Social Capital Investments, Property Rights and the Ethics of Win-Win: Why Multinational Enterprise Management Should Engage in Institution Building of their Host Countries

2015 ◽  
Author(s):  
André Habisch
Keyword(s):  
Social Capital ◽  
Property Rights ◽  
Multinational Enterprise ◽  
Enterprise Management ◽  
Institution Building ◽  
Capital Investments ◽  
Host Countries

Institution building in retreat

2017 ◽  
Vol 24 (3) ◽  
pp. 436-453 ◽  
Author(s):  
Charles Funk ◽  
Len J. Treviño
Keyword(s):  
Institutional Theory ◽  
Host Country ◽  
Multinational Enterprise ◽  
Emerging Economy ◽  
Institution Building ◽  
Host Countries ◽  
Content Type ◽  
Institutional Instability ◽  
Local Institution ◽  
Institutional Relationships

Purpose The purpose of this paper is to describe co-devolutionary processes of multinational enterprise (MNE)/emerging economy institutional relationships utilizing concepts from “old” institutional theory as well as the institutional aspects of socially constructed realities. Design/methodology/approach The authors develop a set of propositions that explore the new concept of a co-devolutionary relationship between MNEs and emerging economy institutions. Guided by prior research, the paper investigates MNE/emerging economy institutional co-devolution at the macro-(MNE home and host countries), meso-(MNE industry/host country regulative and normative institutions) and micro-(MNE and host country institutional actors) levels. Findings MNE/emerging economy institutional co-devolution occurs at the macro-level via negative public communications in the MNE’s home and host countries, at the meso-level via host country corruption and MNE adaptation, and at the micro-level via pressures for individual actors to cognitively “take for granted” emerging economy corruption, leading to MNE divestment and a reduction in new MNE investment. Research limitations/implications By characterizing co-devolutionary processes within MNE/emerging economy institutional relationships, the research augments co-evolutionary theory. It also assists in developing more accurate specification and measurement methods for the organizational co-evolution construct by using institutional theory’s foundational processes to discuss MNE/emerging economy institutional co-devolution. Practical implications The research suggests the use of enhanced regulation, bilateral investment treaties and MNE/local institution partnerships to stabilize MNE/emerging economy institutional relationships, leading to more robust progress in building emerging economy institutions. Originality/value The research posits that using the concepts of institutional theory as a foundation provides useful insights into the “stickiness” of institutional instability and corruption in emerging economies and into the resulting co-devolutionary MNE/emerging economy institutional relationships.

scholarly journals IPR Law Protection and Enforcement and the Effect on Horizontal Productivity Spillovers from Inward FDI to Domestic Firms: A Meta-analysis

2021 ◽  
Author(s):  
Danai Christopoulou ◽  
Nikolaos Papageorgiadis ◽  
Chengang Wang ◽  
Georgios Magkonis
Keyword(s):  
Intellectual Property ◽  
Property Rights ◽  
Intellectual Property Rights ◽  
Meta Analysis ◽  
Host Countries ◽  
Productivity Spillovers ◽  
Domestic Firms ◽  
The Relationship ◽  
Positive Effect

AbstractWe study the role of the strength of Intellectual Property Rights (IPR) law protection and enforcement in influencing horizontal productivity spillovers from inward FDI to domestic firms in host countries. While most WTO countries adopted strong IPR legislation due to exogenous pressure resulting from the signing of the Trade-Related Aspects of IPR (TRIPS) agreement, public IPR enforcement strength continues to vary significantly between countries. We meta-analyse 49 studies and find that public IPR enforcement strength has a direct positive effect on horizontal productivity spillovers from inward FDI to domestic firms and a negative moderating effect on the relationship between IPR law protection strength and horizontal productivity spillovers from inward FDI to domestic firms.

scholarly journals Getting a Child through Secondary School and to College in India

2017 ◽  
Vol 3 (1) ◽  
pp. 24-46 ◽  
Author(s):  
Tyler W. Myroniuk ◽  
Reeve Vanneman ◽  
Sonalde Desai
Keyword(s):  
Social Capital ◽  
Secondary School ◽  
Social Capital Theory ◽  
High Status ◽  
Capital Investments ◽  
Formal Sector ◽  
Capital Theory ◽  
Parental Experience ◽  
Educational Demand ◽  
Nationally Representative

In the classic formulations of social capital theory, families employ their social capital resources to enhance other capitals, in particular their human capital investments. Social capital would seem to be especially important in the case of India, where, in recent years, higher education has been under considerable stress with rising educational demand, inadequate supply, and little parental experience to guide children's transition through the education system. We use the 2005 and 2012 waves of the nationally representative India Human Development Survey (IHDS) to show how relatively high-status connections advantage some families' chances of their children reaching educational milestones such as secondary school completion and college entry. The 2005 IHDS survey measure of a household's formal sector contacts in education, government, and health predicts their children's educational achievements by the second wave, seven years later, controlling for households' and children's initial backgrounds.

Social capital and perceived tenure security of informal housing: Evidence from Beijing, China

Urban Studies ◽  
2021 ◽  
pp. 004209802110330
Author(s):  
Mengzhu Zhang
Keyword(s):  
Social Capital ◽  
Property Rights ◽  
Low Income ◽  
Structural Equation ◽  
Informal Settlement ◽  
Rapid Development ◽  
Informal Settlements ◽  
Psychological Explanation ◽  
Urban China ◽  
Tenure Security

Perceived tenure security is recognised to affect the socioeconomic behaviours and wellbeing of informal settlement dwellers. The provision of perceived tenure security is centred on the developmental agenda as a key policy alternative of tenure legalisation. Despite the consensus about its importance, the reason perceived tenure security is different amongst dwellers remains unclear. To fill this gap, we introduce social capital theory to understand the formation of and disparity in perceived tenure security. The hypotheses are that dwellers living in informal settlements with higher collective social capital and having higher individual social capital tend to feel more secure on their tenure because of higher backing power attained to deter the threats of eviction. We examine the hypotheses using a structural equation model approach to a dataset collected from three small property rights housing communities, which are emerging informal settlements in urban China. Modelling results support our hypotheses and suggest that female, low-income and migrant dwellers tend to feel less secure on their tenure because of the lack of social capital to deter the threats to their tenure. This study contributes to a new sociological explanation for the disparity in perceived tenure security other than the established psychological explanation. Empirically, this study contributes to the understanding of the rapid development of small property rights housing developments in China from the perspective of how dwellers develop security on informal tenure.

scholarly journals Civic Life in the Divided Metropolis: Social Capital, Collective Action, and Residential Income Segregation

2017 ◽  
Vol 55 (1) ◽  
pp. 257-287 ◽  
Author(s):  
Amber Wichowsky
Keyword(s):  
Social Capital ◽  
Collective Action ◽  
Capital Investments ◽  
Community Members ◽  
Policy Makers ◽  
Racial Residential Segregation ◽  
Income Differences ◽  
Neighborhood Organizations ◽  
Income Segregation ◽  
Racial Context

Social capital is presumed to help individuals who lack financial or human capital achieve collective action through their social ties and networks of relationships. But does it help individuals overcome their socioeconomic disadvantages relative to their wealthier neighbors, or does the accumulation of social capital merely reproduce socioeconomic disparities, particularly in economically segregated places? Leveraging data from the Current Population Survey, I test whether residential income segregation is associated with larger income differences in social capital investments and collective action. I find that in more economically segregated places, wealthier residents are more likely to be members of neighborhood organizations and report working with other community members to address local issues. These results are robust to the inclusion of other potential confounders, including income inequality, racial context, and racial residential segregation. This research has implications for policy makers and stakeholders interested in building a more inclusive civic arena.

scholarly journals Trust-based social capital, economic growth and property rights: explaining the relationship

2017 ◽  
Vol 44 (1) ◽  
pp. 21-52 ◽  
Author(s):  
Mahyudin Ahmad ◽  
Stephen G. Hall
Keyword(s):  
Economic Growth ◽  
Social Capital ◽  
Property Rights ◽  
Growth Effect ◽  
Estimation Technique ◽  
Missing Observations ◽  
Panel Estimation ◽  
Generalized Trust ◽  
Cross Sectional ◽  
Content Type

Purpose The purpose of this paper is to attest whether generalized trust variable is the best proxy for social capital in explaining the latter’s effect on economic growth in a panel setting. Via a specially formulated theoretical framework, the authors also test whether the growth-effect of social capital is direct or indirect, and if it is indirect, can property rights be the link between social capital and growth. Design/methodology/approach The authors begin with testing the robustness of generalized trust variable in explaining the effect of social capital on growth and property rights. The authors then propose a number of trust-alternative variables that are shown to contain an element of trust based on theoretical arguments drawn from previous studies, to proxy for social capital and re-estimate its effect on growth and property rights. In this study, the authors use panel estimation technique, hitherto has been limited in social capital studies, which are capable of reducing omitted variable bias and time-invariant heterogeneity compared to the commonly used cross-sectional estimation. Findings First, the authors find that generalized trust data obtained by the World Value Survey (WVS) are unable to yield sufficiently robust results in panel estimation due to missing observations problem. Using the proposed trust-alternative variables, the estimation results improve significantly and the authors are able to show that social capital is a deep determinant of growth and it is affecting growth via property rights channel. The findings also give supporting evidence to the primacy of informal rules and constraints as proposed by North (2005) over the political prominence theory by Acemoglu et al. (2005). Research limitations/implications Generalized trust data obtained from the WVS, frequently used in majority of social capital studies to measure social capital, yield highly non-robust results in panel estimation due to missing observations problem. Future studies in social capital intending to use panel estimation therefore need to find trust-alternative variables to proxy for social capital, and this paper has proposed four such variables. Originality/value The use of panel estimation technique extends the evidence of social capital significance to economic growth and property rights, since the previous social capital studies rely heavily on cross-sectional estimation technique. Due to the availability of annual observations of the trust-alternative variables, this paper is able to find better results as compared to estimation using generalized trust data.

The Impact of the Chinese Sovereign Wealth Funds (SWFs) On Sino-EU Relations: The Leverage between Investment and Human Rights

2016 ◽  
Vol 7 (2) ◽  
Author(s):  
Qingxiu Bu
Keyword(s):  
Human Rights ◽  
Financial Markets ◽  
Regulatory Framework ◽  
Capital Investments ◽  
Host Countries ◽  
Sovereign Wealth Funds ◽  
Policy Makers ◽  
Protection Of Human Rights ◽  
The Impact

AbstractSovereign wealth funds (SWFs) have been rapidly redefining the traditional paradigms, providing both much-needed capitals as well as posing particular challenges for policy makers. The role of SWFs, which are becoming increasingly involved in the global financial markets, has often been underestimated in the discourse of the protection of human rights. The tâtonnement processes of bargaining between home and host countries of SWFs indicate that the concern regarding human rights has maintained a sensible balance between protecting the rights of individuals and the benefits that large capital investments offer for both host and home countries. The challenge still remains as to whether the presumption that the promotion of SWFs investment is going to retard the promotion of human rights would not be rebutted even in terms of the new global regulatory framework.

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