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1 – 10 of over 2000Hermann Ndoya and Simplice A. Asongu
This study aims to analyse the impact of digital divide (DD) on income inequality in sub-Saharan Africa over the period 2004–2016.
Abstract
Purpose
This study aims to analyse the impact of digital divide (DD) on income inequality in sub-Saharan Africa over the period 2004–2016.
Design/methodology/approach
In applying a finite mixture model (FMM) to a sample of 35 sub-Saharan African (SSA) countries, this study posits that DD affects income inequality differently.
Findings
The findings show that the effect of DD on income inequality varies across two distinct groups of countries, which differ according to their level of globalization. In addition, the study shows that most globalized countries are more inclined to be in the group where the effect of DD on income inequality is negative. The results are consistent with several robustness checks, including alternative measures of income inequality and additional control variables.
Originality/value
This study complements that extant literature by assessing linkages among the DD, globalization and income inequality in sub-Saharan African countries contingent on cross-country heterogeneity.
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Folorunsho M. Ajide and James T. Dada
The study's objective is to examine the relevance of globalization in affecting the size of the shadow economy in selected African nations.
Abstract
Purpose
The study's objective is to examine the relevance of globalization in affecting the size of the shadow economy in selected African nations.
Design/methodology/approach
To do this, the authors employ the KOF globalization index and implement both static and dynamic common correlated mean group estimators on a panel of 24 African nations from 1995–2017. This technique accommodates the issue of cross-sectional dependence, sample bias and endogenous regressors. Panel threshold analysis is also conducted to establish the nonlinearity between globalization and the shadow economy. To examine the causality between the variables, the study employs Dumitrescu and Hurlin's panel causality test.
Findings
The results show that globalization reduces the size of the shadow economy. The results of the nonlinear analysis suggest a U-shaped relationship. Overall globalization has a threshold impact of 48.837%, economic globalization has 45.615% and political globalization has 66.661% while social globalization has a threshold value of 35.744%. The results of the panel causality show that there is a bidirectional causality between the two variables.
Practical implications
The results suggest that the government and other relevant authorities need to introduce capital controls and other policy measures to moderate the degree of social, political and cultural diffusion. Appropriate policies should be formulated to monitor the extent of African economic openness to other continents to maximize the gains from globalization.
Originality/value
Apart from being the first study in the African region that evaluates the relevance of globalization in controlling the shadow economy, it also analyzes the dynamics and threshold analysis between the two variables using advanced panel econometrics which makes the study unique. The study suggests that globalization tools are useful for affecting the size of the shadow economy in Africa. This study provides fresh empirical evidence on the impact of globalization on the shadow economy in the case of Africa.
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Hag-Min Kim, Ping Li and Yea Rim Lee
This study aims to investigate current deglobalization against globalization and to hypothesize reasons and drivers of deglobalization. In addition, the study suggests an…
Abstract
Purpose
This study aims to investigate current deglobalization against globalization and to hypothesize reasons and drivers of deglobalization. In addition, the study suggests an empirical model to test whether deglobalization exists in the world economy. The consequences of deglobalization are discussed.
Design/methodology/approach
Various measures for deglobalization are introduced for monitoring the deglobalization of a country, and statistical measures are reported. The research framework for deglobalization and empirical models are suggested. The relationship between deglobalization and globalization is being modeled using three KOF globalization indexes: economic, political and societal. This study used panel data from 1970 to 2017 for developed and developing countries to determine the degree of deglobalization.
Findings
Deglobalization has been found empirically since the global financial crisis. Deglobalization is estimated by the decreasing trend of import share in a country's gross domestic product and is influenced by manufacturing imports, country's income divide and political globalization. Both economic and societal globalizations have negative influence on deglobalization. Deglobalization is more apparent in developed countries than in developing countries, and the deglobalization trend will continue in diverse formats.
Research limitations/implications
This study limits the use of few variables to test the antecedents of deglobalization. Another study can be done to extend preceding variables and estimate the consequences of deglobalization, which may segregate the globalization effect. The international business executive should understand the complexity of deglobalization and consider business benefits and risks to be encountered.
Originality/value
This study used panel data from 1970 to 2017 for developed and developing countries to determine the degree of deglobalization.
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To realise the shared development of the digital economy, people need to transcend the capital logic and advocate the logic of cooperative development, i.e. “co-construction…
Abstract
Purpose
To realise the shared development of the digital economy, people need to transcend the capital logic and advocate the logic of cooperative development, i.e. “co-construction, benefit-sharing and co-governance”. This study aims to discuss the aforementioned statement.
Design/methodology/approach
Platform economy is a new economic form produced by the transformation of the social production patterns in the era of digital capitalism. In the neo-imperialist stage, a new stage of capitalist development, capital logic promotes the global expansion of the platform economy and influences its development process, organisational form, contradictions and dilemmas and internal transcendence. Having the spatiotemporal chain of capital circulation repaired, the globalisation of the platform economy is reshaping how the means of production are combined with labour, affecting the local changes in the general relations of production and “international relations of production”.
Findings
In the accumulation of digital capitalism, the social contradictions and fundamental contradictions in the capitalist world have been further intensified, making exploitation, income distribution gap, monopoly and other problems increasingly severe. The imbalance and inequality in the global development of the digital economy are increasingly prominent.
Originality/value
Regarding the global governance of the digital economy, China, as a major responsible country, will strive to encourage all countries to co-build a community with a shared future in cyberspace. In the new international development pattern of digital economy globalisation, China must take effective measures to actively safeguard its national security and development interests to meet specific challenges.
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Martin Henning and Ramsin Yakob
The purpose of this study is to investigate how an increasingly intertwined international geography of ownership affects renewal activities and processes, including innovation, in…
Abstract
Purpose
The purpose of this study is to investigate how an increasingly intertwined international geography of ownership affects renewal activities and processes, including innovation, in established local companies that have shifted into foreign ownership. The authors develop a framework for the relations between (foreign) ownership and local renewal activities and processes (including innovation). The authors focus on access to resources for renewal, the development of capabilities for innovation and change, and local mandates to pursue renewal. Based on case studies of eight formerly Swedish-owned mid-size manufacturing companies that have shifted into and remained under foreign ownership during most of the 2010s, the authors develop a framework concerned with the relations between (foreign) ownership and renewal activities and processes in local firms.
Design/methodology/approach
Multiple intensive case studies of eight previously Swedish-owned mid-sized manufacturing companies to gain qualitative insights into the resource, capabilities and mandates for renewal under new ownership conditions. Empirical data collected primarily through semi-structured interviews and complemented with secondary material, including annual reports (2010–2018), databases, press releases and information on company websites. Empirical data were analyzed thematically to isolate key findings pertaining to renewal. At the core of the analysis process was the gradual creation of a framework that stipulates the relations between (foreign) ownership and firm renewal activities and processes.
Findings
The companies are endowed with liberal but conditional mandates to pursue strategic innovation in their original sites and draw on a stronger resource repertoire within their ownership spheres. In comparison to the established international business (IB) literature, the authors add considerations about how local aspects interact with international ones to form global distribution of renewal activities in our time. To economic geographers and innovation scholars, consideration of the local and its importance in renewal activities and processes is certainly not new, but we show how ownership is an important aspect that conditions some of the strategic interactions that companies have with their “outsides”.
Originality/value
Contributes to the burgeoning conversation between IB and economic geography disciplines. Emphasizes a deeper local aspect to the IB literature, partly how companies access resources and capabilities from the ownership sphere at points that suit their renewal efforts and partly the persistence of path-dependent aspects of local companies even as they get acquired by multinationals. Emphasizes ownership and mandate aspects to the literature in Economic geography, which tends to focus on regional/non-regional assets for renewal and innovation. Findings show that the non-regional assets are, in fact, two distinct categories as ownership becomes internationalized: assets within and outside the ownership sphere.
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Minh Ngoc Le and Hoang Long Chu
The authors investigate the impact of standards compliance on the participation in the global value chain and labour value-added of Vietnam’s small and medium-sized enterprises…
Abstract
Purpose
The authors investigate the impact of standards compliance on the participation in the global value chain and labour value-added of Vietnam’s small and medium-sized enterprises (SMEs).
Design/methodology/approach
The authors use a three-period panel dataset of SMEs combined with Vietnam’s Provincial Competitiveness Index. The authors also use multiple econometric models; and with each model, the authors include all independent variables that are available from the study's data and that are suggested by the literature.
Findings
The authors find that standards compliance by Vietnam’s SMEs improved their participation in the global value chain via subcontracts with FDI multinational firms. The authors also find that standards compliance improved the value-added of labour in Vietnam’s SMEs, which is robust to the choice of econometric models.
Practical implications
The study's results suggest that better outcomes for firms and society will be possible if standards are recognised and respected.
Originality/value
This paper complements scant literature on the impact of standards compliance on global value chain participation via subcontracting work and labour value-added, especially in developing countries.
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The literature mostly investigates the business cycle transmission of the United Kingdom (UK) and France as a part of a wider group (e.g. European Exchange Rate Mechanism or G7)…
Abstract
Purpose
The literature mostly investigates the business cycle transmission of the United Kingdom (UK) and France as a part of a wider group (e.g. European Exchange Rate Mechanism or G7), despite their historical links and regional significance. Thus, herein paper aims to analyse the inter-dependence of these economies and how a shock from one of them affects the other for the data since 1978 to 2019.
Design/methodology/approach
In this paper, first, preliminary statistics were calculated in order to describe the historical relationship between these countries. The econometric part estimates the vector auto-regression model (VAR) to assess the inter-dependence of the economies. VAR model allows further to inspect the impulse response functions that shows the shock dynamics from one country to another. In order to verify if a shock from one of the economies is important to another, the study uses granger causality test.
Findings
The study establishes a strong link between these countries. A business cycle is transmitted significantly between the economies of France and UK, with a single standard deviation shock from France resulting in a long term effect of 0.4% change in gross domestic product (GDP) of UK and 1% vice versa. Additionally changes in GDP of both of the countries significantly Granger-cause change to GDP of the corresponding economy.
Originality/value
This is the first empirical study investigating the business cycle transmission between France and UK and providing a quantitative assessment of their inter-dependence.
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Kaveh Moghaddam, Elzotbek Rustambekov, Thomas Weber and Sara Azarpanah
Transnational entrepreneurship can be considered a new stream of research where migrant entrepreneurship and international business research fields intersect. The purpose of this…
Abstract
Purpose
Transnational entrepreneurship can be considered a new stream of research where migrant entrepreneurship and international business research fields intersect. The purpose of this paper is to offer a theoretical framework to address the following research question: How do transnational entrepreneurs (TEs) develop their competitive advantage to succeed in a global market?
Design/methodology/approach
Based on the strategic entrepreneurship approach and dynamic capability perspective, this paper suggests a theoretical framework to extend the understanding on how TEs may develop their competitive advantage to succeed in a global market.
Findings
The suggested theoretical framework exhibits how the social ties of TEs affects their firm performance through the mediating effect of a bundle of two organizational processes (opportunity sensing and opportunity seizing) and the moderating effect of institutional distance between countries of origin and residence.
Practical implications
TEs should not solely focus on their ethnic social ties. That is why this paper suggests that ethnic ties in the country of origin and the country of residence (COR) may lead to higher firm performance only if systematically used alongside nonethnic ties in the COR. Furthermore, it is crucial for TEs to understand the importance of dynamic capabilities in developing and sustaining their competitive advantage.
Originality/value
Based on the strategic entrepreneurship approach, this paper suggests a social tie-based model of the dynamic capability to address the theoretical void in the transnational entrepreneurship literature. The linkage between social tie and performance which has been in a black box is examined in terms of how strong and weak social ties may affect different underlying processes of TEs’ dynamic capabilities differently. In contrast to the common conceptualization of institutional distance as a negative moderator in international business literature, institutional distance is theorized as a positive moderator in the suggested theoretical model of transnational entrepreneurship.
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