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Article
Publication date: 16 April 2024

Mahadi Hasan Miraz and Tiffany Sing Mei Soo

The objective of this study is to examine the various factors that exert an influence on the green economy. This study also investigates the impact of foreign direct investment…

Abstract

Purpose

The objective of this study is to examine the various factors that exert an influence on the green economy. This study also investigates the impact of foreign direct investment (FDI) on the Malaysian economy, specifically focusing on its position as a mediator. This research also examines the correlation between FDI and its influence on the contemporary green economy.

Design/methodology/approach

The authors employed quantitative methodologies and a self-administered survey to evaluate data and derive a definitive conclusion. The result was constructed using SPSS and SEM-PLS as the analytical software.

Findings

The study reveals that technological advancement, investment country and government policy significantly and positively affect the green economy, catalyse SDG goals and restructure the economy in better shape.

Originality/value

The current empirical research bridges the research gap in the context of technology advancement in government policy from emerging economies by exploring important factors, proposing their impact on the performance of the green economy, and empirically testing those hypothesized relationships. This study deciphers that FDI influences the green economy, where the investment country plays a significant role. Also, for a graphical presentation of this abstract, see the online appendix.

Details

Journal of Economic Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 15 May 2023

Gildas Dohba Dinga, Dobdinga Cletus Fonchamnyo, Nkoa Bruno Emmanuel Ongo and Festus Victor Bekun

The study examined the impact of financial development, foreign direct investment, market size and trade openness on domestic investment for 119 countries divided into four panels…

Abstract

Purpose

The study examined the impact of financial development, foreign direct investment, market size and trade openness on domestic investment for 119 countries divided into four panels that are low-income countries (LIC), lower middle-income countries (LMIC), upper middle-income countries (UMIC) and high-income countries (HIC) between 1995 and 2019.

Design/methodology/approach

The present study bases its empirical procedure on the bases of the data mix. To this end, based on the presence of cross-sectional dependence, covariate-augmented Dickey–Fuller unit root and Westerlund cointegration second-generation tests were employed to validate the stationarity and cointegration of the variables, respectively. The novel Dynamic Common Correlation Effects estimator was employed to estimate the heterogeneous parameters while the Dumitrescu and Hurlin test was used to test for causality direction of the highlighted variables.

Findings

The empirical results show that market size and trade openness had a positive and statistically significant effect on domestic investment for all the income groups. Results also show that financial development had a positive and statically significant effect on domestic investment only for LMIC and HIC economies, while a positive and statistically insignificant effect was obtained for LIC, UMIC and the global panel. The causality results revealed a bidirectional relationship between domestic investment and the exogenous variables – financial development, foreign direct investment, market size and trade openness.

Research limitations/implications

It is therefore, recommended that LIC and LMIC need to consider harmonising the financial system to lower credit limitations and adopt business-friendly policies. HIC and UMIC should seek more outward FDI policies and harmonise their trade policy, to reap more benefits from FDI and international trade.

Originality/value

On novelty, previous studies have been criticised for the effect on technical innovation of bank financing and institutional quality. This research tackles the deficiency using systematic institutional quality indicators and by taking other variables into account.

Details

Journal of Economic and Administrative Sciences, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1026-4116

Keywords

Article
Publication date: 28 March 2023

Mosab I. Tabash, Umar Farooq, Suhaib Anagreh and Mamdouh Abdulaziz Saleh Al-Faryan

This study aims to explore the empirical relationship between public–private investment (PPI) in energy and environmental quality.

Abstract

Purpose

This study aims to explore the empirical relationship between public–private investment (PPI) in energy and environmental quality.

Design/methodology/approach

The authors hypothesize that PPI can reduce pollution emissions and test this hypothesis by sampling the 20-year data of emerging and growth-leading economies (EAGLE) and adopting two estimation techniques named panel estimated generalized least square and fully modified ordinary least square models.

Findings

The empirical analysis vows that PPI has an inverse relationship with CO2 emissions, corroborating the sustainable development driving role of PPI. In addition, the empirical outcomes suggest a negative/positive role of energy imports and economic growth. Meanwhile, foreign direct investment is negatively linked with CO2 emissions, corroborating the pollution halo hypothesis in the case of EAGLE. However, financial development shows a positive relationship with CO2 emissions.

Practical implications

This study offers an important policy outlay regarding the pollution mitigation role of PPI in EAGLE. The environmental sustainability in underlying economies can be achieved by enhancing the magnitude of public–private cooperation in energy investment. The empirical analysis supplements cutting-edge empirical evidence regarding PPI as a driver of important sustainable development goal (SDG), i.e. environmental sustainability.

Originality/value

To the best of the authors’ knowledge, this study is the first study that examines how one can achieve an important SDG regarding environmental sustainability through PPI in energy.

Details

International Journal of Innovation Science, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1757-2223

Keywords

Article
Publication date: 28 March 2023

Surbhi Gupta, Surendra S. Yadav and P.K. Jain

This study attempts to assess the role that institutional quality (IQ) plays in influencing inflows and outflows of Foreign Direct Investment (FDI) for BRICS nations as burgeoning…

Abstract

Purpose

This study attempts to assess the role that institutional quality (IQ) plays in influencing inflows and outflows of Foreign Direct Investment (FDI) for BRICS nations as burgeoning FDI is flowing into and out of these countries. Moreover, this paper explores the impact of individual governance indicators separately on the FDI flows.

Design/methodology/approach

The study analyses this nexus for these emerging economies for the period 1996–2019 using autoregressive distributed lag technique.

Findings

The study indicates a significant and positive coefficient for IQ in India and South Africa, suggesting that improving IQ would enhance the IFDI. However, for outward FDI (OFDI)–IQ linkage, the results show a negatively significant impact of IQ on OFDI for Brazil and Russia. Additionally, the authors observe control of corruption as a significant institutional component for attracting inward FDI for Brazil, India and South Africa, whereas it is an insignificant factor for Russia and China. Further, the authors notably find that upgrading the governance indicators will decrease the level of OFDI for Brazil, Russia, China and South Africa. On the contrary, findings suggest that improving the IQ will foster the OFDI for India.

Originality/value

This study uses time-series analysis instead of cross-country analysis (used extensively in literature), avoiding heterogeneity. Further, this study explores the IFDI–IQ link for BRICS nations, which are captivating a significant chunk of IFDI, and still not given much attention in the extant literature. Moreover, the authors identify the impact of IQ on the OFDI, neglected by the existing studies.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Open Access
Article
Publication date: 25 January 2024

Mert Akyuz, Muhammed Sehid Gorus and Cihan Gunes

This investigation aims to determine the effect of trade uncertainty on domestic investment (DI) and foreign direct investment (FDI) for the Turkish economy from the first quarter…

Abstract

Purpose

This investigation aims to determine the effect of trade uncertainty on domestic investment (DI) and foreign direct investment (FDI) for the Turkish economy from the first quarter of 2005 to the first quarter of 2020.

Design/methodology/approach

The authors adopt the vector autoregression (VAR) model augmented with Fourier terms. Using this methodology, the authors obtain the empirical results of the impulse-response functions and the variance decomposition analysis.

Findings

The empirical results demonstrate that a shock to trade uncertainty has a slight negative impact on DI for up to approximately 1.5 years, whereas its impact on FDI is negative but long-lasting. Moreover, the contribution of trade uncertainty to FDI is relatively higher than to DI in the error variance decomposition for the investigated period. These empirical results can be beneficial for shaping the Turkish authorities' trade policies in the following periods.

Research limitations/implications

These findings have implications within the macroeconomic setting. Government authorities can provide tax exemptions for specified sectors and debureaucratize investment processes for both domestic and foreign entrepreneurs. Additionally, institutional quality and property rights should be protected strictly and developed gradually.

Originality/value

This study is the first to examine the impact of world trade uncertainty on Türkiye’s DI and FDI. Because trade uncertainty might act as fixed costs, this creates the option value of waiting and seeing the market, and firms hesitate to incur investment.

Details

Journal of Asian Business and Economic Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2515-964X

Keywords

Article
Publication date: 20 July 2022

Chukwuebuka Bernard Azolibe, Stephen Kelechi Dimnwobi and Chidiebube Peace Uzochukwu-Obi

In developing countries, banks play a major role by acting as a conduit for the effective mobilization of funds from the surplus sectors of an economy for onward lending to the…

Abstract

Purpose

In developing countries, banks play a major role by acting as a conduit for the effective mobilization of funds from the surplus sectors of an economy for onward lending to the deficit sectors for productive investments that will in turn increase the level of employment and economic growth. There has being a rising trend in unemployment rate in Nigeria and South Africa and hence, the need for the study to assess the effectiveness of banking system credit in curbing unemployment rate by making a comparative analysis of Nigeria and South Africa covering the period of 1991–2018.

Design/methodology/approach

The study employed the unit root test, Johansen cointegration test, vector error correction model and VAR impulse response function in determining the relationship between the variables.

Findings

The major findings revealed that banking system credit matters in curbing unemployment rate in South Africa than in Nigeria. Also, other macroeconomic factors such as lending rate, inflation rate, Government expenditure and population growth were significant enough in influencing unemployment rate in South Africa than in Nigeria. Foreign direct investment was a significant factor in reducing unemployment rate in Nigeria than in South Africa. The cointegration test showed a long-term relationship between the variables in both countries while the speed of adjustment coefficient of the vector error correction model is faster in South Africa than in Nigeria.

Originality/value

Previous empirical studies on the relationship between banking system credit and unemployment rate have focused much on other regions such as Asia and Europe. Thus, the study is unique as it focused on the African region and also made a comparative analysis by testing the Keynesian theory of employment, interest and money on two emerging African economies which are Nigeria and South Africa.

Details

Journal of Economic and Administrative Sciences, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1026-4116

Keywords

Article
Publication date: 5 December 2023

Lakshmana Padhan and Savita Bhat

The study examines the presence of the pollution haven or pollution halo hypothesis in Brazil, Russia, India, China and South Africa (BRICS) and Next-11 economies. Hence, it…

Abstract

Purpose

The study examines the presence of the pollution haven or pollution halo hypothesis in Brazil, Russia, India, China and South Africa (BRICS) and Next-11 economies. Hence, it empirically tests the direct impact of foreign direct investment (FDI) on the ecological footprint. Further, it explores the moderating role of green innovation on the nexus between FDI and ecological footprint.

Design/methodology/approach

The study uses the Driscoll–Kraay (DK) standard error panel regression technique to examine the long-run elasticities amongst the variables for the group of emerging countries, BRICS and Next-11, during the period of 1992 to 2018. Further, statistical robustness is demonstrated using the fully modified ordinary least squares technique.

Findings

The empirical finding shows that FDI degrades environmental quality by raising the ecological footprint. Thus, it proves that FDI is a source of pollution haven in BRICS and Next-11 countries. However, green innovation negatively moderates the relationship between FDI and ecological footprint. That means the joint impact of green innovation, and FDI proves the presence of the pollution halo hypothesis. Further, renewable energy consumption is reducing the ecological footprint, but economic growth and industrialisation are worsening the environmental quality.

Practical implications

This study offers policy implications for governments and policymakers to promote environmental sustainability by improving green innovation and allowing FDI that encourages clean and advanced technology.

Originality/value

No prior studies examine the moderating role of green innovation on the relationship between FDI and ecological footprint in the context of emerging countries.

Details

Management of Environmental Quality: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1477-7835

Keywords

Article
Publication date: 17 June 2019

Philipp Bierl and Nadine H. Kammerlander

The purpose of this paper is to investigate the process of family equity creation and its role for transgenerational entrepreneurship.

Abstract

Purpose

The purpose of this paper is to investigate the process of family equity creation and its role for transgenerational entrepreneurship.

Design/methodology/approach

This paper combines a systematic literature review on family equity with conceptual theory building, resulting in a model of family equity creation.

Findings

The proposed model contains three phases of equity creation that ulitmately leads to transgenerational entrepreneurship: harvesting, institutionalization (via a single family office) and reinvestment.

Originality/value

This paper conceptually introduces the family equity creation model, which may serve as integrative framework for future research on transgenerational value creation by entrepreneurial families. The presented findings are of relevance for family entrepreneurship scholars, entrepreneurial families, as well as for practitioners.

Details

Journal of Family Business Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2043-6238

Keywords

Article
Publication date: 14 February 2023

Alhassan Haladu and Saeed Awadh Bin-Nashwan

In many societies, environmental problems have had some negative impacts on both social and economic features with issues like capital structure seriously affected. In this…

Abstract

Purpose

In many societies, environmental problems have had some negative impacts on both social and economic features with issues like capital structure seriously affected. In this write-up, an attempt has been made to pinpoint the influence of the combined effects of integrated reporting and financial leverage on the value of a firm. In most emerging markets, investment is heavily dependent on foreign capital inflow which is mainly in the form of financial leverage. It is, therefore, necessary to know how this shapes the net worth of firms in which they are invested. Shareholders' fund is a major factor in determining the level of investment and economic stability of a nation and consequently improvements in sustainable development. Hence, the moderating role of financial leverage in the integrated reporting-shareholders’ funds relationship aims to warrant this research.

Design/methodology/approach

All listed firms on the Nigerian Stock Exchange (NSE) as of 31st December 2021 were affected by this research. Filtering resulted in the use of 77 companies as a sample for the study covering a period of 12 years (2010–2021) with a total of 788 observations. Analyses of data were done through line graphs to show the trend and flow of disclosures between 2010 and 2021. Furthermore, linear regression was also applied to help determine the multiple effects of financial leverage and integrated reporting on shareholders' funds.

Findings

The outcomes showed that economic disclosure was 100% throughout the period of observation as opposed to environmental and social disclosures which, fluctuate throughout the period with an average of slightly over 55%. It was also discovered that a low but significant financial leverage moderated the interaction of integrated reporting on shareholders' funds.

Practical implications

Stakeholders and policymakers should, therefore, put in place rules, regulations, standards, structures and administrative networks to enable firms to comply with local rules, guidelines and upgraded standards of international worth on sustainability issues.

Originality/value

This research explores the problem of the effects of integrated reporting on investment capital as it affects developing economies. Results from this study could go a long way in narrowing the lack of interest in sustainability issues by prospective investors coupled with the low level of environmental and social reporting by firms in African economies that are mostly underdeveloped.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Open Access
Article
Publication date: 14 March 2024

Andreas Joel Kassner

Many studies have analysed the impact of various variables on the ability of companies to raise capital. While most of these studies are sector-agnostic, literature on the effects…

Abstract

Purpose

Many studies have analysed the impact of various variables on the ability of companies to raise capital. While most of these studies are sector-agnostic, literature on the effects of macroeconomic variables on sectors that established over the last 20 years like property technology and financial technology, is scarce. This study aims to identify macroeconomic factors that influence the ability of both sectors and is extended by real estate variables.

Design/methodology/approach

The impact of macroeconomic and real estate related factors is analysed using multiple linear regression and quantile regression. The sample covers 338 observations for PropTech and 595 for FinTech across 18 European countries and 5 deal types between 2000–2001 with each observation representing the capital invested per year for each deal type and country.

Findings

Besides confirming a significant impact of macroeconomic variables on the amount of capital invested, this study finds that additionally the real estate transaction volume positively impacts PropTech while the real estate yield-bond-gap negatively impacts FinTech.

Practical implications

For PropTech and FinTech companies and their investors it is critical to understand the dynamic with mac-ro variables and also the real estate industry. The direct connection identified in this paper is critical for a holistic understanding of the effects of measurable real estate variables on capital investments into both sectors.

Originality/value

The analysis fills the gap in the literature between variables affecting investment into firms and effects of the real estate industry on the investment activity into PropTech and FinTech.

Details

Journal of European Real Estate Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1753-9269

Keywords

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