Investigating the impact of entrepreneurship on economic development: a regional analysis

2016 ◽  
Vol 23 (3) ◽  
pp. 896-916 ◽  
Author(s):  
Harshana Kasseeah
Keyword(s):  
Economic Development ◽  
Regional Variation ◽  
Business Environment ◽  
World Bank Group ◽  
Data Set ◽  
Content Type ◽  
Cross Sectional Dimension ◽  
The World ◽  
Level Of Economic Development ◽  
The Impact

Purpose – This paper uses data on 125 countries to study whether entrepreneurship affects the level of economic development by taking a regional perspective. Specifically, the purpose of this paper is to investigate whether entrepreneurship leads to economic development by accounting for several other factors including the level of financial development, the business environment and governance and the quality of institutions. Design/methodology/approach – To investigate the impact of entrepreneurship on economic development, the paper uses data available from the World Bank Group Entrepreneurship Survey database. The data are augmented with variables from the World Development Indicators and various Doing Business Reports. These variables are used to capture for other factors that affect the level of economic development. Findings – The results indicate that economic development of the countries in the sample is affected by entrepreneurship even after controlling for regional variation. These results indicate that policy makers around the world need to put in place specific policies to promote the entrepreneurship culture among their population. Research limitations/implications – This paper uses a purely cross-sectional dimension to investigate the factors that impact on economic development with particular focus on entrepreneurship. This study uses cross-section data on various countries from different regions. However, panel data would allow the examination of causality issues and this could be a potential area of further research. Practical implications – Entrepreneurship is increasingly seen as a development-promoting tool and it is recognized that countries, which facilitate entrepreneurship, tend to have higher economic development. The main finding of this paper is that irrespective of the level of development of any country or the region that it is located in, countries would gain from encouraging entrepreneurship. Originality/value – The paper uses two broad proxies for entrepreneurship captured by the business density in each country and the number of newly formed limited firms. Interestingly, the paper also captures for regional variation to investigate if the relationship between economic development and entrepreneurship changes when different regions are being considered. The use of a merged data set is therefore a main contribution of this paper to the literature.

The impact of national cultural values on retail structure

2016 ◽  
Vol 33 (6) ◽  
pp. 894-920 ◽  
Author(s):  
Boryana V. Dimitrova ◽  
Bert Rosenbloom ◽  
Trina Larsen Andras
Keyword(s):  
Cultural Values ◽  
National Culture ◽  
Retail Operations ◽  
Data Set ◽  
Content Type ◽  
The World ◽  
Primary Focus ◽  
Retail Structure ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to investigate the relationship between national cultural values and retail structure. Design/methodology/approach The authors use a panel data set of 67 countries over the period 1999-2012. Findings The results demonstrate that national cultural values, measured with the World Values Survey’s traditional/secular-rational and survival/self-expression dimensions, affect retail structure. Research limitations/implications While marketing scholars have examined the relationship between demographic and competitive factors and retail structure, there has been a substantial body of anecdotal evidence showing that national culture can also drive retail structure development. In order to enhance the understanding of the relationship between national culture and retail structure, the authors empirically examine the impact of national cultural values on retail structure. Originality/value This study is the first one to empirically examine the impact of national culture on retail structure. The authors thus help advance retail structure research the primary focus of which has been on investigating the impact of demographic and competitive factors on retail structure. This study is especially relevant to international retail managers who coordinate retail operations in multiple countries around the world. These managers need insight into the impact of national cultural values on retail structure in order to devise effective retail strategies for each host market.

Financial development, human capital and its impact on economic growth of emerging countries

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aaqib Sarwar ◽  
Muhammad Asif Khan ◽  
Zahid Sarwar ◽  
Wajid Khan
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Financial Development ◽  
Emerging Economies ◽  
Generalized Method Of Moments ◽  
Emerging Countries ◽  
Data Set ◽  
Content Type ◽  
The World ◽  
The Impact

Purpose This paper aims to investigate the critical aspect of financial development, human capital and their interactive term on economic growth from the perspective of emerging economies. Design/methodology/approach Data set ranged from 2002 to 2017 of 83 emerging countries used in this research and collected from world development indicators of the World Bank. The two-step system generalized method of moments is used to conduct this research within the endogenous growth model while controlling time and country-specific effects. Findings The findings of the study indicate that financial development has a positive and significant effect on economic growth. In emerging countries, human capital also has a positive impact on economic growth. Financial development and human capital interactively affect economic growth for emerging economies positively and significantly. Research limitations/implications The data set is limited to 83 emerging countries of the world. The time period for the study is 2002 to 2017. Originality/value This research contributes to the existing literature on human capital, financial development and economic growth. Limited research has been conducted on the impact of financial development and human capital on economic growth.

The colonial exports pattern, institutions and current economic performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tania El Kallab ◽  
Cristina Terra
Keyword(s):  
Human Capital ◽  
Economic Development ◽  
Resource Curse ◽  
Data Set ◽  
Content Type ◽  
Long Run ◽  
French Colonies ◽  
Colonial Institutions ◽  
The Impact

PurposeThis paper explores the role of colonial heritage on long-term economic development from a resource-curse perspective. The authors investigate the impact of colonial exports on long-term economic development through two channels: (1) a direct impact of the economic dependency on natural resources and (2) an indirect impact via its effect on colonial institutions, which persisted over time and influenced current economic development.Design/methodology/approachTo address this issue, the authors use an original data set on French bilateral trade from 1880 to 1912. The authors use partial least square structural equation modeling (PLS-SEM) in the empirical analysis, so that the authors are able to construct latent variables (LVs) for variables that are not directly observable, such as the quality of institutions.FindingsThe authors find that exports of primary goods to France had a negative impact on colonial institutions and that for French colonies, this impact was driven by minerals exports. Despite its impact on colonial institutions, exports of French colonies had no significant indirect impact on their current institutions. The authors find no significant direct impact of colonial trade on current development for French colonies. Finally, colonial exports of manufactured products had no significant impact on colonial institutions among French colonies and a positive impact among non-French ones.Research limitations/implicationsResearch implications regarding the findings of this paper are, namely, that the relative poor performance within French colonies today cannot be attributed to the extraction of raw materials a century ago. However, human capital and institutional development, instead of exports, are more relatively important for long-term growth. Some limitations in trying to determine the simultaneous relationship among colonial trade, institutions and economic performance are the relation between colonial trade and the extent of extraction from the colonizer, which is hard to quantify, as well as its precise mechanism.Practical implicationsSince the initial institutions set in those former colonies presented a strong persistence in the long run, their governments should focus now on building sound and inclusive political and economic institutions, as well as on investing in human capital in order to foster long-term growth. Once a comprehensive set of institutional and human resources are put in place, the quality and quantity of exports might create a positive spillover on the short-run growth.Social implicationsOne social implication that can be retrieved from this study is the ever-lasting effect of both human capital investment and introduction of inclusive political and economic institutions on the long-run impact of growth.Originality/valueThe paper uses an original primary data set from archival sources to explore the role of colonial heritage on long-term economic development from a resource-curse perspective. It applies a relatively new model partial least squares path modeling (PLS-PM) that allows the construction of LVs for variables that are not directly observable, as well as channeling the impact on growth through both direct and indirect channels. Finally, it allows for the simultaneous multigroup analysis across different colonial groups.

INEQUALITY, FDI AND ECONOMIC DEVELOPMENT: EVIDENCE FROM DEVELOPING COUNTRIES

2017 ◽  
Vol 62 (05) ◽  
pp. 1039-1057 ◽  
Author(s):  
MUHAMMAD TARIQ MAJEED
Keyword(s):  
Economic Development ◽  
Estimation Methods ◽  
Host Countries ◽  
Data Set ◽  
Regional Effects ◽  
Specific Effects ◽  
Level Of Economic Development ◽  
Time Specific ◽  
High Level ◽  
The Impact

This paper empirically investigates the impact of Foreign Direct Investment (FDI) on inequality using a panel data set of 65 developing counties. While the existing literature mainly examines the impact of FDI on growth, this study explores the importance of domestic conditions of the host countries in determining the distributional effects of FDI. The results show that the impact of FDI is not homogenous on host countries as FDI inflows exert inequality-narrowing effect only in countries that have stronger investment in human capital, better financial sector and a high level of economic development. While FDI accentuates not ameliorates inequality in countries with low level of economic development, findings of the study are robust to the use of different specifications, different estimation methods, inclusion of regional effects and time specific effects.

The impact of green finance and Covid-19 on economic development: capital formation and educational expenditure of ASEAN economies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Quang-Thanh Ngo ◽  
Hoa Anh Tran ◽  
Hai Thi Thanh Tran
Keyword(s):  
Economic Development ◽  
Data Collection ◽  
Generalized Method Of Moments ◽  
Capital Formation ◽  
Content Type ◽  
Educational Expenditures ◽  
Green Finance ◽  
The World ◽  
Asean Countries ◽  
The Impact

PurposeThe purpose of this study is to examine the impact of green finance (i.e. green investment, green security and green credit) along with capital formation and government educational expenditures on the economic development of (ASEAN) countries.Design/methodology/approachThe data were gathered from the central banks of all ASEAN countries and the World Bank Indicators between 2008 and 2019. The fixed-effect model and generalized method of moments were used to check the nexus between the constructs.FindingsThe results revealed that green finance along with capital formation and government educational expenditures have a positive association with the economic development of ASEAN countries.Research limitations/implicationsThe study carries some limitations, even though it addresses the underlying variables comprehensively. These limitations provide opportunities to future researchers and authors to expand the scope and accuracy of their study. This research investigation has been supported by the data collected from a single source. Though data collection is maintained correctly, it is still recommended to the upcoming scholars to acquire data to reconfirm the same findings using multiple data sources. The data collected from using some specific data source may be limited in scope and may hinder the comprehensive elaboration of the underlying variables and their mutual relationship. Therefore, the utilization of multiple sources of data collection gives data sufficient to meet the requirement of an okay quality research study. The study is about the economies of ASEAN countries. It checks the influences of green finance development on economic activities and the country's economic growth in ASEAN countries' economies. Thus, its results are valid only in the economies of these countries, and this research investigation lacks generalizability. For generalizability, the authors must consider the underlying variables in the world's vast economies. They must adopt a standard scale to judge the impacts of green financial development on economic development. Besides, the study analyzes the economic factors, economic conditions and their effects on the country's position in the world economy in the face of a severe epidemic like COVID-19. Thus, the results may be different in the case of the normal situation. So, a general standardized study is recommended to be conducted in the upcoming days.Originality/valueGreen finance has significant capability to improve the global economy, especially amidst the COVID-19 pandemic. This study is beneficial for policymakers to develop policies related to economic development with reference to green finance and also helps future research on a similar topic.

How corruption affects loan portfolio quality in emerging markets?

2016 ◽  
Vol 23 (4) ◽  
pp. 769-785 ◽  
Author(s):  
Khemaies Bougatef
Keyword(s):  
Economic Development ◽  
Panel Data ◽  
Emerging Market ◽  
Emerging Market Economies ◽  
Loan Portfolio ◽  
Data Set ◽  
Content Type ◽  
Market Economies ◽  
Asset Quality ◽  
The Impact

Purpose The purpose of this paper is to empirically investigate the impact of corruption on the asset quality of banks operating in emerging market economies over the period 2008-2012. This issue is of crucial importance given the role of banking systems in economic development and the worldwide spread of corruption. Using panel data set of 22 countries, our findings provide a strong and robust support to the hypothesis according to which corruption aggravates the problem with non-performing loans. This evidence suggests that corruption may hinder economic development through the misallocation of loanable funds. Other results are as follows: economic expansion and capitalization level improve the loan portfolio quality. By contrast, unemployment deteriorates the debt servicing capacity of borrower which in turn contributes to lower the bank asset quality. Design/methodology/approach The authors use panel data techniques on a sample of 22 emerging market economies over the period 2008-2012 to test the relevance of corrupt practices on the soundness of banks. Findings Their findings reveal a robust positive relationship between corruption and non-performing loans (NPLs). This evidence corroborates previous results on the detrimental effect of corrupt practices on financial development. The subdivision of our main sample into two groups on the basis of the level of corruption reveals the importance of the effectiveness of collateral and bankruptcy laws in reducing the effect of corruption on loan portfolio. Moreover, we find that the accessibility to more credit information is helpful only in low corrupt countries since it enhances the soundness of banks by facilitating lending decisions. Originality/value The novelty of this paper is to take into consideration the implications of corruption in investigating the determinants of credit risk.

Examining diversity beliefs and leader performance across cultures

2018 ◽  
Vol 25 (3) ◽  
pp. 382-400 ◽  
Author(s):  
Todd J. Weber ◽  
Golnaz Sadri ◽  
William A. Gentry
Keyword(s):  
Business Environment ◽  
Employee Perceptions ◽  
Archival Data ◽  
Data Set ◽  
Content Type ◽  
Impact Performance ◽  
Supervisor Ratings ◽  
Technological Advances ◽  
Leader Performance ◽  
The Impact

Purpose The global nature of today’s business environment, coupled with technological advances, has resulted in leaders working with an increasingly diverse workforce worldwide. An emerging stream of research examines the beliefs that individuals, groups, and organizations have regarding diversity. The purpose of this paper is to add to this work by looking at subordinate perceptions of a leader’s beliefs about diversity and how that relates to a leader’s performance. Design/methodology/approach Using archival data, the authors examine 33,976 leaders (from 36 different countries and more than 4,000 companies). This study includes performance ratings from each leader’s supervisor as well as perceptual measures of diversity beliefs from their direct reports and a measure of national culture as a moderator. Findings The research finds that employee perceptions of a leader’s diversity beliefs are related to supervisor ratings of the target leader’s performance. In addition, the relationship between a leader’s diversity beliefs and the target leader’s performance rating is stronger in cultures high in performance orientation (PO) than in cultures low in PO. Research limitations/implications The limitations include the use of an archival data set as well as an assigned country score for our measure of culture. Originality/value While existing research has examined the impact of self-rated measures of diversity beliefs, there is little empirical research that examines how employee perceptions of a leader’s diversity beliefs will impact performance. The authors address this need by examining whether employee-rated perceptions of the leader’s diversity beliefs are related to a supervisor-rated measure of leader performance. In addition, the authors examine the moderating influence of societal culture on this relationship.

scholarly journals Does an Inclusive Citizenship Law Promote Economic Development?

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Patrick Amir Imam ◽  
Kangni Kpodar
Keyword(s):  
Economic Development ◽  
Control Method ◽  
Institutional Environment ◽  
Synthetic Control ◽  
Data Set ◽  
The World ◽  
Cross Country ◽  
Citizenship Laws ◽  
The Impact ◽  
Robust Evidence

AbstractThis paper analyzes the impact of citizenship laws on economic development. We first document the evolution of citizenship laws around the world, highlighting the main features of jus soli, jus sanguinis as well as mixed regimes, and shedding light on the channels through which they could have differentiated impact on economic development. We then compile a data set of citizenship laws around the world. Using cross-country regressions, panel-data techniques, as well as the synthetic control method and subjecting the results to a battery of tests, we find robust evidence that jus soli laws—being more inclusive—lead to higher income levels than alternative citizenship rules in developing countries, though to a less extent in countries with stronger institutional environment.

scholarly journals Global Trends in World Market Dynamics

2021 ◽  
pp. 185-196
Author(s):  
Liuba TURCHYN
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Value Added ◽  
Business Environment ◽  
Global Supply Chain ◽  
World Bank Group ◽  
Global Business ◽  
The World ◽  
Total Turnover ◽  
The Impact

The article examines current trends in world markets. The effects of coronavirus (COVID-19) on the global business environment have been identified. Thus, the World Bank Group highlights the uneven recovery of the economy due to coronavirus (COVID-19), in addition, it is expected that the level of world GDP in 2021 will be 3.2 % lower than expected before the pandemic, and GDP per capita among many emerging and developed economies, COVID-19 peaks are expected to remain below peak levels for a long time to come. It has been found that the rate of recovery in countries may also differ between generations and income groups, as they have been unevenly affected by the economic downturn. Therefore, businesses will need to monitor the macroeconomic environment and carefully assess the revenue and expenditure dynamics of their target consumer groups in order to propose appropriate pricing strategies and the value of their products and services. Emerging economies continue to move from key industries to higher value-added activities in the global supply chain. In addition, global trade and multinational businesses are subject to tighter controls as consumers increasingly demand more transparent and socially responsible supply chains. The pandemic shocked the global supply chain and exposed its fragility. In 2020, world exports fell by 7.2 % in US dollars, while supply bottlenecks affected various industries — from retail to manufacturing. Governments are now seeking to tighten control over critical supplies such as medicines and medical equipment, while companies are seeking to increase sustainability in supply chains. It is investigated that the uneven impacts of the pandemic itself, the pace of economic recovery vary widely in different countries. For example, the UK economy has experienced the worst downturn in 300 years, shrinking by almost 10 %. The impact on jobs was also unprecedented and ten times worse than during the global financial crisis of 2009, when in 2020 the world lost 114 million jobs. The state of world trade in general, as well as the volume and dynamics of export-import operations in Ukraine are analyzed. Thus, the total turnover in Ukraine in 2020 decreased by 6.5 % compared to the previous year. Imports decreased in 2020 by 10.3 % less than in 2019.

India-China rift risks Nepal's economic development

2016 ◽  
Keyword(s):  
Economic Development ◽  
Prime Minister ◽  
Xi Jinping ◽  
Content Type ◽  
The World ◽  
Hydroelectric Projects ◽  
The Impact ◽  
Tripartite Relationship

Subject The impact of India-China rivalry on Nepal. Significance Nepal, one of the poorest countries in the world, is not a BRICS member. However, Prime Minister P K 'Prachanda' Dahal Prachanda attended the BRICS conference in Goa on October 15-16 as an observer, and on its sidelines, met Indian Prime Minister Narendra Modi and Chinese President Xi Jinping to discuss the tripartite relationship. Impacts The return of constitutional chaos could trigger disruptive public protests and border blockades. There is no end in sight for the gridlock over the new constitution. Lack of funding for hydroelectric projects would hit Nepal's long-term aspirations to expand its power exports.

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