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Article
Publication date: 13 June 2023

Muhammad Luqman and Ghulam Murtaza

The main purpose of this study is to examine the impact of imported inputs on firms' productivity in selected South Asian economies, namely Pakistan, India and Bangladesh…

Abstract

Purpose

The main purpose of this study is to examine the impact of imported inputs on firms' productivity in selected South Asian economies, namely Pakistan, India and Bangladesh. Furthermore, this study explores the complementarity between firms' capabilities and imported inputs in an augmented productivity framework.

Design/methodology/approach

A dataset comprising 7117 manufacturing firms of selected South Asian economies was taken from the World Bank for 2013 and 2014. The empirical analysis was based on stochastic frontier models, the ordinary least square method and instrumental variable estimation techniques.

Findings

The empirical results show that imported inputs have positive and significant effects on the firms' productivity in the selected countries. Moreover, the study findings demonstrate that firms' capabilities play a complementary role in expanding the firms' production frontier.

Practical implications

The study outcomes suggest that reducing tariffs on imported inputs will enhance the firms' productivity in the selected emerging economies. However, the study further finds that the potential gain of imported inputs is conditional on the firm's capabilities. It implies that firms operating in these countries can improve their performance by allocating more resources to capabilities, such as workers’ training, management and internal R&D effort.

Originality/value

The existing literature on the subject is sceptical about the positive impact of imported inputs on firms' productivity in the case of developing countries. In this regard, the shortage of skilled labour and firms' capabilities are compelling rationales that need to be explored. Thus, the potential contribution of the study lies in explaining the moderating role of firm's capabilities operating in the selected emerging economies in the nexus of imported inputs and productivity.

Details

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

Keywords

Article
Publication date: 28 February 2023

Zeqi Liu, Zefeng Tong and Zhonghua Zhang

This study examines the differences in the economic stimulus effects, transmission mechanisms, and output multipliers of government consumption, government traditional investment…

Abstract

Purpose

This study examines the differences in the economic stimulus effects, transmission mechanisms, and output multipliers of government consumption, government traditional investment, and government science and technology investment.

Design/methodology/approach

This study constructs and estimates a New Keynesian model of endogenous technological progress embedded in the research and development (R&D) and technology transfer sectors. Using Chinese macroeconomic time series data from 1996 to 2019, this study calibrates and estimates the model and analyzes the impulse response function and a counterfactual simulation of expenditure structure adjustment.

Findings

The results show that compared with the traditional dynamic stochastic general equilibrium (DSGE) model, the endogenous process of technological progress amplifies the impact of government consumption shock and traditional government investment shock on the macroeconomy, leading to greater economic cycle fluctuations. As government investment in science and technology has positive external spillover effects on firm R&D activities and the application of innovation achievements, it can promote more sustainable economic growth than government consumption and traditional investment in the long run.

Originality/value

This study constructs an extended New Keynesian model with different types of government spending, which includes endogenous technological progress within the R&D and technology transfer sectors, thereby linking fiscal policy, business cycle fluctuations and long-term economic growth. This model can study the macroeconomic impact of fiscal expenditure structure adjustment when fiscal expansion is limited. In the Bayesian estimation of model parameters, this study not only uses macroeconomic variables but also adds a sequence of private R&D investment.

Details

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

Keywords

Article
Publication date: 30 August 2023

Nitin Arora and Shubhendra Jit Talwar

The fiscal outlay efficiency matters when the performance-based allocation of funds is made to state governments by the central government in a federal structure of an economy…

Abstract

Purpose

The fiscal outlay efficiency matters when the performance-based allocation of funds is made to state governments by the central government in a federal structure of an economy like India. Also the efficiency cannon of public expenditure is a key aspect in the field of public economics. Thus, a study to evaluate the efficiency in fiscal outlay of Indian states has been conducted.

Design/methodology/approach

The paper offers a three divisions–based paradigm under Network Data Envelopment Analysis framework to compare the performance of fiscal entities (say Indian state governments) in converting available fiscal resources into desired short-run and long-run growth and development objectives. The network efficiency score has been taken as a measure of the quality of fiscal outlay management that is trifurcated into divisional efficiencies representing budgeting process, fiscal outlay efficiency process and fiscal outlay effectiveness process.

Findings

It has been noticed that the states are under performing in achieving short-run growth targets and so the efficiency process division has been identified a major source of fiscal under performance. Suboptimum allocation of fiscal expenditure under various heads within the fiscal resources, as explained under budgeting process, is another major cause of fiscal under performance.

Practical implications

The study purposes a three divisions–based paradigm that takes into account efficiency of a state in (1) planning budget, (2) achieving short-run growth targets and (3) achieving long-run development targets. These three stages are named as budgeting process efficiency, fiscal outlay efficiency and fiscal outlay effectiveness, respectively. Therefore, a new paradigm called BEE paradigm is proposed to evaluate performance of fiscal entities in terms of fiscal outlay efficiency.

Originality/value

In existing literature on measuring efficiency of public expenditure, the public sector outputs have been made as function of fiscal expenditure as input treating the said outlay as an exogenous variable. In present context, the fiscal expenditure has been treated endogenous to the budgeting process. A high inefficiency on account of budgeting process supports this treatment too.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 10 January 2024

He-Boong Kwon, Jooh Lee and Ian Brennan

This study aims to explore the dynamic interplay of key resources (i.e. research and development (R&D), advertising and exports) in affecting the performance of USA manufacturing…

Abstract

Purpose

This study aims to explore the dynamic interplay of key resources (i.e. research and development (R&D), advertising and exports) in affecting the performance of USA manufacturing firms. Specifically, the authors examine the dynamic impact of joint resources and predict differential effect scales contingent on firm capabilities.

Design/methodology/approach

This study presents a combined multiple regression analysis (MRA)-multilayer perceptron (MLP) neural network modeling and investigates the complex interlinkage of capabilities, resources and performance. As an innovative approach, the MRA-MLP model investigates the effect of capabilities under the combinatory deployment of joint resources.

Findings

This study finds that the impact of joint resources and synergistic rents is not uniform but rather distinctive according to the combinatory conditions and that the pattern is further shaped by firm capabilities. Accordingly, besides signifying the contingent aspect of capabilities across a range of resource combinations, the result also shows that managerial sophistication in adaptive resource control is more than a managerial ethos.

Practical implications

The proposed analytic process provides scientific decision support tools with control mechanisms with respect to deploying multiple resources and setting actionable goals, thereby presenting pragmatic benchmarking options to industry managers.

Originality/value

Using the theoretical underpinnings of the resource-based view (RBV) and resource orchestration, this study advances knowledge about the complex interaction of key resources by presenting a salient analytic process. The empirical design, which portrays holistic interaction patterns, adds to the uniqueness of this study of the complex interlinkages between capabilities, resources and shareholder value.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 9 June 2023

Seongsoo Jang, Hwang Kim and Vithala R. Rao

Firms can benefit from designing sales promotion based on the analysis of consumers' physical exercise and purchase data. This study aims to study mobile exercise app data to…

Abstract

Purpose

Firms can benefit from designing sales promotion based on the analysis of consumers' physical exercise and purchase data. This study aims to study mobile exercise app data to explore how purchasing a promoted or nonpromoted product affects exercisers’ subsequent exercise and purchase behaviors.

Design/methodology/approach

Drawing from the theoretical framework of overjustification effect, this study empirically examines the effects of the purchase of promoted – monetary and nonmonetary – or nonpromoted products on relationships (1) between past and subsequent exercise behaviors and (2) between past exercise and subsequent purchase behaviors. Novel data of one million exercise activities and purchase transactions created by 7,517 mobile exercise app users were collected.

Findings

The results reveal that monetary and nonmonetary promotions have a negative effect on overall consumers’ amount of physical exercise but increase heavy exercisers’ exercise amount. In addition, nonmonetary (monetary) promotion has a positive (negative) effect on consumers’ purchase expenditure but has no moderating effect on the exercise–expenditure relationship.

Originality/value

This study provides a theoretical framework explaining how to mitigate the dark side of sales promotions while targeting right exercise consumer segments with the right promotion campaigns.

Details

Information Technology & People, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0959-3845

Keywords

Article
Publication date: 10 January 2023

Simeon Kaitibie, Arnold Missiame, Patrick Irungu and John N. Ng'ombe

Qatar, a wealthy country with an open economy has limited arable land. To meet its domestic food demand, the country heavily relies on food imports. Additionally, the over three…

Abstract

Purpose

Qatar, a wealthy country with an open economy has limited arable land. To meet its domestic food demand, the country heavily relies on food imports. Additionally, the over three year-long economic embargo enforced by regional neighbors and the covariate shock of the COVID-19 pandemic have demonstrated the country's vulnerability to food insecurity and potential for structural breaks in macroeconomic data. The purpose of this paper is to examine short- and long-run determinants of Qatar's imports of aggregate food, meats, dairy and cereals in the presence of structural breaks.

Design/methodology/approach

The authors use 24 years of food imports, gross domestic product (GDP) and consumer price index (CPI) data obtained from Qatar's Planning and Statistics Authority. They use the autoregressive distributed lag (ARDL) cointegration framework and Chambers and Pope's exact nonlinear aggregation approach.

Findings

Unit root tests in the presence of structural breaks reveal a mixture of I (1) and I (0) variables for which standard cointegration techniques do not apply. The authors found evidence of a significant long-run relationship between structural changes and food imports in Qatar. Impulse response functions indicate full adjustments within three-quarters of a year in the event of an exogenous shock to imports.

Research limitations/implications

An exogenous shock of one standard deviation on this variable would reduce Qatar's food imports by about 2.5% during the first period but recover after the third period.

Originality/value

The failure of past aggregate food demand studies to go beyond standard unit root testing creates considerable doubt about the accuracy of their elasticity estimates. The authors avoid that to provide more credible findings.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 3 October 2022

Qingyu Zhang, Xiude Chen and Mei Cao

Previous studies demonstrate that market-oriented reform has contributed significantly to China's economic growth from the efficiency-based economic view. But some argue that…

Abstract

Purpose

Previous studies demonstrate that market-oriented reform has contributed significantly to China's economic growth from the efficiency-based economic view. But some argue that state-owned firms have access to policy information, scarce resources, and government support, and thus state-owned firms might foster innovation. This study tries to find out either market force or state ownership helps improve firms' R&D efficiency.

Design/methodology/approach

Using data from China's high-tech industry, we employed the fixed-effect stochastic frontier model and the spatial panel Han-Philips linear dynamic regression model to investigate the relationship between market-oriented reform and the dynamic evolution of R&D efficiency in both temporal and spatial dimensions. Moreover, we examined whether the relationship is affected in a state-owned economy and an industry protection environment.

Findings

The results indicate the following: (1) the R&D efficiency of China's high-tech industry has improved steadily and has converged gradually across its regions during the market-oriented reform; (2) the marketization degree is positively correlated with R&D efficiency and its regional convergence; (3) the state-owned economy and industry protection have significantly weakened the ability of market forces to shape R&D efficiency — i.e. they reduce, rather than enhance, R&D efficiency.

Originality/value

This investigation helps understand the drivers of R&D efficiency in transition economies, and the findings are also helpful in defining the boundaries and constraints of market forces.

Details

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

Keywords

Article
Publication date: 28 February 2023

Claudio Petti, Dominique Lepore, Olena Liakh and Gianluca Elia

In times of crisis, innovation management and specifically Research and Development (R&D) investments are critical to temper company losses and stimulate higher revenues…

Abstract

Purpose

In times of crisis, innovation management and specifically Research and Development (R&D) investments are critical to temper company losses and stimulate higher revenues. Environmental policies, for their potential to stimulate environmental innovations and efficient management of resources, may hold a magnifying role in this relationship. By relying on the distinction between regulatory policies and institutional incentives, this paper argues about the moderating role of environmental policies between a firm's R&D expenses and its performance.

Design/methodology/approach

Hypotheses are tested on data collected from a sample of small and medium-sized Chinese enterprises after the 2008 financial crisis.

Findings

Findings reveal positive moderating effects of both regulatory pressures and institutional incentives, with a more significant effect of government support. The highest impact is reached when both these types of policies are present.

Originality/value

The theoretical and methodological relevance of this distinction, the importance of an appropriate mix of environmental policies in policymaking and their resilience building role in stimulating environmental innovations in the aftermath of crises are discussed.

Details

European Journal of Innovation Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 9 June 2023

Cristina Bota-Avram

This study aims to contribute to the existing literature by empirically investigating the impact of digital competitiveness and technology on corruption under the moderating…

Abstract

Purpose

This study aims to contribute to the existing literature by empirically investigating the impact of digital competitiveness and technology on corruption under the moderating effect of some cultural and economic control variables and providing evidence on the links between corruption and various cultural dimensions at the country level.

Design/methodology/approach

The cross-sectional sample covers 61 countries (41 high-income and 20 lower-income countries) during the 2016–2020 period, and the analysis was carried out for both the full sample and the subsamples.

Findings

The results provide clear evidence supporting the hypothesis that digitalisation and technology significantly affect the perceived level of corruption under the moderating role of cultural framework and economic development. Furthermore, the most significant cultural dimensions of corruption are individualism versus collectivism, uncertainty avoidance, long-term orientation and indulgence versus restraint, even if, in some cases, its influence might be felt differently when the results are estimated on subsamples. Thus, in the case of indulgence versus restraint, high-income countries with higher indulgence scores would register higher scores for the corruption perception index and thus a better control of corruption, while for lower-income countries, the more indulgent these countries are, the weaker the corruption control will be. Furthermore, our results validate a powerful and significant correlation between the index of economic freedom and corruption in both digitalisation and technology.

Research limitations/implications

This study may have relevant implications for policymakers who need to recognise the role of digitalisation and technology in the fight against corruption but considering the cultural and economic characteristics specific to each country.

Originality/value

To the authors' knowledge, the relationship between digital competitiveness, technology and corruption within an economic and cultural framework, while highlighting the differences between high-income and lower-income countries, has not been previously documented in the literature. Thus, this article argues that the level of digital competitiveness and the adoption of technology would significantly impact the level of perceived corruption, although this impact could be felt differently by countries in the high-income category compared to countries in the lower-level income category.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 14 September 2023

Ishfaq Nazir Khanday, Md. Tarique, Inayat Ullah Wani and Muzffar Hussain Dar

The primary objective of the paper is to examine the asymmetric Cointegration and asymmetric causality between financial development and poverty alleviation on annual data in…

Abstract

Purpose

The primary objective of the paper is to examine the asymmetric Cointegration and asymmetric causality between financial development and poverty alleviation on annual data in Indian context over the period from 1980 to 2019.

Design/methodology/approach

First nonlinearity test by Brooks et al. (1999) is applied to ascertain the nonlinear behavior of the variables used. Once the nonlinear behavior of variables is confirmed, asymmetric and nonlinear unit root tests by Kapetanios and Shin (2008) are applied to check for the order of integration of selected variables. Next, nonlinear autoregressive distributed lag model (NARDL) is employed to analyze the asymmetric Cointegration. Finally, Hatemi-j- asymmetric causality tests is applied to work out the direction of asymmetric causality.

Findings

The empirical findings document the existence of asymmetries in the short-run as well as long-run between poverty and financial development. The asymmetry reveals that negative financial development shocks leave a more profound impact on poverty alleviation than their positive equivalents. The findings of Wald's test also confirm the presence of asymmetric Cointegration. The asymmetric cumulative dynamic multipliers used to examine the behavior of asymmetries and adjustments with respect to time lend credence to the results calculated using NARDL estimator. This result exhibits the robustness of the model. Furthermore, the result emanating from recently introduced asymmetric causality test reveals a unidirectional asymmetric causality between negative shocks in financial development and poverty. The findings of the present study necessitate the need for investigating asymmetric and nonlinear effects in finance–poverty nexus, which existent literature has completely neglected, in order to have relevant policy conclusions.

Research limitations/implications

The study used “Per capita consumption expenditure” as a measure for poverty due to lack of continuous time series data on headcount ratio. In future, researchers can extend this study by incorporating headcount ratio as a measure of poverty in their respective works. There is further scope of research on this issue by finding out the impact of formal and informal sources of credit on poverty separately. A panel data study for developing countries over a period of time could further confirm/negate the findings of the present study.

Originality/value

To the best of the authors’ knowledge none of the studies in Indian context has scrutinized asymmetric and nonlinear impact of financial development on poverty. To dredge up asymmetric structures at work, the authors have used the highly celebrated NARDL estimator. To enrich the existent body of knowledge along the lines of asymmetric (nonlinear) linkages, the authors have also used recently introduced asymmetric causality test by Hatemi-j-(2012) to find out the direction asymmetric causality.

Details

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

Keywords

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