The Role of Domestic Institutions and FDI on Innovation—Evidence from Chinese Firms

Qu, Yi; Wei, Yingqi

doi:10.1162/asep_a_00519

Cited by 16 publications

(5 citation statements)

References 52 publications

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“…This study revealed that formal institutions significantly contribute to the banks’ capital-raising strategy, survival and sustainability in developing economies. In line with existing literature that revealed that firms, in most cases, rely on the institution for acceptance, resources and strategies development (Greenman, 2013; Jain and Sharma, 2013; Qu and Wei, 2017); the findings of this study show that BoG, as one of the bank’s external government institutional environment and regulator, plays an essential role in the strategy adoption implementation and financial capacity of the banks.…”

Section: Discussion Theoretical Implication Recommendation and Conclu...supporting

confidence: 89%

Is recapitalisation regulation a disrupter? Survival and sustainability of indigenous Ghanaian banks

Takyi

Naidoo

2022

QRFM

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Purpose This study aims to explore how the implementation of the recapitalisation by the Bank of Ghana disrupted the indigenous banks’ sources of accessing capital to raise the required amount within the mandatory stipulated time/deadline. Design/methodology/approach This study used purposive sampling techniques to interview key role players and senior members involved in the bank’s recapitalisation process and/or have in-depth information on the 2017–2018 recapitalisation period. Findings This study revealed that government directives significantly shape banks regulations and strategy; accordingly, any state-directed policies must be communicated cautiously, well explained and implemented to reduce any negative consequences. Originality/value This study makes a significant contribution to knowledge by exploring how directives (arbitrary) of regulatory bodies can influence the business as well as its other stakeholders (such as the depositors, public, among others). Secondly, the study highlights how the delays in government support may not derive the benefits expected by the regulator.

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Section: Discussion Theoretical Implication Recommendation and Conclu...supporting

confidence: 89%

Is recapitalisation regulation a disrupter? Survival and sustainability of indigenous Ghanaian banks

Takyi

Naidoo

2022

QRFM

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“…Some of the studies found that FDI encourages a firm's or country's innovation capacity, as seen in Ustalar and Sanlisoy [65], Nyeadi and Adjasi [52], Ismail [66], Dhrifi [58], Erdal and Gocer [59], Zhang [60], Girma et al [51], Zeng and Zhou [12], Kemeny [61], Wang et al [53], Osano and Koine [57], Shamsub [67], Khachoo and Sharma [54], Sivalogathasan and Wu [54], Keller and Yeaple [55], Caves [47], Globerman [68], Blomstrom and Persson [69], and Javorick [46], while others revealed FDI has negligible or insignificant effects on innovation. These include Garcia et al [56], Chen [63], Aitken and Harrison [70], Haddad and Harisson [71], Djankov and Hoekman [72], Sasidharan [73], Qu and Wei [74], Dunning and Lundan [48], and Mohamed et al [64]. Table 1 shows the firm/industry-level studies, and Table 2 presents country-level studies.…”

Section: Theoretical Foundation and Literature Reviewmentioning

confidence: 99%

Inward Foreign Direct Investment-Induced Technological Innovation in Sri Lanka? Empirical Evidence Using ARDL Approach

2021

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Fostering innovation is considered one of the key policy priorities in most governments’ agendas in developing countries. Foreign direct investment (FDI) is a principal resource for financing sustainable development, corresponding to 17 sustainable development goals (SDGs). This study analyzes how inward FDI affects innovation in Sri Lanka using secondary data from 1990 to 2019. We used the Autoregressive Distributed Lag (ARDL) cointegration procedure to examine the long-run relationships between variables. As per the study results, the coefficient of inward FDI is a negative sign while the coefficients of education expenditure (EDU) and research and development expenditure (RDE) show positive signs of 0.26 and 5.7, respectively, and are statistically significant in the long run. It is demonstrated that research and development expenditure is vital in explaining technological innovation, and inward FDI inflows do not contribute to widening technological innovation in Sri Lanka. More FDI inflows will not bring higher innovation. Shaping the future of FDI in Sri Lanka is essential to foster innovation capability.

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“…Institutional considerations are regarded as an important determinant of economic growth in Vietnam (Bon Van, 2019). While government support including the protection of intellectual property rights are positively linked to both FDI and innovation (Egan, 2013; Qu and Wei, 2017), promoting institutional quality is important in attracting FDI and promoting local innovation. Given that institutions are believed to perform better in those Vietnamese provinces with industrial zones, our finding is consistent with earlier work (Meyer and Nguyen, 2005) insofar as industrial parks are found to have a significant role in attracting FDI.…”

Section: Discussionmentioning

confidence: 99%

Does foreign direct investment influence R&D activity in the host country? Evidence from Vietnam

Holmes

Hassan

2021

IJOEM

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PurposeThis study focuses on the linkages between foreign direct investment and the research and development (R&D) and innovation activity of domestic enterprises in Vietnam.Design/methodology/approachThe Heckman selection model approach is applied to a panel dataset of nearly 7,000 Vietnamese firms for the 2011–2015 study period to investigate the impact of foreign presence on the R&D of local firms through horizontal and vertical linkages. Probit model estimation is employed to examine how foreign investment influences the innovation activity of local companies.FindingsWhile there are a small number of firms carrying out R&D activities in Vietnam, foreign or joint domestic–foreign venture firms are less inclined than domestic firms to undertake R&D. Domestic factors that include capital, labor quality, location and export status of firm have a significant effect on the decision of domestic firms to participate in R&D activity. Only forward linkages and the gross firm output are found to have an impact on the R&D intensity of domestic enterprises, while other factors appear to have no significant influence on how much firms spend on R&D activities.Practical implicationsIn order to promote the R&D activity of domestic firms, policy should focus on (1) the backward linkages between local firms in downstream sectors with their foreign suppliers in upstream sectors, and (2) the internal factors such as labor, capital or location that affect the decisions made by domestic firms.Originality/valueGiven that foreign investment may affect R&D and innovation activity of local firms in host countries, the impact is relatively unexplored for many emerging economies and not so in the case of Vietnam. The availability of a unique survey on Vietnamese firm technology and competitiveness provides the opportunity to address this gap in the literature.

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The Role of Domestic Institutions and FDI on Innovation—Evidence from Chinese Firms

Abstract: Abstract

Cited by 16 publications

References 52 publications

Is recapitalisation regulation a disrupter? Survival and sustainability of indigenous Ghanaian banks

Is recapitalisation regulation a disrupter? Survival and sustainability of indigenous Ghanaian banks

Inward Foreign Direct Investment-Induced Technological Innovation in Sri Lanka? Empirical Evidence Using ARDL Approach

Does foreign direct investment influence R&D activity in the host country? Evidence from Vietnam

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