scholarly journals Reallocation effects of recessions and financial crises: an industry-level analysis

2016 ◽  
Vol 16 (2) ◽  
Author(s):  
Fabrizio Coricelli ◽  
Aikaterini E. Karadimitropoulou ◽  
Miguel A. Leon-Ledesma
Keyword(s):  
Emerging Markets ◽  
Emerging Economies ◽  
Financial Crises ◽  
Value Added ◽  
Developed Countries ◽  
Large Set ◽  
Allocation Of Resources ◽  
Developed Economies ◽  
Manufacturing Sectors ◽  
Level Analysis

AbstractWe characterize the behavior of disaggregate manufacturing sectors for a large set of developed and emerging markets around recession dates. We uncover some relevant stylized facts. The dispersion in value added (VA) growth rates in developed economies is counter-cyclical, whereas for emerging countries it is pro-cyclical. Recoveries are more productivity-driven in developed countries as opposed to employment-driven for emerging markets. Around recession episodes sectoral-level misallocation of resources does not significantly change in developed economies, whereas it increases in emerging economies during financial crises. Therefore, there is no evidence that recessions improve the allocation of resources across industries.

Capital-Flow Volatility and Economic Openness: A Wavelet Approach

2020 ◽  
Vol 66 (4) ◽  
pp. 291-318
Author(s):  
Mihai Mutascu ◽  
Scott W. Hegerty
Keyword(s):  
Emerging Markets ◽  
Developing Economies ◽  
Trade Openness ◽  
Price Volatility ◽  
Developed Countries ◽  
Capital Flow ◽  
Developed Economies ◽  
Oil Price Volatility ◽  
Real Gdp

The paper analyzes the interaction between capital-flow volatility and trade openness in five developed economies and four emerging markets by applying wavelet analysis over the period from 1990Q1 to 2017Q1. The main findings reveal that, in the medium term, capital-flow volatility drives trade openness in emerging markets and developing economies. Special attention should be paid to developed countries during the 2008 economic crisis, when trade exposure is shown to have had significant effects on capital-flow volatility. In the long term, the direction of comovement is rather idiosyncratic in our set of emerging markets and developing countries. Moreover, in both groups of countries, the intensity and persistence of relationships are very sensitive to the volatility of real GDP and secondary to geopolitical risk and oil-price volatility.

The influence of motivations on international location choice in least developed, emerging and developed countries: evidence from Chinese MNEs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fernando Angulo-Ruiz ◽  
Albena Pergelova ◽  
William X. Wei
Keyword(s):  
Emerging Markets ◽  
Multinational Enterprises ◽  
Location Choice ◽  
Emerging Market ◽  
Developed Countries ◽  
Asia Pacific ◽  
Institutional Constraints ◽  
Least Developed Countries ◽  
Content Type ◽  
Developed Economies

Purpose This research aims to assess variations of motivations when studying international location decisions. In particular, this study aims to assess the influence of diverse motivations – seeking technology, seeking brand assets, seeking markets, seeking resources and escaping institutional constraints – as determinants of the international location choice of emerging market multinational enterprises (EM MNEs) entering least developed, emerging, and developed countries. Design/methodology/approach The authors develop a set of hypotheses based on the ownership–location–internalization framework and complement it with an institutional perspective. The conceptual model posits that the different internationalization motivations (seeking technology, seeking brand assets, seeking markets, seeking resources and escaping institutional constraints) will impact the location choice of EM MNEs in developed economies, emerging markets or least developed countries. This study uses the 2013 survey data collected by the China Council for the Promotion of International Trade and the Asia Pacific Foundation of Canada. The final sample of analysis of this research includes 693 observations. Findings After controlling for several variables, two-stage Heckman regressions show there is a variation of motivations when EM MNEs enter least developed countries, emerging markets and developed economies. EM MNEs are motivated to enter least developed countries to seek markets and resources. Conversely, those firms enter developed countries in their search for technological assets and to escape institutional constraints at home. While the present study findings show a clear difference in the motivations that lead to location choice in least developed vs developed countries, the results are not as clear for location in other emerging countries. Research limitations/implications The paper offers empirical support for the importance of motivations as crucial determinants of location choice. Originality/value This paper provides a detailed quantitative study on the internationalization location choice of EM MNEs based on their motivations. Though theoretical models underscore the importance of motivations, we know very little about how, in practice, motivations drive location choice. This study contributes to the international location choice literature a deeper understanding of how diverse motivations drive choices of expansion into developed economies, emerging markets or least developed countries.

Supply Chain Leadership in Emerging Markets

2020 ◽  
pp. 28-53
Author(s):  
Smitha Girija ◽  
Vandana Srivastava
Keyword(s):  
Supply Chain ◽  
Emerging Markets ◽  
Information Management ◽  
Emerging Economies ◽  
Sustainable Supply Chain ◽  
Developed Economies ◽  
Effective Strategies ◽  
Massive Growth ◽  
Global Companies ◽  
The Impact

The massive growth of emerging economies in last two decades has attracted many global companies to expand their physical presence in these countries. But the ability to take advantage of those opportunities is only available to companies that appreciate the environmental challenges and complexity of the region. The lexicon of extant literature focuses on enhancing supply chain leadership and development of efficient and effective strategies in developed economies, yet the corresponding literature in emerging economies is very fragmented. The aim of this chapter is to synthesize the current literature to understand the phenomenon including its definitions, dimensions, and constructs and to propose a conceptual model for successful supply chain leadership in emerging markets. The study tries to understand and establish the impact of various factors of supply chain leadership, which leads to sustainable supply chain performance. Collaboration and information management emerge as the major drivers for supply chain leadership in emerging markets and identifies trust as a mediating factor.

Parenting Advantage in Business Groups of Emerging Markets

2007 ◽  
Vol 11 (3) ◽  
pp. 1-10 ◽  
Author(s):  
Anurag Mishra ◽  
M. Akbar
Keyword(s):  
Emerging Markets ◽  
Group Structure ◽  
Emerging Market ◽  
Business Groups ◽  
Developed Countries ◽  
Business Group ◽  
Managerial Practices ◽  
Developed Economies ◽  
Divisional Structure ◽  
Made In

The concept of parenting was originally proposed by Campbell et al (1995) in the context of conglomerates in developed economies. In contrast to the divisional structure of conglomerates in developed countries, business groups as found in most emerging consist of a network of affiliated yet independent firms. This difference in the structure of multi-business firms in developed and emerging markets solicits a revisiting the concept of parenting as originally proposed by Campbell et al. (1995). Does ‘parenting advantage’ exist in emerging markets? If so, what are the sources of ‘parenting advantage’? Given the multi-firm, multi-business group affiliated setup how does ‘parenting’ differ in emerging markets when compared to conglomerates of developed economies? How does the business group structure and associated managerial practices impact ‘parenting advantage’ of firms affiliated to a business group in emerging market? This paper examines some of these critical yet unanswered questions. The contribution made in this work is threefold… One, we redefine the concept of ‘parenting’ as relevant to business group structure found in emerging markets like India. Two, we articulate the drivers of parenting value for affiliate firms bound in a business group structure. Three, the paper discusses the nuances of parenting and its advantages in an emerging market, in contrast to its conceptualization in developed economies. Finally, extending the parenting literature to a wider context of an emerging market is an important outcome of this work.

scholarly journals Why do developed economies become vulnerable to economic cycles

2020 ◽  
Vol 7 (3) ◽  
pp. 156-162
Author(s):  
Lilia Mykhailyshyn ◽  
Serhii Vasylchenko
Keyword(s):  
Emerging Markets ◽  
Global Economy ◽  
Developing Economies ◽  
Developed Countries ◽  
State Regulation ◽  
Tertiary Sector ◽  
Developed Economies ◽  
Cyclical Fluctuations ◽  
Significant Difference ◽  
The Developed Countries

The possible reasons for the intensification of cyclical fluctuations of the economies of the developed countries in the last decade are analyzed in the article. At the same time, the countries with risky markets (emerging markets and developing economies) are experiencing lower GDP losses during cyclical reductions of the economy. This is particularly paradoxical in view of the fact that developed economies are generally considered to be more stable and competitive. Besides, during the twentieth century, mankind has accumulated considerable experience in counteracting the cyclical nature of national economies and learned to smooth the amplitude of cyclical fluctuations. The authors of the article put forward and substantiate the assumption that the reason for the increase in the amplitude of cyclical fluctuations, increase of the depth of cyclical fluctuations of economies of the developed countries compared to the countries with emerging markets and developing economies, is the significant difference in the structure of these economies. The significant predominance of the tertiary sector in the developed economies makes them more vulnerable to cyclical fluctuations due to the greater multiplier effect that is inherent in the tertiary sector industries compared to other sectors of the economy. The conducted correlation analysis showed the presence of the strong relationship between such parameters of the economy as the share of the tertiary sector in the economy and the percentage value of the predicted economic recession in 2020 in the developed economies and emerging markets and developing economies. But it is necessary to keep in mind that the autonomous cost multiplier works in the opposite direction, accelerating the economic decline during the economic cycle. That is why, in our opinion, measures of state regulation of the economy today should be increasingly aimed at regulating the tertiary sector to prevent the increasing cyclicality of the modern global economy, as the leading economic leaders themselves are often becoming generators of the business cycle due to economic financialization and tertiary sector growth in general.

scholarly journals A methodology to analyze sustainable development index: evidence from emerging markets and developed economies

2020 ◽  
Vol 11 (1) ◽  
pp. 14-29 ◽  
Author(s):  
Viktoriia Koilo
Keyword(s):  
Sustainable Development ◽  
Emerging Markets ◽  
National Level ◽  
Composite Index ◽  
Developed Countries ◽  
New Approach ◽  
Development Index ◽  
Developed Economies ◽  
Advanced Economies ◽  
Current Stage

The paper proposes a new approach for dealing with uncertainties in determining the level of sustainability at the national scale. Composite Sustainable Development Index (SDI) is a tool designed to assess comprehensively the progress made by 15 advanced economies and 15 emerging economies since 2004–2018 towards achieving sustainable development goals.The proposed composite index aims to measure and monitor a sustainable development at the national level, and to increase the understanding of sustainability.This method also sheds light on main problems of different economies at the current stage of their development: the methodology considers a set of indicators and arranged into four categories of sustainable development: economy, society, governance, and environment.The present study shows that during the analyzed period, advanced economies had a satisfactory level of sustainability, while the level of SDI of the emerging markets was lower. Also, the obtained results reveal that since the adoption of Paris Agreement under the UN Framework Convention on Climate Change in 2015 developed countries have been showing better performance.Moreover, the paper presents the research design of an optimization model for sustainable development with CO2 emissions consideration.

scholarly journals Entrepreneurship in Emerging Markets

2018 ◽  
pp. 456-494
Author(s):  
Saul Estrin ◽  
Tomasz Mickiewicz ◽  
Ute Stephan ◽  
Mike Wright
Keyword(s):  
Social Capital ◽  
Human Capital ◽  
Emerging Markets ◽  
Emerging Economies ◽  
Emerging Market ◽  
Developed Countries ◽  
Entrepreneurial Activity ◽  
Future Research ◽  
Individual Level ◽  
Entrepreneurship In Emerging Markets

The level of entrepreneurial activity is higher in emerging markets than in developed economies, driven by high levels of necessity entry and less daunting entry barriers, especially in the informal sector. However, a gap remains in our understanding of its extent and of the drivers of its change. This chapter addresses this gap by conceptualizing and providing evidence about the scale and nature of entrepreneurship in emerging markets. The chapter begins with an empirical analysis of entrepreneurship in emerging economies. In particular, it contrasts the way in which human capital is utilized by entrepreneurs in emerging market economies and in developed countries. The chapter goes on to the theme of human capital, bringing in theory, and considering entrepreneurship in emerging economies at the individual level as well as the role of entrepreneurs’ social capital in the emerging economy context. Furthermore, it considers the scale and impact of the repatriation of human and social capital from abroad, which is found to play an important role in entrepreneurship in many emerging economies, especially when considering innovation. The survey goes on to provide a macro-level analysis, with cross-country comparisons of the effects of institutions and finance on entrepreneurial activity in emerging markets. It concludes by suggesting avenues for future research.

scholarly journals Using an Artificial Neural Networks Experiment to Assess the Links among Financial Development and Growth in Agriculture

2021 ◽  
Vol 13 (5) ◽  
pp. 2828
Author(s):  
Cosimo Magazzino ◽  
Marco Mele ◽  
Fabio Gaetano Santeramo
Keyword(s):  
Neural Networks ◽  
Artificial Neural Networks ◽  
Financial Development ◽  
Agricultural Sector ◽  
Developed Countries ◽  
Large Set ◽  
Credit Access ◽  
Developed Economies ◽  
Specific Effects ◽  
Artificial Neural

Financial development, productivity, and growth are interconnected, but the direction of causality remains unclear. The relevance of these linkages is likely different for developing and developed economies, yet comparative cross-country studies are scant. The paper analyses the relationship among credit access, output and productivity in the agricultural sector for a large set of countries, over the period 2000–2012, using an Artificial Neural Networks approach. Empirical findings show that these three variables influence each other reciprocally, although marked differences exist among groups of countries. The role of credit access is more prominent for the OECD countries and less important for countries with a lower level of economic de-elopement. Our analysis allows us to highlight the specific effects of credit in stimulating the development of the agricultural sector: in developing countries, credit access significantly affects production, whereas in developed countries, it also has an impact on productivity.

Impact of Economic Globalization on Income Inequality: Developed Economies vs Emerging Economies

2016 ◽  
Vol 16 (1) ◽  
pp. 49-61 ◽  
Author(s):  
Inmee Baek ◽  
Qichao Shi
Keyword(s):  
Developing Countries ◽  
Income Inequality ◽  
Financial Markets ◽  
Emerging Economies ◽  
Financial Integration ◽  
Economic Globalization ◽  
Developed Countries ◽  
Trade Intensity ◽  
Developed Economies ◽  
Opening Up

This paper studies income inequality and globalization by decomposing economic globalization into trade intensity and financial integration, and also by differentiating the effect of globalization across developed and developing countries. Using panel data on 26 developed countries and 52 developing countries for the 1990–2010 period when globalization was accelerated, this study finds that financial integration affects the income inequality differently from trade intensity and the effect is in contrast across two groups of countries. For example, an increase in trade intensity would widen income inequality in developed countries, but it would reduce the inequality in developing countries. And, a deepening of the financial integration would reduce the income inequality in developed countries but increase the inequality in developing countries. These results suggest that income inequality of developing countries would deteriorate with an imprudent dependence on foreign financing or a rapid opening up of their financial markets to foreign investors, or when faced with more barriers on free international trade.

scholarly journals DOES EVA TRULY REFLECT THE PERFORMANCE OF PROPERTY COMPANIES IN CHINA?

2015 ◽  
Vol 19 (3) ◽  
pp. 260-270
Author(s):  
Eddie C. M. HUI ◽  
Yunzhi Orange GAO ◽  
Ka Kwan Kevin CHAN
Keyword(s):  
Emerging Markets ◽  
Emerging Economies ◽  
Economic Value ◽  
Value Added ◽  
Economic Value Added ◽  
Future Studies ◽  
Property Companies ◽  
The World ◽  
Privately Owned

This study investigates the economic value added (EVA) of 18 major Chinese property companies from 2006 to 2012. We categorize the companies in two ways: 1) companies concentrating on property vs multi-functional companies and 2) state-owned enterprises (SOEs) vs privately-owned enterprises (POEs). We find that on average, the mainland property companies experienced a negative EVA during the period 2006–2012. This is due to the companies undertaking long-term projects, and the companies do not recognize capital gain from property appreciation as income. Hence the EVA of the companies is, in fact, understated. The results also reveal that POEs outperform SOEs in terms of EVA. This reflects the inefficiency of SOEs. This research has two important implications to investors. Firstly, besides looking at the EVA of the companies, investors should also understand the nature of businesses of the companies thoroughly. Secondly, investors investing in emerging markets like China should have a thorough understanding of their market characteristics. This study can act as a reference for future studies in EVA of property companies in other emerging economies in the world.

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