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Article
Publication date: 2 November 2020

Muhammad Nabeel Safdar, Tian Lin and Saba Amin

This study, a symposium, aims to explore the determinants of financial inclusion, impact of cross-country income-variations on financial inclusion, do high-income countries

Abstract

Purpose

This study, a symposium, aims to explore the determinants of financial inclusion, impact of cross-country income-variations on financial inclusion, do high-income countries really uplift the financial inclusion and does the higher financial inclusion index indicate the larger economy?

Design/methodology/approach

This study adopts the panel data model to investigate the impact of high-income countries and low- and middle-income countries on financial inclusion. However, this study further adopts the principal component analysis rather than Sarma’s approach to calculate the financial inclusion index.

Findings

Based on the Data of World Bank, United Nations, International Monetary Fund, World Development Indicators, this study concludes that there is no nexus between income variations and financial inclusion, as the study reveals that some low- and middle-income countries have greater financial inclusion index such as Thailand (2.8538FII), Brazil (1.9526FII) and Turkey (0.8582FII). In low- and middle-income countries, the gross domestic product per capita, information technology and communication, the rule of law, age dependency ratio and urbanization have a noteworthy impact on financial inclusion that accumulatively describe the 83% of the model. Whereas, in high-income countries, merely, information technology and urbanization have a substantial influence on the growth of financial revolution and financial inclusion that describes the 70% of the total.

Research limitations/implications

The biggest limitation is the availability of data from different countries.

Originality/value

The originality of this paper is its technique, which is used in this paper to calculate the financial inclusion index. Furthermore, this study contributes to 40 different countries based on income, which could help to boost financial inclusion, and ultimately, it leads them toward economic growth.

Article
Publication date: 4 March 2021

Sofie Stulens, Kim De Boeck and Nico Vandaele

Despite HIV being reported as one of the major global health issues, availability and accessibility of HIV services and supplies remain limited, especially in low- and

Abstract

Purpose

Despite HIV being reported as one of the major global health issues, availability and accessibility of HIV services and supplies remain limited, especially in low- and middle-income countries. The effective and efficient operation of HIV supply chains is critical to tackle this problem. The purpose of this paper is to give an introduction to HIV supply chains in low- and middle-income countries and identify research opportunities for the operations research/operations management (OR/OM) community.

Design/methodology/approach

First, the authors review a combination of the scientific and grey literature, including both qualitative and quantitative papers, to give an overview of HIV supply chain operations in low- and middle-income countries and the challenges that are faced by organizing such supply chains. The authors then classify and discuss the relevant OR/OM literature based on seven classification criteria: decision level, methodology, type of HIV service modeled, challenges, performance measures, real-life applicability and countries covered. Because research on HIV supply chains in low- and middle-income countries is limited in the OR/OM field, this part also includes papers focusing on HIV supply chain modeling in high-income countries.

Findings

The authors conclude this study by identifying several tendencies and gaps and by proposing future research directions for OR/OM research.

Originality/value

To the best of the authors’ knowledge, this paper is the first literature review addressing this specific topic from an OR/OM perspective.

Details

Journal of Humanitarian Logistics and Supply Chain Management, vol. 11 no. 3
Type: Research Article
ISSN: 2042-6747

Keywords

Article
Publication date: 14 May 2018

Arshad Hayat

The purpose of this paper is to investigate the foreign direct investments (FDI)-growth nexus and the impact of natural resource abundance in the host country on the…

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Abstract

Purpose

The purpose of this paper is to investigate the foreign direct investments (FDI)-growth nexus and the impact of natural resource abundance in the host country on the FDI-growth nexus.

Design/methodology/approach

For a large data set of 104 countries for the period 1996-2015, Arellano and Bond’s GMM estimation method is applied to investigate the impact of FDI inflow on economic growth and the role of the natural resource sector on the FDI-growth relationship.

Findings

The paper found a positive and significant effect of FDI inflows on economic growth of the host country. However, the impact of FDI inflows on economic growth changes with the changes in the size of the natural resource sector. The estimated positive impact of FDI inflows on economic growth declines with the expansion in the size of natural resources. Beyond a certain limit, a further expansion in the size of natural resource sector will lead to a negative effect of FDI on economic growth.

Research limitations/implications

The paper found a positive and significant impact of FDI inflows on economic growth of the host country. However, the impact of FDI inflows on economic growth changes with the changes in the size of the natural resource sector. The estimated positive impact of FDI inflows on economic growth declines with the expansion in the size of the natural resources. Beyond a certain limit, a further expansion in the size of the natural resource sector will lead to a negative effect of FDI on economic growth. The same analysis is repeated for groups of countries divided into different income groups. FDI inflows are found to have significant growth enhancing role in all three groups of countries. However, FDI inflows-induced growth was found to be more pronounced in the middle- and low-income countries compared to high-income countries. Further, FDI-induced economic growth is slowed down in low-income and middle-income countries by the increase in size of the natural resource sector. While in high-income countries, the size of the natural resource sector has no significant role on the FDI-growth nexus.

Practical implications

While countries use their natural resource sector as an instrument to attract FDI into the countries, low- and middle-income countries face the dilemma of experiencing the resource curse in the form of watered down FDI-induced growth. Therefore, low- and middle-income countries need to try at the same time to attract FDI into the non-resources sector to keep the relative size of the natural resource sector low as to avoid hampering the FDI-induced economic growth. High-income countries, on the other hand, do not experience the FDI-induced growth hampering impact of the natural resource sector. Therefore, high-income countries should attract FDI into the countries regardless of the sector attracting the foreign investments.

Originality/value

The paper is part of the author’s PhD research and is an original contribution.

Details

Journal of Economic Studies, vol. 45 no. 2
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 26 October 2021

Madhvi Sethi, Saina Baby and Aarti Mehta Sharma

The Zhang–Markusen (Z-M) inverse U-shape theory uses education as a human capital variable to investigate the impact of educational attainment on foreign direct investment…

Abstract

Purpose

The Zhang–Markusen (Z-M) inverse U-shape theory uses education as a human capital variable to investigate the impact of educational attainment on foreign direct investment (FDI) inflows to a country. The objective of this research is to empirically test this theory in a cross-country framework.

Design/methodology/approach

Fixed effect panel regression has been used to test the Z-M hypothesis for 172 countries for the period 1990–2015. For the purpose of this study, countries were divided into four groups as per the World Bank classification: Low-income economies, lower middle-income countries, upper middle-income economies and high-income economies.

Findings

The findings of this study reinforce the proposition that macroeconomic factors are the major determinants of FDI inflows into various countries. The authors find that the size of the market measured by gross domestic product (GDP), the growth potential of the market measured by real GDP growth rate and the availability of infrastructure are the major factors that enhance the attractiveness of a country as an FDI destination.

Originality/value

Though the Z-M theory has been empirically tested in cross-country frameworks, no consensus has been reached. Thus, it is interesting to look again at the validity of the Z-M hypothesis using data covering longer and more recent periods. The study includes both macroeconomic and human capital determinants of FDI, so as to arrive at a comprehensive model explaining the FDI flows into various countries.

Details

Journal of Economic Studies, vol. 49 no. 7
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 4 March 2019

Backhoon Song and Ahreum Oh

The purpose of this paper is to analyze the effect of the duration of free trade agreement (FTA) and bilateral investment treaty (BIT) on the foreign direct investment…

Abstract

Purpose

The purpose of this paper is to analyze the effect of the duration of free trade agreement (FTA) and bilateral investment treaty (BIT) on the foreign direct investment (FDI) flows between OECDs and different level of income countries such as upper- and lower-middle-income countries.

Design/methodology/approach

The authors applied the gravity model by adding more variables of interest such as trade openness, export volume, dummy and cumulative variables of FTA and BIT to find out the proper determinants of FDI attraction. Through Hasuman test, the authors find the fixed model is appropriate methodology. Hence, the authors basically use the fixed models to find the effect of the duration of FTA and BIT on FDI flows between different groups of countries.

Findings

The main results of the study are briefly summarized briefly as follows. First, the effects of FTA dummy variables and its cumulative variables are greater than those of BIT dummy variables and cumulative variables. If an FTA signifies attracting FDI as well as bilateral trade, and contains an investment agreement provision in it is included in the FTA, it can be seen that the FTA is more effective way of attracting FDI than BIT because FTA is more comprehensive agreement dealing with not only investment issues but also non-investment ones. Second, the BIT effect on FDI is only meaningful when developed countries invest in developing countries. In other words, when a country decides to invest in a developing country with a relatively poor investment environment, whether to enter into a BIT will provide investors with investment stability to gage the investment climate of the host country. Third, the BIT cumulative year effect showed a positive and significant results on FDI inflow and outflow of all cases, unlike the BIT effect. While the fact that BIT cumulative effect has a relatively less positive effect than the BIT dummy effect, implying that BIT effect was evident as time elapsed after fermentation.

Originality/value

The main contribution of this study is that we consider the duration of FTA and BIT explicitly in the model. Previous related studies tried to find out the effects of FTA and BIT on FDI by simply applying dummy variables of them. In this paper, by applying both dummy variables and cumulative variables of FTA and BIT that capture the duration effect, we can deeply understand the effects of national agreements dealing with investment clauses on FDI more dynamically.

Details

Journal of Korea Trade, vol. 23 no. 1
Type: Research Article
ISSN: 1229-828X

Keywords

Article
Publication date: 11 March 2022

Duc Hong Vo and Ngoc Phu Tran

National intellectual capital is generally considered a strategic advantage for national competitiveness. However, the measurement of intellectual capital across countries

Abstract

Purpose

National intellectual capital is generally considered a strategic advantage for national competitiveness. However, the measurement of intellectual capital across countries for comparison purposes appears to receive little attention. This study aims to use a new index of national intellectual capital (INIC) to examine the relationship between national intellectual capital and national competitiveness.

Design/methodology/approach

This paper uses the INIC, developed by Vo and Tran (2021), to measure, compare and contrast differences in the level of national intellectual capital across 104 countries. INIC comprises the most crucial intellectual capital components: human capital, structural capital and relational capital. Various economic and social indicators are used as the proxies for these components of intellectual capital. Principal component analysis is used to derive INIC.

Findings

The results indicate that during the study period the level of national intellectual capital gradually increased. Europe has attained the highest level of national intellectual capital, whereas Africa has achieved the lowest level. This study’s findings confirm a close relationship between the national intellectual capital level and the national income level. Among the ten biggest countries, the USA achieved the highest national intellectual capital level, and China has significantly improved its cumulative level. Finland achieved the highest level of national intellectual capital in the world. National intellectual capital enhances a country’s competitiveness.

Practical implications

Findings in this study shed light on an international comparison of intellectual capital across countries and understanding how national intellectual capital contributes to and improves national competitiveness. Policymakers can consider and use these findings to support the accumulation of national intellectual capital and boost national competitive advantage, especially low-income countries and emerging markets.

Originality/value

To the best of the authors’ knowledge, this is the first study to estimate a degree of national intellectual capital around the world and examine its impact on national competitiveness based on publicly available data.

Details

Competitiveness Review: An International Business Journal , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 1 October 2000

John A. Daly

Developing countries generally have low levels of Internet services, and as a result require different approaches to impact measurement than developed countries. A…

2171

Abstract

Developing countries generally have low levels of Internet services, and as a result require different approaches to impact measurement than developed countries. A conceptual framework is proposed which accepts a role for technological innovation, but which rejects technological determinism. It recognizes that economic, social, political and cultural factors affect the penetration and use of the Internet. It emphasizes direct and indirect impacts of the Internet on people, while including impacts on institutions and the environmental factors and policies that affect institutional impacts. Ultimately the Internet is an induced innovation, but developing countries still suffer from the Matthew principle – that those who have most will be given still more. Impacts of the Internet range from communications cost savings, to changes in performance of individual businesses, NGOs, government agencies, and schools, to changes in performance of markets, to those measured in terms of economic growth, equity, health status, knowledge, and environmental quality. The overall view of the impacts of the Internet emerges (as does the picture in a jigsaw puzzle) from combining many studies of specific effects, each conveying a part of the picture. The majority of the people of the world live in low and middle income countries; they have the greatest need of the Internet to help solve the pressing problems of poverty, and they are the least prepared to use the technology and appropriate its benefits. Clearly great benefits are available to developing countries from appropriate uses of even their scarce Internet networks. Many of the institutions affected by the Internet are international. Internet impacts on these international institutions must be confronted. Thus developing countries may face significant risks from participation in international financial, labor and goods and services markets, because of significant gaps in connectivity and in knowledge and information. On the other hand, they may benefit greatly from power uses of the Internet abroad, of which Africans are scarcely aware, such as famine early warning and epidemiological alert systems. Donor agencies encourage the development of the Internet in developing countries, and especially in Africa. Several have agreed to work collaboratively to learn the lessons from their experience. Such efforts are important if the potential of the Internet is to be realized in developing countries, the risks inherent in the Internet are to be avoided or ameliorated, and the net effect to be enhanced equity and social and economic growth.

Details

Aslib Proceedings, vol. 52 no. 8
Type: Research Article
ISSN: 0001-253X

Keywords

Article
Publication date: 6 May 2014

Tesfaye T. Lemma and Minga Negash

The purpose of this paper is to examine the role of institutional, macroeconomic, industry, and firm characteristics on the adjustment speed of corporate capital structure…

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Abstract

Purpose

The purpose of this paper is to examine the role of institutional, macroeconomic, industry, and firm characteristics on the adjustment speed of corporate capital structure within the context of developing countries.

Design/methodology/approach

The authors considers a sample of 986 firms drawn from nine developing countries in Africa over a period of ten years (1999-2008). The study develops dynamic partial adjustment models that link capital structure adjustment speed and institutional, macroeconomic, and firm characteristics. The analysis is carried out using system Generalized Method of Moments procedure which is robust to data heterogeneity and endogeneity problems.

Findings

The paper finds that firms in developing countries do temporarily deviate from (and partially adjust to) their target capital structures. Our results also indicate that: more profitable firms tend to rapidly adjust their capital structures than less profitable firms; the effects of firm size, growth opportunities, and the gap between observed and target leverage ratios on adjustment speed are functions of how one measures capital structure; and adjustment speed tends to be faster for firms in industries that have relatively higher risk and countries with common law tradition, less developed stock markets, lower income, and weaker creditor rights protection.

Research limitations/implications

Future research should focus on examination of the adjustment speed of debt maturity structure. Identification of industry-specific characteristics that affect the pace with which firms adjust their capital structure to the optimum is another possible avenue for future research.

Practical implications

Our findings have practical implications for corporate managers, governments, legislators, and policymakers.

Originality/value

The study focuses on firms in developing countries for which the literature on adjustment speed of capital structure is virtually non-existent. Furthermore, unlike previous works on capital structure, it explicitly models industry variable as one of the determinants of adjustment speed. Therefore, it contributes to the literature on capital structure and adjustment speed in general and to the literature on developing countries in particular.

Details

Journal of Applied Accounting Research, vol. 15 no. 1
Type: Research Article
ISSN: 0967-5426

Keywords

Article
Publication date: 28 September 2012

Faridul Islam, Qazi Muhammad Adnan Hye and Muhammad Shahbaz

The purpose of this paper is to examine the relationship between import and economic growth for 62 countries.

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Abstract

Purpose

The purpose of this paper is to examine the relationship between import and economic growth for 62 countries.

Design/methodology/approach

The paper applies autoregressive distributed lag model (ARDL) for long‐run relation and Granger causality test, in order to detect the direction of short‐run and long‐run causal relationship.

Findings

The results indicate that the long‐run relationship exists in the USA, the UK, Japan, Iceland, Canada, Italy, Algeria, Brazil, Chile, Colombia, Cuba, Gabon, Malaysia, Mexico, Peru, South Africa, Uruguay, Bolivia, Cameroon, Cote d'Ivoire, Ecuador, Egypt, El Salvador, Guatemala, Honduras, India, Lesotho, Nicaragua, Papua New Guinea, Thailand, Bangladesh, Benin, Chad, Congo, Gambia, Kenya, Madagascar, Togo, Zambia and Zimbabwe when economic growth is dependent variable. This result confirms the importance of import in the process of sustainable economic growth of these countries. In alternative combination when import is dependent variable, the long‐run relationship is found in the USA, the UK, Japan, Finland, Iceland, Canada, Italy, Brazil, Cuba, Dominican Republic, Iran, Malaysia, Mexico, Peru, South Africa, Bolivia, Cameroon, Guatemala, Honduras, India, Indonesia, Lesotho, Morocco, Nicaragua, Pakistan, Philippines, Senegal, Sudan, Swaziland, Thailand, Tunisia, Bangladesh, Benin, Burkina Faso, Chad, Congo, Gambia, Kenya, Madagascar, Malawi, Mali, Mauritania, Togo and Zambia. These findings confirm the importance of source of economic growth for import. On the other hand, the results of Granger causality test indicate mixed results but the importance is that in the case of higher income countries, there is unidirectional long‐run causality found from import to economic growth (except the USA, Iceland and Italy), and bidirectional long‐run causal relationship exists between import and economic growth in low income countries except Madagascar and Mauritania.

Originality/value

This paper provides the largest sample, including 62 countries, examining the relationship between import and economic growth, from 1971 to 2009.

Details

Journal of Chinese Economic and Foreign Trade Studies, vol. 5 no. 3
Type: Research Article
ISSN: 1754-4408

Keywords

Book part
Publication date: 2 September 2020

Nurgül Emine Barin, Sabriye Kundak and Vildan Saba Cenikli

Introduction – Female employment and policies are an important aspect of growth and development. Inadequate utilisation of female labour force within the national economy…

Abstract

Introduction – Female employment and policies are an important aspect of growth and development. Inadequate utilisation of female labour force within the national economy reflects in economic and social indicators especially in developing countries. Women’s self-development, active participation in labour markets, and social and economic opportunities are the main factors in the development of countries. This study attempts to research the effects of female work force participation in the member countries of the Organisation of Islamic Cooperation (OIC) on economic growth in time period between 2004 and 2016. The countries were selected among the countries that have high and middle human development index according to Human Development Report in 2017.

Purpose – In this chapter, it is aimed to support the employment of female labour force and to show its share in development and growth in the member countries of the OIC. The aspect differs from similar studies to address the issue in term of Islamic countries.

Methodology – While analysing the impact of female employment on growth, the panel data analysis method and fixed and random effect model were used.

Findings – It has been found that female employment has a positive impact on economic growth for the selected OIC countries.

Details

Contemporary Issues in Business Economics and Finance
Type: Book
ISBN: 978-1-83909-604-4

Keywords

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