Sensitivities of Southeast Asian industries to the local and global business cycles

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Javed Iqbal
Keyword(s):  
Business Cycle ◽  
Durable Goods ◽  
Developed Countries ◽  
Least Square ◽  
Seemingly Unrelated Regression ◽  
Manufacturing Industries ◽  
Series Data ◽  
Global Business ◽  
Asymmetric Reaction ◽  
Content Type

PurposeThis paper estimates the sensitivities of the output of the manufacturing industries of the four Southeast countries (Indonesia, Malaysia, Philippines, Singapore) to both the country-specific and global business cycle fluctuations. The study investigates whether the business cycle exposures of these industries differ to their nature classified as producing durable or nondurable goods and also to booms and recessions.Design/methodology/approachUsing annual time series data on sectoral manufacturing production indices for major manufacturing industries over the period from 1999 to 2018, this paper uses the seemingly unrelated regression (SUR)–based generalized least square estimator to estimate the exposures of each industry for each of the four countries to local and world business cycle.FindingsThe individual country analysis indicates that generally the sensitivities of the ASEAN manufacturing industries to booms and recessions are different from the pattern observed in the developed countries and Russia. We do not find evidence consistent with the commonly held view among economists and business managers that demand for durable goods flourishes in booms and falls in recessions. Also, very few industries exhibit an asymmetric reaction to booms and busts. However, the analysis of panel data reveals the expected pattern of industrial sensitivities to the local business cycle only.Originality/valueThe paper makes several contributions. Firstly, the model proposed in the paper estimates sensitivities of industries to both the local and global business cycle variations. Secondly, the model enables us to explicitly test the asymmetric reaction of industries to booms and busts. Thirdly, the paper is the first attempt to estimating business cycle exposures for manufacturing industries in emerging markets.

A systematic literature review of lean manufacturing implementation in manufacturing-based sectors of the developing and developed countries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Catherine Maware ◽  
Modestus Okechukwu Okwu ◽  
Olufemi Adetunji
Keyword(s):  
Developing Countries ◽  
Literature Review ◽  
Lean Manufacturing ◽  
Negative Impact ◽  
Developed Countries ◽  
Manufacturing Industries ◽  
Preliminary Review ◽  
Content Type ◽  
Manufacturing Organizations ◽  
Developing And Developed Countries

Purpose This study aims to comparatively discuss the effect of lean manufacturing (LM) implementation in the manufacturing sectors of developing and developed countries. Design/methodology/approach An in-depth literature review focused on previous research published between 2015 and March 2020. The papers published by the databases such as Google Scholar, Scopus, ProQuest and Web of Science were used in the study. A total of 63 studies that focused on LM application in manufacturing industries in developing and developed countries were used in the research. Findings It was observed that LM improves operational performance for manufacturing organizations in developing and developed countries. Small and medium-sized enterprises in both developed and developing countries have difficulties transforming their organizations into lean organizations compared to large enterprises. Furthermore, the review also found that there seems to have been no paper had reported the negative impact of implementing LM in manufacturing industries in developing and developed countries from 2015 to March 2020. Research limitations/implications The study used research papers written between January 2015 and March 2020 and only considered manufacturing organizations from developed and developing nations. Practical implications The study provides more insight into LM implementation in developing and developed countries. It gives the LM practices and the implications of applying these practices in manufacturing organizations for developing and developed countries. Originality/value A preliminary review of papers indicated that this seems to be the first paper that comparatively studies how LM implementation has affected manufacturing organizations in developed and developing countries. The study also assessed the LM practices commonly used by the manufacturing industries in developing and developed countries.

Terms of trade and economic growth in developing country

2020 ◽  
Vol 13 (1) ◽  
pp. 1-19
Author(s):  
Syed Tehseen Jawaid ◽  
Abdul Waheed ◽  
Aamir Hussain Siddiqui
Keyword(s):  
Economic Growth ◽  
Negative Relationship ◽  
Terms Of Trade ◽  
Least Square ◽  
Cointegration Test ◽  
Series Data ◽  
Significant Positive Effect ◽  
Content Type ◽  
Ordinary Least Square ◽  
Positive Effect

Purpose The purpose of this study is to investigate the first time ever the effects of overall terms of trade, bilateral terms of trade and main commodity groups’ terms of trade on economic growth. Design/methodology/approach Augmented Dickey Duller and Philips Perron unit root tests and Johensan cointegration test have been applied by using annual time series data from 1974 to 2017. Dynamic ordinary least square and fully modified ordinary least square have also been used to perform sensitivity analysis. Findings The cointegration test confirm the positive long-run relationship between overall terms of trade (ToT) and economic growth. Country-wise results show that ToT with Australia, Bangladesh, Canada, Hong Kong, Japan, Kuwait, Malaysia, Singapore, Sri Lanka, UK and the USA have significant positive effect on economic growth. Conversely, ToT with China and UAE has significant negative effect on economic growth. In contrast, ToT with India, Norway, Saudi Arabia and Switzerland has insignificant effect on the economic growth of Pakistan. Product-wise results indicate that the product group namely, Chemical, Crude Material inedible except fuels, Manufactured and Minerals fuels and Lubricant found to be a significant positive effect on economic growth. However, Beverages and Tobacco, and Machinery and Transport product groups found to be significant negative impact on economic, while Food and Live animals found to be insignificant. Practical implications In general, it is suggested that the beneficial terms of trade are favorable for economic growth. The study suggested export promotion policy for which relationship between ToT and economic growth found positive and import substitution policy is suggested the products found a negative relationship between the said variables. Originality/value This paper is a pioneer attempt to investigate the effect of overall ToT, bilateral terms of trade and the main commodity group’s ToT on economic growth in Pakistan.

The Impact of Foreign Direct Investment (FDI) on Economic Growth (EG) : Evidence from Djibouti

2021 ◽  
Vol 9 (10) ◽  
pp. 701-706
Author(s):  
Nashwa Maguid Hayel
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
International Development ◽  
Direct Investment ◽  
Time Series Data ◽  
Developed Countries ◽  
Least Square ◽  
Series Data ◽  
Study Results ◽  
The Impact

Abstract: The achievement of EG and development is considered the core objective for both Developing Countires (DCs) and Least Developed Countries (LDCs), so countries try to get adequate funding to achieve this goal through optimal macroeconomic policies and different strategies. Countries prefer other mechanisms with less burden and cost to achieve economic growth, such as FDI flows. International development-oriented institutions such as WB and IMF recommend and consider FDI flows are the most important factors of the modern technology transfer, management, and know-how, which is necessarily needed in the local investment projects in poor countries, so FDI represents optimal external sources of growth. The objective of this study is to explain the impact of FDI on the EG of Djibouti. To achieve this objective the study used a secondary annual time series data for the period 1985-2019 by the method of Ordinary Least Square (OLS). The study results showed that FDI in the case of Djibouti tends to be statistically insignificant effects and a limited impact on Djibouti‘s EG, Moreover,other factors such as the Human Development Index(HDI), and Gross Fixed Capital Formation(GFCF), Trade Openness(TOP) shows significant effects on the Gross Domestic Product (GDP). Finally, the Consumer Price Index (CPI) has no significance in the EG of Djibouti. The findings provide critical information to Djibouti policy decision-makers to make an informed decision with regard to attracting investment sectors and policies in encouraging foreign investors to invest in the country. KEYWORDS: Foreign Direct Investment, Economic Growth, Djibouti, Empirical Analysis.

Innovation capabilities, market characteristics and export performance of EMNEs from India

2020 ◽  
Vol 32 (5) ◽  
pp. 801-822
Author(s):  
Sneha Bhat ◽  
Kirankumar S. Momaya
Keyword(s):  
Emerging Market ◽  
Export Performance ◽  
Developed Countries ◽  
Least Square ◽  
Least Square Estimator ◽  
Data Set ◽  
Content Type ◽  
Emerging Market Multinationals ◽  
Pharmaceutical Firms ◽  
The Relationship

Purpose This study aims to investigate the moderating effect of market characteristics on the relationship between innovation capabilities and export performance of Indian pharmaceutical firms. Design/methodology/approach The authors test the hypotheses using generalized least square estimator with random effects, on a panel data set, for the period 2010–2016. Findings Analyses of the data show that innovation capabilities lead to superior export performance. R&D investment positively affects export performance of both developing and developed countries, whereas patent quality negatively affects the export performance of developed countries and has no significance in developing countries. Size of the firm has significant positive effect on its export performance. Originality/value This study explores the role of market characteristics in determining the relationship between innovation and export performance, which has mostly been ignored in extant literature, especially in the context of emerging market multinationals.

GREEN GROWTH: IMPORTANT DETERMINANTS

2015 ◽  
Vol 60 (02) ◽  
pp. 1550014 ◽  
Author(s):  
GHULAM SAMAD ◽  
RABIA MANZOOR
Keyword(s):  
Time Series Data ◽  
Random Effect ◽  
Random Effect Model ◽  
Developed Countries ◽  
Fixed Effect Model ◽  
Least Square ◽  
Series Data ◽  
Market Size ◽  
Green Growth ◽  
Effect Model

We discuss the important determinants requires to develop green patents, which eventually reinforce green growth. The theoretical framework examined four elements, the enforcement of intellectual property rights (IPRs), research and development (R&D) expenditures, market size and environmental taxations. We empirically test the green patent data to test the interrelationship of green patents representing the green innovations and IPR, R&D expenditures, market size and environmental taxations. Keeping in view the availability of the data we studied 11 developed countries, which are Austria, Australia, Canada, France, Japan, Finland, Germany, Sweden, U.K and U.S. The panel data can better handled the technological change rather than the pure cross section or pure time series data. Therefore, this study used the Pooled Least Square estimation techniques like Fixed Effect Model (FEM) and random effect model (REM) for both balance period of 1995–2010 and unbalanced period from 1995–2010. We only interpreted the balance period results depicting the enforcement of IPRs has negative and significant impact on green patents while the R&D expenditures, market size and environmental taxations has positive and significant impact on the green patents e.g. development of green innovations. We believe that the enforcement of explanatory variables will eventually acquire green growth.

scholarly journals IMPACT OF CURRENT ACCOUNT GAPS ON INFLATION IN SOUTH ASIAN COUNTRIES

2021 ◽  
Vol 9 (3) ◽  
pp. 1056-1062
Author(s):  
Sardar Shakeel Ahmad ◽  
Atif Ali Jaffri ◽  
Faisal Rana ◽  
Asadullah Khan
Keyword(s):  
Time Series ◽  
South Asian ◽  
Current Account ◽  
Inflation Rate ◽  
Developed Countries ◽  
Least Square ◽  
Series Data ◽  
Asian Countries ◽  
Price Inflation ◽  
The Impact

Purpose of the study: The current study estimated the impact of current account gaps (CAGAP) on inflation in South Asian countries, namely, Pakistan, Bangladesh, India, Nepal, and Sri Lanka. Methodology: CAGAP is estimated through macroeconomic fundamentals by applying panel time series data methodology from 1990 to 2018. We adopted the bias-corrected least square dummy variable (LSDVC) estimation technique for the time series macro and dynamic panel to find the impact of CAGAP on inflation. Principal findings: CAGAP negatively affected consumer price inflation rate while Lag of inflation, trade openness, age dependency, and oil prices positively affected inflation rate in the selected sample countries. In LSDVC, the Blundell and Bond (BB), Arellano-Bond (AB), Anderson and Hsiao (AH) estimates are determined while system and difference GMM estimates also confirmed the results. Therefore, LSDVC-AB is selected from the three versions of LSDVC as baseline regression based on higher significance and lower standard error. Applications of the Study: CAGAP affects inflation, so it should be estimated annually in all these countries for macroeconomic stability as IMF annually estimates for developed countries in an external sector report. It is worthwhile to estimate CAN regularly and watch it for CAB evaluation and future Adjustment. Based on the results, the study recommends that tailored policies and interventions focus on the structural distortions and slow-changing factors to eradicate CAGAP. Novelty/ Originality of the Study: A few empirical studies have scrutinized the role of CAB on macroeconomic variables. No empirical study on CAGAP and its consequences are available in the selected region's existing literature to the best of our knowledge.

Purchase intention for green brands among Pakistani millennials

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Talha Salam ◽  
Katherine Taken Smith ◽  
Faria Mehboob
Keyword(s):  
Developing Countries ◽  
Purchase Intention ◽  
Developed Countries ◽  
Partial Least Square ◽  
Least Square ◽  
Green Marketing ◽  
Equation Modeling ◽  
Model Assessment ◽  
Green Products ◽  
Content Type

Purpose The purpose of this study is to answer the following questions: What factors influence attitude toward green brands among Pakistani millennials? Does attitude toward green brands affect purchase intention? Does gender moderate the effect? Design/methodology/approach Data was collected through an online questionnaire distributed through multiple academic and professional networks. The questionnaire was answered by 242 Pakistani millennials. SmartPLS was used to conduct partial least square-structural equation modeling analysis. The analysis was conducted using a two-stage protocol typically followed in SEM analysis. First, an outer model assessment was done to measure construct reliability and validity. This was followed by hypotheses testing in the inner model assessment. Moderating effects were tested using the multigroup analysis feature of SmartPLS. Findings The antecedent factors tested in this study are green brand skepticism, environmental consciousness and attitude toward green campaigns. Results show that these factors do influence a person’s attitude toward a green brand, which, in turn, influences his/her purchase intention regarding that brand. Marketers of green brands can use the factors outlined in this study to improve consumer attitudes toward their company and products. This study showed that women are more positively affected by green campaigns. Green campaigns in Pakistan may be more successful if directed at female millennials. Practical implications This study conveys helpful implications for marketing managers, as specific antecedents are found to be significant predictors of purchase intention for green brands. Companies should not let the fear of consumer skepticism stop them from advocating their green products and initiatives. Green marketing campaigns can inspire millennials to encourage their social groups to be environmentally conscious. By actively helping the environment, these consumers may feel a sense of pride for their cohort and their country. As a result, Pakistan might undergo a transition to buying green brands, adopting green lifestyles and demanding green products from non-green brands. Originality/value Most of the research on green marketing and branding for millennials pertains to developed countries. However, as roughly 90% of the global millennial population live in developing countries, it is important to conduct research in developing countries. This paper specifically focuses on Pakistan, a developing country in South Asia. A propensity toward environmental issues among millennials makes this study an important one, both for the Pakistani market and for generalizations in populated developing countries having a similar profile.

The impact of financial performance on corporate social responsibility disclosure: the case of VN100 in Vietnam

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thinh Quoc Tran
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Positive Impact ◽  
Least Square ◽  
Series Data ◽  
Content Type ◽  
Corporate Social Responsibility Disclosure ◽  
Corporate Social ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of financial performance (FP) on corporate social responsibility disclosure (CSRD) in the top 100 listed enterprises in Vietnam (VN100). Design/methodology/approach This paper uses the ordinary least square method to test and uses time series data of VN100 in five years from 2015 to 2019. Findings The results of this study show that the return on assets and return on equity have a positive impact on CSRD of VN100. Research limitations/implications This paper has not covered all independent variables related to FP. Practical implications The paper contribute to increasing CSRD of VN100. Social implications The paper contribute to raising awareness of businesses about community and society. Originality/value This paper contributes to increase the level of useful information for stakeholders to meet the trend of regional and international integration.

Organized crime, corruption and the challenges of economic growth in the economic community of West African states

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mallam Isgogo Mohammed ◽  
Abbsinejad Hossein ◽  
Chukwudi C. Nwokolo
Keyword(s):  
Economic Growth ◽  
West Africa ◽  
Organized Crime ◽  
West African ◽  
Least Square ◽  
Policy Implications ◽  
Series Data ◽  
Economic Community ◽  
Data Set ◽  
Content Type

Purpose This study aims to examine organized crime, corruption and their challenges to the economic growth of the Economic Community of West African States (ECOWAS). Organized crime and corruption can have a grossly negative impact on the economic growth process of every system, but the extent of damage they have needs to be measured to determine the policy implications to the region. Design/methodology/approach The study uses the fixed effects model and the feasible generalized least square known also as the random-effects model with the pooled ordinary least square as a control on the defined objectives using secondary time series data that covers the period 2000 to 2019 for 11 countries in the ECOWAS region. The panel nature of the data set provides a rich degree of freedom with 220 (20 years for 11 countries – 20*11 = 220) observations. Findings Results show among others that organized crime does not have a significant impact on economic growth, whereas corruption significantly reduces economic growth. Research limitations/implications Unavailability of data affected the scope of the study in the areas of a number of countries selected and years chosen for the study. The implication is that it would have given the study better degrees of freedom. Practical implications The practical implication of this study has exposed corruption hinders economic growth in West Africa. Social implications The social implication of the study is that it has exposed that though the organized crime was a bad phenomenon it does not retard economic growth significantly in West Africa. Originality/value This study is original and of immense importance as its the first study to focus on organized crime and corruption’s influence on economic growth among West African states.

The global business cycle and speculative demand for crude oil

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Elisabete Neves ◽  
Vítor Oliveira ◽  
Joana Leite ◽  
Carla Henriques
Keyword(s):  
Business Cycle ◽  
Crude Oil ◽  
Structural Model ◽  
Oil Prices ◽  
Demand Elasticity ◽  
Global Business ◽  
Content Type ◽  
Oil Demand ◽  
Oil Inventories ◽  
Speculative Demand

PurposeThis paper aims to better understand if speculative activity is a factor or even the main factor in the run-up of oil prices in the spot market, particularly in the recent price bubble that occurred in the period from mid-2003 to 2008.Design/methodology/approachThe methodology used is based on an existing vector autoregressive model proposed by Kilian and Murphy (2014), which is a structural model of the global market for crude oil that accounts for flow demand and flow supply shocks and speculative demand oil shocks.FindingsFrom the output of the authors’ structural model, the authors ruled out speculation as a factor of rising oil prices. The authors have found instead that the rapid oil demand caused by an unexpected increase in the global business cycle is the most accurate culprit. Despite the change of perspective in the speculative component, the authors’ conclusions concur with the findings of Kilian and Murphy (2014) and others.Originality/valueAs far as the authors are aware, this is the first time that a study has used as a spread oil variable, a speculative component of the real price, replacing the oil inventories considered by Kilian and Murphy (2014). Another contribution is that the model used allows estimating traditional oil demand elasticity in production and oil supply elasticity in spread movements, casting doubt on existing models with perfect price-inelastic output for crude oil.

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