scholarly journals Which are determinants of firm innovation in Vietnam? A micro analysis

2017 ◽  
Vol 24 (03) ◽  
pp. 45-65
Author(s):  
Bich Le Thi Ngoc ◽  
Phong Vu Trong ◽  
Diep Le Thi Ngoc
Keyword(s):  
Technology Innovation ◽  
Probit Model ◽  
Ordinary Least Squares ◽  
State Ownership ◽  
Influential Factors ◽  
Policy Implications ◽  
Marginal Effect ◽  
Business Climate ◽  
Firm Innovation ◽  
The Impact

This study sets out to investigate the factors influencing Vietnam firms’ innovation in various sectors by using World Bank (2015) enterprise survey of 996 firms across the country. We employ ordinary least squares (OLS), probit model, and marginal effect to estimate the impact of firm characteristics, industry characteristics, and business climate on different facets of innovation, including technology and non- technology. Quantitatively, we find that direct exporters, firm size, state ownership, email using, and competition increase the probability of technology innovation. Meanwhile, foreign ownership impacts negatively on innovation in all aspects, technology and non-technology innovation. Firm age and bribery are not influential factors to innovation in all cases. From the findings of analysis, a few policy implications regarding the studied factors are drawn for better environment for firm innovation.

She-E-Os and innovation: do female CEOs influence firm innovation?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hafiz Mustansar Javaid ◽  
Qurat Ul Ain ◽  
Antonio Renzi
Keyword(s):  
Financial Constraints ◽  
Ordinary Least Squares ◽  
State Ownership ◽  
Corporate Environment ◽  
Firm Innovation ◽  
Content Type ◽  
Innovation Activities ◽  
Female Ceos ◽  
Innovation Output ◽  
The Impact

PurposeThis paper empirically investigates whether female CEOs (She-E-Os) have an effect on firm innovation among Chinese listed firms based on patent data. This study also delved further by looking at whether the internal corporate environment moderates the effect of female CEOs on innovation, that is, state ownership. Finally, this study investigates an additional test of financial constraints to examine whether financial constraints also moderate the impact of female CEOs on firm innovation.Design/methodology/approachThis study used the data of all A-share listed companies on the Shanghai and Shenzhen stock exchanges for the period from 2008 to 2017. The authors use ordinary least squares regression as a baseline methodology, along with firm-fixed effect, lagged measure of female CEOs, alternative measures of innovation, Heckman two-step model and negative binomial regression to check and control the possible issue of endogeneity.FindingsThe authors’ findings show that CEO gender plays an important role in producing higher levels of innovation output by improving the governance structure. However, female CEOs have no effect on state-owned enterprises' (SOEs) innovation activities, which suggests that the main goal of SOEs is achieving sociopolitical objectives. Furthermore, female CEOs' influence on innovation output is weaker in firms with financial constraints.Social implicationsThis study adds to the emerging global discussion on gender diversity. Many legislative bodies require a quota for women on corporate boards due to gender inequality. This study's findings reinforce such guidelines by emphasizing the economic benefits of including women in top management positions.Originality/valueThis study provides new insights by highlighting the role of female CEOs in increasing firms' innovation activities. Additionally, this study provides evidence on whether the internal corporate environment (state ownership and financial constraints) moderates female CEOs' effect on innovation.

Fiscal Deficit and Economic Growth in Bangladesh

2016 ◽  
Vol 62 (1) ◽  
pp. 31-42 ◽  
Author(s):  
Ebney Ayaj Rana ◽  
Abu N. M. Wahid
Keyword(s):  
Economic Growth ◽  
Budget Deficit ◽  
Negative Impact ◽  
Political Stability ◽  
Ordinary Least Squares ◽  
Policy Implications ◽  
Government Budget ◽  
The Government ◽  
The Impact ◽  
Government Budget Deficit

The economy of Bangladesh is currently going through a period of continuous budget deficit. The present data suggest that the government budget deficit, on average, is nearly 5% of the country’s GDP. This has been true since the early 2000s. To finance this deficit, governments have been borrowing largely from domestic and foreign sources resulting in inflationary pressure on one hand, and crowding out of private investments on the other. During the same period, although the economy has grown steadily at a rate of more than 6%, this growth is less than the potential. This article presents an econometric study of the impact of government budget deficits on the economic growth of Bangladesh. We conduct a time-series analysis using ordinary least squares estimation, vector error correction model, and granger causality test. The findings suggest that the government budget deficit has statistically significant negative impact on economic growth in Bangladesh. Policy implications of our findings include reestablishing the rule of law, political stability in the country, restructuring tax structure, closing tax loopholes, and harmonizing fiscal policy with monetary policy to attract additional domestic and foreign investment.

scholarly journals Public and Private Infrastructure Investment and Economic Growth in Pakistan: An Aggregate and Disaggregate Analysis

2019 ◽  
Vol 11 (12) ◽  
pp. 3359 ◽  
Author(s):  
Javid
Keyword(s):  
Economic Growth ◽  
Private Investment ◽  
Ordinary Least Squares ◽  
Policy Implications ◽  
Infrastructure Investment ◽  
Public Infrastructure ◽  
Reverse Causality ◽  
Public And Private ◽  
Infrastructure Investments ◽  
The Impact

This study investigates the relationship between infrastructure investment and economic growth at the aggregate and sectoral levels, namely, the industrial, agriculture, and services sectors for Pakistan over the period from 1972 to 2015. In contrast to earlier literature, we make a comparative analysis of the different composition of infrastructure investments, including public versus private investment and infrastructure investment in sub-sectors such as in power, roads, and telecommunication sectors. The long-run relationship is estimated using fully modified ordinary least squares (FMOLS) to address the problem of reverse causality. The main conclusion of this study is that both public and private infrastructure investments have positive but different effects on economic growth. In other words, the marginal productivities of private and public infrastructure investments differ across the different sectors of the economy. In most of the cases, public infrastructure investment has a larger impact on economic growth than private infrastructure investment. Two important policy implications emerge from this study, as follows: (1) The different elasticity estimates can be used by policy makers to quantify the impact of policies targeted at the specific sector and (2) the government should develop an enabled policy environment to attract private investment, with the consideration of structural characteristics of the various sectors. The involvement of the private sector in the provision of infrastructure would help to control the tight budgetary situation.

Farmer’s adoption tendency towards drought shock, risk-taking networks and modern irrigation technology: evidence from Zhangye, Gansu, PRC

2020 ◽  
Vol 12 (4) ◽  
pp. 431-448
Author(s):  
Yongfeng Tan ◽  
Lu Qian ◽  
Apurbo Sarkar ◽  
Zhanar Nurgazina ◽  
Uzair Ali
Keyword(s):  
Risk Taking ◽  
Arable Land ◽  
Probit Model ◽  
Gansu Province ◽  
Bank Loans ◽  
Marginal Effect ◽  
Content Type ◽  
Drought Impact ◽  
Irrigation Technology ◽  
The Impact

Purpose The purpose of this paper is to measure Farmer’s adoption tendency towards drought shock, risk-taking networks and modern irrigation technology. Design/methodology/approach Based on this assumption, this paper evaluated the data gathered from 498 household surveys of Zhangye, Gansu province, PRC, by using the binary probit model. First, the empirical data was analyzed for evaluating the impact of drought shock and risk-taking tendencies on the adoption of modern irrigation technology by farmers. Second, the authors introduced informal risk-bearing networks with formal risks. Final, based on the empirical results, the sustainability test, along with the marginal effect analysis and the degree of impact was carried out. Findings The results show that the drought shock has a significantly deferent effect on the modern irrigation technology of the farmers. The probability of using technology for each level of drought loss is reduced by 15.02%. The risk-taking network has a significant role in promoting the modern irrigation technology of farmers. The probability of adoption for each additional unit of rural household labor security supply, the likelihood of adoption by farmers increased 23.11%, the probability of approval for each level of relative support, and neighborhood assistance by farmers increased by 13.11% and 17.88% respectively. This study further revealed that insurance purchases enabled farmers to adopt new irrigation technology with the probability increased by 24.99%; easily available bank loans increased the probability of farmers using irrigation technology by 31.89%. From the perspective of interactions between farmers, the risk-taking network can alleviate the inhibitory effect of drought impact towards the adoption of irrigation technology. Among the control variables, the number of years of education, the age of farming, the degree of arable land, the distance from home to the market, and the price of water all has significant effects on the adoption of modern irrigation technology by farmers. Originality/value The novelty of the study is that it illustrated the interactive influence of drought shock and risk-taking networks on the farmer’s adoption tendencies of modern irrigation technologies, the inner relationship among drought impact, the risk-taking network and the farmer’s adoption behavior and provide an interactive relationship between the formal risk-taking network and the non-risk-taking network in farmer’s technology adoption.

scholarly journals Public Investments, Human Capital, and Political Stability: The Triptych of Economic Success

2014 ◽  
Vol 2014 ◽  
pp. 1-20
Author(s):  
Ioannis Kostakis
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Demographic Factors ◽  
Political Stability ◽  
Ordinary Least Squares ◽  
Policy Implications ◽  
Lower Growth ◽  
Public Investments ◽  
Public And Private Sector ◽  
The Impact

This study assesses the effects of fiscal policy on economic growth in a sample of 96 countries from 1990 to 2010. Ordinary Least Squares (OLS) and Extreme Bound Analysis are mainly estimated in order to investigate whether public investments, human capital, and political stability affect growth controlling for initial output and human capital levels. Furthermore, in this empirical research four subsets of independent variables were used: (a) demographic factors, (b) political determinants, (c) region variables, and (d) variables regarding macroeconomic policy. Empirical results suggest that there is an important difference in the impact of public and private sector investments on the growth of per capita income. Moreover, political indicators such as corruption control, rule of law, and government effectiveness have a high impact on economic growth. Demographic factors, including fertility rate and mortality growth, as well as several macroeconomic variables, like inflation rate index and government consumption, were estimated to be statistically significant factors of economic performance. Fiscal volatility may also be a new possible channel of macroeconomic instability that leads to lower growth. Policy implications of the findings are discussed in detail.

scholarly journals The Determinants of Export Performance of Firms in Selected MENA Countries: Comparison with CEE Countries, Israel and Turkey

2018 ◽  
Vol 2 (49) ◽  
pp. 4-22
Author(s):  
Andrzej Cieślik ◽  
Jan Jakub Michałek ◽  
Alfred Tovias
Keyword(s):  
Export Performance ◽  
Probit Model ◽  
Large Degree ◽  
Business Environment ◽  
State Ownership ◽  
Policy Implications ◽  
University Graduates ◽  
Mena Countries ◽  
Specific Effects ◽  
Performance Determinants

Abstract In this paper, we study the export performance determinants of firms in selected MENA countries, both jointly and separately, as well as compare them with the performance of firms from countries in Central and Eastern Europe (CEE). The analysis is based on information about individual firms found in the European Bank for Reconstruction and Development (EBRD) and World Bank Business Environment and Enterprise Performance Survey (BEEPS) V database, covering the period 2011-2014. We estimate the probability of exports, while controlling for country- and sector-specific effects, using the probit model. We find that, in both groups of countries, similar variables affect firm export performance. Our empirical results obtained for Middle East and North Africa (MENA) and CEE countries indicate that the probability of exporting is positively related to the level of productivity, firm size, spending on research and development (R&D), the share of university graduates in productive employment and the internationalization of firms. State ownership and the perception of corruption by firms are mostly not statistically significant. The results obtained for the two groups of countries are statistically not very different, but enough to have some policy implications, while results for particular countries and subgroups of countries reveal a large degree of heterogeneity.

scholarly journals Determinants of Small-Scale Mechanization for Potato Farming: A Case from Bangladesh

2021 ◽  
Vol 7 ◽  
pp. 75-82
Author(s):  
Moniruzzaman ◽  
Md. Sadique Rahman ◽  
Md. Hayder Khan Sujan
Keyword(s):  
Probit Model ◽  
Policy Implications ◽  
Farm Size ◽  
Small Scale ◽  
Marginal Effect ◽  
Public Agencies ◽  
Effect Analysis ◽  
Farm Mechanization ◽  
And Training ◽  
Potato Farm

Identifying the determinants of farm mechanization can play a crucial role in the agriculture sector’s development. The present study identifies the determinants of potato farm mechanization employing the ordered probit model. A total of 150 potato farmers were interviewed to achieve the objectives. The findings indicate that only around 13% of the respondents were high adopters. The adoption of potato farm mechanization was influenced by education, spouse education, farm size, and training. Marginal effect analysis suggested that farm size and training decrease the likelihood of being in the low adopter’s category, respectively, by 13.2% and 10%, while increases the likelihood of being in the high adopter’s category by 7.5% and 5.7%. Policy implications included more investment in extension facilities such as training from public agencies to sustain and increase adoption. Modifying the existing extension strategy by targeting not only primary farmers but also members of their families would help with the widespread adoption of farm mechanization.

scholarly journals The impact of COVID-19 on consumers' eating and purchasing habits of agricultural products in China: key determinants and policy implications

2022 ◽  
Vol 46 (1) ◽  
Author(s):  
Thomas Bilaliib Udimal ◽  
Zhiyuan Peng ◽  
Mingcan Luo ◽  
Yan Liu
Keyword(s):  
Food Systems ◽  
Probit Model ◽  
Agricultural Products ◽  
Policy Implications ◽  
Cold Chain ◽  
Frozen Food ◽  
Modes Of Transmission ◽  
Gender And Education ◽  
Imported Food ◽  
The Impact

Abstract Background The study looks at a changed in consumer’s eating and purchasing habits during COVID-19 period. There are several modes of transmission but transmission through food as being speculated is one area that has not been confirmed through research. The study, therefore, looks at how speculations about COVID-19 spreading through food has affected consumers' eating and purchasing habits. This study through probit model analysed how consumers' eating and purchasing habits have been influenced. Results The result shows that age, gender and education have negatively influenced consumer’s eating and purchasing habits during the COVID-19 pandemic compared to pre-pandemic period. The preference for imported food items, preference for frozen food, been infected or knowing someone who has been infected by the virus, and been infected through agricultural source or knowing someone who has been infected by the COVID-19 through agricultural source have negatively affected consumers' eating and purchasing habits compared to pre-pandemic period. The result, however, suggests that consumers who trust in the cold-chain food systems ability to limit the spread of the COVID-19 still maintain a positive eating and purchasing habits. Conclusions The study provides evidence on the impact of COVID-19 on consumer’s eating and purchasing habits. Therefore, there is the need to institute proper sanitary measures, especially at cold-chain food systems to help curb the spread and also boost consumers’ confidence.

Job satisfaction: how crucial is participative decision making?

2016 ◽  
Vol 45 (1) ◽  
pp. 183-200 ◽  
Author(s):  
Gail Pacheco ◽  
Don Webber
Keyword(s):  
Job Satisfaction ◽  
Decision Making ◽  
Positive Impact ◽  
Unobserved Heterogeneity ◽  
Probit Model ◽  
Marginal Effect ◽  
Bivariate Probit ◽  
Content Type ◽  
Bivariate Probit Model ◽  
The Impact

Purpose – The purpose of this paper is to empirically examine the role of perceived ability to participate in decision making in the workplace, with respect to job satisfaction. Design/methodology/approach – Data from the fourth wave of the European Value Survey, is utilised, and a bivariate probit model is employed to account for unobserved heterogeneity. Findings – Empirical analysis comparing univariate and bivariate probit models reveals that the results from the former are negatively biased; potentially indicating that prior research may have underestimated the impact of participative decision making (PDM) on job satisfaction. Additionally, it appears clear that the magnitude of the marginal effects for both socio-demographic and work characteristics do not differ when comparing workers with above and below average participation. More importantly, the authors find a substantial negative marginal effect of below average participation on job satisfaction (close to three times the magnitude of the next largest marginal effect estimated in the model), indicating how crucial it is for employers to actively pursue programmes that enhance PDM. Originality/value – This study contributes to the growing literature aimed at understanding drivers of satisfaction in the workplace. Adding to the scant empirical investigation of the influence of PDM on job satisfaction, the authors find strong evidence of a direct and positive impact, which is further amplified after controlling for unobserved heterogeneity.

Can speed kill?

2016 ◽  
Vol 17 (5) ◽  
pp. 562-584 ◽  
Author(s):  
Doriana Cucinelli
Keyword(s):  
Financial Crisis ◽  
Credit Risk ◽  
Bank Lending ◽  
Ordinary Least Squares ◽  
Policy Implications ◽  
Content Type ◽  
Crisis Period ◽  
Lending Activity ◽  
Lending Behavior ◽  
The Impact

Purpose This study aims to analyze bank lending behavior before and during the most recent financial crisis. Banks are more willing to grant loans during economic expansion. However, this behavior can result in reduced portfolio asset quality. The analysis tries to facilitate understanding of whether this relationship is always true. A second aim of the study is to highlight whether the impact of credit risk on bank lending behavior during a financial crisis is greater for banks that grew faster during the pre-crisis period than for other banks. Design/methodology/approach The analysis is based on a sample of banks in Italy, an example of a country undergoing a credit crunch without a lending bubble burst. The methodology is based on a panel regression and author uses different models to test his hypothesis: an ordinary least squares, a fixed effect, a least absolute regression and a Generalized Method of Momentum (GMM). This allows to mitigate some of the endogeneity problems. Findings The essay shows that effectively, most of the banks that grew faster during a pre-crisis period show a higher growth of non-performing loans and a greater reduction in lending activity during a financial crisis. However, 34 per cent of banks that grew faster during a pre-crisis period have a low growth of non-performing loans in the subsequent years. Finally, the results suggest that credit risk negatively affects bank lending behavior, but a higher impact relative to fast banks with respect to other banks cannot be emphasized. Practical implications Findings have some policy implications. First, given the adverse effect of the increase of non-performing loans (NPLs) on the bank’s lending activity and on the broad economy in general, there is merit to strengthen supervision to prevent a further increase and accumulation of NPLs in the bank’s credit portfolio. In addition, the supervisors could require that banks take always high credit standard when extend credit, both during positive economic cycle and during period of contraction. The using of higher credit standard could be helpful in the reduction of the pro-cyclicality of bank’s lending behavior and credit risk. Furthermore, the fact that high level of NPLs continues to impact on the bank’s lending activity and that this activity is very important for the economic recovery underlines that banks should clean-up their credit portfolios as soon as possible. Originality/value This paper contributes to the literature in various ways. The study analyzes the cyclical effect of credit growth, i.e. banks increase their bank lending behavior during good times, which leads to an increase in bad loans and a high credit risk in their portfolio. These cyclical effects are not knowingly studied together, but the literature usually analyzes the single steps of the cycle. Second, studying listed and unlisted banks allows to have a more representative sample and to analyze better the real bank lending activity considering both commercial than cooperative banks.

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