with net FDI, while industries’ demand-side dependency is negatively associated with trade openness. However, in developing economies, trade openness seems to be associated with greater industries’ demand-side dependency.
Included in
DOMESTIC INTER-SECTORIAL NETWORK TOPOLOGY EVOLUTION AND INDUSTRIAL POLICY: A COMPREHENSIVE NETWORK ANALYSIS
Building H3 – Room 2021
While controversial, industrial policy propose a compelling argument for the government role in stimulating economic growth. The “new industrial policy” approach proposes a shift from a “Why” to “How” should industrial policy be implemented. Building upon this, in line with the increased utilization of network theory in economic research, this research examines network analysis as an econometric diagnostic tool asking, “How network analysis could be utilized in understanding the domestic economy and designing industrial policy?”. The study utilizes country input-output tables to calculate centrality measures corresponding to different connectivity concepts, and explore the dependency between domestic industries. The research demonstrated a three steps method of utilizing network analysis in industrial policy design. First, the study examined domestic industries’ positions and identified misalignments and underutilized industries that could be the focus of industrial policy makers. Then moved toward enriching policy makers’ understanding of the expected evolutionary behavior of each sector within each developmental stage by conducting an independent-samples Kruskal Wallis test. Finally, the research focused on examining the impact of some broad policy economic outcomes on industries’ centrality measures utilizing panel data models. The study contributes to a world-wide ongoing debate, paying special attention to exploring the effect of Economic Openness, in terms of both international trade and foreign direct investment, on the domestic inter-sectorial topology. The initial descriptive analysis of a sample of eight countries has shown that industries have inherited attributes corresponding to their role in the economy. The disposition of an industry centrality value provides a key insight to policy makers in identifying the underutilization of some industries or the over-dependency on others in the domestic economy. While absolute connectivity didn’t show significance across development stages in the Kruskal-Wallis Test, supply and demand connectivity and dependency measures show that that domestic inter-sectorial linkages become more specialized as economies develop. This transition involves early volatility in primary industries and reach a climax in the tertiary sector of developed economies. The panel analysis has shown that the effects of openness and other economic policy outcomes vary across industries and developmental stages. Overall, connectivity is found to be positively associated with net FDI, while industries’ demand-side dependency is negatively associated with trade openness. However, in developing economies, trade openness seems to be associated with greater industries’ demand-side dependency.