scholarly journals Impact of Outward FDI on Home Country’s Domestic Investment: A Study for Select Emerging Economies

2021 ◽  
Vol 8 (1) ◽  
pp. 128-150
Author(s):  
Kanika Kapoor ◽  
Renu Arora
Keyword(s):  
Emerging Economies ◽  
Domestic Investment ◽  
Outward Fdi

The Role of Religion and National Culture in Economic Growth of Emerging Markets

2014 ◽  
pp. 250-270 ◽  
Author(s):  
Harish C. Chandan
Keyword(s):  
Economic Growth ◽  
Cultural Values ◽  
National Culture ◽  
Emerging Economies ◽  
Growth Rates ◽  
High Growth ◽  
Political Stability ◽  
Domestic Investment ◽  
Domestic Credit ◽  
The Protestant Work Ethic

Religion can influence economic growth and economic growth can influence religiosity (Barro & Mitchell, 2004; Barro & McCleary, 2003; McCleary, 2007). Earlier, Weber (1904, 1930, 1958) had suggested that the protestant work ethic gave rise to capitalism and that other major world religions including Catholicism, Judaism, Islam, Hinduism, Buddhism, Confucianism, and Daoism were not conducive to capitalism. However, the data on predicted growth rates and the current majority religion for the 24 emerging economies (Yeyati & Williams, 2012; IMF WEO, 2010) suggest these emerging economies with high growth rates include a variety of geo-political regions representing many different religions, national cultures, and even “no-religion” affiliation. For the same majority religion, the economic growth rates and Hofstede’s (1980) national culture dimensions vary among nations. Thus, religion alone is not sufficient to explain the higher economic growth of the emerging economies. The economic growth is influenced by additional social, political, and macroeconomic variables including human capital, infrastructure, technological progress, political stability, capital formation, domestic credit to private sector, foreign domestic investment, inflation rate, exchange rate, and international trade. In a secular sense, the religious beliefs and cultural values related to work and social ethic are conducive to economic growth through entrepreneurship and organizational effectiveness.

scholarly journals Governance quality, foreign direct investment, and entrepreneurship in emerging markets

2019 ◽  
Vol 26 (2) ◽  
pp. 238-264
Author(s):  
Nam Hoai Tran ◽  
Chi Dat Le
Keyword(s):  
Emerging Economies ◽  
Institutional Context ◽  
Emerging Countries ◽  
Entrepreneurial Activity ◽  
Outward Fdi ◽  
Content Type ◽  
Necessity Entrepreneurship ◽  
Governance Quality ◽  
The Relationship

Purpose The purpose of this paper is to thoroughly investigate the interplay between institutions, foreign direct investment (FDI) and entrepreneurship in the context of emerging markets (EMs). Design/methodology/approach The authors argue that the impact of FDI on entrepreneurial activity depends on different natures of capital flow and entrepreneurial motivation and relates to the quality of institutional environment. First, the roles of inward and outward FDI are examined in connection with the new firm creation by opportunity- and necessity-motivated entrepreneurs. Second, the integrated influences of (inward/outward) FDI and governance quality (GQ) on (opportunity/necessity) entrepreneurship are tested. This nexus of relationships is analyzed through segmented regressions using the GEM data of 39 EMs over the 2004–2015 period. Findings It is evidenced that the quality of governance infrastructure affects the relationship between FDI and entrepreneurship: in emerging countries with low GQ, opportunity entrepreneurship is stimulated by inward FDI and diminished by outward FDI; and in emerging countries with high GQ, necessity entrepreneurship is discouraged by inward FDI and promoted by outward FDI. Practical implications This research has implications for the institutional context-based execution of public policy in emerging economies. As the entrepreneurial effects of inward and outward FDI are pronounced differently under the two types of entrepreneurship and the two extremes of GQ, public policy makers who recognize the catalytic role of FDI in domestic business development should take the distinct institutional context of their country into consideration. Originality/value The paper contributes to the extant literature on international entrepreneurship in emerging economies by making a breakdown on the roles played by different types of FDI in the entrepreneurial activity, analyzing the mediating effects of GQ on the relationship between inward/outward FDI and entrepreneurship, and interpreting the capital and institutional determinants of entrepreneurship in terms of entrepreneurial motivations by opportunity and necessity.

scholarly journals The Primacy of Institutional Explanation of Chinese Outward FDI: Is It Understated or Overstated?

2016 ◽  
Vol 12 (3) ◽  
pp. 457-467 ◽  
Author(s):  
Lin Cui
Keyword(s):  
Emerging Economies ◽  
Measurement Errors ◽  
Statistical Significance ◽  
Future Research ◽  
Outward Fdi ◽  
Institutional Perspective ◽  
Institutional Effects ◽  
Economic Significance ◽  
Strategic Behaviors

An institutional perspective has been increasingly adopted in recent studies to explain various aspects of internationalization activities of firms from emerging economies (Meyer & Peng, 2016; Peng, Wang, & Jiang, 2008), particularly China (Cui & Jiang, 2012; Morck, Yeung, & Zhao, 2008). Scholars often claim that the role of institutions in emerging economy firms’ internationalization is understated, hence more research is needed. In this commentary, which reflects on the intended contributions and theoretical and empirical issues of Buckley, Yu, Liu, Munjal, and Tao (2016), I aim to extend a discussion on whether and when such institutional explanations can be overstated. I focus on three issues: (1) conceptualization of institutions, (2) theorizing institutional effects, and (3) testing institutional effects. On each of these issues, I start by providing an overview of some common challenges in the literature. I then focus specifically on the paper as an illustration of how some of these challenges may be manifested. This is then followed by some recommendations for future research. Overall, I argue that pitfalls related to the conceptualization, theorizing and testing of institutional effects can lead researchers to overstate the institutional effects on firm strategic behaviors. These pitfalls can be avoided if researchers clarify the theoretical boundary of the institutional argument they adopt, properly model the institutional effects while taking into consideration other theoretically relevant constructs and mechanisms, and employ empirical design to overcome measurement errors and selection biases when testing not only the statistical significance, but also substantive (economic) significance of institutional effects.

Outward FDI and domestic investment in two industrialized countries

2008 ◽  
Vol 99 (1) ◽  
pp. 139-143 ◽  
Author(s):  
Dierk Herzer ◽  
Mechthild Schrooten
Keyword(s):  
Industrialized Countries ◽  
Domestic Investment ◽  
Outward Fdi

scholarly journals Learning by outward and inward internationalization and the outward/inward innovativeness of firms in Poland

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Maja Szymura-Tyc
Keyword(s):  
Emerging Economies ◽  
International Competitiveness ◽  
Holistic Approach ◽  
Outward Fdi ◽  
Organizational Innovativeness ◽  
Low Degree ◽  
Advanced Economies ◽  
Formative Variables ◽  
Degree Of Internationalization

Abstract Many studies raise the issue of relationships between internationalization and innovativeness, linking them with firms’ international competitiveness. However, very few of these studies focus on the influence of internationalization on innovativeness and regard the multifaceted nature of these two concepts. The study presented in this paper is based on a holistic approach to internationalization and innovativeness. It explores the influence of the outward (e.g. exporting, outward FDI) and inward (e.g. importing, inward FDI) internationalization on the outward (product and marketing) and inward (process and organizational) innovativeness of 274 firms in Poland, adopting formative variables and a correlations analysis. The key contribution of the research is that the outward internationalization is conducive to both the outward and inward innovativeness, while the inward internationalization supports only the inward innovativeness. It shows that learning by outward and inward internationalization supports innovativeness of firms, responsible for their international competitiveness. The findings might be unique for transition and emerging economies characterized with a low degree of internationalization and innovativeness, while the holistic approach is more universal, and might bring interesting results when applied to the research of highly advanced economies.

scholarly journals Emerging Economy Inward and Outward Foreign Direct Investment: A Bibliometric and Thematic Content Analysis

2021 ◽  
Author(s):  
Keilla Dayane da Silva-Oliveira ◽  
Edson Keyso de Miranda Kubo ◽  
Michael J. Morley ◽  
Rodrigo Médici Cândido
Keyword(s):  
Foreign Direct Investment ◽  
Performance Analysis ◽  
Emerging Economies ◽  
Thematic Analysis ◽  
Direct Investment ◽  
Institutional Environment ◽  
Emerging Economy ◽  
Future Research ◽  
Outward Foreign Direct Investment ◽  
Outward Fdi

AbstractResearch examining emerging economy inward and outward foreign direct investment (FDI) flows is on a significant upward trajectory. In this bibliometric analysis covering 806 articles published between 1994 and 2019, we map key aspects of its contours. Our analysis proceeds in two sequential phases involving a performance analysis, followed by a thematic analysis. Our performance analysis unveils fundamental elements of the structure of the knowledge base. Our subsequent thematic analysis identifies three focal topics arising from identifiable shared qualities characterizing this literature. Firstly, we distinguish scholarship focused on inward FDI into emerging economies formed by two particular classes, namely ‘innovative FDI’ and ‘capital flows’. Our second theme covers outward FDI from these emerging economies and also comprises two specific classes referring to the ‘institutional environment’ and the ‘theoretical framework deployed’. Our final theme relates to an integrated body of knowledge explicating aspects of the location choice decision. Building on this analysis, we isolate a number of opportunities for future research.

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