scholarly journals Observations of deglobalization against globalization and impacts on global business

2020 ◽  
Vol 4 (2) ◽  
pp. 83-103
Author(s):  
Hag-Min Kim ◽  
Ping Li ◽  
Yea Rim Lee
Keyword(s):  
Developing Countries ◽  
Panel Data ◽  
Global Financial Crisis ◽  
Developed Countries ◽  
Negative Influence ◽  
Global Business ◽  
Content Type ◽  
Business Executive ◽  
Statistical Measures ◽  
The Global Financial Crisis

PurposeThis study aims to investigate current deglobalization against globalization and to hypothesize reasons and drivers of deglobalization. In addition, the study suggests an empirical model to test whether deglobalization exists in the world economy. The consequences of deglobalization are discussed.Design/methodology/approachVarious measures for deglobalization are introduced for monitoring the deglobalization of a country, and statistical measures are reported. The research framework for deglobalization and empirical models are suggested. The relationship between deglobalization and globalization is being modeled using three KOF globalization indexes: economic, political and societal. This study used panel data from 1970 to 2017 for developed and developing countries to determine the degree of deglobalization.FindingsDeglobalization has been found empirically since the global financial crisis. Deglobalization is estimated by the decreasing trend of import share in a country's gross domestic product and is influenced by manufacturing imports, country's income divide and political globalization. Both economic and societal globalizations have negative influence on deglobalization. Deglobalization is more apparent in developed countries than in developing countries, and the deglobalization trend will continue in diverse formats.Research limitations/implicationsThis study limits the use of few variables to test the antecedents of deglobalization. Another study can be done to extend preceding variables and estimate the consequences of deglobalization, which may segregate the globalization effect. The international business executive should understand the complexity of deglobalization and consider business benefits and risks to be encountered.Originality/valueThis study used panel data from 1970 to 2017 for developed and developing countries to determine the degree of deglobalization.

Business founders and performance of family firms: evidence from developing countries in Asia

2020 ◽  
Vol 15 (2) ◽  
pp. 217-239
Author(s):  
Yee Peng Chow
Keyword(s):  
Developing Countries ◽  
Family Firms ◽  
Global Financial Crisis ◽  
Developed Countries ◽  
Ordinary Least Squares ◽  
Superior Performance ◽  
Least Squares Regression ◽  
Content Type ◽  
And Performance ◽  
The Global Financial Crisis

Purpose The purpose of this study is to examine how business founders influence the performance of family firms in developing countries in Asia. Design/methodology/approach The pooled ordinary least squares regression is used on a sample of 134 public listed family firms from four developing countries in Asia during the period 2004–2014. This study also conducts sub-period analyses where the study period is divided into three sub-periods, i.e. before, during and after the global financial crisis (GFC). Findings This study finds that founder-led family firms outperform family firms led by nonfounders for the full study period. The results for the sub-period analyses also show that founder-led family firms outperform nonfounder-led family firms for the pre-crisis and during crisis periods. Finally, this study finds no evidence supporting the superior performance of founder-led family firms post-GFC. Originality/value Because family firm is one of the most fundamental forms of business organization in the world, policymakers have great concerns about how business founders influence the performance of these firms. Nonetheless, the existing research on family firms is chiefly concentrated on developed countries but there is a paucity of studies being conducted in the context of developing countries. Moreover, previous research has only considered the performance of these firms during normal or turbulent times but no prior studies have compared the firm performance during normal, turbulent and recovery periods. It is the aim of this paper to address these research gaps by using a new and more recent set of data.

Risk governance and performance: a developing country perspective

2016 ◽  
Vol 31 (3) ◽  
pp. 250-268 ◽  
Author(s):  
Shamsun Nahar ◽  
Christine Jubb ◽  
Mohammad I Azim
Keyword(s):  
Significant Relationship ◽  
Global Financial Crisis ◽  
Developed Countries ◽  
Risk Governance ◽  
Bank Performance ◽  
Risk Disclosure ◽  
Content Type ◽  
Return On Equity ◽  
And Performance ◽  
The Global Financial Crisis

Purpose – The purpose of this paper is to investigate the association between risk governance and bank performance in a country where disclosure of risk information is virtually voluntary. Design/methodology/approach – Using 210 bank-year observations comprising hand-collected data for the period 2006-2012, the study uses regression analysis to test whether a significant relationship exists between risk governance and banks’ accounting- and market-based performance. Findings – This paper investigates risk governance in terms of risk disclosure, number of risk committees and existence of a risk management unit, controlling for other corporate governance variables. Accounting-based performance is measured by return on equity and return on assets; market-based performance is measured by Tobin’s q and buy-and-hold returns. The results show that there is a significant relationship between risk governance and bank performance measures used in this study. Research limitations/implications – This paper complements the governance literature by incorporating agency and neo-institutional theory to provide robust evidence that risk monitoring and management are associated with bank performance, which has become extremely important following the global financial crisis (2007-2008). Practical implications – Empirical evidence in this paper suggests that risk governance characteristics can be used as channels to improve bank performance. In addition, stakeholders may find these results useful in selecting their preferred bank. Originality/value – The uniqueness of this paper lies in its country setting. Most studies on governance and performance involve developed countries. This paper’s contribution is to examine the association of risk governance characteristics for both accounting-based and market-based performance in a developing economy setting, with virtually voluntary compliance mechanisms in place.

A systematic review of the influence of medical representatives and promotional tools on prescribing

2017 ◽  
Vol 11 (4) ◽  
pp. 361-394 ◽  
Author(s):  
Mohsen Ali Murshid ◽  
Zurina Mohaidin
Keyword(s):  
Developing Countries ◽  
Developed Countries ◽  
Negative Influence ◽  
Positive Influence ◽  
Drug Prescribing ◽  
Content Type ◽  
Online Databases ◽  
Promotional Efforts ◽  
Prescribing Behaviour ◽  
The Developed Countries

Purpose The purpose of this paper is to examine reported literature on the influence of medical representatives (MRs) and other promotional tools on drug prescribing behaviour, and to assess whether this effect is different in developed and developing countries. Design/methodology/approach A survey of the literature was conducted across online databases from 2000 to 2016. Eligible studies addressed MRs and other promotion tools used to influence drug prescribing in developed and developing countries. Findings A total of 40 reviewed studies met the inclusion requirements. In total, 22 of the studies were conducted in developed countries and 18 in developing countries. Out of ten studies that examined the influence of MRs on drug prescribing in developed countries, eight found a positive influence, one found only moderate and one finds no influence. Analogous results were found in developing countries. Six out of ten studies on the influence of MRs conducted in developing countries found a positive effect, three found only moderate effects, while one finds no influence. The influence of promotion tools on prescribing varied in developed countries, five found positive influence, four reported a small effect and one found negative influence. In developing countries, the size of effect also varied, five studies found positive influence of promotion tools on drug prescribing behaviour, five found a negligible or small effect, and one found no association. However, marked differences were observed between two sectors. In the developed countries, MRs are valued as a source of information and can have an effect on prescribing, while it is unreliable in developing countries. Sample drugs are more generally seen as an important promotional tool for prescribing in developed countries than developing countries. Research limitations/implications The results derived from this review are based on studies with varying methodological consistency. The review provides the crucial information that will be valuable to researchers working on comparative analysis of marketing efforts in developing and developed countries. Originality/value This paper is one of the few systematic reviews on the influence of MRs and other promotional tools on prescribing. It compares the influence of MRs and promotional efforts in both developed and developing countries.

The impact of violence on tourism to Rio de Janeiro

2020 ◽  
Vol 47 (4) ◽  
pp. 425-443 ◽  
Author(s):  
Gabriel Caldas Montes ◽  
Solimar de Pinho Bernabé
Keyword(s):  
Developing Countries ◽  
Panel Data ◽  
Peer Review ◽  
Rio De Janeiro ◽  
Developed Countries ◽  
The State ◽  
Urban Violence ◽  
Content Type ◽  
Tourism Potential ◽  
The Impact

PurposeRio de Janeiro has a high tourism potential, and it is the only Brazilian city among the 100 most visited in the world. However, the National Confederation of Commerce of Goods, Services and Tourism estimates that from the total loss of revenue from tourism activities of the State of Rio de Janeiro in 2017, approximately 29 percent of this loss can be attributed to increased violence in the State. Thus, this study aims to estimate the impact of violence on tourist arrivals to Rio de Janeiro.Design/methodology/approachThe analysis is based on a sample of tourist arrivals to Rio de Janeiro from 51 countries, for the period between 2003 and 2016. Violence is represented by violent deaths in the State of Rio de Janeiro as well as in the capital. The estimates are based on panel data methodology. This study reports fixed-effect estimates as well as dynamic panel data estimates obtained through S-GMM. The study runs regressions for the full sample and also for two other samples: one with tourists coming from developed countries and another with tourists from developing countries.FindingsThe results reveal that violence negatively impacts tourism to Rio, and it shows that tourists from developed countries are more affected by violence than tourists from developing countries. The findings indicate that for each violent death in the capital of Rio de Janeiro, almost four tourists from developed countries and approximately three tourists from developing countries quit going to Rio de Janeiro.Originality/valueThe paper is one of the few to investigate the impacts of urban violence on tourism. The paper provides two contributions. First, it addresses the effect of violent deaths on tourism, bringing evidence to a destination with a high tourism potential, but which suffers from urban violence. Second, the study is the first to investigate whether this relation is different for tourists from countries with distinct levels of development (and thus with different levels of violence).Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-09-2019-0590

Determinants of sovereign debt ratings in clusters of European countries – effects of the crisis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Catarina Proença ◽  
Maria Neves ◽  
José Carlos Dias ◽  
Pedro Martins
Keyword(s):  
Developing Countries ◽  
Sovereign Debt ◽  
Global Financial Crisis ◽  
Time Frame ◽  
European Countries ◽  
Content Type ◽  
Explanatory Variables ◽  
Rating Agencies ◽  
Panel Data Estimation ◽  
The Global Financial Crisis

Purpose This paper aims to study the determinants of the sovereign debt ratings provided by the 3 main rating agencies for 32 European countries. It verifies the clusters of countries existing for each of the agencies, considering regional bias, and then analyzes whether the determinants were different before and after the global financial crisis. It also aims to explain how the determinants are taken into account for rich and developing countries, using a sample for the period between 2001 and 2008 and the period between 2009 and 2016. Design/methodology/approach To this purpose, this paper performs panel data estimation using an ordered Probit approach. Findings This method shows that for developing countries after the crisis, the relevant explanatory variables are the unemployment rate and the presence in the Eurozone. For rich countries, the inflation rate is pivotal after the crisis period. Originality/value This paper is the first to use a clustering methodology within sovereign debt rating literature, grouping the countries into cohesive clusters according to their sovereign debt ratings along with the proposed time frame. Moreover, it explains, which countries belong to strong or weak groups, according to the rating agencies under discussion; and, in these groups, it identifies the sovereign rating determinants.

Leverage, investment, and recovery from a financial crisis: the role of debt overhang

2019 ◽  
Vol 37 (1) ◽  
pp. 143-159
Author(s):  
Andreas Kuchler
Keyword(s):  
Panel Data ◽  
Financial Crisis ◽  
Financial Stability ◽  
Global Financial Crisis ◽  
Slow Recovery ◽  
Content Type ◽  
Debt Overhang ◽  
Macroeconomic Volatility ◽  
The Global Financial Crisis

Purpose Private investment in advanced economies contracted sharply during the downturn that followed the global financial crisis. A substantial debt overhang has been one proposed explanation for this development. This paper evaluates the role of debt overhang for the slow recovery in investment in Denmark, a country in which levels of private debt rapidly increased before the crisis. Design/methodology/approach Based on firm-level panel data, this paper evaluates the links between debt and investment dynamics for individual firms during the downturn that followed the global financial crisis. Findings High leverage contributed to a slow recovery in investment during the downturn that followed the financial crisis, in particular for small and medium-sized enterprises. The effect cannot solely be attributed to mean reversion in investment. Research limitations/implications Results point to the existence of a separate leverage or “balance sheet” channel with implications for macroeconomic volatility and financial stability. Practical implications Macroprudential or microprudential measures to counteract the build-up of excess leverage during upswings may contribute to reducing macroeconomic volatility and improving financial stability. Originality/value In contrast to previous studies, the panel dimension of data is used to take mean reversion in investment into account. The large, nationally representative panel data set allows to assess the macroeconomic relevance of the results, as well as enables subsample splits which are used to gain insights into potential mechanisms through which debt overhang impacts investment.

Oil price-inflation pass-through in OECD countries

2020 ◽  
Vol 14 (1) ◽  
pp. 126-147 ◽  
Author(s):  
Oluwasegun Babatunde Adekoya ◽  
Anthony Noah Adebiyi
Keyword(s):  
Developing Countries ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Predictive Ability ◽  
Developed Countries ◽  
Oecd Countries ◽  
Oil Price ◽  
Price Inflation ◽  
Content Type ◽  
Distributed Lag

Purpose This paper aims to assess the relationship between oil price and inflation in the Organization for Economic Co-operation and Development (OECD) countries. This paper contributes to knowledge in a number of ways. Design/methodology/approach First, we carry out a comparative analysis between the developed and developing countries of the OECD. Second, we check if the global financial crisis (GFC) of 2008 altered the oil price–inflation relationship. We further extend our analysis to capture asymmetries using the non-linear autoregressive distributed lag model. Lastly, we use the Campbell and Thompson (2008) forecast evaluation test to comparatively assess the predictive ability of the symmetric (restricted) and asymmetric (unrestricted) models. Findings Our results show that asymmetries matter in the oil price–inflation nexus. Also, the effect of the GFC of 2008 is stronger for the developed countries in the short run, and the developing countries in the long run. Lastly, accounting for asymmetries in oil price yields a better forecast for inflation in both groups. Originality/value The paper adds some interesting innovations to the oil price–inflation relationship in the OECD countries. It is the study with the widest scope for such country group under two classifications of developed and developing countries. It also inculcates the role of asymmetries, financial crisis, as well as the predictive ability of oil price on inflation.

Learning model behavior

2020 ◽  
Vol 34 (4) ◽  
pp. 49-51
Keyword(s):  
Environmental Changes ◽  
Global Financial Crisis ◽  
Global Business ◽  
Content Type ◽  
The Great Depression ◽  
Industrial Sectors ◽  
The Us ◽  
The Global Financial Crisis ◽  
National Economies ◽  
Political Economic

Purpose The worldwide health epidemic that ensued from the first transmissions of Coronavirus in China in the latter part of 2019 provided an unprecedented shockwave through global business. Similar to the Great Depression in the US in the 1920s and 1930s and the global financial crisis of 2008, the following events placed a spotlight on a number of fundamental issues in many industrial sectors and national economies. In the aftermath of the crisis, there would be no shortage of political, economic, social and environmental changes to be made to ensure such widespread devastation could not be repeated. Design/methodology/approach This briefing is prepared by an independent writer who adds his/her own impartial comments and places the articles in context. Findings The worldwide health epidemic that ensued from the first transmissions of Coronavirus in China in the latter part of 2019 provided an unprecedented shockwave through global business. Similar to the Great Depression in the US in the 1920s and 1930s and the global financial crisis of 2008, the following events placed a spotlight on a number of fundamental issues in many industrial sectors and national economies. In the aftermath of the crisis, there would be no shortage of political, economic, social and environmental changes to be made to ensure such widespread devastation could not be repeated. Practical implications This paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

scholarly journals Tourism and economic growth: Multi-country evidence from mixed-frequency Granger causality tests

2021 ◽  
pp. 135481662199015
Author(s):  
Martin Enilov ◽  
Yuan Wang
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Causal Relationship ◽  
Granger Causality ◽  
Global Financial Crisis ◽  
Developed Countries ◽  
Global Perspective ◽  
Mixed Frequency ◽  
Tourism Sector ◽  
The Global Financial Crisis

This article provides new global evidence for the causal relationship between international tourist arrivals (TA) and economic growth (EG). The analysis considers 23 developing and developed countries and covers the period from January 1981 to December 2017. The causal relationship between TA and EG is determined using a bootstrap mixed-frequency Granger causality approach adopting a rolling window technique to evaluate its stability and persistency over time. Empirical results show that causality is time-varying in both the short-term and the long-term. We illustrate our results by constructing a new global connectivity index (GCI). The GCI shows that international TA remain a leading indicator for future EG in a global perspective, especially during the global financial crisis (GFC). Our findings suggest that tourism sector plays an important part in the future EG in developing countries after the GFC. Similarly, the period after the GFC is characterised by one of the highest values of the tourism-led EG in developed countries according to the GCI; however, this effect is temporal and quickly eradicates. Overall, we find that tourism sector in developing countries remains a primary contributor to future EG, which is not the case in developed countries.

scholarly journals CALCULATION PROCEDURE FOR OBTAINING THE QUOTA AFTER THE IMF REFORM: CHANGES IN SINGLE PACKAGE

2019 ◽  
Vol 2019 (5) ◽  
pp. 28-40
Author(s):  
Olena BORZENKO ◽  
Keyword(s):  
Developing Countries ◽  
Financial Stability ◽  
Global Financial Crisis ◽  
Developed Countries ◽  
Total Capital ◽  
Moral Problems ◽  
The Developed Countries ◽  
The Global Financial Crisis ◽  
New Formula ◽  
The Imf

The International Monetary Fund (IMF) keeps plans to complete the review of country quotas in 2019. The country’s quota in the IMF determines the amount of its financial obligations to the Fund; the number of votes in the Fund and the country’s access to financing depend on this quota. Lastly, these shares were redistributed in 2010 under the 14th revision of quotas, when IMF total capital was increased by 100%, and only 6% of the quotas were transferred to developing countries. However, the total share of developing countries in the Fund is only 42.5%; the remaining 57.5% belong to developed countries. The G20 has previously approved a roadmap according to which the quotas for IMF shareholder countries should be redistributed by the new formula until 2019. Countries with emerging economies should gain more weight in this institution, created to maintain the financial stability of its participants, while traditional shareholders should lose some of their share. However, earlier this formula could not be agreed because of the US counteraction. Indeed, currently, the allowable ratio of debt to GDP is revised upward in most countries, with these changes most noticeable in countries with emerging markets. It is expected that for such countries, the debt index may exceed the level observed at the beginning of the global financial crisis of 2008-2009. The developed countries with a debt burden exceeding 100% of GDP remain vulnerable as well. As a result, the probability of long-term preservation of low GDP growth rates increases. At one time, Cooper’s group refused to use the debt index, believing that it could cause certain “moral problems”: the states would be interested in debt build-up to increase their quota in the IMF.

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