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1 – 10 of over 68000Fan Yang, Kirsten Urban, Martina Brockmeier, Eddy Bekkers and Joseph Francois
The purpose of this paper is to develop a modelling approach that enables the analysis of long-term food security policies. Specifically, the authors explore the effect of China’s…
Abstract
Purpose
The purpose of this paper is to develop a modelling approach that enables the analysis of long-term food security policies. Specifically, the authors explore the effect of China’s agricultural domestic support on its agricultural and food market by also considering the impact of incomplete price transmission.
Design/methodology/approach
The authors extend the standard Global Trade Analysis Project (GTAP) modelling framework. First, the authors incorporate incomplete price transmission into the GTAP model by generating tariff-equivalent price transmission elasticities. Second, the authors improve the current representation of China’s agricultural domestic support in the GTAP model and the underlying database by considering the production requirements and the trade-distorting effect of different policy instruments. Running a set of simulations, the authors examine first how the incorporation of incomplete price transmission affects the model’s results and second how increased agricultural domestic support affects China’s agricultural and food market accounting for incomplete price transmission.
Findings
Considering incomplete price transmission mitigates the domestic price increases as responses to high international agricultural prices, which also lead to an increase in China’s trade deficit and prohibits net food sellers from receiving high prices. In the long term, an increase in China’s agricultural domestic support to its World Trade Organisation de minimis commitment level would increase domestic agricultural production and reduce its demand pressure on the international market.
Originality/value
This paper contributes to the literature by examining the impact of increased agricultural domestic support on the domestic market while innovatively accounting for incomplete food price transmission. The authors combine econometric estimated price transmission elasticities and an extended GTAP framework to underscore the importance of enhancing the model’s ability in accounting for incomplete price transmission when analysing the impact of agricultural policies.
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The purpose of this paper is to provide a conceptual framework of staged development that examines strategies of domestic companies, government policies, and impacts of foreign…
Abstract
Purpose
The purpose of this paper is to provide a conceptual framework of staged development that examines strategies of domestic companies, government policies, and impacts of foreign multinational companies (MNCs) at different periods of catch‐up of latecomers.
Design/methodology/approach
A multi‐case approach is employed to examine four domestic telecom‐equipment companies that have significant impact on China's telecom‐equipment industry. They are: Huawei Technology Corporation (Huawei), Shenzhen Zhongxin Technology Corporation (ZTE), Datang Telecom Technology Corporation, Ltd (Datang), and Great Dragon Information Technology (GDT).
Findings
This paper identifies four distinct stages of the catching‐up process, featuring different institutional environment, government involvement, and the ensuing actions of foreign MNCs and domestic companies. During the initial stage, China's government decision of directly leapfrogging to the most advanced switch equipment had a profound impact, because it led to both heavy reliance on foreign MNCs and the pursuance of switch research and development (R&D) by domestic research institutes and new technology companies. The dominance of foreign MNCs is challenged during the growth stage, because several domestic companies ascended and gained the capability to produce large‐scale, stored program controls and the government directly leveraged support in R&D, marketing, and finance. Although many uncompetitive domestic companies failed during the filtration stage, the management training received from foreign MNCs and newly available financing options provided necessary resources for some domestic companies to survive and expand. Domestic leaders globalized their marketing, production, and R&D functions and to become MNCs themselves in the globalization stage, thus finalizing the catching‐up.
Social implications
The Chinese experiences shed light on late‐industrialization for other developing economies by suggesting that to catch‐up in high‐tech industries, government can become involved strategically to form a competitive and efficient market environment for innovation.
Originality/value
The paper proposes a new conceptual framework to analyze catching‐up of domestic companies as latecomers. This framework can be used to study catching‐up in other sectors in late‐industrializing countries.
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Sruthi Rajan and Shijin Santhakumar
The innovations in fundamentals coupled with noise traders induce co-movement in diverse markets. This co-movement in equity markets which is evidenced higher during the turmoil…
Abstract
Purpose
The innovations in fundamentals coupled with noise traders induce co-movement in diverse markets. This co-movement in equity markets which is evidenced higher during the turmoil period influences economic fundamentals of a country dissimilar in nature. The purpose of this paper is to examine whether economic fundamentals or investors’ behavior attributable to disturbances across the world are the rationale behind the crisis transmission, and thereby distinguish fundamental-based contagion from investor-induced contagion.
Design/methodology/approach
Initially, the study investigates the role of macroeconomic fundamentals and stock returns on crisis occurrence using panel probit estimates. Additionally, ordinary least squares estimates controlling the influence of fundamentals on domestic return capture the discrete country effect measuring the influence of domestic as well as foreign economic fundamentals along with foreign returns on the domestic stock index.
Findings
The empirical results reveal that foreign country stock index returns are having a significant influence on domestic returns besides a prominent role in crisis occurrence. The binary probit model confirmed the influence of both macroeconomic factors and foreign returns in crisis occurrence. The OLS estimates found evidence for investor-induced contagion in the crisis period where the effects of economic fundamentals are small in comparison to foreign market returns that are mainly dominant in pre- and post-crisis period.
Research limitations/implications
The propagation of crisis from one market to other would enable the policy makers to make clear regulations at right time to control for the crisis in future. The results can help the policy makers as well as investors in reducing the impact of the crisis in future by clearly monitoring the behavior of the factors under study.
Originality/value
The current study addresses the role of macro fundamentals and investors influence in crisis propagation. Adopting subprime crisis of 2008-2009 as a reference point and separating the sample period into pre-crisis, crisis and post-crisis period, the study explains how badly the other 30 markets impacted the crisis that emerged in the USA.
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Elko J. Kleinschmidt and Robert G. Cooper
This research probed the impact of an international versus domestic new product strategy on new product success. The study used 123 successes and 80 new product failures in 125…
Abstract
This research probed the impact of an international versus domestic new product strategy on new product success. The study used 123 successes and 80 new product failures in 125 industrial firms in Canada. Two international dimensions were hypothesised to be related to new product performance: (1) the degree to which the product was developed for international versus domestic use; and (2) target market selection — domestic versus nearest neighbour versus world market. Successful products were found to be more international in terms of product design and marketing activities and products developed for international markets were more successful on a number of performance measures. Firms that elected an export strategy for their new products (in particular, a strategy aimed at world markets and not only at nearest neighbours) and developed products for international markets did better in foreign as well as domestic markets.
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Thomas Hutzschenreuter, Ingo Kleindienst, Florian Groene and Alain Verbeke
The purpose of this paper is to address how firms adapt their product and geographic diversification as a response to foreign rivals penetrating their domestic market by adopting…
Abstract
Purpose
The purpose of this paper is to address how firms adapt their product and geographic diversification as a response to foreign rivals penetrating their domestic market by adopting a behavioral perspective to understand firm-level strategic responses to foreign entry.
Design/methodology/approach
The study proposes that strategic responses to foreign entry selected by domestic incumbents have both a framing component and a related, strategic choice component, with the latter including changes in product and geographic market diversification (though other more business strategy-related responses are also possible, e.g. in product pricing and marketing). This study tests a set of hypotheses building on panel data of large US firms.
Findings
The study finds, in accordance with our predictions, that domestic incumbents reduce their product and geographic diversification when facing an increase in import penetration. However, when increased market penetration by foreign firms takes the form of FDI rather than imports, the corporate response appears to be an increase in product and geographic diversification, again in line with our predictions.
Originality/value
The study develops a new conceptual framework that is grounded in prospect theory, but builds on recent insights from mainstream international strategic management studies (Bowen and Wiersema, 2005; Wiersema and Bowen, 2008).
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Rosaria Rita Canale and Rajmund Mirdala
The role of money and monetary policy of the central bank in pursuing macroeconomic stability has significantly changed over the period since the end of World War II…
Abstract
The role of money and monetary policy of the central bank in pursuing macroeconomic stability has significantly changed over the period since the end of World War II. Globalization, liberalization, integration, and transition processes generally shaped the crucial milestones of the macroeconomic development and substantial features of economic policy and its framework in Europe. Policy-driven changes together with variety of exogenous shocks significantly affected the key features of macroeconomic environment on the European continent that fashioned the framework and design of monetary policies.
This chapter examines the key basis of the central bank’s monetary policy on its way to pursue and preserve the internal and external stability of the purchasing power of money. Substantial elements of the monetary policy like objectives and strategies are not only generally introduced but also critically discussed according to their accuracy, suitability, and reliability in the changing macroeconomic conditions. Brief overview of the Eurozone common monetary policy milestones and the past Eastern bloc countries’ experience with a variety of exchange rate regimes provides interesting empirical evidence on origins and implications of vital changes in the monetary policy conduction in Europe and the Eurozone.
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Alexandra Lai and Oana Secrieru
We examine the impact of multinational firms (MNEs) on exchange rate pass-through when an MNE engages in Cournot competition with domestic and foreign rivals. The MNE can locate…
Abstract
We examine the impact of multinational firms (MNEs) on exchange rate pass-through when an MNE engages in Cournot competition with domestic and foreign rivals. The MNE can locate its production for the foreign market domestically — intra-firm trade (IT) — or in the foreign country — international production (IP). In addition to incomplete exchange rate pass-through, we show that an MNE increases the sensitivity of domestic market prices and reduces the sensitivity of foreign market prices to exchange rate movements. Finally, IT prices are more sensitive to exchange rate movements than their IP counterparts and react in the opposite direction.
This paper aims to explore the impact of domestic market fragmentation on the innovation performance of enterprises and its mechanism from the perspective of market segmentation…
Abstract
Purpose
This paper aims to explore the impact of domestic market fragmentation on the innovation performance of enterprises and its mechanism from the perspective of market segmentation, a government behavior with Chinese characteristics.
Design/methodology/approach
In order to verify the theoretical hypothesis proposed in the previous article, that is, whether domestic market fragmentation can effectively improve the innovation performance of enterprises, this paper bases on the data of listed companies from 2010 to 2016, empirically testing the theoretical hypothesis by constructing a measurement model.
Findings
Domestic market fragmentation has a significant inhibitory effect on enterprise innovation performance. Domestic market fragmentation has heterogeneous effects on innovation performance of enterprises and regions. It is undeniable that domestic market fragmentation does have a certain support effect on state-owned enterprises but the support effect is achieved by distorting regional resource allocation and creating an unfair market environment.
Originality/value
Firstly, this paper explores the impact mechanism of domestic market fragmentation on corporate innovation performance from the perspective of market segmentation, a government behavior with Chinese characteristics, so as to expand and enrich the relevant research on enterprise innovation. Secondly, from the perspective of corporate innovation performance, this paper provides new evidence for the “curse effect” of domestic market fragmentation. Thirdly, this paper tries to shake the domestic market fragmentation support theory from the perspective of distortion effect brought by the “hand of support” of domestic market fragmentation.
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Qiang (Steven) Lu, Chinmay Pattnaik and Mengze Shi
The purpose of this paper is to study the spillover effects of marketing expertise on the market performance of domestic firms and multinational enterprises (MNEs). Specifically…
Abstract
Purpose
The purpose of this paper is to study the spillover effects of marketing expertise on the market performance of domestic firms and multinational enterprises (MNEs). Specifically, this study examines how the adoption of frequency loyalty programs by a domestic firm following an MNE affects the competitive dynamics and the market performance of both firms in a Chinese retail gasoline market.
Design/methodology/approach
This study is based on empirical data that were obtained from a quasi-field experiment in which the MNE entered the market with a frequency loyalty program and the domestic firm later responded with a similar loyalty program. The authors measured the impact of the adoption of a frequency loyalty program by the domestic firm on the market performance of both the domestic firm and the MNE.
Findings
The authors find that the domestic firm’s adoption of a similar loyalty program significantly increased its market share in the regular gasoline market. The domestic firm’s adoption of a loyalty program also increased the market performance of the MNE in the premium gasoline market.
Originality/value
This study explicitly demonstrates the spillover benefits through demonstration effects and provides empirical evidence on specific spillover benefits to domestic firms and MNEs based on their competencies in distinct market segments where they compete.
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Ankur Srivastava, Dipanjan Kumar Dey and Balaji M.S.
The purpose of this study is to examine the impact of brand credibility on purchase intentions toward global brands and domestic brands in an emerging market context. It further…
Abstract
Purpose
The purpose of this study is to examine the impact of brand credibility on purchase intentions toward global brands and domestic brands in an emerging market context. It further examines three drivers of brand credibility: perceived globalness, perceived local iconness and perceived authenticity.
Design/methodology/approach
A structured questionnaire was used for data collection. Systematic random sampling using the mall intercept technique was used to collect cross-sectional data from 836 customers in India. Hypotheses were tested by using structural equation modeling with AMOS 21.
Findings
The results demonstrate the significance of brand credibility on purchase intentions. Furthermore, brand globalness differentially influence brand credibility for global and domestic brands.
Research limitations/implications
The findings provide key insights for marketers regarding consumer evaluation of global brands and domestic brands in emerging markets.
Originality/value
This study contributes to the literature by proposing and testing the key role of brand credibility in consumer choice of global brands versus domestic brands in an emerging market context.
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