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21 – 30 of over 8000
Article
Publication date: 27 July 2011

Lamia Ben Hamida

The purpose of this paper is two‐fold: to discuss the key factors determining foreign direct investment (FDI) intra‐industry spillovers and to examine the presence and the extent…

1170

Abstract

Purpose

The purpose of this paper is two‐fold: to discuss the key factors determining foreign direct investment (FDI) intra‐industry spillovers and to examine the presence and the extent of these spillovers in Switzerland, by testing them for the services/construction industry, where there is currently a scarcity of evidence.

Design/methodology/approach

The assessment of spillovers calls for a detailed analysis of these effects according to the mechanisms by which they occur (namely, the increase in competition, demonstration effects, and worker mobility), and whether the size and the extent of spillovers depend on the interaction between their mechanisms and the existing technological capacities of domestic firms.

Findings

The regression results are affirmative, in that domestic firms with high technological capacities appear to gain spillover benefits from FDI heightening competition, while mid‐ and low‐technology firms benefit a lot from demonstration effects. In addition, spillovers for high‐ and mid‐technology firms appear to be largely co‐determined by the level of their human capital. Only domestic firms that invested heavily in absorptive capacity benefit from spillovers.

Research limitations/implications

The evidence on spillover effects has not yet been conclusive. Hence, this paper proposes some components for a research agenda on FDI and intra‐industry spillovers.

Practical implications

The study provides insights for Swiss policy makers about how to promote the beneficial spillover effects of FDI.

Originality/value

The process of spilling over is correctly described in a more satisfactory model and then the impact of this process is accurately identified.

Article
Publication date: 1 September 2022

Pham Thi Bich Ngoc, Huynh Quoc Vu and Pham Dinh Long

This paper aims to examine spillover effects of heterogenous foreign direct investment (FDI) enterprises (domestic vs. export-oriented) through horizontal and vertical linkages…

Abstract

Purpose

This paper aims to examine spillover effects of heterogenous foreign direct investment (FDI) enterprises (domestic vs. export-oriented) through horizontal and vertical linkages and absorptive capacity effect on domestic firms' total factor productivity (TFP). It clarifies the spillover effect on domestic firms in accordance with industrial zones, business size, technology sector and geographical agglomeration, respectively.

Design/methodology/approach

The dataset used is based on Vietnamese manufacturing firms during 2011–2014, input–output (I–O) Table 2012. This paper is conducted in two steps: (1) TFP is estimated by using a semi-parametric approach developed by Levinsohn and Petrin (2003); (2) Regression with panel data for domestic firms, applying the fixed effect method.

Findings

In terms of domestic-oriented FDI (DFDI) enterprise group: TFP spillover through horizontal linkages is found negative for domestic firms but positive for those participating in export. Additionally, backward linkages have a negative impact on TFP for most domestic enterprises, except for those operating in the high-tech sector. In terms of export-oriented FDI (EFDI) enterprise group, horizontal linkages have a negative impact on domestic firms' TFP including domestic ones participating in export whereas backward linkage is an important channel with positive effects. Absorptive capacity enables firms to improve productivity through linkages with EFDI and DFDI enterprises. Exporters located in industrial zones or regions with numerous exporters can receive better impacts through backward linkages EFDI.

Originality/value

Comprehensively, this is the first paper to detect FDI heterogeneity in their behavior when entering a developing country like Vietnam. The added value in this study comes from the export ability of local firms which is in line with Melitz (2003) theory that they can excel in absorping the TFP spillover from competing with DFDI competitors or from supplying to EFDI enterprises. Moreover, the role of small and medium-sized enterprises (SMEs), low technology, high technology and learning by regions affecting the impact through both horizontal and vertical linkages are included for analysis.

Details

International Journal of Emerging Markets, vol. 19 no. 5
Type: Research Article
ISSN: 1746-8809

Keywords

Book part
Publication date: 19 July 2007

Marina Di Giacinto and Francesco Ferrante

The consensus view is that economists should observe consumer choices and abstain from investigating the psychological and physiological causes of wants, or the mechanisms…

Abstract

The consensus view is that economists should observe consumer choices and abstain from investigating the psychological and physiological causes of wants, or the mechanisms governing the formation of preferences. This may be a correct procedure as far as ordinary functional goods are concerned. Problems tend to arise with creative goods (e.g. cultural goods) whose consumption (i) requires skills acquired through education and experience and (ii) generates positive and negative feedbacks and learning-by-consuming processes. This paper presents a simple model of local learning explaining the idiosyncratic accumulation of consumption human capital. Consumption generates local feedback mechanisms whose characteristics depend on the nature of goods and on the type of agent. The model provides some insights on the microeconomics of creative consumption and on the specific role of education.

Details

The Evolution of Consumption: Theories and Practices
Type: Book
ISBN: 978-0-7623-1452-2

Article
Publication date: 26 September 2023

Yongchao Martin Ma, Xin Dai and Zhongzhun Deng

The purpose of this study is to investigate consumers' emotional responses to artificial intelligence (AI) defeating people. Meanwhile, the authors investigate the negative…

Abstract

Purpose

The purpose of this study is to investigate consumers' emotional responses to artificial intelligence (AI) defeating people. Meanwhile, the authors investigate the negative spillover effect of AI defeating people on consumers' attitudes toward AI companies. The authors also try to alleviate this spillover effect.

Design/methodology/approach

Using four studies to test the hypotheses. In Study 1, the authors use the fine-tuned Bidirectional Encoder Representations from the Transformers algorithm to run a sentiment analysis to investigate how AI defeating people influences consumers' emotions. In Studies 2 to 4, the authors test the effect of AI defeating people on consumers' attitudes, the mediating effect of negative emotions and the moderating effect of different intentions.

Findings

The authors find that AI defeating people increases consumers' negative emotions. In terms of downstream consequences, AI defeating people induces a spillover effect on consumers' unfavorable attitudes toward AI companies. Emphasizing the intention of helping people can effectively mitigate this negative spillover effect.

Practical implications

The authors' findings remind governments, policymakers and AI companies to pay attention to the negative effect of AI defeating people and take reasonable steps to alleviate this negative effect. The authors help consumers rationally understand this phenomenon and correctly control and reduce unnecessary negative emotions in the AI era.

Originality/value

This paper is the first study to examine the adverse effects of AI defeating humans. The authors contribute to research on the dark side of AI, the outcomes of competition matches and the method to analyze emotions in user-generated content (UGC).

Details

Internet Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1066-2243

Keywords

Article
Publication date: 21 October 2013

Manuel Villasalero

This study aims to address the performance consequences of knowledge transfer within related diversified firms by distinguishing between knowledge outflows and knowledge inflows

Abstract

Purpose

This study aims to address the performance consequences of knowledge transfer within related diversified firms by distinguishing between knowledge outflows and knowledge inflows at the business division level.

Design/methodology/approach

Questionnaire data from a sample of 118 business divisions were analyzed using stepwise linear regression.

Findings

The results from a three-effect model for the analysis of knowledge transfer indicate that knowledge outflow improves division performance, while knowledge inflow damages it when absorptive capacity is weak. The overall effect of knowledge transfer is therefore beneficial with the exception of the cases of receiving divisions with low levels of absorptive capacity.

Practical implications

These results indicate that knowledge transfer contributes to overall corporate performance, since knowledge outflow impacts positively on division performance in all cases and knowledge inflow impacts negatively on division performance only in some cases. Setting aside the obvious task of promoting knowledge transfer within the firm, one important concern for corporate officers would be to prevent situations in which a division lacks the absorptive capacity to play its role within a corporate network.

Originality/value

This work contributes to existent literature by disentangling the effects of knowledge transfer according to different theoretical perspectives, and it provides an empirical examination in a setting which is intensive in knowledge transference, as is that of business divisions from related diversified firms.

Details

Journal of Knowledge Management, vol. 17 no. 6
Type: Research Article
ISSN: 1367-3270

Keywords

Article
Publication date: 29 April 2021

Abhishek Srivastava, Parimal Kumar and Arqum Mateen

This study analyzes supplier development investment decisions under a triadic setting (two buyers and a common supplier). In a triadic setting, the supplier development investment…

Abstract

Purpose

This study analyzes supplier development investment decisions under a triadic setting (two buyers and a common supplier). In a triadic setting, the supplier development investment decision of one buyer can have a spillover effect of the benefits on other buyer. Therefore, it is utmost important for the investing buyer to understand the impact of benefit spillover on other competing buyers'. Therefore, one of the purposes of this study to analyze the supplier development investment decision of buyers under two scenarios. First, under cooperative development structure where both buyers jointly invest in supplier and share equal benefits. Second, non-cooperative investment structure where both buyers individually invest in supplier development and share unequal benefits.

Design/methodology/approach

In order to assess the impact of supplier development investment decisions on the profitability of buyers and the common supplier, the authors used game-theoretic approach. The authors design a Stackelberg leader-follower game where the supplier acts as Stackelberg leader and buyers follow the supplier's pricing decision to maximize their profit level. Additionally, both buyers decide either to cooperate or non-cooperate while investing in supplier development.

Findings

The results show that the cooperative investment is always an optimal strategy for buyers and supplier. Interestingly, the efficient buyer's share of investment level is lower under non-cooperative investment structure and he is better-off due to its capability of taking advantage from the other buyer's investment. However, the inefficient buyer, on the other hand, is worse-off under non-cooperative investment. Furthermore, comparative analysis between the two shows that initially, the buyer who extracts more profit because of the other buyers' development investment tends to prefer the non-cooperative development investment set up. However, after a certain point, the same buyer is better-off under cooperative development investment through cooperation, and sharing equal benefit of the supplier's development, as the supplier in turn, starts charging a higher wholesale price under non-cooperative investment case.

Originality/value

To the best of authors’ knowledge, extant literature on supplier development has mostly focused on. One supplier-one buyer; thus, the learning spillover effect has almost been unexplored. In real-life, different buyers often purchase from the shared supplier. Therefore, it is important to analyze the spillover of supplier development benefits due to investment of one buyer on other buyer and deriving the condition under which buyers would be incentivized to invest jointly or individually.

Details

Benchmarking: An International Journal, vol. 28 no. 10
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 13 April 2012

Véronique Gille

Empirical evidence of education spillovers in developing countries and rural contexts is scarce and focuses on specific channels. The purpose of this paper is to provide evidence…

Abstract

Purpose

Empirical evidence of education spillovers in developing countries and rural contexts is scarce and focuses on specific channels. The purpose of this paper is to provide evidence of such spillovers in rural India, by evaluating the overall impact of neighbours' education on farm productivity.

Design/methodology/approach

The author uses cross‐sectional data from the India Human Development Survey of 2005. Spatial econometric tools are used to take into account social distance between neighbours. To be sure that the author's definition of a neighbourhood does not drive the results, three different definitions of neighbours were tested.

Findings

The results show that education spillovers are substantial: one additional year in the mean level of education of neighbours increases households' farm productivity by 2 per cent. These findings are robust to changes in specification.

Research limitations/implications

The results open the way to further research. In particular, this paper does not explore the channels through which this spillover effect happens.

Practical implications

This paper confirms the choice of improving education in developing countries: giving a child education will certainly provide him/her with greater revenues and it may also provide his/her neighbours with greater revenues. The paper shows the importance for policy makers of taking into account education spillovers and policies' complementarity when facing political trade‐offs.

Originality/value

This paper is one of the few to underline that education externalities do not only exist in urban contexts and education spillovers do not only occur between workers of the manufacturing and service sectors. There are also spillovers in sectors considered as more traditional, such as agriculture.

Article
Publication date: 20 September 2011

Edward Bbaale

This paper aims to investigate firm‐level interactions between productivity and exporting in Uganda's manufacturing sector.

Abstract

Purpose

This paper aims to investigate firm‐level interactions between productivity and exporting in Uganda's manufacturing sector.

Design/methodology/approach

The paper empirically tested two hypotheses that relate to the dynamic gains from trade and also have tended to dominate the literature; self‐selection and learning‐by‐exporting hypotheses. It employs proxies of self‐selection and learning‐by‐exporting obtained from indices of path dependence to fit maximum likelihood estimates of export behavior.

Findings

The results provide support for both hypotheses and it is also found that more experienced exporters reap more productivity gains from learning effects which is in line with the view that knowledge spillovers to exporting firms increase with the level of interaction in the global market place. Thus, learning‐by‐exporting is not a “short term” occurrence which takes place only in the first few years of entry in export markets after which it would fizzle out as a firm's exporting experience increases but rather, it is a cumulative process.

Practical implications

This paper generates a number of insights that can guide policy makers in designing policies to promote firm productivity growth that is an engine of growth in the private sector and by extension, would fuel up overall economic growth and poverty reduction.

Originality/value

Previous studies on exports and growth in Uganda have been basically focused on macro‐data analysis; yet, promoting rapid expansion of manufactured exports may require more than just a good macroeconomic policy environment. This study fills the research gap by relating firm‐level productivity performance to the microeconomic environment in which manufacturing firms operate.

Details

African Journal of Economic and Management Studies, vol. 2 no. 2
Type: Research Article
ISSN: 2040-0705

Keywords

Book part
Publication date: 19 April 2017

Minyuan Zhao and Mazhar Islam

Firms are increasingly organizing cross-regional R&D collaborations among different units. Such collaborations should promote knowledge flows across distance and bring new…

Abstract

Firms are increasingly organizing cross-regional R&D collaborations among different units. Such collaborations should promote knowledge flows across distance and bring new knowledge to the local communities. However, the nature of cross-regional collaborations varies widely depending on the organizations within which they are organized. Compared with collaborations within small firms, collaborations in large firms tend to be routinized, which reduces the need for interpersonal interactions and increases the dependence on organizational structure. As a result, additional spillover from cross-regional collaboration is likely to be lower if the collaboration is within large firms. We extend this argument to the regional level and hypothesize that regions with a higher level of cross-regional collaborations tend to generate more valuable technologies, but when large firms dominate the formation of such collaborations, the marginal benefits of cross-regional collaboration are significantly reduced. Using a data set from the pharmaceutical industry between 1975 and 2001, we find support for our hypotheses. We conduct a series of robustness tests to check the consistency of our results.

Details

Geography, Location, and Strategy
Type: Book
ISBN: 978-1-78714-276-3

Keywords

Open Access
Article
Publication date: 25 October 2022

Andrea Valenzuela-Ortiz, Jorge Chica-Olmo and José-Alberto Castañeda

This research investigates the effect of accessibility to points of tourist interest (buffer) and direct and indirect spatial spillover effects of agglomeration economies on…

2086

Abstract

Purpose

This research investigates the effect of accessibility to points of tourist interest (buffer) and direct and indirect spatial spillover effects of agglomeration economies on tourism industry revenues in Spain.

Design/methodology/approach

Data were collected from the Bureau van Dijk's (BvD) Orbis global database. The data were analysed using a spatial econometric model and the Cobb–Douglas production function.

Findings

This study reveals that hotels located inside the buffer zone of points of tourist interest achieve better economic outcomes than hotels located outside the buffer. Furthermore, the results show that there is a direct and indirect spatial spillover effect in the hotel industry.

Practical implications

The results provide valuable information for identifying areas where the agglomeration of hotels will produce a spillover effect on hotel revenue and the area of influence of location characteristics. This information is relevant for hotels already established in a destination or when seeking a location for a new hotel.

Social implications

The results of this study can help city planners in influencing the distribution of hotels to fit desired patterns and improve an area's spatial beauty.

Originality/value

The paper provides insights into how investment, structural characteristics, reputation and location affect hotel revenue.

Details

European Journal of Management and Business Economics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2444-8451

Keywords

21 – 30 of over 8000