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Article
Publication date: 18 December 2023

Arpit Gupta and Arya Kumar Srustidhar Chand

The purpose of this paper is to study the spillover effects of foreign direct investment (FDI) on skilled–unskilled wage inequality in the Indian manufacturing industries.

Abstract

Purpose

The purpose of this paper is to study the spillover effects of foreign direct investment (FDI) on skilled–unskilled wage inequality in the Indian manufacturing industries.

Design/methodology/approach

The authors show theoretically with a model of spillover that if foreign firms (receiving FDI) have a negative spillover effect on domestic firms (not receiving FDI), then the level of capital and skilled workers in the domestic firms falls down. Consequently, the authors conduct an empirical analysis by using system GMM estimation technique on the firm-level data of the Indian organised manufacturing sector.

Findings

The authors show that wage inequality worsens when there is negative spillover effects like competition spillover or skill spillover effect of FDI in India.

Originality/value

To the best of the authors’ knowledge, this is the first attempt to measure the various spillover effects of FDI on the wage inequality in the Indian manufacturing industries by using firm-level data.

Details

Indian Growth and Development Review, vol. 17 no. 1
Type: Research Article
ISSN: 1753-8254

Keywords

Article
Publication date: 25 April 2024

Rahul Arora, Nitin Arora and Sidhartha Bhattacharjee

COVID-19 has affected the economies adversely from all sides. The sudden halt in production has impacted both the supply and demand sides. It calls for analysis to quantify the…

Abstract

Purpose

COVID-19 has affected the economies adversely from all sides. The sudden halt in production has impacted both the supply and demand sides. It calls for analysis to quantify the impact of the reduction in economic activity on the economy-wide variables so that appropriate steps can be taken. This study aims to evaluate the sensitivity of various sectors of the Indian economy to this dual shock.

Design/methodology/approach

The eight-sector open economy general equilibrium Global Trade Analysis Project (GTAP) model has been simulated to evaluate the sector-specific effects of a fall in economic activity due to COVID-19. This model uses an economy-wide accounting framework to quantify the impact of a shock on the given equilibrium economy and report the post-simulation new equilibrium values.

Findings

The empirical results state that welfare for the Indian economy falls to the tune of 7.70% due to output shock. Because of demand–supply linkages, it also impacts the inter- and intra-industry flows, demand for factors of production and imports. There is a momentous fall in the demand for factor endowments from all sectors. Among those, the trade-hotel-transport and manufacturing sectors are in the first two positions from the top. The study recommends an immediate revival of the manufacturing and trade-hotel-transport sectors to get the Indian economy back on track.

Originality/value

The present study has modified the existing GTAP model accounting framework through unemployment and output closures to account for the impact of change in sectoral output due to COVID-19 on the level of employment and other macroeconomic variables.

Details

Indian Growth and Development Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1753-8254

Keywords

Abstract

Details

International Trade and Inclusive Economic Growth
Type: Book
ISBN: 978-1-83753-471-5

Article
Publication date: 27 March 2024

Jonathan Mukiza Kansheba, Clavis Nwehfor Fubah and Mutaju Isaack Marobhe

Despite the popularity of the entrepreneurial ecosystem (EE) concept, research on its value-adding activities receives less attention. Thus, in this article, the authors…

Abstract

Purpose

Despite the popularity of the entrepreneurial ecosystem (EE) concept, research on its value-adding activities receives less attention. Thus, in this article, the authors investigate the role of EEs in supporting global value chain (GVC) activities.

Design/methodology/approach

The authors employ the fuzzy-set qualitative comparative analysis (fsQCA) technique to identify practical configurations of EE’s framework and systemic conditions spurring GVC activities in 80 countries.

Findings

The findings suggest different configurations of EE`s framework and systemic conditions necessary for various GVC activities regarding input-output structure, geographical scope, upgrading, and forward and backward participation.

Originality/value

This study contributes to the extant literature by pioneering the EE approach to explaining GVC development. Moreover, the findings provide novel insights for understanding the EE – GVC interplay. As a result, the study offers a more nuanced understanding of how the EE supports GVC activities.

Details

International Journal of Entrepreneurial Behavior & Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 22 August 2023

Mehmet Chakkol, Mark Johnson, Antonios Karatzas, Georgios Papadopoulos and Nikolaos Korfiatis

President Trump's tenure was accompanied by a series of protectionist measures that intended to reinvigorate US-based production and make manufacturing supply chains more “local”…

Abstract

Purpose

President Trump's tenure was accompanied by a series of protectionist measures that intended to reinvigorate US-based production and make manufacturing supply chains more “local”. Amidst these increasing institutional pressures to localise, and the business uncertainty that ensued, this study investigates the extent to which manufacturers reconfigured their supply bases.

Design/methodology/approach

Bloomberg's Supply Chain Function (SPLC) is used to manually extract data about the direct suppliers of 30 of the largest American manufacturers in terms of market capitalisation. Overall, the raw data comprise 20,100 quantified buyer–supplier relationships that span seven years (2014–2020). The supply base dimensions of spatial complexity, spend concentration and buyer dependence are operationalised by applying appropriate aggregation functions on the raw data. The final dataset is a firm-year panel that is analysed using a random effect (RE) modelling approach and the conditional means of the three dimensions are plotted over time.

Findings

Over the studied timeframe, American manufacturers progressively reduced the spatial complexity of their supply bases and concentrated their purchase spend to fewer suppliers. Contrary to the aims of governmental policies, American manufacturers increased their dependence on foreign suppliers and reduced their dependence on local ones.

Originality/value

The research provides insights into the dynamics of manufacturing supply chains as they adapt to shifting institutional demands.

Details

International Journal of Operations & Production Management, vol. 44 no. 5
Type: Research Article
ISSN: 0144-3577

Keywords

Abstract

Details

International Trade and Inclusive Economic Growth
Type: Book
ISBN: 978-1-83753-471-5

Content available
Article
Publication date: 2 April 2024

Sebastián Javier García-Dastugue, Rogelio García-Contreras, Kimberly Stauss, Thomas Milford and Rudolf Leuschner

Extant literature in supply chain management tends to address a portion of the product flow to make food accessible to clients in need. The authors present a broader view of food…

Abstract

Purpose

Extant literature in supply chain management tends to address a portion of the product flow to make food accessible to clients in need. The authors present a broader view of food insecurity and present nuances relevant to appreciate the complexities of dealing with this social problem.

Design/methodology/approach

The authors conducted an inductive study to reveal the deep meaning of the context as managers of nonprofit organizations (NPO) define and address food insecurity. The focus was on a delimited geographic area for capturing interactions among NPOs which have not been described previously.

Findings

This study describes the role of supply chains collaborating in unexpected ways in the not-for-profit context, leading to interesting insights for the conceptual development of service ecosystems. This is relevant because the solution for the food insecure stems from the orchestration of assistance provided by the many supply chains for social assistance.

Research limitations/implications

The authors introduce two concepts: customer sharing and customer release. Customer sharing enables these supply chains behave like an ecosystem with no focal organization. Customer release is the opposite to customer retention, when the food insecure stops needing assistance.

Social implications

The authors describe the use of customer-centric measures of success such improved health measured. The solution to food insecurity for an individual is likely to be the result of the orchestration of assistance provided by several supply chains.

Originality/value

The authors started asking who the client is and how the NPOs define food insecurity, leading to discussing contrasts between food access and utilization, between hunger relief and nourishment, between assistance and solution of the problem, and between supply chains and ecosystems.

Details

The International Journal of Logistics Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 9 April 2024

Aaron van Klyton, Mary-Paz Arrieta-Paredes, Vedaste Byombi Kamasa and Said Rutabayiro-Ngoga

The study explores how the intention to export affects financing and non-financing variables for small and medium-sized enterprises (SMEs) in a low-income country (LIC). The…

Abstract

Purpose

The study explores how the intention to export affects financing and non-financing variables for small and medium-sized enterprises (SMEs) in a low-income country (LIC). The objectives of this study are (1) to discern between regional and global exporting and (2) to evaluate its policymaking implications.

Design/methodology/approach

Primary survey data were collected from 330 Rwandan SMEs and were analysed using ordered logistic models as an application of the expectation-maximisation iterating algorithm, which was tested for robustness using a sampling model variation.

Findings

The results show that alternative sources of finance are the predominant choice to finance the intention to export within and outside Africa. As the scope of export intentions broadened from regional to global, there was a shift in preferences from less formal to more formal lending technologies, moving from methods like factoring to lines of credit. Moreover, reliance on bank officers became more significant, with increasing marginal effects. Finally, the study determined that government financing schemes were not relevant for SMEs pursuing either regional or global exporting.

Practical implications

Whilst alternative sources of finance predominate the export intentions of Rwandan SMEs, establishing a robust banking relationship becomes crucial for global exporting. Despite this implication, the intention to export should prompt more transparent communication regarding government financial support programmes. There is an opportunity for increased usage of relationship lending to customise support for SMEs involved in exporting, benefiting both the private and public sectors.

Originality/value

This study accentuates how export distance alters SME financing priorities. The results also contribute to understanding how the value of relationship lending changes when less familiar markets (i.e. global exporting) are the objective. Moreover, the study offers a new perspective on how institutional voids affect entrepreneurial financing decisions in LICs.

Details

International Journal of Entrepreneurial Behavior & Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 5 April 2024

Chulhyung Park and Kyuho Jin

The rise of emerging economies in the innovation landscape has often been attributed to the positive spillovers of innovation capabilities from multinational corporations (MNCs)…

Abstract

Purpose

The rise of emerging economies in the innovation landscape has often been attributed to the positive spillovers of innovation capabilities from multinational corporations (MNCs). However, it is less certain that their innovative capabilities imported from the home country function effectively in the host country from the outset. This study examines the performance of the innovation capabilities of MNC subsidiaries in emerging economies over time by considering the gradual process of their learning about host countries.

Design/methodology/approach

We employed stochastic frontier analysis to measure innovation capabilities, our focal construct. For regression analysis, we applied the Mundlak estimator, a variant of the fixed-effects panel estimator, to a sample comprising subsidiaries of MNCs from technologically advanced nations operating in Korea between 2006 and 2016.

Findings

Our results indicate that the innovation capabilities of MNC subsidiaries initially underperform those of local firms but improve over time, eventually surpassing the capabilities of their local counterparts. Furthermore, our findings reveal that institutional distance amplifies the underperformance of the innovation capabilities of MNC subsidiaries.

Originality/value

This study contributes to the literature by extending both theoretical development and empirical measurement of innovation capabilities in cross-national settings. Additionally, it deepens our understanding of whether and how MNC subsidiaries adapt their innovation capabilities to the local market environment.

Details

Cross Cultural & Strategic Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2059-5794

Keywords

Abstract

Details

A New Left Economics: An Economy with a Social Conscience
Type: Book
ISBN: 978-1-80455-402-9

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