Does Market Size Matter for How Trade Openess Affects Economic Growth?

Foreign direct investment (FDI) is an important force to promote economic growth and social development in both developed and developing countries, while the distribution of FDI in the world and within countries is extremely uneven. This paper systematically summarizes the main determinants that affect the location choice of FDI in recent theoretical and empirical studies, including institution and investment environment, trade cost and industrial agglomeration, market size and natural resource, cultural distance and social network. Based on the work of this paper, it is helpful to better understand the location preference of multinational enterprises (MNEs) in FDI activities, and provide a reference basis for the host country to attract investment and promote economic growth.

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UKURAN PASAR UKURAN PASAR (Market Size) DAN INVESTASI ASING LANGSUNG DI ASEAN

JAE (JURNAL AKUNTANSI DAN EKONOMI) ◽

10.29407/jae.v1i1.430 ◽

2016 ◽

Vol 1 (1) ◽

pp. 26

Author(s):

Adi Lumadya

Keyword(s):

Economic Growth ◽

Panel Data ◽

Foreign Investment ◽

Capita Income ◽

Random Effect ◽

Direct Foreign Investment ◽

Market Size ◽

Per Capita Income ◽

Variable Size ◽

Per Capita

The main objective of this study was to examine the influence of some economic variables that include market size proxied with income per capita, economic growth, and exports to the Foreign Direct Investment in the member countries of ASEAN-9. The analytical tool used is the Least Squares Regression (Ordinary Least Square) and Panel Data. In the Data Panel will look for similarities in effect is Fixed (Fixed Effect) and the effect is Random (Random Effect). The results of the analysis are: Based on the analysis of OLS concluded that the variable size of the market (market size) were proxied with Per Capita Income (GDPP), Economic Growth (EG), and exports (EG) significantly affects the Direct Foreign Investment. Based on the analysis of Panel Data with Fixed Effect Method concluded that the variable size of the market (market size) were represented with per capita income (GDP), Economic Growth (EG), and exports (EG) significantly affects the Direct Foreign Investment. Based on the analysis of Panel Data with Random Effect method concluded that the variable size of the market (market size) were proxied with per capita income (GDP), Economic Growth (EG), and exports (EG) significantly affects the Direct Foreign Investment. Keywords: Foreign Direct Investment, Fixed Effect, Random Effect

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Role of Banks in Ensuring a Sustainable and Inclusive Growth

IRA-International Journal of Management & Social Sciences (ISSN 2455-2267) ◽

10.21013/jmss.v6.n3.p16 ◽

2017 ◽

Vol 6 (3) ◽

pp. 509

Author(s):

Saurabh Agarwal

Keyword(s):

Economic Growth ◽

Financial Services ◽

Banking Industry ◽

Essential Element ◽

Financial Inclusion ◽

Market Size ◽

Inclusive Growth ◽

Policy Makers ◽

The People

<div><p><em>Economic growth in India has to be inclusive in order to make it sustainable. Inclusiveness is an essential element in a democracy. If policies that bring about economic growth do not benefit the people in a wide and inclusive manner, they will not be sustainable. Equally, inclusive growth is essential to grow the market size, which alone will sustain growth momentum. Inclusive growth is the only just and equitable way that any society can grow. Financial Inclusion rests on three pillars viz. access to <strong>financial services, affordability of such services and actual utilization of such services.</strong> Financial Inclusion can be achieved only if all the three pillars show affirmative results. It may prove to be very useful for the banking Industry and the overall Indian economy. It will be useful for policy makers, academicians and researchers in the field.</em></p></div>

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Impact of National Competitiveness on Economic Growth and Income Level – Evidence From the Selected Post-Soviet Countries

Research in World Economy ◽

10.5430/rwe.v12n2p17 ◽

2021 ◽

Vol 12 (2) ◽

pp. 17

Author(s):

Aziz Sodikov ◽

Zuhriddin Rizaev ◽

Lee Chin ◽

Shahnoza Ochilova

Keyword(s):

Economic Growth ◽

Productivity Growth ◽

Income Level ◽

Market Size ◽

Income Per Capita ◽

National Competitiveness ◽

Ict Adoption ◽

Per Capita ◽

The Impact ◽

Macroeconomic Stability

This paper investigates the impact of national competitiveness on productivity, economic growth and income per capita in the selected post-Soviet countries between 2004 and 2018. In this paper, 2019 edition of the Global Competitiveness Index (GCI), which is composed of 12 pillars such as namely institutions, infrastructure, ICT adoption, macroeconomic stability, health, skills, product market, labour market, financial system, market size, business dynamism and innovation capability, is used as a proxy for the national competitiveness and productivity for the empirical analysis purposes. The findings reveal that: (1) the GCI is highly correlated with productivity level and the selected post-Soviet countries with higher level of national competitiveness had higher long-term economic growth and income per capita, (2) Russia and Kazakhstan more benefited from rising per capita income associated with enhanced national competitiveness (or productivity growth) compared to other selected former Soviet states, (3) among the GCI factors, ICT adoption, macroeconomic stability, market size and healthy life expectancy were major levers of productivity growth that influenced the national competitiveness, positively and significantly contributing to an increase in the income level in the selected post-Soviet countries in 2004-2018 period.

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Introduction to Part 2

International Trade and Investment Behaviour of Firms ◽

10.1093/oso/9780190126865.003.0006 ◽

2020 ◽

pp. 159-167

Author(s):

Murali Patibandla

Keyword(s):

Economic Growth ◽

Growth Rate ◽

Market Size ◽

Economic Growth Rate ◽

Institutional Conditions ◽

South Korean ◽

Chain Conditions ◽

Factor Markets ◽

Input Markets ◽

Trade And Investment

The chapter demonstrates the internal reforms undertaken in the mid-1980 and major internal and external reforms the early-1990 and their effect on product and factor markets and institutional conditions. It also shows inter-relationship between international trade and investment behaviour. The reforms allowed TNCs in most industries. It was argued the reforms in general resulted in positive outcomes because India possessed critical industrial and skill endowments and capitalist conditions. The reforms resulted in augmentation of economic growth rate between 6 and 7 per cent which increased market size. This, in turn, gave incentives TNCs to bring in their assets and compete in domestic market. Apart from product markets, the reforms improved competitive conditions in input markets such as labour in sectors like software and services and automobiles and electronics. Furthermore, supply chain conditions improved significantly with entry of Japanese and South Korean multinationals.

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Most Common Potential Determinants of FDI: Review of Literature

International Journal of Innovation and Economic Development ◽

10.18775/ijied.1849-7551-7020.2015.23.2003 ◽

2016 ◽

Vol 2 (3) ◽

pp. 26-31 ◽

Cited By ~ 1

Author(s):

Javohir Jamolovich Akhmedov

Keyword(s):

Economic Growth ◽

Developing Countries ◽

Literature Review ◽

Critical Analysis ◽

Labour Cost ◽

Market Size ◽

Research Model ◽

Review Of Literature ◽

Review Of The Literature ◽

Determinants Of Fdi

The aim of this paper is to provide the critical analysis of the potential determinants of FDI. Review of the literature led to the development of research model which provides the most potential determinants of FDI. The importance of FDI is considered to be important for both developed and developing countries. In this regard, the potential determinants of FDI which have been identified as a result of literature review include market size, labour cost and productivity, political risk, infrastructure, economic growth and tax. Nearly all of these variables are reported to have an indecisive relationship with FDI, that is to say, some papers show a positive correlation between variables while other present negative or no relationship at all.

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Can Book-to-Market, Size, and Momentum Be Risk Factors That Predict Economic Growth?

SSRN Electronic Journal ◽

10.2139/ssrn.159293 ◽

1999 ◽

Cited By ~ 9

Author(s):

Jimmy Liew ◽

Maria Vassalou

Keyword(s):

Risk Factors ◽

Economic Growth ◽

Market Size

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Constructing a partially formalized general theory of the marketing system: insights from the history of marketing thought

Journal of Historical Research in Marketing ◽

10.1108/jhrm-11-2019-0046 ◽

2020 ◽

Vol 12 (2) ◽

pp. 263-283

Author(s):

Eric H. Shaw

Keyword(s):

Economic Growth ◽

General Theory ◽

Alternative Methods ◽

Market Size ◽

System Efficiency ◽

Marketing System ◽

Content Type ◽

Marketing Systems ◽

History Of ◽

The Law

Purpose The purpose of this paper is to construct a general theory of the marketing system that addresses the fundamental question: why do marketing systems occur, survive and grow? Design/methodology/approach The approach integrates the concepts and constructs contained in special and mid-range theories, scattered throughout the history of marketing thought, into a logically coherent set of propositions (including definitions, axioms, theorems, scientific laws, bridge laws and hypotheses) that comprise a general theory of the marketing system. Findings The theoretical answer to why marketing systems arise, survive and grow is because marketing systems offer the most efficient mechanism for supplying products and services that people demand, thereby increasing economic growth, compared to the opportunity costs of alternative methods of acquisition. Based on just two (of several) marketing efficiency theorems, if the input costs of trading decline (law of reduced transaction costs) and/or the output value increases (law of bulk transactions), then marketing system efficiency rises. This creates an upward spiraling cycle: increasing the extent of the market (law of market size), proliferating opportunities for increasing aggregate production efficiency (through the law of comparative advantage and the law of division of labor), thereby further proliferating opportunities for aggregate marketing system efficiency (e.g. law of central markets, law of marketing specialists), thus fueling further aggregate economic growth (until limited by the law of diminishing returns, the law of the minimum resource or the law of market size). An empirically testable central hypothesis is derived from the propositions: increasing aggregate marketing system efficiency provides both the necessary and sufficient conditions for increasing aggregate economic growth in a society. Originality/value The value of developing a general theory of the marketing system is to advance the marketing discipline as a social science. Additionally, a general theory is likely to enhance academic thinking, improve business practice and facilitate interaction among academicians and practitioners. Further, a general theory could also reduce disciplinary fragmentation, avoid identity confusion and lessen the credibility crisis in marketing, among others.

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