The effect of corruption on entrepreneurship in developed vs non-developed countries

2014 ◽  
Vol 20 (3) ◽  
pp. 237-262 ◽  
Author(s):  
Gil Avnimelech ◽  
Yaron Zelekha ◽  
Eyal Sharabi
Keyword(s):  
Developing Countries ◽  
Developed Countries ◽  
Entrepreneurial Activity ◽  
Data Sets ◽  
Data Set ◽  
Content Type ◽  
Transparency International ◽  
Main Independent Variable ◽  
Negative Effect ◽  
Entrepreneurial Activities

Purpose – The purpose of this paper is to focus on the relationship between corruption and productive entrepreneurship in general and whether it depends on countries’ specific characteristics in particular. Design/methodology/approach – The authors used a unique data set of entrepreneurial activity within 176 countries, collected from the professional networking site LinkedIn. The authors used OLS regression to estimate the level of entrepreneurship. The main independent variable was the CPI score (Transparency International). In addition, two sub-samples were used, 70 less-developed countries and 34 OECD countries, and numerous control variables. Findings – The paper makes three important contributions to the field. First, it proposes worldwide empirical evidence that countries with high levels of corruption usually face low levels of productive entrepreneurship. Second, the paper suggests that the negative effect is much more significant in developed countries than in developing countries. Third, the paper explores whether the negative effect of corruption depends on country-specific economic characteristics. Research limitations/implications – While there is significant value in using LinkedIn data in entrepreneurship research, there are limitations to this database. Therefore, significant robustness tests were employed and further research, for instance using longitudinal LinkedIn data, could be valuable. Moreover, using different entrepreneurs’ data sets might increase the validation of the results. Finally, further examination of the influence of corruption on different types of entrepreneurial activities and their interaction with different characteristics of the country is still required. Originality/value – The results stress the need to fight corruption not only in developing countries and suggests significant gains from anti-corruption efforts even and maybe especially in the western developed world.

Socio-cultural environments and emerging economy entrepreneurship

2017 ◽  
Vol 9 (1) ◽  
pp. 85-96 ◽  
Author(s):  
Grisna Anggadwita ◽  
Bachruddin Saleh Luturlean ◽  
Veland Ramadani ◽  
Vanessa Ratten
Keyword(s):  
Developing Countries ◽  
Women Entrepreneurs ◽  
Entrepreneurial Activity ◽  
Equation Modeling ◽  
Integrated Analysis ◽  
Cultural Environment ◽  
Women Entrepreneurship ◽  
Content Type ◽  
Entrepreneurial Activities ◽  
The Impact

Purpose Women entrepreneurship has been growing and contributing significantly to economic activities, and it may also reduce unemployment, especially in developing countries. Many women entrepreneurs have begun to experience problems, including within their socio-cultural environment, in the beginning of or when they run their businesses. Among those developing countries, Indonesia has been recognized as having diverse ethnic groups, traditions, religions and languages. The purpose of this paper is to analyse how the socio-cultural environment affects women entrepreneurs in Indonesia. Design/methodology/approach This study aims at exploring the impact of the socio-cultural environment on entrepreneurial behavior, including the involvement of women in entrepreneurial activities in Indonesia as a multicultural country. A theoretical framework is empirically tested to identify the impact of the socio-culture environment on behavior and on women entrepreneurial activity through an integrated analysis. Findings A quantitative method with a causal descriptive approach is used in this study. The data are analyzed by using a descriptive statistics with the structural equation modeling technique. This study is intended to focus on women entrepreneurs in micro, small and medium enterprises in Bandung, Indonesia. A total of 210 women entrepreneurs have participated in this study. Practical implications include useful information for women entrepreneurs to overcome the impact of the socio-cultural environment in their entrepreneurial activities, and suggest insights for future research. Originality/value The development of women entrepreneurship in emerging economies may continuously face challenges, particularly in countries with multicultural attributes.

Persistence of profitability in top firms: does it vary across sectors?

2020 ◽  
Vol 30 (3) ◽  
pp. 269-287
Author(s):  
Parneet Kaur Bhangu
Keyword(s):  
Health Care ◽  
Developing Countries ◽  
Developing Economies ◽  
Developed Countries ◽  
Economic Sectors ◽  
Data Set ◽  
Content Type ◽  
Mean Values ◽  
Long Run ◽  
Short Run

Purpose The purpose of this paper is to analyze variations in the degree of persistence of profitability across diverse economic sectors and industry groups over the time period of 1990-2014 for a sample of top publically listed firms belonging to a selected set of developed and developing economies. Design/methodology/approach Degree of profit persistence has been estimated using Mueller’s (1990) autoregressive methodology. Firms were classified into different economic sectors and industry groups as per the Global Industry Classification Standard (GICS). The examination of inter-sectoral variations in profit persistence has been performed by comparing mean values of estimated short-run and long-run profit persistence parameter for all firms and between firms belonging to the developed and developing countries, respectively. Findings Firms in consumer staples, consumer discretionary and health care enjoy persistent above the norm returns, unlike firms in traditional industries, utilities and energy sectors, which are characterized by low persistence and below the norm returns. A high degree of profit persistence is observed in health care and idea- and technology-intensive sector in the developed countries; however, in the developing countries, profits persist higher in consumer discretionary and capital-intensive telecommunication services sectors. Originality/value The study provides a holistic examination of inter-sectoral variations in profit persistence of top firms in developed and developing economies using a uniform methodology and data set. It can serve as an aid to the competition commissions and anti-trust regulatory authorities to formulate policies for curtailing anti-competitive activities in certain sectors.

Dichotomous impacts on social and environmental sustainability: competitiveness and development levels matter

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Eleanor Doyle ◽  
Mauricio Perez Alaniz
Keyword(s):  
Sustainable Development ◽  
Developing Countries ◽  
Environmental Sustainability ◽  
Building Blocks ◽  
Developed Countries ◽  
Dynamic Panel Data ◽  
Data Set ◽  
Content Type ◽  
Global Competitiveness ◽  
Development Levels

Purpose Whereas in developed countries, sustainability primarily focuses on environmental topics, in developing countries the issues of poverty, development and equity are equally, if not more, important. The purpose of this paper is to apply measures of social and environmental sustainability to assess sustainable development for the period 2005–2015 across a sample of 94 countries for which relevant data are available. Countries include two groups: developed and developing countries. Design/methodology/approach Using the index-based approach introduced by the World Economic Forum in its Global Competitiveness Project, a range of indicators are collected for estimating trends in both social and environmental sustainability. For the panel of data identified, a dynamic panel data estimator method is applied to the data set constructed. This paper presents the empirical results identifying key competitiveness factors related to social and environmental sustainability (separately and combining both aspects in a comprehensive sustainability framework). Findings This study explores how sustainable competitiveness offers a comprehensive assessment of the inter-related dynamics of the social, the environmental and economic building blocks of sustainable development simultaneously. Performance impacts are found to differ substantially across two groups of countries depending on their development level. This highlights the challenges in shaping and achieving sustainable development goals. Originality/value To the best of the authors’ knowledge, this research is novel in examining the intersections between economic competitiveness and environmental and social sustainability addressing an identified research gap. In addition, the paper investigates the most important competitiveness pillars focusing on both strengths and weaknesses in sustainable competitiveness across developed and developing countries.

Understanding entrepreneurial academics ‐ how they perceive their environment differently

2020 ◽  
Vol 39 (5) ◽  
pp. 599-617 ◽  
Author(s):  
Todd Davey ◽  
Victoria Galan-Muros
Keyword(s):  
Academic Entrepreneurship ◽  
Large Data ◽  
Entrepreneurial Activity ◽  
Data Set ◽  
Content Type ◽  
Entrepreneurial Behaviour ◽  
Narrow View ◽  
Study Results ◽  
Entrepreneurial Activities ◽  
Practical Implications

PurposeAcademic entrepreneurship is seen as a pathway for universities to create value from their knowledge. However, there has been a lack of clarity about what activities constitute academic entrepreneurship, the different type of entrepreneurial academics and how their perceptions of their environment relate to their engagement.Design/methodology/approachDrawing on a large data set of 10,836 responses across 33 countries, the empirical study investigates European academics who undertake four academic entrepreneurship activities (spin-out creation, commercialisation of R&D results, joint R&D and consulting) to determine if they perceive the environment for academic entrepreneurship differently than those who undertake only some of the activities and those undertaking none at all.FindingsThe findings show that less than 1% of academics undertake exclusively spin-offs creation or R&D commercialisation; however, the majority also engage in other entrepreneurial activities such as joint R&D and consulting and even other education and management engagement activities with industry. In addition, entrepreneurial academics in Europe perceive significantly higher motivators and more developed supporting mechanisms for academic entrepreneurship. However, their perceptions of barriers are similar.Practical implicationsAt a managerial and policy level, the study results call into question universities prioritising a narrow view of academic entrepreneurship which focusses only on spin-offs creation and R&D commercialisation. Instead, a broader view of academic entrepreneurship is recommended and appropriate mechanisms in place to enable academics to achieve research outcomes from their entrepreneurial activity.Originality/valueThis paper offers an important contribution on how the perception of the environment contributes to the development of entrepreneurial behaviour in individual academics.

Multilateral trade liberalization and developing countries’ economic exposure to shocks

2019 ◽  
Vol 46 (2) ◽  
pp. 496-515 ◽  
Author(s):  
Sena Kimm Gnangnon
Keyword(s):  
Developing Countries ◽  
Trade Liberalization ◽  
Fixed Effects ◽  
Developed Countries ◽  
Least Developed Countries ◽  
Data Set ◽  
Content Type ◽  
Multilateral Trade ◽  
Multilateral Trade Liberalization ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of multilateral trade policy (MTP) liberalization on developing countries’ economic exposure to shocks. Design/methodology/approach The analysis is conducted on a panel data set comprising 120 countries over the period 1996–2013 and uses the within fixed effects estimator. Findings The empirical results suggest that over the entire sample as well as sub-samples of least developed countries (LDCs) and non-LDCs, multilateral trade liberalization have a negative and significant impact on economic exposure to shocks. Interestingly, LDCs appear to experience the highest magnitude of the reducing impact of multilateral trade liberalization on countries’ economic exposure to shocks. Research limitations/implications These findings suggest that a greater cooperation among countries in the world, including among WTO members to further liberalize trade would surely contribute to reducing developing countries’ economic exposure to shocks. Practical implications The current study shows that the current backlash against trade and the consequent strong appeal for domestic trade protectionist measures would likely to undermine the likelihood of further multilateral trade liberalization. One implication of this could be a rise in countries’ economic exposure to shocks. Originality/value To the best of the author’s knowledge, this is first the study on this matter.

Does Poverty Matter for Tax Revenue Performance in Developing Countries?

2021 ◽  
pp. 227797872110335
Author(s):  
Sèna Kimm Gnangnon
Keyword(s):  
Developing Countries ◽  
Developed Countries ◽  
Jel Classification ◽  
Development Aid ◽  
Tax Revenue ◽  
Least Developed Countries ◽  
Data Set ◽  
Performance Effect ◽  
Generalized Methods Of Moments ◽  
Negative Effect

This article explores the effect of poverty on tax revenue performance (tax revenue share), using an unbalanced panel data set of 102 developing countries over the period from 1996 to 2015. Based on the two-step system generalized methods of moments (GMM) approach, the empirical analysis shows that higher poverty rates significantly reduce tax revenue performance in developing countries. However, the magnitude of this negative effect is lower in least developed countries (LDCs) than in other countries of the sample. The analysis has also revealed that the tax revenue performance effect of poverty depends on the level of household consumption as well as the prevailing unemployment rate in the economy. Finally, development aid inflows help to mitigate the negative effect of poverty on tax revenue performance in developing countries. These findings not only highlight the importance of poverty for tax revenue performance in developing countries, but they additionally show that the provision of higher amounts of development aid to these countries could help them mitigate the adverse tax revenue effect of poverty, and even allow them to enjoy higher tax revenue performance, which is key for attaining their development objectives. JEL Classification: I30, I32, H20

Drivers and barriers to re-use Open Government Data (OGD): a case study of open data initiative in Philippines

2018 ◽  
Vol 20 (4) ◽  
pp. 358-368 ◽  
Author(s):  
Stuti Saxena
Keyword(s):  
Developed Countries ◽  
The Philippines ◽  
Open Government ◽  
Research Approach ◽  
Data Sets ◽  
Data Set ◽  
Content Type ◽  
Open Government Data ◽  
Government Data ◽  
User Friendly

Purpose Given that the Open Government Data (OGD) initiatives of any country are founded on principles of transparency and accountability, it is important that the data sets permit a user-friendly interface for the data sets to be re-used. This paper aims to underline the major drivers and barriers to re-use the data sets in the context of the Philippines. Design/methodology/approach In line with the model proposed by Sieber and Johnson (2015), the paper invoked an investigation of the national OGD portal of the Philippines following a documentary analysis research approach. Findings The OGD portal of the Philippines permits data search and sharing via social media. Data sets are available in user-friendly formats with a detailed description of the data set itself in the form of metadata. At the same time, the OGD portal of the Philippines has many barriers to re-use. Data sets are not current, and no attempts have been made at updating the records. While the provision of data mapping is provided, the same is not effective as of now. Conducting statistical analysis is not possible online and some of the links are not active. Finally, users’ suggestions are acknowledged, but the contribution of users toward the existing data sets is not permitted as of now. Research limitations/implications Given that only a single country’s OGD initiative has been investigated in the study, further research is warranted to undertake a comparative analysis of OGD institutionalization across different countries. Practical implications Government authorities are encouraged to be more proactive in furthering the OGD initiative. Policymakers and practitioners may appreciate the underlying barriers in re-using the data sets and seek to address these concerns. Originality/value The OGD initiative of the Philippines has not been investigated so far despite the rising tide of the OGD initiatives across the globe. Given that most of the research on OGD is focused in developed countries, the present study seeks to contribute toward the extant literature by investigating the OGD portal of the Philippines and underlining the major drivers and barriers in re-using the data sets available via the portal.

Entrepreneurial aspirations: economic development, inequalities and cultural values

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gustavo Morales-Alonso ◽  
Yilsy Núñez Guerrero ◽  
Juan Francisco Aguilera ◽  
Carlos Rodríguez-Monroy
Keyword(s):  
Developing Countries ◽  
Economic Development ◽  
Cultural Values ◽  
Developing Economies ◽  
Early Stage ◽  
Developed Countries ◽  
Entrepreneurial Activity ◽  
Individual Values ◽  
Content Type ◽  
Artificial Neural Network Ann

PurposeThis study aims at shedding light on entrepreneurial aspirations on both developed and developing economies, in terms of contextual and individual values. Among the former, economic development and inequalities are sought after, while among the latter national culture is the variable under study.Design/methodology/approachThe data used are extracted from the Global Entrepreneurship Monitor for a panel of countries, where the entrepreneurial aspirations of individuals of each country are measured through the Total early-stage Entrepreneurial Activity (TEA). The influence of cultural values as defined by Hofstede (individualism-collectivism (IDV), masculinity–femininity (MAS) and uncertainty avoidance (UAI)), moderated by the development level of the country and the existing inequalities are analyzed through artificial neural network (ANN) and multilayer perceptron (MLP) techniques.FindingsResults show that in the post-crisis era, entrepreneurial aspirations are negatively linked to individualism in developing countries. In developed countries, however, entrepreneurship is not linked to individualism but to inequalities.Originality/valueEntrepreneurial aspirations have not been thoroughly studied in the post-crisis era. We prove that entrepreneurial orientations have changed, together with the world, in the last decade. Cultural differences between countries tend to moderate, especially among developed ones, which speak of homogenization of national cultures. In this regard, inequalities are the determining factor. Contrarily, in developing countries, the differences in individualism are noticeable when it comes to analyzing entrepreneurial aspirations.

Performance implications of internationalization strategies for Chinese MNCs

2015 ◽  
Vol 10 (2) ◽  
pp. 272-292 ◽  
Author(s):  
Lin Yuan ◽  
Nitin Pangarkar
Keyword(s):  
Developing Countries ◽  
Random Effect ◽  
Empirical Support ◽  
Developed Countries ◽  
Rapid Expansion ◽  
Data Set ◽  
Content Type ◽  
Geographic Scope ◽  
Internationalization Strategies ◽  
Chinese Mncs

Purpose – The purpose of this paper is to investigate the performance implications of internationalization strategies for Chinese multinational corporations (MNCs). Specifically, the authors examine the individual and joint effects of speed of internationalization in developed and developing countries and age on Chinese MNCs’ performance. Design/methodology/approach – The authors constructed a unique and comprehensive database on the internationalization strategies of 206 Chinese firms over 14 years and deployed random-effect regressions to assess the effects of age, speed of expansion in terms of number of subsidiaries and countries, and the types of destination (developed vs developing country) on firm performance. Findings – The analyses show that age is negatively related to performance but rapid expansion of subsidiaries in developing countries and geographic scope in developed countries are positively related to performance. In addition, the impacts of young age and two types of expansion, fast expansion of subsidiaries in developing countries and fast expansion of geographic scope in developed countries, are cumulative. Originality/value – The authors combine the arguments of the learning advantages of newness and fast movers and model the simultaneous effects of age and speed of two types of international expansion (in terms of number of subsidiaries and countries) in both developed and developing countries on performance. The strong empirical support for the hypotheses based on analyses of a unique data set of Chinese MNCs’ internationalization patterns lends credence to the proposed model.

Mean reversion in corporate leverage: evidence from India

2019 ◽  
Vol 45 (9) ◽  
pp. 1183-1198
Author(s):  
Gaurav S. Chauhan ◽  
Pradip Banerjee
Keyword(s):  
Capital Structure ◽  
Emerging Market ◽  
Simulated Data ◽  
Mean Reversion ◽  
Developed Countries ◽  
Data Sets ◽  
Debt Ratio ◽  
Testing Strategy ◽  
Content Type ◽  
Financing Behavior

Purpose Recent papers on target capital structure show that debt ratio seems to vary widely in space and time, implying that the functional specifications of target debt ratios are of little empirical use. Further, target behavior cannot be adjudged correctly using debt ratios, as they could revert due to mechanical reasons. The purpose of this paper is to develop an alternative testing strategy to test the target capital structure. Design/methodology/approach The authors make use of a major “shock” to the debt ratios as an event and think of a subsequent reversion as a movement toward a mean or target debt ratio. By doing this, the authors no longer need to identify target debt ratios as a function of firm-specific variables or any other rigid functional form. Findings Similar to the broad empirical evidence in developed economies, there is no perceptible and systematic mean reversion by Indian firms. However, unlike developed countries, proportionate usage of debt to finance firms’ marginal financing deficits is extensive; equity is used rather sparingly. Research limitations/implications The trade-off theory could be convincingly refuted at least for the emerging market of India. The paper here stimulated further research on finding reasons for specific financing behavior of emerging market firms. Practical implications The results show that the firms’ financing choices are not only depending on their own firm’s specific variables but also on the financial markets in which they operate. Originality/value This study attempts to assess mean reversion in debt ratios in a unique but reassuring manner. The results are confirmed by extensive calibration of the testing strategy using simulated data sets.

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