RENEWABLE ENERGY TRANSITION AND MANUFACTURING COMPETITIVENESS: SUSTAINABLE INDUSTRIAL TRANSFORMATION AND EMERGING GLOBAL PERSPECTIVES
Abstract
This study aims to examine the effect of financial development on entrepreneurial growth by analyzing the relationship between financial development, new business formation and entrepreneurial entry across countries. The analysis is conducted using a quantitative research design, which is cross-country and based on data, using a dataset of 4,879 country-period records from 122 countries, with 1,262 complete observations from 119 countries retained for inferential analysis. Domestic credit provided by the financial sector was used to track financial development and the number of new limited companies and the new entry rate were used to track entrepreneurial growth. Growth of GDP was added as a control variable. Descriptive statistics, Pearson correlation, country-level comparisons and multiple linear regression were used. The results indicate that domestic credit was positively related to new company formation as well as to the new entry rate for limited companies. Further, regression analysis showed that domestic credit had a significant influence on both entrepreneurial outcomes, with a stronger explanatory relationship for the new entry rate. The absolute number of new companies was not statistically related to any change in GDP growth, while there was a slight positive relationship between GDP growth and new entry rate. In general, the results indicate that better financial systems and more credit facilitate business entry and the development of formal businesses, and that financing and financial intermediation for SMEs should be strengthened.
Downloads
References
2. Allan, B., Lewis, J. I., & Oatley, T. (2021). Green industrial policy and the global transformation of climate politics. Global environmental politics, 21(4), 1-19.
3. Altenburg, T., & Rodrik, D. (2017). Green industrial policy: Accelerating structural change towards wealthy green economies. Green Industrial Policy, 1, 2-20.
4. Bogdanov, D., Ram, M., Aghahosseini, A., Gulagi, A., Oyewo, A. S., Child, M., ... & Breyer, C. (2021). Low-cost renewable electricity as the key driver of the global energy transition towards sustainability. Energy, 227, 120467.
5. Elavarasan, R. M., Shafiullah, G. M., Padmanaban, S., Kumar, N. M., Annam, A., Vetrichelvan, A. M., ... & Holm-Nielsen, J. B. (2020). A comprehensive review on renewable energy development, challenges, and policies of leading Indian states with an international perspective. Ieee Access, 8, 74432-74457.
6. Ghobakhloo, M., Iranmanesh, M., Morales, M. E., Nilashi, M., & Amran, A. (2023). Actions and approaches for enabling Industry 5.0‐driven sustainable industrial transformation: A strategy roadmap. Corporate social responsibility and environmental management, 30(3), 1473-1494.
7. Gielen, D., Boshell, F., Saygin, D., Bazilian, M. D., Wagner, N., & Gorini, R. (2019). The role of renewable energy in the global energy transformation. Energy strategy reviews, 24, 38-50.
8. Hassan, Q., Viktor, P., Al-Musawi, T. J., Ali, B. M., Algburi, S., Alzoubi, H. M., ... & Jaszczur, M. (2024). The renewable energy role in the global energy Transformations. Renewable Energy Focus, 48, 100545.
9. Hughes, L., Dwivedi, Y. K., Rana, N. P., Williams, M. D., & Raghavan, V. (2022). Perspectives on the future of manufacturing within the Industry 4.0 era. Production Planning & Control, 33(2-3), 138-158.
10. Jamil, M., & Arif, F. (2023). Competitive dynamics in the renewable energy sector: a global perspective. Competitive Research Journal Archive, 1(01), 130-138.
11. Lin, K. C., Shyu, J. Z., & Ding, K. (2017). A cross-strait comparison of innovation policy under industry 4.0 and sustainability development transition. Sustainability, 9(5), 786.
12. Mia, M. J., Hossain, M. S., Biswas, R. N., & Akon, M. S. (2025). Environmental Competitiveness, green energy, and global sustainability. In Green Energy Investments and Economic Development (pp. 147-169). Singapore: Springer Nature Singapore.
13. Mignogna, D., Szabó, M., Ceci, P., & Avino, P. (2024). Biomass energy and biofuels: perspective, potentials, and challenges in the energy transition. Sustainability, 16(16), 7036.
14. Rasheed, M. Q., Yuhuan, Z., Haseeb, A., Ahmed, Z., & Saud, S. (2026). Assessing green energy production and industrial excellence in Asian emerging economies in the context of industrial transformation and sustainable development. Environment, Development and Sustainability, 28(2), 3035-3060.
15. Sadik-Zada, E. L. K. H. A. N. (2021). Political economy of green hydrogen rollout: A global perspective. Sustainability, 13(23).
16. Soni, N., Singh, P. K., Mallick, S., Pandey, Y., Tiwari, S., Mishra, A., & Tiwari, A. (2024). Advancing sustainable energy: Exploring new frontiers and opportunities in the green transition. Advanced Sustainable Systems, 8(10), 2400160.
17. Su’ait, M. S., Ludin, N. A., & Sopian, K. (2025). Introduction to renewable energy technologies and energy transition strategies. In Renewable Energy Technologies and Strategies in the Global Energy Transition (pp. 1-14). American Chemical Society.
18. Tian, J., Yu, L., Xue, R., Zhuang, S., & Shan, Y. (2022). Global low-carbon energy transition in the post-COVID-19 era. Applied energy, 307, 118205.
19. Török, L. (2026). Energy security and economic growth in the European Union: The moderating role of industrial structure (Version 2) [Data set]. Mendeley Data. https://doi.org/10.17632/7r7nnspb9m.2
20. Usman, F. O., Ani, E. C., Ebirim, W., Montero, D. J. P., Olu-lawal, K. A., & Ninduwezuor-Ehiobu, N. (2024). Integrating renewable energy solutions in the manufacturing industry: challenges and opportunities: a review. Engineering Science & Technology Journal, 5(3), 674-703.
21. World Bank. (2026). Manufacturing, value added (% of GDP) (NV.IND.MANF.ZS) [Data set]. World Development Indicators. World Bank dataset
22. Yang, Z., Huang, H., & Lin, F. (2022). Sustainable electric vehicle batteries for a sustainable world: perspectives on battery cathodes, environment, supply chain, manufacturing, life cycle, and policy. Advanced Energy Materials, 12(26), 2200383.
23. Zhang, D., & Kong, Q. (2022). Green energy transition and sustainable development of energy firms: An assessment of renewable energy policy. Energy Economics, 111, 106060.
This work is licensed under a Creative Commons Attribution 4.0 International License.
By submitting a manuscript to IJRDO – Journal of Business Management, the author(s) confirm that the work is original and does not infringe upon any existing copyrights or third-party rights.
Authors retain responsibility for the content of their work. In cases of proven ethical misconduct such as plagiarism or duplicate publication, the journal reserves the right to take appropriate action, which may include correction or retraction, in accordance with publication ethics.
