De-industrialisation, comparative economic performance and FDI inflows in emerging economies

Kudina, Alina; Pitelis, Christos N.

doi:10.1016/j.ibusrev.2014.02.001

Cited by 27 publications

(22 citation statements)

References 83 publications

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“…Chen and Chen, 1995), has recently gained in importance in deindustrialization studies, especially as the global landscape of FDI has shifted to the developing and emerging world. As noted by Kudina and Pitelis (2014), who provide strong empirical support for a relationship between FDI inflows into developing and emerging economies and deindustrialization of developed economies, FDI inflows into developing world exceeded that to the developed economies for the first time in 2010. the lack of readily available data and the difficulty to empirically identify and measure all the different channels through which globalization may influence structural change, these studies typically use data on trade flows in manufactures, both imports and exports, as a proxy to examine the broad impact of globalization on relative manufacturing employment. Besides the growing penetration of developing nations in world exchanges, the trade argument has been empirically funded on a severe deterioration of the trade balance in manufactures in a number of advanced countries, especially in the US and the UK.…”

Section: International Tradementioning

confidence: 91%

The Economic Forces Behind Deindustrialization: An Empirical Investigation

Neuss

2016

SSRN Journal

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The purpose of this paper is to provide an in-depth study of deindustrialization and to systematically analyze the reasons why the world's most economically successful countries have experienced a sharp decline in relative manufacturing employment over the last decades. A large strand of empirical literature on deindustrialization aims at quantifying the relative importance of the economic forces behind deindustrialization, especially of the 'internal' and 'external' factors. While this study does not contradict the widespread belief that internal factors are quantitatively more important in explaining deindustrialization in advanced countries taken as a whole, our results, based on both static and dynamic techniques and panel data on 18 OECD countries from 1977 to 2007, however suggest that the role of globalization may be revised upwards when resorting to appropriate and welldefined indicators of trade in manufactures.

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Section: International Tradementioning

confidence: 91%

The Economic Forces Behind Deindustrialization: An Empirical Investigation

Neuss

2016

SSRN Journal

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“…Under various conditions, the regression is truncated with a truncation point, unknown variance, and zero mean. Equation (5) is modified to estimate the following equation: Kudina and Pitelis (2014) argued that developed manufacturing can facilitate industrial innovation. The scatter plot in Figure 3 presents that the efficiency values of manufacturing and innovation have similar development trends.…”

Section: Truncated Regressionmentioning

confidence: 99%

Improving innovation efficiency of emerging economies: The role of manufacturing

Wang

Hung

2019

Manage Decis Econ

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These studies have neglected that innovation activities in a country are generated by interactions among different sectors, especially manufacturing. The existing literature focusing on the influence of manufacturing on innovation indicated that an integrated pipeline of information technology, materials, and production process in manufacturing operation will provide manufacturers with the capability to bring renewed dynamism to this sector (Jagoda, Kiridena, & Lin, 2016). Manufacturing plays a critical role in innovative production by providing precision instruments and integrated systems that can efficiently transform investments in innovation into products (Cozzarin, 2016). However, studies rarely investigate the influence of manufacturing on the innovation process for emerging economies.This study provides an alternative model by characterizing the process of innovation via a three-stage model that emphasizes manufacturing effects. This model consists of human capital cultivation (Stage 1), manufacturing development (Stage 2), and innovation production (Stage 3). The dynamic network slacks-based measure (SBM), which can deal with multiple input/output variables of multidivisions in a long-term optimization, is employed to evaluate the performance of this three-stage model. This study also utilizes a truncated regression method to explore external factors, including enrollment rate in higher education, market size, intellectual property protection, and knowledge transfer (KT) that affect innovation efficiency. The empirical results may shed light on the importance of manufacturing to emerging economies in terms of improvement in the production of innovations. The structure of this study is presented as follows. Section 2 provides the literature review. Section 3 introduces the innovation model, data collection procedure, and research methodology. Section 4 addresses the experimental results. Section 5 provides managerial implications for innovation in emerging economies. Section 6 offers conclusions of this study.

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“…Since the crisis can have different impacts on different segments of the economy, we include dummy variables for the most general type of activities -manufacturing, retail and services. This effect could be probably more important for transition economies, which had gone through a deindustrialisation period (see Kudina and Pitelis (2014) for a wider explanation related to FDI and overall economic performance) and consequently we assume that fi rms in manufacturing perceive larger diffi culties in fi nancing their projects. Additional factor is that projects in manufacturing might be fi nancially more demanding than projects in services.…”

Section: Ekonomika a Managementmentioning

confidence: 99%

Access to finance: innovative firms’ perceptions in post-transition EU members

Botrić¹,

Božić²

2017

E+M

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The remainder of this paper is organized as follows. Section 1 provides basic information on theoretical framework and empirical strategy used in the analytical segment. Section 2 gives overview of the problem analysed. Section 3 presents results of the empirical estimation and provides discussion. Last section summarizes conclusions. Theoretical Background and Empirical StrategyThe main focus of the paper is related to the factors infl uencing the access to fi nance perceptions. In particular, we want to address the issue whether access to fi nance is different for innovators than for non-innovators, based on their revealed perceptions. Lack of appropriate fi nancing is important issue from the perspective of innovators but also relevant for all enterprises (Savignac, 2008; Tiwari et al., 2007), regardless of their current innovation effort. The growth of fi rms, especially small ones, is frequently seriously limited by internal fi nances (Carpenter & Petersen, 2002). The literature usually fi nds that small enterprises and in particular micro enterprises have more diffi culties in fi nancing their projects (Beck & Demirgüç-Kunt, 2006). Freel (2007) provides evidence that small and innovative fi rms are less successful in obtaining loans in comparison to large fi rms, and the background for this is found in bank concentration (Beck, Demirgüç-Kunt, & Maksimovic, 2004). Financing related problems negatively affect profi tability of startups (Banerjee, 2014). Nevertheless, literature argues that fi nancial constrains to SMEs in developing countries can be alleviated by fi nancial liberalisation (Laeven, 2003). Since fi nancial sector has been underdeveloped at the beginning of transition and recently severely affected by global economic crisis, the legitimate question is how the fi rms in these economies have weathered these unfavourable conditions. Special characteristics of fi rms have also been analysed in the literature with respect to relative access to fi nance diffi culties. Extant literature suggests that gender of fi rm owner or manager determines relative access to fi nance. Female led fi rms experience more problems in obtaining necessary fi nancing (Lee, Sameen, & Cowling, 2015). However, Haines, Orser and Riding (1999) argue that there is no a priori discrimination against female entrepreneurs, but rather that female entrepreneurs are likely to run smaller businesses in risky industries. Furthermore, low proportion of venture capital investment in female owned enterprises can be explained by the dissimilarity in the industry preferences by female entrepreneurs and venture capitalists (Green et al., 2001). However, although it is still at the low level, these authors identifi ed positive trends regarding venture capital investments of female owned enterprises. Also, over time, access of female entrepreneurs to bank loans has improved (Haynes & Haynes, 1999).Another factor infl uencing the relative access to fi nance is education of the entrepreneurs and/ or employees. It has even been found that educ...

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De-industrialisation, comparative economic performance and FDI inflows in emerging economies

Cited by 27 publications

References 83 publications

The Economic Forces Behind Deindustrialization: An Empirical Investigation

The Economic Forces Behind Deindustrialization: An Empirical Investigation

Improving innovation efficiency of emerging economies: The role of manufacturing

Access to finance: innovative firms’ perceptions in post-transition EU members

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