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1 – 10 of 189Saswati Tripathi, Siddhartha Shankar Roy and Bijoy Talukder
This paper analyses and assesses the effect of firm-specific determinants (FSDs) on supply-chain performance (SCP) and export performance (EP). It examines SCP’s influence on EP…
Abstract
Purpose
This paper analyses and assesses the effect of firm-specific determinants (FSDs) on supply-chain performance (SCP) and export performance (EP). It examines SCP’s influence on EP and its mediating effect on the relationship between FSD and EP.
Design/methodology/approach
This paper develops a theoretical framework based on the resource-based view (RBV) and dynamic-capability theory to understand SCP’s role in the FSD-EP link while empirically validating using the Indian automobile industry segments (IAIS) data. The sample frame comprises all listed firms in IAIS between the financial year 2010-11 and 2021–22, with continuous data availability throughout the considered timeline. The paper employs factor analysis for dimension reduction, a panel-data-fixed-effect model to analyze the relationships, bootstrap to test the mediation effect and focus-group discussion for validating the results obtained through statistical analyses.
Findings
FSD directly influences SCP’s efficiency aspect and EP. Distribution efficiency and inventory efficiency characteristics of SCP directly impact EP and completely mediate the relationship between FSD and EP.
Practical implications
This study provides significant insights into how firms can increase EP by focusing on firm-specific and SCP-related factors. To improve EP, firms should concentrate on enhancing distribution and inventory efficiencies. Firms must focus on critical firm-level factors like age, size and raw-material import capability to increase their ability to solve SC-specific barriers and improve SCP, resulting in enhanced exports.
Originality/value
This study investigates the impacts of FSD on SCP and EP and examines the mediating effect of SCP on the relationship between FSD and EP. Such a mediating role of SCP has rarely been probed in the literature.
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This study presents the impact of Economic Policy Uncertainty (EPU)-induced Trade Supply Chain Vulnerability (TSCV) on the Small and Medium-Sized Enterprises (SMEs) in India by…
Abstract
Purpose
This study presents the impact of Economic Policy Uncertainty (EPU)-induced Trade Supply Chain Vulnerability (TSCV) on the Small and Medium-Sized Enterprises (SMEs) in India by leveraging the World Bank Enterprise Survey data for 2014 and 2022. Applying econometric techniques, it examines firm size’ influence on productivity and trade participation, providing insights for enhancing SME resilience and trade participation amid uncertainty.
Design/methodology/approach
The econometric techniques focus on export participation, along with variables such as total exports, firm size, productivity, and capital intensity. It addresses crucial factors such as the direct import of intermediate goods and foreign ownership. Utilizing the Cobb-Douglas production function, the study estimates Total Factor Productivity, mitigating endogeneity and multicollinearity through a two-stage process. Besides, the study uses a case study of North Indian SMEs engaged in manufacturing activities and their adoption of mitigation strategies to combat unprecedented EPU.
Findings
Results reveal that EPU-induced TSCV reduces exports, impacting employment and firm size. Increased productivity, driven by technological adoption, correlates with improved export performance. The study highlights the negative impact of TSCV on trade participation, particularly for smaller Indian firms. Moreover, SMEs implement cost-based, supplier-based, and inventory-based strategies more than technology-based and risk-based strategies.
Practical implications
Policy recommendations include promoting increased imports and inward foreign direct investment to enhance small firms’ trade integration during economic uncertainty. Tailored support for smaller firms, considering their limited capacity, is crucial. Encouraging small firms to engage in international trade and adopting diverse SC mitigation strategies associated with policy uncertainty are vital considerations.
Originality/value
This study explores the impact of EPU-induced TSCV on Indian SMEs’ trade dynamics, offering nuanced insights for policymakers to enhance SME resilience amid uncertainty. The econometric analysis unveils patterns in export behavior, productivity, and factors influencing trade participation during economic uncertainty.
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Geng Huang, Xi Lin and Ling-Yun He
Some existing studies have begun to discuss how trade will change the environment from a country or province perspective. However, so far, only a limited number of studies have…
Abstract
Purpose
Some existing studies have begun to discuss how trade will change the environment from a country or province perspective. However, so far, only a limited number of studies have provided evidence at the product level. This study aims to investigate the environmental impacts of trade at the product level.
Design/methodology/approach
The effects of importing intermediates and capital inputs on energy performance are examined using theoretical analysis. Empirical analyses are conducted using data on product trade, and the effects of importing intermediate inputs and capital inputs on energy efficiency are identified using a Propensity Score Matching-Difference in Difference (PSM-DID) estimation.
Findings
The results demonstrate that importing intermediates and capital inputs effectively enhance energy efficiency. Importing these inputs from foreign markets leads to increased productivity and ultimately improves energy performance.
Originality/value
This research provides new evidence on the relationship between importing and energy use at the product trade level. It offers insights into enterprise behaviors regarding importing intermediates and capital inputs, contributing to a deeper understanding of the environmental effects of trade. Additionally, a micro-theoretical model is developed to examine the impacts of imports on energy efficiency, complementing existing literature with theoretical insights.
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Noah Cheruiyot Mutai, Lawrence Ibeh, Manh Cuong Nguyen, Joyce Wangui Kiarie and Cynthia Ikamari
Many African countries struggle to sustain steady economic growth. Specific macro-economic factors can influence a country’s economic growth. We investigated the trend and…
Abstract
Purpose
Many African countries struggle to sustain steady economic growth. Specific macro-economic factors can influence a country’s economic growth. We investigated the trend and influence of diaspora remittances, foreign direct investment (FDI) and imports on Kenya’s economic growth.
Design/methodology/approach
We used panel data from the World Bank Indicators database from 1973 to 2021. By utilising the autoregressive distributed lag (ARDL) model for econometric analysis and performing computations using R software, we provide valuable insights into both short-term and long-term dynamics.
Findings
In the short term, we establish a non-significant negative impact of FDI and imports on economic growth, contrasting with the positive influence of diaspora remittances. However, in the long term, all three variables – FDI, imports and remittances – emerge as significant determinants of economic growth.
Research limitations/implications
The availability and quality of data on diaspora remittances, FDI inflows, imports and economic indicators may vary, leading to potential data limitations, biases or gaps in the analysis. External factors such as global economic trends, political stability, COVID-19, regulatory changes and natural disasters may influence the study’s findings and should be considered when interpreting the results.
Practical implications
In the short term, the non-significant negative impact of FDI and imports on economic growth suggests that policies promoting FDI and imports may not yield immediate economic growth benefits. Policymakers might need to reassess the effectiveness of current strategies aimed at attracting FDI and managing imports in the short term. The positive influence of diaspora remittances on economic growth underscores the significance of these inflows in supporting economic development. Governments may need to focus on policies that encourage remittance inflows, such as facilitating remittance channels and providing incentives for diaspora investment in the home country. The shift in significance from non-significant in the short term to significant in the long term for FDI, imports and remittances highlights the importance of considering long-term effects in economic planning. Policymakers should adopt strategies that consider the cumulative impact of these factors over time.
Social implications
Diaspora remittances often play a crucial role in alleviating poverty and reducing inequality by providing direct financial support to families. Recognising the importance of remittances in improving living standards, policymakers should ensure that policies support the effective utilisation of remittance inflows to address poverty and inequality challenges.
Originality/value
We therefore contribute original insights by examining the interplay between diaspora remittances, FDI, imports and economic growth over the study period. The emphasis on both short-term and long-term effects adds nicety to understanding their roles in shaping Kenya’s economic growth trail.
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Vandana Arya, Ravinder Verma and Vijender Pal Saini
The study examines the association between trade (exports and imports), foreign direct investment (FDI) and economic growth in the Bay of Bengal Initiative for Multi-Sectoral…
Abstract
Purpose
The study examines the association between trade (exports and imports), foreign direct investment (FDI) and economic growth in the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) countries using data from 1991 to 2019.
Design/methodology/approach
Augmented Dickey–Fuller (ADF) and Phillips–Perron (PP) unit root tests were applied to check the stationary of the data while the Johansen cointegration test and Vector Error Correction Model (VECM) was used to analyze long-run and short-run relationships.
Findings
The results indicate a long-run relationship between trade, FDI and economic growth in all selected countries except Bhutan. Additionally, a bidirectional causality exists between gross domestic product (GDP) and FDI in India, Bangladesh, Myanmar, Nepal, Bhutan and Sri Lanka, while unidirectional causality from GDP to FDI is observed in Thailand. Moreover, a one-way causality from exports to GDP exists in Bangladesh, Nepal, Bhutan, Sri Lanka and Myanmar, whereas a bidirectional relationship exists in India and Thailand.
Practical implications
This paper will be highly beneficial for regulators and policymakers in the designated economies, aiding in the formulation of FDI and trade policies that promote economic progress and development.
Originality/value
Most previous studies examining the relationship between macroeconomic variables have focused on developed nations. This study is the first to explore the relationship between trade (exports and imports), FDI and economic growth in the BIMSTEC countries.
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Phuong Thi Nguyen and Cuong Quoc Le
The purpose of this paper is to evaluate the current situation of buying external technology in Vietnamese manufacturing small and medium enterprises (SMEs) from 2013 to 2018…
Abstract
Purpose
The purpose of this paper is to evaluate the current situation of buying external technology in Vietnamese manufacturing small and medium enterprises (SMEs) from 2013 to 2018. This paper also aims to examine the effect of buying technology on employment and environmental quality in Vietnam.
Design/methodology/approach
External technology purchase and its impact on employment and environmental quality are taken from the Vietnam annual enterprise survey and the using technology in production survey from 2013 to 2018. The estimation is based on a feasible generalized least squares method.
Findings
This study finds that external technology purchase in manufacturing SMEs increases the employment rate in the industries. External technology purchase in Vietnamese manufacturing SMEs also increases the level of environmental pollution. This is a negative side of purchasing technology for production because if the technology used is old, outdated and of poor quality, it will increase environmental pollution. In addition, the growth in employment increases air pollution. This shows that purchasing advanced technology selectively helps to increase the employment rate in Vietnamese manufacturing sector, which is followed by a positive impact on environmental quality.
Research limitations/implications
The limitation of this study is that the research period was only investigated from 2013 to 2018 because the General Statistics Office of Vietnam no longer surveys the dataset about using technology in production surveys after 2018. This study has been conducted at the firm level, so results cannot be easily extended to the macroeconomic level, also taking into account the data limitations in terms of sector coverage.
Practical implications
This paper provides necessary policy recommendations for the government and manufacturing SMEs to solve negative technology issues related to the labour market and air quality in Vietnam. The results are expected to help policymakers in Vietnam propose appropriate national science and technology programmes towards sustainable development in the coming decades.
Originality/value
This paper focuses on assessing the effects of buying external technology by Vietnamese small and medium-sized manufacturing enterprises on employment and air quality.
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Since the liberalization policy of 1991, India has focused on export-led growth. However, the performance of international trade remains poor. This study aims to examine the role…
Abstract
Purpose
Since the liberalization policy of 1991, India has focused on export-led growth. However, the performance of international trade remains poor. This study aims to examine the role of credit constraints on the choice of Indian manufacturing firms to borrow in foreign currency. First, it explores the role of export activities in foreign currency borrowing (FCB). Second, it investigates how credit constraints forced these firms for foreign currency loans.
Design/methodology/approach
The study analysed data from 1,412 firms listed on the Bombay Stock Exchange in the manufacturing sector, covering the period from 1991 to 2022. A random effects probit model was used to examine the role of credit constraints on FCB, incorporating the influence of micro, small and medium enterprises (MSMEs) status and export activities. Additionally, a two-step system-generalized method of moment was used for robustness checks.
Findings
Export activities significantly influence FCB, with exporting firms showing a higher propensity to borrow foreign currency compared to domestically operating firms because of the increased funding needs of export activities. Larger firms are more likely to secure FCB than MSMEs, benefiting from collateral advantages. MSME exporting firms exhibit a higher tendency to borrow in foreign currency compared to large exporting firms.
Research limitations/implications
This study focuses on firm-level data and considers only demand-side credit constraints. It does not examine supply-side credit constraints affecting FCB.
Social implications
This study underscores the credit constraints faced by MSME exporters in the domestic market, leading them to rely on FCB. These insights are valuable for policymakers aiming to reduce MSMEs' dependency on FCB and enhance their export performance.
Originality/value
The findings highlight that MSME exporting firms are more inclined to borrow in foreign currency than their larger counterparts. This tendency is driven by the credit constraints MSMEs face because of asymmetric information and underdeveloped financial markets, which compel them to seek FCB.
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Stephen Akunyumu, Frank D.K. Fugar and Emmanuel Adinyira
Equitable risk allocation is important for the effective management of inevitable risks in International Construction Joint Venture (ICJV) projects. Previous studies have…
Abstract
Purpose
Equitable risk allocation is important for the effective management of inevitable risks in International Construction Joint Venture (ICJV) projects. Previous studies have documented risks facing ICJV projects. However, there is a dearth of studies on the risk allocation preferences that take into consideration the opinions of both the local and foreign partners. This study aims to fill this gap by ascertaining the risk allocation preferences of the partners of ICJV projects for effective risk management.
Design/methodology/approach
Through a survey, data on risk allocation preferences were collected from both local and foreign partners of ICJV projects using a comprehensive register of 74 risks.
Findings
Following analysis, six risks were allocated to the local partner, 11 were allocated to the foreign partner, 51 risks were shared, four were allocated to a third party and two were to be negotiated based on the specific circumstances of the project. Practically, the study’s findings will help ICJV partners in drafting their ICJV contracts to adequately allocate risks and reduce contract negotiation time considerably.
Practical implications
The findings from this study will help partners in drafting their joint venture contract agreement and also reduce the period for contract negotiation. Knowledge of the preferred risk allocation is important in allocating risks in the contract agreement to the relevant partner for effective management.
Originality/value
This study, to the best knowledge of the authors, is one of the early studies to ascertain the risk allocation preferences of ICJV project partners in the Ghanaian construction industry – a departure from previous studies which focused on the identification and evaluation of risks. This study is also different from previous studies by considering the allocation preferences of both partners of the ICJV. The collection of data from both partners of the ICJV helped to consider their perceptions on risk allocation and evaluation, essentially leading to cross-cultural and optimal risk allocation preferences.
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Mohamed Asmy Mohd Thas Thaker, Baryalai Baryal and Farhad Taghizadeh-Hesary
This paper examines the impact of foreign direct investment (FDI) on the economic growth of Afghanistan over the period 1990 to 2019.
Abstract
Purpose
This paper examines the impact of foreign direct investment (FDI) on the economic growth of Afghanistan over the period 1990 to 2019.
Design/methodology/approach
This study uses an autoregressive distributed lag (ARDL) to measure FDI’s impact on economic growth and determine the short- vs long-run relationship.
Findings
The results show that the F-bound cointegration test confirms the long-run relationship among the variables. The long-run and short-run results reveal that foreign direct investment has a significant negative impact on economic growth in the long run. However, domestic investment and labour force have a significant and positive impact on economic growth in the long run. Moreover, the impact of trade openness on economic growth is insignificant in the long run, while it has a significant negative impact in the short run.
Originality/value
In this study, we contribute to this research area by analysing the function of FDI in economic growth from Afghanistan’s experience and perspectives. This is the first study empirically examining this relationship in Afghanistan while considering other selected macroeconomic indicators. This paper could greatly benefit policymakers in Afghanistan by guiding the formulation of FDI policies that would spur its economic growth and development.
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This paper aims to clarify the relationship between foreign direct investment (FDI), democracy and carbon intensity. This study examines the influence of types of democracy on the…
Abstract
Purpose
This paper aims to clarify the relationship between foreign direct investment (FDI), democracy and carbon intensity. This study examines the influence of types of democracy on the relationship between inward FDI and carbon intensity. For this purpose, it uses five varieties of democracy, including a composite democracy indicator as moderating variables.
Design/methodology/approach
This study applies the fixed-effects panel quantile regression approach that considers unobserved heterogeneity and distributional heterogeneity using panel data from 160 countries during 1990–2020. By taking into account sudden changes in the volume of inward FDI, an event study is conducted across various sub-samples of democracy to check the robustness of the results.
Findings
The results show that FDI has a significantly negative impact on carbon intensity of the host country in the upper quantiles. In general, different types of democracy have a significant positive impact on carbon intensity across different quantiles. After considering the other factors, including industry intensity, trade openness, green technology, fossil fuel dependency and International Environmental Agreements, there is evidence that all types of democracy moderate the relationship between FDI and carbon intensity, thereby supporting the halo effect hypothesis. In addition, the interaction effects have a significant negative impact on carbon intensity of low- and high-carbon-intensive countries.
Originality/value
This paper offers several contributions to the literature on the effect of FDI and democracy on carbon intensity. This study overcomes the limitations related to the conceptualization and measurement of democracy found in the literature. While prior research has predominately concentrated on how democracy promotes the selection of FDI host-country locations, this study seeks to answer the question of whether democracy type has any effect on inward FDI, thus contributing to improving carbon intensity. Furthermore, this paper analyses the interaction effect on carbon intensity in different countries with different carbon intensity levels separately.
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