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1 – 10 of over 1000
Article
Publication date: 1 March 2019

Valeria Gattai, Rajssa Mechelli and Piergiovanna Natale

The purpose of this paper is to estimate foreign direct investment (FDI) premia in the former Soviet states.

Abstract

Purpose

The purpose of this paper is to estimate foreign direct investment (FDI) premia in the former Soviet states.

Design/methodology/approach

The authors follow an empirical approach. Using Orbis data for a sample of more than 3,000 companies, the authors characterize FDI involvement and FDI premia of firms from three distinctive groups of former Soviet states, designated “upper-middle”-income, “lower-middle”-income and “high”-income countries. This yields interesting within-group and between-group results on the effects of outward FDI (OFDI) and inward FDI (IFDI) on firm-level innovation.

Findings

The authors unveil new facts about innovation and FDI in the former Soviet states. FDI firms innovate more than non-FDI firms and OFDI firms innovate more than IFDI firms. The innovation effect of OFDI is the largest for firms from the “lower-middle” countries, followed by the “high” and “upper-middle” countries. The innovation effect of IFDI is the largest for firms from the “lower-middle” countries, followed by the “upper-middle” and “high” countries. FDI to and from Europe has the largest impact on innovation; this holds across country groups.

Research limitations/implications

The estimates of this paper document robust FDI premia, i.e., a positive and significant correlation between firm-level innovation and FDI. However, the cross-sectional nature of the data does not permit a proper causality analysis.

Originality/value

The paper contributes to the literature on FDI premia by: considering IFDI and OFDI in a unified empirical framework; dissecting IFDI and OFDI by location; measuring firm-level productivity in terms of innovation; and providing cross-country comparable evidence on both emerging and advanced economies. At the same time, the paper contributes to the literature on FDI from emerging economies by: taking a firm-level quantitative approach; focusing on a relatively unexplored set of countries; and providing comparable cross-country evidence on both emerging and advanced economies.

Details

International Journal of Emerging Markets, vol. 14 no. 3
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 9 January 2019

Khee Giap Tan, Nguyen Trieu Duong Luu and Sangiita Yoong Wei Cher

The paper offers the first systematic and comprehensive analysis of dynamics of economic growth slowdown for India at the sub-national level covering the period 1993–2013. In…

Abstract

Purpose

The paper offers the first systematic and comprehensive analysis of dynamics of economic growth slowdown for India at the sub-national level covering the period 1993–2013. In light of India’s regional diversity and variation in terms of gross regional domestic product (GRDP) per capita, the purpose of this paper is to empirically investigate the growth dynamics at the sub-national level. The paper aims to answer two questions: first, are determinants of economic slowdown likely to differ across income groups? Second, what are the probabilities that the sub-national economies in India will experience a growth slowdown in the near future?

Design/methodology/approach

The paper undertakes a comprehensive analysis of growth slowdown for 106 Asian developing economies encompassing the national economies in ASEAN and the sub-national economies in Greater China, Indonesia and India. To be sure, the authors are not making any direct comparison to countries at different stages of economic development; rather, the comparison is between economies/sub-national economies that fall in the same income category. The authors construct income group-specific logistic model to identify the relevant determinants of growth slowdown and use Bayesian model averaging techniques as a robustness check. The authors also compute economy-specific predictive probabilities of growth slowdown over the period 2012–2017.

Findings

The empirical results show that a growth slowdown in various income groups tends to be associated with different sets of determinants, although broadly, across all income groups, the occurrence of growth slowdown is positively associated with higher GRDP per capita. The average predictive probability of growth slowdown for India’s sub-national economies is 0.43, indicating that, on average, India’s sub-national economies have a 43 per cent chance of experiencing growth slowdown in the 2012–2017 period. Overall, the prospects of the sub-national economies of India are less worrying than that of Greater Chinese economies but bleaker than the outlook for economies in ASEAN and Indonesia.

Originality/value

The research contributes to the understandings of growth dynamics, especially the issue of growth slowdown, in India. This paper differs from the existing literature on growth dynamics by being India centric and analysing the issue of growth slowdown at the sub-national level. Despite a steady increase in the level of GRDP per capita for the sub-national economies of India since 1993, significant disparities still exist across economies. Identifying determinants of growth slowdown and subsequently computing predictive probabilities serves as early warning signs for policy-makers and generates insights on how development policy can be shaped.

Details

International Journal of Social Economics, vol. 46 no. 3
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 1 June 2003

Azmat Gani and Michael D. Clemes

This paper examines the effects of foreign aid type on human well being. Cross‐country regressions revealed aid for education and water to be positively correlated with human well…

1434

Abstract

This paper examines the effects of foreign aid type on human well being. Cross‐country regressions revealed aid for education and water to be positively correlated with human well being in low‐income countries while aid for education and health are positively correlated with human well being in lower‐middle‐income countries. The results also confirm growth in output and gross domestic investment to be positively associated with human well being in low‐ and lower‐middle‐income countries. In the low‐income countries, it is also found that unproductive government expenditure, conflicts and rural populations are negatively correlated with human well being. Conflicts and rural populations are also negatively correlated with human well being in the middle‐income countries.

Details

International Journal of Social Economics, vol. 30 no. 6
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 8 January 2018

Minh Quang Dao

The purpose of this paper is to empirically test a more comprehensive model of economic growth using a sample of 28 lower middle-income developing countries.

Abstract

Purpose

The purpose of this paper is to empirically test a more comprehensive model of economic growth using a sample of 28 lower middle-income developing countries.

Design/methodology/approach

The authors modify the conventional neoclassical growth model to account for the impact of the increase in the number of people working relative to the total population and that of the increase in the value added per worker over time. The authors then extend this model by incorporating the role of trade, government consumption, and human capital in output growth.

Findings

Regression results show that over three quarters of cross-lower middle-income country variations in per capita GDP growth rate can be explained by per capita growth in the share of public expenditures on education in the GDP, per capita growth in the share of government consumption in the GDP, per capita growth in the share of imports in the GDP, per capita growth in the share of manufactured exports in the GDP (not of that of total exports in the GDP), and the growth of the working population relative to the total population.

Practical implications

Statistical results of such empirical examination will assist governments in these countries identify policy fundamentals that are essential for economic growth.

Originality/value

To address the simultaneity bias, the authors develop a simultaneous equations model and are able to show that such model is more robust and helps explains cross-country variations in per capita GDP growth over the 2000-2014 period.

Article
Publication date: 21 September 2012

Roy Peter David Karpestam

The purpose of this paper is to simulate the indirect and direct effects of remittances in developing countries.

1540

Abstract

Purpose

The purpose of this paper is to simulate the indirect and direct effects of remittances in developing countries.

Design/methodology/approach

The paper estimates a dynamic macroeconomic model and estimates the short‐run and long‐run dynamic multiplier effects of hypothetical temporary changes in remittances, as well as simulates the permanent effects of observed remittances.

Findings

The results indicate positive multiplier effects in general, and they also reveal a substantial variability across income categories and regions. The results indicate that low‐income economies are more inclined to spend their incomes on consumption and investments than middle‐income economies and, therefore, have a higher short‐run potential gain from receiving remittances. Low‐income economies typically reside in Sub‐Saharan Africa, whereas middle‐income economies are mainly found in East Europe, Latin America and North Africa and the Middle East. However, actual gains from remittances are highest in lower middle‐income economies because these countries receive more remittances. Generally, the short‐run effects are higher than the long‐run effects due to a sustained dependence of imported goods and services.

Research limitations/implications

The paper analyzes the effects of remittances on components in aggregate demand.

Practical implications

The results support the World Bank's current policy recommendation that remittances should be promoted.

Originality/value

The paper corrects the algebraic solution for dynamic multiplier effects in Glytsos's work, written in 2005, and estimates the model for a macroeconomic panel containing 115 developing countries. The paper considers the effects of the net flows of remittances rather than of inflows only.

Details

Journal of Economic Studies, vol. 39 no. 5
Type: Research Article
ISSN: 0144-3585

Keywords

Open Access
Article
Publication date: 12 June 2017

Ömer Esen and Metin Bayrak

This study aims to examine the effects of energy consumption on economic growth by means of a panel data analysis of 75 net energy-importing countries for the period 1990 to 2012.

11719

Abstract

Purpose

This study aims to examine the effects of energy consumption on economic growth by means of a panel data analysis of 75 net energy-importing countries for the period 1990 to 2012.

Design/methodology/approach

For the purpose of the analysis, the countries are classified into two groups, and each group is then classified into subgroups. The first group is formed based on the energy import dependence of the countries and is classified into two subgroups according to whether their dependence is greater than or less than 50 per cent. The second group is formed based on the income level of the countries and is classified into four subgroups, specifically, low-income economies, lower-middle-income economies, upper-middle-income economies and high-income economies.

Findings

The findings obtained for both panel data and for each country indicate that there is a positive and statistically significant relationship between energy consumption and economic growth over the long term such that energy consumption contributes more to economic growth as the import dependence of the country decreases. Moreover, the effect of energy consumption on economic growth decreases as the income level of the country increases. This indicates that the efficient use of energy is as important as energy consumption, which is regarded as an important indicator of economic development.

Originality/value

The authors expect that these findings will make a valuable contribution to the results of future studies, as they analyze the relationships among the variables by including the energy intensities of the countries.

Propósito

Este estudio examina los efectos del consumo de energía en el crecimiento económico, mediante un análisis de datos de panel de 75 países importadores netos de energía para el período 1990-2012.

Diseño/metodología/enfoque

A los efectos del análisis, los países se clasifican en dos grupos y cada grupo luego se clasifica en subgrupos. El primer grupo se forma en base a la dependencia de los países en materia de importación de energía y se clasifica en dos subgrupos según su dependencia sea superior o inferior al 50%. El segundo grupo se forma sobre la base del nivel de ingresos de los países y se clasifica en cuatro subgrupos: economías de ingresos bajos, economías de ingresos medios-bajos, economías de ingresos medios-altos y economías de ingresos altos.

Hallazgos

Los hallazgos obtenidos, tanto para los datos de panel como para cada país, indican que existe una relación positiva y estadísticamente significativa entre el consumo de energía y el crecimiento económico a largo plazo, de modo que el consumo de energía contribuye más al crecimiento económico a medida que disminuye la dependencia de las importaciones del país. Además, el efecto del consumo de energía en el crecimiento económico disminuye a medida que aumenta el nivel de ingresos del país. Esto indica que el uso eficiente de la energía es tan importante como el consumo de la misma, que se considera un indicador importante del desarrollo económico.

Originalidad/valor

Los autores esperan que estos hallazgos aporten una valiosa contribución para estudios futuros, ya que analizan las relaciones entre las variables mediante la inclusión de las intensidades de los países.

Palabras clave

Consumo de energía, Crecimiento económico, Importadores netos de energía, Panel de datos

Tipo de artículo

Artículo de investigación

Details

Journal of Economics, Finance and Administrative Science, vol. 22 no. 42
Type: Research Article
ISSN: 2077-1886

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 (FDI…

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: 1 August 2001

M. Doumpos, K. Pentaraki, C. Zopounidis and C. Agorastos

Explains the importance of assessing country risk to lenders and investors, outlines previous research on techniques for doing this and describes a classification method: the…

1078

Abstract

Explains the importance of assessing country risk to lenders and investors, outlines previous research on techniques for doing this and describes a classification method: the multi‐group hierarchical discrimination method (MHD). Applies this to 1978‐1995 data for 143 countries, subdivided into four income groups, and compares the results with those from multiple discriminant, logit and probit analyses using jackknife procedures. Finds MHD more accurate overall and for most income groups except the lower‐middle income economies. Briefly considers other applications for MHD and avenues for further research.

Details

Managerial Finance, vol. 27 no. 8
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 1 August 2018

Fah Choy Chia, Martin Skitmore, Jason Gray and Adrian Bridge

A comparison of international construction labour productivity (CLP) is carried out by the conventional use of exchange rates to convert national construction output to a common…

Abstract

Purpose

A comparison of international construction labour productivity (CLP) is carried out by the conventional use of exchange rates to convert national construction output to a common base currency. Such measurement is always distorted by price-level differences between countries and therefore the purpose of this paper is to adopt a purchasing power parities (PPPs) approach, which eliminates price-level differences, as an alternative means of comparing CLP.

Design/methodology/approach

PPP construction expenditure data from the World Bank’s International Comparison Programme 2011 and employment statistics maintained by the International Labour Organization are used to generate the CLP of 93 matching economies. A one-way analysis of variance is conducted to evaluate the relationship between the development status and the CLPs.

Findings

The CLPs of developed economies are higher than developing economies in both PPPs (real) and exchange rate (nominal) measurements. The real CLPs are always higher than nominal CLP in high-income, upper-middle-income, lower-middle-income and low-income economies. Both real and nominal CLPs converge along with the economic growth.

Research limitations/implications

The average figures used in the study may not always be the most representative statistics. The CLPs determined provide an initial approximation for comparison between different economies to gain further insights into the best practices and policies for the more successful economies. Future research is recommended to uncover the underlying factors of CLPs congruence.

Originality/value

The convergence of real and nominal CLPs when economies transit from a developing to developed status indicates that the construction product has transformed from a commonly understood non-internationally traded product to an internationally traded product.

Details

Engineering, Construction and Architectural Management, vol. 25 no. 7
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 4 December 2023

Toan Khanh Tran Pham

The impacts of institutional quality on entrepreneurship are well established. However, the effects of an external factor, such as the shadow economy, that moderates this…

Abstract

Purpose

The impacts of institutional quality on entrepreneurship are well established. However, the effects of an external factor, such as the shadow economy, that moderates this relationship have largely been neglected in existing literature. As such, this paper investigates how the shadow economy moderates the effects of institutional quality on entrepreneurship in a global sample of 79 economies from 2006 to 2018, when the latest required data are available.

Design/methodology/approach

This paper utilizes the fixed-effect and generalized method of moments (GMM) estimation techniques. Various scenarios have been considered for the robustness of the analysis, including different estimation techniques, different estimates of the shadow economy and various subsamples of countries with different income levels.

Findings

Empirical findings indicate that improved institutional quality boosts entrepreneurship activities, while the extended shadow economy is associated with reduced entrepreneurship activities. Interestingly, the positive impacts of institutional quality on entrepreneurship will be lessened with a larger shadow economy. These findings have remained largely unchanged across samples of countries and different proxies and estimation techniques.

Practical implications

Findings from this paper offer policymakers the relationships between institutional quality, shadow economy and entrepreneurship and the moderating effects of shadow economy on the institutional quality–entrepreneurship nexus. The implication is that institutional quality should be strengthened while the shadow economy should be controlled to promote entrepreneurship initiatives.

Originality/value

To the best of the author's knowledge, this is the first empirical study to explore the moderating effects of the shadow economy on the institutional quality–entrepreneurship nexus.

Details

International Journal of Sociology and Social Policy, vol. 44 no. 1/2
Type: Research Article
ISSN: 0144-333X

Keywords

1 – 10 of over 1000