Can developing countries benefit from export promotion?

2005 ◽  
Vol 32 (1) ◽  
pp. 60-80 ◽  
Author(s):  
Xiangkang Yin ◽  
Xiangshuo Yin
Keyword(s):  
Developing Countries ◽  
Social Welfare ◽  
Developing Country ◽  
Analytical Model ◽  
Foreign Exchange ◽  
New Technology ◽  
Export Promotion ◽  
Content Type ◽  
Improve Efficiency ◽  
Efficiency And Social Welfare

PurposeAlthough economic theory generally does not support government intervention in international trade, casual observation shows that many developing countries adopt certain trade policies to promote their exports. The objective of this paper is to answer the question that whether developing countries can benefit from export promotion.Design/methodology/approachThis paper considers a developing country which has to import new technology from the world market to improve its productivity. If it has certain economic rigidities, the country is short of foreign exchange and domestic firms cannot import an adequate amount of new technology. Even if there is no rigidity, domestic firms may not have sufficient incentive to invest in new technology. Therefore, the government can step in to subsidize exports. Through an analytical model, this paper investigates in what conditions the measures of export promotion can stimulate production and employment, and improve efficiency and social welfare.FindingsThis paper analyzes two effects of export promotion: raising the incentive of capital investment and reducing capital goods shortage caused by foreign exchange constraint. These effects might be the economic rationale for developing country governments to promote exports. It is found that export promotion can definitely raise employment and productivity, but whether these measures can stimulate the supply to the domestic market and improve domestic welfare depends on the sufficient and necessary condition given in the paper.Originality/valueEstablishes an analytical model to investigate in what conditions the measures of export promotion such as export subsidies and domestic currency devaluation can stimulate production and employment, and can improve efficiency and social welfare.

Board involvement in corporate performance: evidence from a developing country

2015 ◽  
Vol 5 (3) ◽  
pp. 250-268 ◽  
Author(s):  
Chaminda Wijethilake ◽  
Athula Ekanayake ◽  
Sujatha Perera
Keyword(s):  
Developing Countries ◽  
Sri Lanka ◽  
Developing Country ◽  
Resource Dependence ◽  
Corporate Performance ◽  
Stock Exchange ◽  
Corporate Boards ◽  
Ceo Duality ◽  
Content Type ◽  
The Relationship

Purpose – The purpose of this paper is to provide insights into the understanding of the relationship between board involvement and corporate performance within the context of developing countries. Design/methodology/approach – A number of aspects related to board involvement, including board’s shareholdings, frequency of board meetings, availability of independent board committees, board size, CEO duality, and CEO is being a promoter, were examined in order to explore their influence on corporate performance measured in terms of earnings per share. The study mainly draws on agency theory, and is supplemented by resource dependence and stewardship theories. Multiple regression analysis is utilized to analyze the data gathered from a sample of 212 publicly listed companies in 20 industries in the Colombo Stock Exchange in Sri Lanka. Findings – Among the aspects of board involvement considered, board’s shareholdings, board meetings frequency, independent committees, and CEO duality showed a positive influence on corporate performance. However, two other aspects, namely CEO being a promoter, and the size of corporate boards showed a negative effect. The findings also suggest that the use of multiple theories, rather than depending on a single theory, is more effective in understanding the relationships examined in this study. Further, the study highlights the need to be cautious in utilizing the theories that are more applicable to matured western economies when analyzing issues relating to developing countries. Originality/value – This study makes an original contribution to corporate governance literature by examining the relationship between board involvement and corporate performance in a developing country, namely Sri Lanka. The study also adds to the existing literature by utilizing multiple theories to examine the issue under investigation.

Impact of corruption on Chinese investment in African countries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shilin Yuan ◽  
Haiyang Chen ◽  
Wei Zhang
Keyword(s):  
Developing Countries ◽  
Developing Country ◽  
Host Country ◽  
Practical Implication ◽  
Host Countries ◽  
African Countries ◽  
Control Variables ◽  
Content Type ◽  
The Impact ◽  
New Evidence

Purpose This paper aims to examine the impact of host country corruption on foreign direct investment (FDI) from China to developing countries in Africa. With the opposing arguments that corruption is detrimental to or instrumental in FDI and mixed empirical evidence, this paper contributes to the literature by providing new evidence on the issue. Additionally, little research has been done on the impact of corruption on FDI made by developing country multinationals to developing countries. This paper fills a void in this area. Design/methodology/approach Based on the published literature, as well as China and Africa contexts, the authors develop hypotheses that host countries with low corruption receive more FDI and resource-seeking investments weaken the relationship. The annual stock of Chinese FDI in 35 African countries, host country corruption data and other control variables from 2007 to 2015 are collected. Feasible generalized least squares models are used to test the hypotheses. Additional robustness tests are also conducted. Findings The findings support the hypotheses. Specifically, Chinese investors make more investments in host countries with low corruption except for resource-seeking investments in resource-rich host counties. The results are statistically significant accounting for various control variables. The results of the robustness tests show that the main findings are robust. Originality/value First, this study provides new evidence on the impact of corruption on FDI. Second, this study also fills a void by examining FDI from a developing country, China to other developing countries in Africa. Finally, this study also has a practical implication for Chinese multinationals investing in Africa.

scholarly journals Determinants of capital structure for firms in an Islamic equity index: comparing developed and developing countries

2020 ◽  
Vol 4 (2) ◽  
pp. 167-191
Author(s):  
Evrim Hilal Kahya ◽  
Hüseyin Yiğit Ersen ◽  
Cumhur Ekinci ◽  
Oktay Taş ◽  
Koray D. Simsek
Keyword(s):  
Developing Countries ◽  
Capital Structure ◽  
Developing Country ◽  
Global Financial Crisis ◽  
Muslim Country ◽  
Data Set ◽  
Content Type ◽  
Country Level ◽  
Muslim Majority ◽  
Equity Index

PurposeThe paper aims to identify the differences between developed and developing country firms with respect to firm-specific and country-level determinants of their capital structure. For this purpose, all constituent firms in one of the oldest Islamic equity indices, Dow Jones Islamic Market World Index (DJIM), are considered and the Muslim-majority status of each firm's domicile country is recognized.Design/methodology/approachThe study employs Hausman–Taylor random effects regression with endogenous covariates to explain the debt ratios of firms in DJIM by separating them into developed and developing country subsamples in an unbalanced panel data setting. Developing country subsample is further split into two based on the Muslim-majority status of each firm's domicile country.FindingsConsistent with the previous literature, this study finds that firm-specific characteristics are the main determinants of their capital structure. Additionally, the paper shows that country-level characteristics have an impact on the debt ratio, however, the types of factors vary across developed and developing countries. Debt ratios in developing country firms are lower than those in developed country firms, largely due to the significantly smaller leverage ratios of firms in Muslim-majority countries. Although the debt ratios of DJIM firms are higher in “non-Muslim” countries, the set of firm-level capital structure determinants are not statistically explained by operating in a “Muslim” country. The study also documents that, before the global financial crisis of 2008, companies in developing countries have gradually become less leveraged worldwide.Originality/valueThis paper provides a new perspective into the differences between developed and developing country firms' capital structures by focusing on a relatively homogeneous data set restricted by leverage screening rules of an Islamic equity index and recognizing the Muslim-majority status of each firm's domicile country.

Policy shocks, current account and the macroeconomy in a developing country

2019 ◽  
Vol 46 (3) ◽  
pp. 710-726
Author(s):  
Moumita Basu ◽  
Ranjanendra Narayan Nag
Keyword(s):  
Exchange Rate ◽  
Developing Country ◽  
Foreign Exchange ◽  
Current Account ◽  
Current Account Balance ◽  
Foreign Exchange Reserves ◽  
Effective Demand ◽  
Content Type ◽  
Traded Goods ◽  
The Current Account

Purpose This is a theoretical paper in the field of international macroeconomics. The purpose of this paper is to focus on a dynamic interaction between current account imbalance and unemployment in response to some policy-induced shocks for a small open economy under a flexible exchange rate. Design/methodology/approach The paper uses a two-sector framework: one sector is traded and another is the non-traded sector that is subject to an effective demand constraint. The current account imbalance arises due to the discrepancy between production of traded goods, household consumption of traded goods and government purchases of importables. The authors keep the asset structure simple by considering only domestic currency and foreign bonds that are imperfect substitutes. The paper considers a standard methodology of dynamic adjustment process involving change in foreign exchange reserves and exchange rate under perfect foresight. The saddle path properties of the equilibrium are also examined. Findings The results of comparative static exercises depend on a set of structural features of a developing country, which include asset substitutability, wage price rigidity and sectoral asymmetries. The paper shows that expansionary monetary policy, balanced budget fiscal expansion and financial liberalization have an ambiguous effect on the current account balance, foreign exchange reserves, non-traded sector and the level of employment. Originality/value The existence of Keynesian unemployment with fixed prices is the key ingredient of this paper. The paper introduces the problem of effective demand to analyze the dynamics of current account balance and exchange rate, which, in turn, determine the sectoral composition of output and level of employment.

New world, new tourism, new destinations

2014 ◽  
Vol 6 (2) ◽  
pp. 103-117 ◽  
Author(s):  
Ibrahim Ajagunna
Keyword(s):  
Developing Countries ◽  
Consumer Choice ◽  
New Technology ◽  
Secondary Data ◽  
Tourism Industry ◽  
Global Perspective ◽  
International Tourism ◽  
Industrialized Countries ◽  
Content Type ◽  
Newly Industrialized Countries

Purpose – This paper aims to examine the position of tourism in tourism dependent countries in light of newly industrialized countries and how trends in the industry impact these developing tourism dependent nations. International tourism, for example, is now a technologically advanced activity in which some developing countries are lagging behind. These developing countries are challenged in adapting to compatible and new technology, financing, staff training and the relevant to the future of the industry. Design/methodology/approach – The study employed a qualitative research methodology using both primary and secondary data drawn from a study conducted on the South Coast of Jamaica with supporting literature from a global perspective. Findings – Moves by major players in the international tourism industry to increase their influence and dominance of global markets may reduce consumer choice thereby creating a shift for tourism from old tourism dependent developing nations to newly industrialized countries of the world. This would mean that the old tourism dependent nations need to devise a new way of diversifying their tourism products to attract elite markets seeking clean and un-spoilt environments and destinations. Originality/value – This paper is part of a PhD work, which has been published in a book. The key issues raised in the paper are still current and the challenges present now need government and policy makers ' attention.

Management controls for minimising risk in public-private partnerships in a developing country

2016 ◽  
Vol 12 (3) ◽  
pp. 408-431 ◽  
Author(s):  
Ranjith Appuhami ◽  
Sujatha Perera
Keyword(s):  
Developing Countries ◽  
Developing Country ◽  
Structured Interviews ◽  
Policy Makers ◽  
Content Type ◽  
Documentary Analysis ◽  
Control Pattern ◽  
Management Controls ◽  
Implementation Management ◽  
The Way

Purpose The purpose of the study is to examine the use of management controls by a public partner to minimise risks associated with a public-private partnership (PPP) in a developing country. Design/methodology/approach Using case study method, management controls used in a power project formed as a PPP are examined based on data gathered from semi-structured interviews and documentary analysis. Findings The study reveals that the public partner of the PPP used multiple controls depending on the nature of risks in different phases of the project. While bureaucratic control was the predominantly used control pattern throughout the three phases (namely, selecting, building and operating) of the PPP, trust-based controls also played an important role. Market controls on the other hand played, somewhat, a nominal role, particularly in the selecting phase of the project. The study also highlights the problematic nature of forming PPPs in developing countries despite the various benefits associated with such organisational arrangements. Additionally, the study provides insights into how certain contextual features of developing countries affect the way in which controls are applied. Practical implications The insights provided in this paper would be beneficial to policy makers, in developing countries in particular, when making decisions in relation to implementation, management and risk control of PPPs. Originality/value This study makes an original contribution to the existing literature on PPPs by examining the way in which management controls are used to minimise risk in a PPP in a developing country.

The role of government in the tourism sector in developing countries: a perspective article

2020 ◽  
Vol 75 (1) ◽  
pp. 203-206
Author(s):  
Carson Lewis Jenkins
Keyword(s):  
Developing Countries ◽  
Regional Development ◽  
Foreign Exchange ◽  
Design Methodology ◽  
Role Of Government ◽  
Content Type ◽  
The Past ◽  
Tourism Sector ◽  
Employment Generation

Purpose The purpose of this paper is to provide a perspective on the role of government in the tourism sector in developing countries in the past 75 years. Design/methodology/approach A perspective article. Findings The main reasons that governments support development of tourism will remain: including foreign exchange earnings, contribution to government revenues, employment generation and regional development stimulus. Originality/value This paper provides a perspective from a senior academic who specialises in the field of tourism relating to the developing world.

scholarly journals Sustainability key performance indicators and the global reporting initiative: usage and challenges in a developing country context

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dinithi Dissanayake
Keyword(s):  
Developing Countries ◽  
Sri Lanka ◽  
Developing Country ◽  
Performance Indicator ◽  
Sustainability Reporting ◽  
Global Reporting Initiative ◽  
Sri Lankan ◽  
Theory Approach ◽  
Key Factors ◽  
Content Type

Purpose First, this paper aims to explore the extent of the global reporting initiative (GRI) sustainability key performance indicator (KPI) usage in sustainability reporting by businesses operating in Sri Lanka. Second, using a contingency theory approach, this research examines the factors which promote or inhibit the use of the GRI framework to adopt sustainability KPIs in a developing country context, Sri Lanka. Design/methodology/approach Content analysis and semi-structured interviews are used in this study to explore the key factors which affect the usage of the GRI framework by Sri Lankan companies in adopting sustainability KPIs and reporting on sustainability. Findings The findings indicate that the GRI framework is increasingly used for sustainability reporting by Sri Lankan companies because of its flexibility, consistency, legitimacy and its focus on continuous improvement. However, company managers also shed light on the extensive number of KPIs in the GRI framework making selections challenging and the consequent difficulties associated with adapting these KPIs for companies operating in a developing country context. Research limitations/implications This study contributes to extending the broader literature on sustainability reporting in developing countries and specifically on sustainability KPIs. Second, this paper adds to the current empirical research on sustainability reporting in Sri Lanka where the literature is still sparse. Third, this study highlights the key factors that support or hinder the usage of the GRI framework in a developing country context. Practical implications Important insights for GRI, other standard-setting agencies and businesses can be drawn from the findings of this study. By capitalising further on the training and the educational courses provided by GRI, GRI can be involved in mitigating some of the pressing issues faced by the reporting companies. Originality/value This study adds to the limited research on sustainability reporting and sustainability KPIs in developing country contexts. It shows how companies in Sri Lanka are engaging with sustainability KPIs and sustainability reporting, but are also constrained by the GRI framework as its standards are not tailored to issues in developing countries.

Art marketing as an emerging area in an emerging market

2020 ◽  
Vol 10 (1) ◽  
pp. 34-52
Author(s):  
Aylin Ecem Gürşen
Keyword(s):  
Developing Countries ◽  
Conceptual Framework ◽  
Developing Country ◽  
Emerging Market ◽  
Art Market ◽  
Point Of View ◽  
Content Type ◽  
Research Areas ◽  
Marketing Activities ◽  
Art Marketing

PurposeIn this study, art is considered as a product subjected to marketing activities. In this context, this study aims to present a conceptual framework covering the research areas related to art marketing, the relation of art product with brand and consumer and how internet technologies can transform the art market. Finally, the situation of art marketing and its progressing process in a developing country and its potential horizons was discussed.Design/methodology/approachThis study uses a literature review to present a conceptual framework about art marketing activities and their potential horizons in an emerging country.FindingsGlobalization, digitalization, democratization of access to art products, art becoming a subject for marketing, open up new horizons for western markets as well as for developing countries. Developing countries constitute a new market segment for the art market. Addressing the changes and the transformations in art market in terms of these markets will provide important opportunities for marketing researchers and practitioners.Originality/valueThis study elaborates the art marketing concept in a developing country. The marketing of art is a subject studied and elaborated mostly in western countries. It is thought that this study is differentiated in terms of addressing these dynamics from a developing country point of view.

scholarly journals E-training adoption in the Nigerian civil service

2015 ◽  
Vol 39 (6) ◽  
pp. 538-564 ◽  
Author(s):  
Bello Zainab ◽  
Muhammad Awais Bhatti ◽  
Faizuniah Bt Pangil ◽  
Mohamed Mohamed Battour
Keyword(s):  
Developing Countries ◽  
Technology Acceptance ◽  
Developing Country ◽  
Self Efficacy ◽  
Civil Service ◽  
Government Support ◽  
Perceived Support ◽  
Content Type ◽  
Computer Self Efficacy

Purpose – The purpose of this paper is to highlight the factors that aid e-training adoption in the Nigerian civil service. Design/methodology/approach – This paper is based on a review of past literature from databases, reports, newspapers, magazines, etc. The literature recognised the role of perceived cost, computer self-efficacy, availability of resources and perceived support in e-training adoption. Using technology acceptance model (TAM), this paper explained the importance of these variables in e-training adoption in developing country context. Findings – The authors found that the combined role of perceived cost, computer self-efficacy, technological infrastructure, Internet facilities, power supply, organisational support, technical support and government support is critical for e-training adoption in developing countries, particularly in Nigeria. Thus, the authors proposed the combination of these variables which would encourage future research on the use of TAM in technology adoption. Research limitations/implications – This paper gives an elaboration of the role of computer self-efficacy, perceived cost, availability of resources and perceived support with TAM as base of the framework. This provides researchers the opportunity to test the proposed framework empirically and further suggest other variables that can aid e-training adoption in the context of developing country. Practical implications – The result of this paper can serve as a guide to managers and policymakers to have a better understanding of the requirements for e-training adoption, especially in developing countries. This will go a long way towards designing good policies that could maximise e-training results. Originality/value – This paper adds to the existing literature on e-training and TAM with the suggestion of proposed variables.

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