scholarly journals Country of market effect

2016 ◽  
Vol 12 (1) ◽  
pp. 7-14
Author(s):  
Shenyu Li ◽  
Rong Huang ◽  
Siva K. Balasubramanian
Keyword(s):  
Economic Development ◽  
Purchase Intention ◽  
Home Country ◽  
Emerging Market ◽  
Developed Countries ◽  
Future Research ◽  
Country Level ◽  
Level Of Economic Development ◽  
The Impact ◽  
Country Effect

Purpose: This article proposes and empirically tests the country of market (COMK) effect, which captures the consumer’s responses of home market to a country where the product is marketed. Design/methodology/approach: Study 1 applies a lab experiment about Chinese consumers’ purchase intention for printers marketed either in the US or China. Study 2 applies country level data to examine the impact of economic development of 22 host countries on the performance of 167 multinational retailers in their home country. Findings: Study 1 shows that the printers marketed in US attract a higher level of purchase intention than printers marketed in China. This COMK effect is more salient for printers manufactured in China than those manufactured in US. In addition, innovation and design factors corresponding to the host country’s image fully mediate the COMK effect. Results in Study 2 show that a retailer that markets its services in a host country with a higher (lower) level of economic development is likely to generate higher (lower) level of retailing performance in its home country. Furthermore, it is found that COMK effect is diminished as the level of economic development of a vendor’s home country increases. Research limitations/implications: In addition to the cognitive components of country image (e.g., design and innovation), consumers’ affective components may also influence the COMK effect. Future research could discuss the impact of consumer ethnocentrism and consumer animosity on consumers’ attitude towards the product marketed in other countries. Practical implications: Strategically, marketing products to a country with a favorable image could benefit vendors from an emerging economy. For manufacturers from developed countries, marketing a product within their own countries may enhance the associated innovation and design images while marketing the same product in an emerging market. Originality/value: This article proposes and tests a demand side country effect on consumers’ purchase intention for products marketed in other countries. It is in sharp contrast to the traditional country effect which focuses on the supply side effect (e.g., country of origin, country of manufacture, country of assembly etc.)

scholarly journals Correlation between economic complexity and economic development in different types of Russian regions

2021 ◽  
Vol 51 (3) ◽  
pp. 144-161
Author(s):  
I.A. Shubin ◽  
Keyword(s):  
Economic Development ◽  
Oil And Gas ◽  
Inverse Correlation ◽  
Developed Countries ◽  
Russian Regions ◽  
Homogeneous Groups ◽  
Economic Complexity ◽  
Country Level ◽  
Level Of Economic Development ◽  
High Level

Economic complexity, according to the results of various studies at the country level, can be used as an indicator of economic development: more developed countries usually have a higher level of economic complexity. For Russian regions, the relationship between economic complexity, the level of innovative development and investment attractiveness is also revealed. This paper identifies the correlation between the complexity of export and the level of economic development for Russian regions and their separated more homogeneous groups. The results obtained by the author for regions of Russia contradict the rule identified for countries. For all Russian regions, there is a slight inverse correlation between the complexity of export and the value of per capita GRP. A slight positive correlation was found only for regions with a low export-to-GRP ratio and a high level of economic complexity. Such results are explained by the simple structure of Russian export, because of this the main recipients of export income are regions with a lower level of economic complexity — mainly oil and gas producing regions, as well as capitals that act as intermediaries.

scholarly journals Digital transformation, development and productivity in developing countries: is artificial intelligence a curse or a blessing?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Heidi Aly
Keyword(s):  
Artificial Intelligence ◽  
Developing Countries ◽  
Economic Development ◽  
Labor Productivity ◽  
Developed Countries ◽  
Digital Transformation ◽  
Future Research ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose The entire world is now witnessing the Fourth Industrial Revolution and Artificial Intelligence (AI) is indeed altering the lives of the many in both developing and developed countries. Massive digital transformations are affecting the economies of those countries and are bringing with them many promised merits, as well as many challenges to face. This paper aims to examine the relationship between digital transformation (as a one facet of the fourth revolution and AI trends) on one side, and economic development, labor productivity and employment on the other side. Design/methodology/approach The paper analyzes different indices of digital transformation, and then uses the Digital Evolution Index (DEI) to study those relationships in a group of developing countries using feasible generalized least squares method (FGLS). Findings The results show a positive relationship between the digital transformation index and economic development, labor productivity and job employment. Females seem to gain more from digital transformation compared to males, as suggested by the positive relation with the first and the insignificant relation with the latter. The relationship with vulnerable employment is not significant; more evidence is still needed to judge whether digital transformation will have an impact upon the vulnerable employees in the economy. Research limitations/implications The paper focused on the impact of digital transformation upon total aggregate employment. Future research is still needed to examine the impact upon the structure of the labor market and the shift of occupations. Originality/value The paper aims to add to in the literature regarding the relationship between digital transformation, economic development, employment and productivity in the developing world. The implications of those relationships are of significant importance to policymakers regarding how much support should be given to encourage the digital transformation. At the same time, it shall also indicate how much social support policies are required – if any – to lessen the negative impact of digital transformation on the vulnerable groups inside the country. Another contribution is using a single composite index for digital transformation that is comparable across the chosen set of developing countries, instead of using single indices each capturing a different dimension of digital transformation.

Financial Development and Country-Level Advertising Spending: The Moderating Role of Economic Development and National Culture

2020 ◽  
Vol 28 (3) ◽  
pp. 3-20
Author(s):  
Berrak Bahadir ◽  
S. Cem Bahadir
Keyword(s):  
Economic Development ◽  
National Culture ◽  
Financial Development ◽  
Empirical Studies ◽  
Developed Countries ◽  
Country Level ◽  
Culture Dimensions ◽  
Advertising Spending ◽  
The Impact

Firms invest in brand capital through advertising. Financial constraints hinder firms’ ability to fund their investment projects. Empirical studies in the finance literature suggest that firms’ access to external financial resources, labeled “financial development,” affects their investment behavior. The authors take the view of advertising spending as investment in brands and study the effect of financial development on advertising spending at the country level using a panel of 59 developing and developed countries during 1990–2016. The results suggest that financial development has a positive and significant effect on advertising spending, and this effect is stronger in countries with a low level of economic development. Furthermore, the authors investigate the role of national culture dimensions including uncertainty avoidance, long-term orientation, collectivism, masculinity, and power distance in the relationship between financial development and advertising. Overall, the results provide evidence that the impact of financial development on advertising spending depends on the national culture dimensions.

Antecedents of Online Purchase Intention Among Ageing Consumers

2020 ◽  
pp. 097215092092201
Author(s):  
Gobinda Roy ◽  
Rituparna Basu ◽  
Samudyuti Ray
Keyword(s):  
Social Influence ◽  
Purchase Intention ◽  
Qualitative Content Analysis ◽  
Emerging Market ◽  
Future Research ◽  
Confirmatory Factor Analyses ◽  
Online Purchase ◽  
Develop Market ◽  
Survey Responses ◽  
The Impact

The article explores the growing market of ageing consumers to identify the antecedents of their online purchase intention in an emerging market context. The research uses survey responses of 202 urban, ageing Indian respondents to ascertain the importance of the antecedents with the use of exploratory and confirmatory factor analyses. The qualitative content analysis reflects the importance of social influence in developing the positive perception of ageing customers towards online purchases. Predominantly, males of higher-income groups are found to lead the cohort as early adopters. The impact of social influence and brand loyalty in the consumer’s electronic word of mouth (eWOM) adoption were significantly validated where eWOM adoption influenced the online purchase intention. The article contributes as a first-hand exploration in the context of an emerging market of older consumers to develop market-driven solutions that would help marketers plan effective online interface to tap the potential of this growing consumer base. Finally, this study discusses research limitations and proposes few future research directions.

scholarly journals The impact of the history of statehood on the economic development of countries

2021 ◽  
Vol 3 (1) ◽  
pp. 167-188
Author(s):  
Milojko Arsić
Keyword(s):  
Economic Development ◽  
Empirical Research ◽  
Developed Countries ◽  
The State ◽  
Medium Length ◽  
Time To Build ◽  
Level Of Economic Development ◽  
History Of ◽  
Historical Heritage ◽  
The Impact

The paper investigates the impact of the history of statehood, as a part of historical heritage, on the current level of economic development of countries. The history of statehood affects the efficiency of the state in performing functions that are important for the functioning of the economy and its progress, such as the quality of institutions, economic policy, education, infrastructure, etc. Empirical research mainly supports the existence of a link between the length of statehood of countries and their level of economic development in the form of an inverted letter "U", which means that the most developed countries have "medium" length of statehood. Countries with "medium" length of statehood could learn from the mistakes of older states, and had enough time to build state capacities. The connection between the history of statehood and the level of economic development of countries is stronger if statehood is measured on the basis of the history of statehood of the population inhabiting present countries, rather than on the basis of the history of statehood in modern countries. This result is consistent with empirical research according to which social norms and forms of behavior that are important for the functioning of the state are relatively stable over time.

scholarly journals Does democracy guarantee (de)forestation? An empirical analysis

2017 ◽  
Vol 20 (2) ◽  
pp. 97-121 ◽  
Author(s):  
Anders Rydning Gaarder ◽  
Krishna C Vadlamannati
Keyword(s):  
Economic Development ◽  
Environmental Issues ◽  
Developed Countries ◽  
Regime Type ◽  
Level Of Economic Development ◽  
Fundamental Reason ◽  
Forest Coverage ◽  
The Impact ◽  
Positive Effect ◽  
Developing And Developed Countries

It is a commonly held view that democracy is better at safeguarding environment while autocracy is predatory in nature, and is thus insensitive towards environment. However, others argue that democracy leads to environmental degradation. We revisit this contentious relationship between regime type and environment degradation in the context of deforestation. Using panel data on 139 countries during the 1990–2012 period, we find that democracy is associated with lower levels of forest coverage. Although our results appear counter-intuitive, further analyses reveal the positive effect of democracy on forest area coverage is conditional upon the level of economic development. Roughly, at per capita income of about US$8200, the impact of democracy on forest coverage becomes positive. Our results suggest that a democratic government’s priority to tackle environmental problems depends on its level of economic development. These results also highlight the fundamental reason as to why there is a lack of coordinated effort between developing and developed countries in addressing environmental issues.

scholarly journals E-Entrepreneurship and Economic Development: the Case of EU Countries

2020 ◽  
Vol 3 (1) ◽  
pp. 1-24
Author(s):  
Valentina Diana Rusu ◽  
Angela Roman
Keyword(s):  
Economic Development ◽  
Developed Countries ◽  
Constructive Method ◽  
Small Enterprises ◽  
Information And Communications Technologies ◽  
Technology Infrastructure ◽  
Information Technology Infrastructure ◽  
Eu Countries ◽  
Country Level ◽  
Level Of Economic Development

AbstractThe aim of our paper is to identify how entrepreneurs from European Union (EU) countries use information and communications technologies (ICTs) in their business activities. We also propose to identify if there are differences in the use of ICTs by entrepreneurs, according to level of economic development of EU countries. In order to achieve these goals, we analyse a sample of EU countries, by including them into two groups, according to the stage of their economic development. For analysing the data, we use several methods (the logical-constructive method, comparative methods and benchmarking). The benchmarking method helps us to estimate indicators at country level and to compare them between countries. Our results indicate that e-entrepreneurship in developed countries is more advanced compared to developing countries. There are also significant differences regarding the use of informational technologies between types of firms by their size. Small enterprises use in a lower proportion ICTs in their activity compared with large firms. Through the content of our research, we emphasize that in order to adapt to the rapid changing environment and also to the changes in the consumer’s behaviour the enterprises should focus on introducing the ICTs in their activity to face the competition. Also, government policies should pay more attention to supporting development of information technology infrastructure.

Growth and Social Capital: Empirical Analysis of the Relationship

2019 ◽  
pp. 128-134
Author(s):  
Ksenia V. Bagmet
Keyword(s):  
Economic Growth ◽  
Social Capital ◽  
Economic Development ◽  
Social Development ◽  
Empirical Analysis ◽  
Panel Data Analysis ◽  
Well Being ◽  
Developed Countries ◽  
International Institute ◽  
Level Of Economic Development

The article provides an empirical test of the hypothesis of the influence of the level of economic development of the country on the level of development of its social capital based on panel data analysis. In this study, the Indices of Social Development elaborated by the International Institute of Social Studies under World Bank support are used as an indicators of social capital development as they best meet the requirements for complexity (include six integrated indicators of Civic Activism, Clubs and Associations, Intergroup Cohesion, Interpersonal Safety and Trust, Gender Equality, Inclusion of Minorities), comprehensiveness of measurement, sustainability. In order to provide an empirical analysis, we built a panel that includes data for 20 countries divided into four groups according to the level of economic development. The first G7 countries (France, Germany, Italy, United Kingdom); the second group is the economically developed countries, EU members and Turkey, the third group is the new EU member states (Estonia, Latvia, Lithuania, Romania); to the fourth group – post-Soviet republics (Armenia, Georgia, Russian Federation, Ukraine). The analysis shows that the parameters of economic development of countries cannot be completely excluded from the determinants of social capital. Indicators show that the slowdown in economic growth leads to greater cohesion among people in communities, social control over the efficiency of distribution and use of funds, and enforcement of property rights. The level of tolerance to racial diversity and the likelihood of negative externalities will depend on the change in the rate of economic growth. Also, increasing the well-being of people will have a positive impact on the level of citizens’ personal safety, reducing the level of crime, increasing trust. Key words: social capital, economic growth, determinant, indice of social development.

scholarly journals Challenges and Sustainability of China’s Socio-Economic Stability in the Context of Its Demographic Development

Societies ◽  
2021 ◽  
Vol 11 (1) ◽  
pp. 22
Author(s):  
Andrea Čajková ◽  
Peter Čajka
Keyword(s):  
Economic Development ◽  
Pension System ◽  
Population Policy ◽  
Developed Countries ◽  
Economic Stability ◽  
Demographic Development ◽  
Demographic Challenges ◽  
Family Behavior ◽  
Socio Economic Development ◽  
The Impact

Like many developed countries in the world, China currently faces many serious demographic challenges that pose a potential risk to the country’s socio-economic development and stability. The current demographic development and trend is characterized by a change in the reproductive behavior of the population, characterized by a decline in birth rates, a change in family behavior, and a shift in the value system. This paper is aimed at identifying the impact of population policy and the degree of its influence on both the economic and social system of the country. Based on a deterministic approach, the findings reveal and demonstrate the serious demographic challenges facing China, and we are noting that there is no guarantee that parametric adjustments, such as shifting the retirement age, will de facto ensure the financial health of the pension system by preventing bankruptcy. We point out the risks and prospects for the sustainability of China’s socio-economic development based on an analysis of past and current Chinese demographic policy.

Financial Access of Latin America and Caribbean Firms: What Are the Roles of Institutional, Financial, and Economic Development?

2021 ◽  
pp. 097265272110153
Author(s):  
Lan Khanh Chu
Keyword(s):  
Economic Development ◽  
Latin America ◽  
Jel Classification ◽  
Caribbean Region ◽  
Country Level ◽  
Level Data ◽  
Latin America And Caribbean ◽  
The Impact ◽  
Moderating Role

This article examines the impact of institutional, financial, and economic development on firms’ access to finance in Latin America and Caribbean region. Based on firm- and country-level data from the World Bank databases, we employ an ordered logit model to understand the direct and moderating role of institutional, financial, and economic development in determining firms’ financial obstacles. The results show that older, larger, facing less competition and regulation burden, foreign owned, and affiliated firms report lower obstacles to finance. Second, better macro-fundamentals help to lessen the level of obstacles substantially. Third, the role of institutions in promoting firms’ inclusive finance is quite different to the role of financial development and economic growth. JEL classification: E02; G10; O16; P48

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