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Article
Publication date: 9 November 2010

Florence Ling and Siew Huay Lim

Construction firms in the People's Republic of China (PRC) have been exporting their services to foreign countries. The aim of this research is to study how PRC contractors can…

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Abstract

Purpose

Construction firms in the People's Republic of China (PRC) have been exporting their services to foreign countries. The aim of this research is to study how PRC contractors can improve their export performance. The specific objectives are to: ascertain the performance outcomes of projects undertaken by PRC contractors; identify strategies that PRC firms adopt to enable them to export effectively; and recommend areas in which PRC firms can improve their export performance.

Design/methodology/approach

The research design is a multi‐pronged approach, comprising industry‐wide postal/e‐mail survey using a structured questionnaire, in‐depth face‐to‐face interviews with PRC firms operating in Singapore and Singaporean firms that had worked with PRC firms in Singapore. Open‐ended questions were administered for the interviews.

Findings

The results show that PRC firms adopt cost leadership, diversification and networking strategies effectively. They generally have strong financial capacity and receive strong government support in their export activity. They offer low bids through low profit margins, low labour cost and satisfactory quality. They are not operating at the optimum level and there is room for improvement, if they wish to improve their export performance.

Research limitations/implications

The limitation of the present findings is that PRC firms' export activities are investigated from the Singapore context, which may not be generalizable. Only nine PRC firms were interviewed, but this nevertheless represents 69 per cent of registered PRC contractors in Singapore. The qualitative data from the interviews precluded statistical analysis, but provided rich and comparable insights.

Practical implications

The study presents recommendations on how PRC firms may improve their export performance. Non‐PRC firms would be informed of the strategies and actions that PRC firms take or will take, and will be better prepared to compete with them internationally.

Originality/value

The study is of value because it identifies the strengths of PRC firms as exporters of construction services. Recommendations on how PRC firms can improve their export performance are also offered. PRC firms may leverage on their strengths, and take in some of the recommendations, so that they can further improve their export performance.

Details

Engineering, Construction and Architectural Management, vol. 17 no. 6
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 22 October 2019

Chong Siew Huay, Jonathan Winterton, Yasmin Bani and Bolaji Tunde Matemilola

The purpose of this paper is to analyse the impact of remittances on human development in developing countries using panel data from 1980 to 2014 and to address the critical…

Abstract

Purpose

The purpose of this paper is to analyse the impact of remittances on human development in developing countries using panel data from 1980 to 2014 and to address the critical question of whether the increasing trend of remittances has any impact on human development in a broad range of developing countries.

Design/methodology/approach

Usual panel estimates, such as pooled OLS, fixed or random effects model, possess specification issues such as endogeneity, heterogeneity and measurement errors. In this paper, we, therefore, apply dynamic panel estimates – System generalised method of moment (Sys-GMM) developed by Arellano and Bond (1991) and Arellano and Bover (1995). This estimator is able to control for the endogeneity of all the explanatory variables, account for unobserved country-specific effects that cannot be done using country dummies due to the dynamic structure of the model (Azman-Saini et al., 2010).

Findings

The effect of remittances is statistically significant with positive coefficients in developing countries. The significant coefficient of remittances means that, holding other variables constant, a rise in remittance inflows is associated with improvements in human development. A 10 per cent increase in remittances will lead to an increase of approximately 0.016 per cent in human development. These findings are consistent with Üstubuci and Irdam (2012) and Adenutsi (2010), who found evidence that remittances are positively correlated with human development.

Practical implications

The paper considers implications for policymakers to justify the need for more effective approaches. Policymakers need to consider indicators of human development and to devise public policies that promote income, health and education, to enhance human development.

Originality/value

The question of whether remittances affect human development has rarely been subject to systematic empirical study. Extant research does not resolve the endogeneity problem, whereas the present study provides empirical evidence by utilising dynamic panel estimators such as Sys-GMM to tackle the specification issues of endogeneity, measurement errors and heterogeneity. The present study provides a benchmark for future research on the effect of remittances on human development.

Details

International Journal of Social Economics, vol. 46 no. 10
Type: Research Article
ISSN: 0306-8293

Keywords

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