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Article
Publication date: 14 July 2023

Gazi Mahabubul Alam and Md. Abdur Rahman Forhad

This study examines whether education in developing countries directly impacts their foreign income from the top export sector.

Abstract

Purpose

This study examines whether education in developing countries directly impacts their foreign income from the top export sector.

Design/methodology/approach

As most developing countries follow developed nations to shape their development, this study assumes developing countries as education-follower and developed countries as education-leader countries. Considering selected countries from the South Asian Regional Cooperation (SAARC) and African countries as follower countries and Group of Seven (G7) as leader countries, this study employs Dumitrescu-Hurlin Granger non-causality tests.

Findings

This study finds that education-follower countries' achievements do not directly impact foreign earnings from their leading export sectors. However, findings also confirm that leader countries have a bidirectional causal relationship between tertiary education and earnings from high technology exports.

Originality/value

To the best of the authors' knowledge, this is the first study urging research-intensive education with comparative advantages in international trade. Using educational attainment on export earnings from the leading sector, findings support dependency theory in education is still existed.

Details

International Journal of Comparative Education and Development, vol. 25 no. 2
Type: Research Article
ISSN: 2396-7404

Keywords

Article
Publication date: 6 July 2015

Jaya Prakash Pradhan and Keshab Das

The purpose of this study is to examine the subnational regional dimension of exports by small and medium-sized enterprises (SMEs) in India, one of the prominent emerging…

Abstract

Purpose

The purpose of this study is to examine the subnational regional dimension of exports by small and medium-sized enterprises (SMEs) in India, one of the prominent emerging economies or “rising powers”.

Design/methodology/approach

To understand the forces driving the variation in subnational region’s share in international business of rising power SMEs, an analytical conceptual framework on regional export advantage (REA) was formulated based on the review of relevant theoretical and empirical literature. The model was estimated for Indian states using the most appropriate and recently developed econometric technique of fractional logit model.

Findings

The paper provides evidence that the emergence of exports by rising Indian power SMEs is geographically limited to a few select regions/states. Southern Indian states alone accounted for half of exports from SMEs in the organized manufacturing sector during 2000-2008, followed by Western India. The REA analysis has brought to the fore that regional stock of technological knowledge, availability of skill, port facilities, urban areas and foreign direct investment stocks are crucial factors determining states’ share in SME exports across technological subcategories. However, the size and sophistication of local demand continue to influence states’ efforts at enhancing exports by SMEs, at least those belonging to the medium- and high-technology categories.

Research limitations/implications

The proposed empirical framework could be extended to include institutional and political economy factors. Its application to subnational regional shares in total exports by all firms taking into account fixed effects for regions may be another feasible line of future research.

Practical implications

Empirical findings recognize that appropriate strategies by subnational policymakers are important for a region to achieve a higher contribution in national SME exports. Subnational policy measures aimed at upgradation of regional technological assets and skill base through the promotion of technology clusters and R & D of local firms, facilitation and creation of better industry-university linkages and investments in education and training institution may help the states to gain higher export advantage.

Originality/value

This paper provides new analytics and insights into the role of subnational spaces in the internationalization of rising power SMEs from India and serves to contribute to the extant international business research that is predominantly occupied with “nation” as the unit of location.

Details

critical perspectives on international business, vol. 11 no. 3/4
Type: Research Article
ISSN: 1742-2043

Keywords

Article
Publication date: 1 August 2004

June Francis and Colleen Collins‐Dodd

Export promotion programs are provided by governments to help firms, especially small and medium‐sized ones, overcome real or perceived obstacles to exporting. To date, there has…

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Abstract

Export promotion programs are provided by governments to help firms, especially small and medium‐sized ones, overcome real or perceived obstacles to exporting. To date, there has been limited empirical evidence of the effectiveness of these efforts. This study clarifies the ways in which export promotion programs bolster the export competence and export activities of firms by drawing on the results of a survey of small and medium‐sized Canadian high‐technology firms. The results suggest that using a greater number of government programs influences the achievement of export objectives and export expansion strategies, and enhances export marketing competencies. By segmenting firms by level of export involvement, a clearer picture of the benefits and limitations of export promotion programs emerges. These results suggest that sporadic and active exporters gain the most from export promotion programs, while there is little impact in the short term for more experienced international firms who derive most of their incomes from exporting.

Details

International Marketing Review, vol. 21 no. 4/5
Type: Research Article
ISSN: 0265-1335

Keywords

Book part
Publication date: 28 May 2024

Subhasree Banerjee and Bibek Ray Chaudhuri

India's manufacturing exports are heavily tilted toward primary and resource-based products, while its Asian peers have a significant proportion of high and mid-tech products in…

Abstract

India's manufacturing exports are heavily tilted toward primary and resource-based products, while its Asian peers have a significant proportion of high and mid-tech products in their export baskets. An attempt is thus made to understand the hurdles faced by technology-intensive exports by India, using gravity panel estimates on its high, mid, and low-tech exports, using data across 130 countries from 2001 to 2019. In line with the Knowledge Theories of trade, which postulate that technical and scientific knowledge and innovation provide trade advantages, this chapter also tries to understand how India fares on this front. We use Principal Component Analysis to construct an index which provides a relative understanding of India's technical and scientific knowledge base.

We conclude that nontariff measures (NTMs) are a stringent hurdle faced by Indian exports, especially in the European Union. Tariffs have the most debilitating effect on its mid-tech exports and the least on high-tech exports. Regional Trade Agreements (RTAs) are most effective in creating trade for mid-tech exports and least in case of low-tech exports. The index for ascertaining India's relative knowledge base shows that while India ranked 6th in 2017, much higher than its Asian peers, its high and mid-tech exports lagged behind these countries. This puzzle is explained by the fact that scientific research in India has very little industry collaboration and thus is out of sync with market needs. Hence, the prevalent scientific and technical knowledge in India does not have the expected favorable impact on its technology-intensive exports.

Article
Publication date: 28 June 2011

Matthew M.C. Allen and Maria L. Aldred

This paper aims to assess the extent to which convergence in institutional regimes is likely to occur, by examining all ten new EU member states in Central and Eastern Europe in…

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Abstract

Purpose

This paper aims to assess the extent to which convergence in institutional regimes is likely to occur, by examining all ten new EU member states in Central and Eastern Europe in terms of their development of comparative advantages in high‐tech export markets either by drawing on foreign investors in the form of multinational companies or by making use of domestic institutional resources.

Design/methodology/approach

The article uses fuzzy sets and qualitative comparative analysis to examine both necessary and sufficient causes of success in high‐tech export markets. By doing so, it can address the important issue of institutional complementarity.

Findings

While it finds that countries that have stronger records in such markets share common features, there are also important differences between them – not least in the areas of employee relations. This, together with other evidence presented in the paper, suggests that convergence around a specific institutional model is unlikely to happen.

Originality/value

Analysing, unlike many previous studies, all ten new EU member states in Central and Eastern Europe enables conclusions to be drawn that apply to the whole region. The novel method used in this article means that the extent of any complementarity between different institutions can be addressed, and ensures that issues relating to convergence/divergence are explored. The article, therefore, contributes to a number of important debates on the convergence among types of capitalism, the dependency of the new EU member states on foreign investors, and the institutional foundations for success in high‐tech export markets.

Details

Employee Relations, vol. 33 no. 4
Type: Research Article
ISSN: 0142-5455

Keywords

Article
Publication date: 8 February 2016

Reza Dabestani, Nasim Nahavandi and Mohammad Saljoughian

The purpose of this study is an attempt to identify the most crucial factors and their influence on one another, which can result in predicting the country’s next phase of…

Abstract

Purpose

The purpose of this study is an attempt to identify the most crucial factors and their influence on one another, which can result in predicting the country’s next phase of progress based on these factors’ variation patterns.

Design/methodology/approach

The authors proposed a model based on the existing literature and then ran a system dynamics analysis on the data obtained from the World Bank official Web site. The factors including “Research and development expenditure (% of GDP)”, “Scientific and technical journal articles”, “Patent applications”, “Trademark applications”, “Industry value added”, “Researchers in R & D (per million people)” and “High technology export” were considered as the related factors with science and technology.

Findings

The findings can also reveal what aspects require more attention and investment if the government demands to facilitate and accelerate the development process. The results show that the most intense increase refers to the number of patent applications and trademark applications, and the lowest increase is related to research and development expenditure and researchers in R & D.

Practical implications

The authors hope that tracking the changes of those factors leads practitioners and scholars to have a better understanding of the trends of science and technology development in a country, which in turn leads them to foresee the country’s upcoming opportunities as well as challenges.

Originality/value

Proposing a system dynamic model for predicting science and technology trend in a country is relatively novel.

Details

Journal of Modelling in Management, vol. 11 no. 1
Type: Research Article
ISSN: 1746-5664

Keywords

Article
Publication date: 17 June 2011

Byron S. Gangnes, Alyson C. Ma and Ari Van Assche

This paper aims to examine the impact of oil prices on trade's sensitivity to distance. Furthermore, it seeks to investigate if the nature of trade and the type of goods have a…

Abstract

Purpose

This paper aims to examine the impact of oil prices on trade's sensitivity to distance. Furthermore, it seeks to investigate if the nature of trade and the type of goods have a mediating role on the oil prices' impact on trade.

Design/methodology/approach

A set of gravity models are estimated on a unique panel dataset from China Customs Statistics that reports trade by customs regime (processing trade vs non‐processing trade) and by transportation mode (air vs sea) for the years 1988‐2008.

Findings

Higher oil prices increase the sensitivity of China's exports to distance. This effect is especially pronounced for processing exports, where goods cross borders multiple times. On the other hand, it is smaller for exports shipped by air. While these results are statistically significant, their economic effects are relatively small. This paper estimates that the quadrupling of oil prices between 2002 and 2008 has increased the elasticity of Chinese exports with respect to distance by a mere 5‐7 per cent.

Social implications

The surge of oil prices in recent years has led to speculation that rising transportation costs could end the period of dramatic world trade growth – in the words of Rubin, “[…] Your world is going to get a whole lot smaller.” This paper suggests that this concern is overstated.

Originality/value

This is the first paper that estimates the mediating role that the nature of trade and the type of goods play on trade's sensitivity to distance.

Details

Multinational Business Review, vol. 19 no. 2
Type: Research Article
ISSN: 1525-383X

Keywords

Open Access
Article
Publication date: 22 March 2022

Adan Guyo Shibia

This study investigates effects of firm-level, sector-level and business environment factors on manufacturing firms’ Research and Development (R&D) investment decisions in Kenya…

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Abstract

Purpose

This study investigates effects of firm-level, sector-level and business environment factors on manufacturing firms’ Research and Development (R&D) investment decisions in Kenya.

Design/methodology/approach

Panel Probit regression model is employed to analyse effects of the explanatory variables on manufacturing firms R&D investment decisions.

Findings

Access to external finance, lower informal sector competition, exports market participation, larger firm size and firms in high technology subsectors increase probabilities of undertaking R&D investment decisions.

Research limitations/implications

The findings underscore the need to consider institutional framework, aimed at easing business environment constraints related to access to finance, export promotion and competition from informal sector enterprises. Future research should consider cross-country analysis within the Sub-Saharan African (SSA) region to understand implications of institutional contexts that prove to be a challenge to address in a study based within a single country.

Practical implications

Policymakers need to consider addressing business environment constraints that impede R&D investments by private sector enterprises in developing countries. Formal private sector firms should design R&D investment strategies and lobby for policy interventions targeted at business environment constraints.

Originality/value

This study considers effects of variables underexplored in existing literature, notably competition from informal sector firms, R&D-intensity technological classification and an objective measure of access to finance. The study also utilises a panel survey data, which was underexplored in prior studies within SSA economies.

Details

Journal of Business and Socio-economic Development, vol. 3 no. 2
Type: Research Article
ISSN: 2635-1374

Keywords

Article
Publication date: 13 December 2022

Mitra Samadi, Seyed Reza Mirnezami, Mohammad Sadegh Khayyatian and Mohammad Torabi Khargh

This study aims to compare the level of organizational capabilities of the exporter and non-exporter Iranian knowledge-based firms in the sector of chemical technology.

Abstract

Purpose

This study aims to compare the level of organizational capabilities of the exporter and non-exporter Iranian knowledge-based firms in the sector of chemical technology.

Design/methodology/approach

By combining 18 different indicators, a framework is designed to demonstrate organizational capabilities. The technological, manufacturing, R&D, marketing, organizing and financial capabilities of 732 Iranian knowledge-based firms in the sector of chemical technology (90 exporters and 642 non-exporter firms) are identified between 2015 and 2020. The analysis is based on the Chi-square test and logistic and probit regression.

Findings

The results indicate that technological capability, unlike the other five capabilities, is higher in non-exporter firms, and the level of marketing capability is greater in exporter firms, with the highest difference between the two groups.

Originality/value

The research suggests that knowledge-based firms should be evaluated based on export history; there should be some specialized export facilitating packages for both exporter and non-exporter firms; and some baskets from products with related and specialized fields of application should be formed to facilitate international marketing. The results can be a basis for managers and policymakers to improve the firm’s capabilities and competitiveness at the international level.

Details

Review of International Business and Strategy, vol. 33 no. 5
Type: Research Article
ISSN: 2059-6014

Keywords

Article
Publication date: 29 November 2018

Seenaiah Kale and Badri Narayan Rath

The purpose of this paper is to examine whether innovation plays a significant role in the total factor productivity (TFP) growth in India at an aggregate level.

Abstract

Purpose

The purpose of this paper is to examine whether innovation plays a significant role in the total factor productivity (TFP) growth in India at an aggregate level.

Design/methodology/approach

This study first estimates the TFP growth using a growth accounting framework. In the second stage, the authors examine the long-run and short-run impact of innovation on TFP growth using the ARDL bound testing approach.

Findings

The results indicate a cointegrating relationship between innovation and TFP growth. Further, coefficients of long-run elasticity show that the increase in overall innovation activities improves the TFP growth. Other factors such as human capital, financial development and FDI do not affect the TFP growth in the long run; however, these variables significantly affect the productivity growth in the short run.

Practical implications

Findings of the study suggest that the innovation-friendly policies such as the strengthening of intellectual property rights, R&D subsidies and innovation rebates may spur the productivity growth, and hence, good growth and prosperity as well.

Originality/value

Having devoted a large volume of literature to address the sources of economic growth, the present study focuses on the determinants of TFP growth in India which may fall in similar category but differ in several angles: First, the authors construct a TFP index using a growth accounting framework. Second, the authors construct an innovation index using principal component analysis which is new to the literature and also an innovation index. Third, given the scanty innovation activities in low developed countries like India and its widening role in the contemporary literature, special emphasis will be given to this aspect. Finally, the effect of the examined relationship on TFP growth in the long run and short run provides several implications for policy purpose to the developing nations like India.

Details

International Journal of Emerging Markets, vol. 13 no. 5
Type: Research Article
ISSN: 1746-8809

Keywords

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