scholarly journals OUTWARD FOREIGN DIRECT INVESTMENT: EMERGING ECONOMIES’ HOME COUNTRY DETERMINANTS

2021 ◽  
pp. 58-72
Keyword(s):  
Human Capital ◽  
Interest Rates ◽  
Emerging Economies ◽  
Home Country ◽  
Outward Fdi ◽  
Country Level ◽  
Country Market ◽  
Skilled Personnel ◽  
Macroeconomic Determinants ◽  
The Impact

The Tendency of firms from emerging economies to invest abroad has increased significantly during the last two decades. Despite this trend, comprehensive literature survey research on macroeconomic determinants and antecedents of outward FDI from emerging economies is still underrepresented. The purpose of this paper is to give a comprehensive understanding of home country level factors’ impact on outward FDI from developing countries through a systematic review of past researches on OFDI’s macroeconomic determinants of home economy. The findings reveal that the most important determinants are, home country market size and openness of home country towards internationalization. However, some researches posted contrasting results for the impact of home country’s interest rates, human capital and technological capability on OFDI from emerging economies. This study also points out that emerging economies suffer from shortage of skilled personnel, thus making human capital an essential push factor for OFDI.

Financial development, human capital and its impact on economic growth of emerging countries

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aaqib Sarwar ◽  
Muhammad Asif Khan ◽  
Zahid Sarwar ◽  
Wajid Khan
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Financial Development ◽  
Emerging Economies ◽  
Generalized Method Of Moments ◽  
Emerging Countries ◽  
Data Set ◽  
Content Type ◽  
The World ◽  
The Impact

Purpose This paper aims to investigate the critical aspect of financial development, human capital and their interactive term on economic growth from the perspective of emerging economies. Design/methodology/approach Data set ranged from 2002 to 2017 of 83 emerging countries used in this research and collected from world development indicators of the World Bank. The two-step system generalized method of moments is used to conduct this research within the endogenous growth model while controlling time and country-specific effects. Findings The findings of the study indicate that financial development has a positive and significant effect on economic growth. In emerging countries, human capital also has a positive impact on economic growth. Financial development and human capital interactively affect economic growth for emerging economies positively and significantly. Research limitations/implications The data set is limited to 83 emerging countries of the world. The time period for the study is 2002 to 2017. Originality/value This research contributes to the existing literature on human capital, financial development and economic growth. Limited research has been conducted on the impact of financial development and human capital on economic growth.

scholarly journals The Impact of Outward FDI on the Upgrading of China’s Manufacturing Industry Structure: A Literature Review

2017 ◽  
Vol 9 (6) ◽  
pp. 154 ◽  
Author(s):  
Shuyuan Jiang ◽  
Dan Cheng
Keyword(s):  
Direct Investment ◽  
Manufacturing Industry ◽  
Industrial Structure ◽  
Home Country ◽  
Industry Structure ◽  
Outward Foreign Direct Investment ◽  
Outward Fdi ◽  
Pillar Industry ◽  
The Impact ◽  
The Relationship

Since China put forward the strategy of “going out”, outward foreign direct investment (FDI) began to grow rapidly, and the manufacturing industry, as the pillar industry of our country, is facing the dilemma of transformation. This paper will focus on this topic of the relationship between the outward FDI and upgrading of China’s manufacturing industry structure, and sort out and summarize the domestic and foreign literature. It is concluded that the existing literatures are consistent: the outward FDI can promote the upgrading of industrial structure of home country. In terms of China’s manufacturing industry, the outward FDI can promote the upgrading of China’s manufacturing industry, however, the impact have a kind of hysteresis quality, and may produce the phenomenon of “industry hollowing out”.

scholarly journals Selected macroeconomic determinants and economic growth in Cameroon (1970–2018) “dead or alive” an ARDL approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kesuh Jude Thaddeus ◽  
Chi Aloysius Ngong ◽  
Njimukala Moses Nebong ◽  
Akume Daniel Akume ◽  
Jumbo Urie Eleazar ◽  
...  
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Government Expenditure ◽  
Human Capital Development ◽  
Content Type ◽  
Capital Development ◽  
Macroeconomic Determinants ◽  
The Impact

PurposeThe purpose of this paper is to examine key macroeconomic determinants on Cameroon's economic growth from 1970 to 2018.Design/methodology/approachData were obtained from the World Development Indicators and applied on time series data econometric techniques. The auto-regressive distributed lag (ARDL) bounds model analyzed the data since the variables had different order of integration.FindingsThe results showed long and short runs’ positive and significant connection between economic growth in Cameroon and government expenditure; trade openness, gross capital formation and exchange rate. Human capital development, foreign aid, money supply, inflation and foreign direct investment negatively and significantly affected economic growth in the short and long-runs. Hence, the macroeconomic indicators are not death.Research limitations/implicationsThe present research paper has tried to capture the impact of nine macroeconomic determinants on economic growth such as the government expenditure (LNGOVEXP), human capital development (LNHCD), foreign aids (AID), trade openness (LNTOP), foreign direct investment (LNFDI), gross capital formation (INVEST), broad money (LNM2), official exchange rate (LNEXHRATE) and Inflation (LNINFLA). However, these variables have the tendency to affect each other in a unidirectional or bidirectional manner. Further, the present research paper is unable to capture the impact of other macroeconomic variable due to the unavailability of data.Practical implicationsThe study recommends that Cameroon should use proper planning and strategic policy interventions to achieve higher sustainable economic growth with human capital development, foreign aid, money supply, foreign direct investment and moderate inflation.Social implicationsMacroeconomic indicators, if managed well, increase economic growth.Originality/valueThis paper to the best of the researcher's knowledge presents new background information to both policymakers and researchers on the main macroeconomic determinants using econometric analysis.

CASE STUDY: The determinants of remittances to India

2014 ◽  
Vol 7 (2) ◽  
pp. 214-223 ◽  
Author(s):  
Poonam Gupta
Keyword(s):  
Growth Rate ◽  
Interest Rates ◽  
Short Term ◽  
Economic Growth Rate ◽  
Strong Trend ◽  
Advanced Economies ◽  
Macroeconomic Determinants ◽  
Indian Stock Market ◽  
The Impact

This paper analyses the macroeconomic determinants of remittances to India and assesses the impact of the current global slowdown on these flows. The paper shows that remittances exhibit a strong trend, whereby they have increased at a robust rate of 10 per cent a year since 1992. The movement of remittances is limited around the trend and traditionally has not been affected by the domestic or external macroeconomic variables. This pattern has changed since 2000, when the remittances have responded positively to the domestic interest rates and the Indian stock market; and negatively to the external interest rates. Looking ahead, a slowdown in the economic growth rate in advanced economies is unlikely to reduce the flow of remittances to India in the short term; but a prolonged slowdown, if it significantly reverses the migration of Indians, can reduce the trend growth rate. 

Relational embeddedness in home-based network and dynamic capabilities: evidence from Chinese MNCs

2021 ◽  
Vol 15 (1) ◽  
pp. 222-242
Author(s):  
Jian Du ◽  
Keying Lu ◽  
Chao Zhou
Keyword(s):  
Emerging Economies ◽  
Dynamic Capabilities ◽  
Home Country ◽  
Foreign Firms ◽  
Content Type ◽  
Domestic Firms ◽  
Close Relationship ◽  
Relational Embeddedness ◽  
Chinese Mncs ◽  
The Impact

Purpose Prior studies have argued that multinational firms with dynamic capabilities can reconfigure and upgrade their internal and external resources and adapt to an ever-changing competitive global environment. The impact of home country networks exerting on multinational corporations’ (MNCs) dynamic capabilities has been rarely discussed in extant research. This paper aims to explore how two types of home country networks’ relational embeddedness (from domestic firms and foreign firms) affect Chinese MNCs’ dynamic capabilities. Design/methodology/approach Several hypotheses were tested by analyzing the survey data from 204 multinational companies in china. Findings The results reveal the impact mechanism of the home country network on dynamic capabilities. Embeddedness in domestic networks positively affects embeddedness in the foreign network; embeddedness in foreign firms exerts positive effects on the three dimensions of MNC’s dynamic capabilities. Additionally, the effect of domestic firms’ relational embeddedness on resource reconfiguring capability is mediated by foreign firms’ embeddedness. Consequently, this study provides a theoretical introduction for MNCs from emerging economies. Practical implications This study has several managerial implications for emerging MNCs’ international operations. For MNCs from emerging economies, close cooperation with domestic firms helps firms to develop a close relationship with foreign firms; meanwhile, developing a close relationship with foreign firms can obtain spillover about technology and management experience better, improving dynamic capability. Specifically, domestic embeddedness, through foreign embeddedness, can extend the impact to focal firms in developing resource reconfiguring capability. Originality/value This study provides an alternate view of how home country networks influence the dynamic capabilities of Chinese MNCs and outlines its impact mechanism. Therefore, the study contributes both to the international business literature and social network literature.

Motives and competitive assets of Pakistani international construction contracting firms

2014 ◽  
Vol 19 (2) ◽  
pp. 138-151 ◽  
Author(s):  
Ahsen Maqsoom ◽  
Chotchai Charoenngam
Keyword(s):  
Emerging Economies ◽  
Service Sector ◽  
Home Country ◽  
Business Environment ◽  
Future Research ◽  
Content Type ◽  
International Experiences ◽  
The Impact ◽  
Country Specific ◽  
Construction Contracting

Purpose – This paper aims to study the impact of a firm’s size and international experience on its internationalization because it remains an under-researched area. Using an integrated theoretical approach, this study examines the motives and (firm-specific and home country-specific) competitive assets, that enable the internationalization of Pakistan-based construction contracting firms (CCFs) having varied sizes and international experiences. Design/methodology/approach – Data were collected through a postal questionnaire survey. A comparative analysis of these data was undertaken for firms of varied sizes and international experiences. Findings – Findings show that firms of varied sizes did not concur over several firm-specific and home country-specific competitive assets, whereas firms of varied international experiences were in disagreement over fewer motives and home country-specific competitive assets. Small CCFs need to overcome weakness in their firm-specific competitive assets, especially international reputation and internationally experienced management. Government and home country support are needed to promote internationalization of emerging economies’ CCFs, especially younger and smaller ones that are more vulnerable due to an unstable business environment and lack of opportunities in domestic markets. Research limitations/implications – The firms included in this study represent only one service sector, i.e. the emerging economy scenario of Pakistan’s construction industry. Future research may be conducted with a deeper analysis of the differences between emerging and developed economies’ CCFs as well as other service sectors. Originality/value – The study will be helpful to those CCFs from emerging economies which are considering whether or not to internationalize and, to the regulatory bodies helping create a level playing field to nurture the internationalization process for their CCFs.

Characteristics of owners and managers in different countries: a meta-analytical investigation of SMEs' growth

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Diego Antônio Bittencourt Marconatto ◽  
Emidio Gressler Teixeira ◽  
Fernando de Oliveira Santini ◽  
Wagner Junior Ladeira
Keyword(s):  
Human Capital ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Analytical Investigation ◽  
Individual Characteristics ◽  
Effect Sizes ◽  
Content Type ◽  
Country Level ◽  
And Gender ◽  
The Impact

PurposeThe paper aims to provide robust evidence about the relationships between key individual characteristics of owners and managers (OMs) and small and medium enterprises (SMEs)' growth and the moderating influence of the country context on these relationships.Design/methodology/approachThe authors meta-analyzed 62 studies presenting a cumulative sample of 175 effect-sizes and 174,590 SMEs.FindingsThe authors found that SMEs led by more experienced men with higher levels of education are more likely to grow. While the relationship between OMs' experience and SMEs' growth is significant for differing country contexts, national characteristics affect the magnitude of the influence that OMs' education and gender specifically exert on SME expansion. The authors also found that the positive impact of OMs' human capital on SMEs' growth increases when these firms are focused on technology.Research limitations/implicationsThe study yielded small-effect sizes for the impact of OMs' human capital and gender on SMEs' growth. Researchers can assess the influence of these characteristics on SMEs' growth along with other individual dimensions.Originality/valueThe current study is the first meta-analytical investigation about the influence of OMs' gender on SMEs' growth. The study focuses solely on SME OMs, as SMEs are not simply larger businesses on a smaller scale. The authors employ a wide set of country-level moderators in the research going beyond most empirical examinations of the topic that have given only marginal attention to moderators.

Home Country-Specific Determinants of Outward Foreign Direct Investment in Developing Economies

2020 ◽  
pp. 843-860
Author(s):  
Rıfat Karakuş
Keyword(s):  
Foreign Direct Investment ◽  
Interest Rates ◽  
Direct Investment ◽  
Home Country ◽  
Developing Economies ◽  
Panel Data Analysis ◽  
Outward Foreign Direct Investment ◽  
Outward Fdi ◽  
Total Labor ◽  
Country Specific

The outward foreign direct investments of developing economies have showed significant increase in recent years. Rising outward foreign direct investment stock of developing economies makes its determinants and consequences crucial. The aim of this study is to determine the home country specific determinants of outward FDI. For this purpose, a panel data analysis is performed with the data of BRICS and Next Eleven countries for the period from 1994 to 2014. The analysis results reveal that inward foreign direct investment, interest rates and technological capability of home country have positive influence and total labor force of home country has negative effect on outward FDI of developing economies.

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