Pub Date : 2024-02-25DOI: 10.1177/00157325241227326
Pami Dua, Neha Verma
This paper examined the relationship between foreign direct investment (FDI) inflows and the growth rate in emerging and developing economies (EMDEs) and whether the development of the financial sector affects the growth-effect of FDI inflows for these economies. FDI enhances capital accumulation in the economy, and the level of financial sector development (FSD) affects the financial intermediation of funds, thereby enhancing the absorptive capability from investment. Using the dynamic panel threshold model (DPTM) for a balanced panel of 71 countries over the period 2000–2019, the paper finds a U-shaped relationship between the measures of FSD and the growth rate of an economy and does not find evidence for the ‘vanishing effect of finance’ for EMDEs. The growth-enhancing effect of FDI is much stronger for countries with a higher level of FSD. Our estimation techniques control for cross-sectional dependence and endogeneity in the case of a dynamic framework. The robustness results estimated using four-year non-overlapping averages as an observational unit support the findings.JEL Codes: F23, F36, O16
{"title":"FDI–Growth Nexus in Emerging Economies: Role of Financial Sector Development","authors":"Pami Dua, Neha Verma","doi":"10.1177/00157325241227326","DOIUrl":"https://doi.org/10.1177/00157325241227326","url":null,"abstract":"This paper examined the relationship between foreign direct investment (FDI) inflows and the growth rate in emerging and developing economies (EMDEs) and whether the development of the financial sector affects the growth-effect of FDI inflows for these economies. FDI enhances capital accumulation in the economy, and the level of financial sector development (FSD) affects the financial intermediation of funds, thereby enhancing the absorptive capability from investment. Using the dynamic panel threshold model (DPTM) for a balanced panel of 71 countries over the period 2000–2019, the paper finds a U-shaped relationship between the measures of FSD and the growth rate of an economy and does not find evidence for the ‘vanishing effect of finance’ for EMDEs. The growth-enhancing effect of FDI is much stronger for countries with a higher level of FSD. Our estimation techniques control for cross-sectional dependence and endogeneity in the case of a dynamic framework. The robustness results estimated using four-year non-overlapping averages as an observational unit support the findings.JEL Codes: F23, F36, O16","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":null,"pages":null},"PeriodicalIF":1.3,"publicationDate":"2024-02-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139968465","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-01-15DOI: 10.1177/00157325231214047
Chimere O. Iheonu, Basil Abia, Princewill U. Okwoche, I. Ifelunini
China’s political and economic engagement in Africa has increased over the last two decades, resulting in a significant increase in Chinese foreign direct investment (CFDI) into the region. In this study, the link between CFDI and the productivity of labour is investigated in 22 sub-Saharan African countries from 2003 to 2020. The study utilised panel cointegration techniques that are suitable in the absence of cross-sectional dependence and take stationarity and long-run relationships into consideration. The findings from the panel dynamic ordinary least squares (OLS) and the fully modified OLS revealed that CFDI is important for driving labour productivity in the long run. In the short run, however, the study finds no significant influence of CFDI on labour productivity. Further findings reveal that CFDI Granger causes labour productivity. Additionally, the study finds that capital per labour is a necessity for boosting the productivity of labour in the region. The study recommends that African countries strengthen investment promotion agencies that actively facilitate CFDI and also negotiate favourable trade and investment agreements with China that promote technology transfer and skills development. JEL Codes: C23, F21, J24
{"title":"Is FDI from China Goodfor Labour Productivity in Sub-Saharan Africa? A Panel Cointegration","authors":"Chimere O. Iheonu, Basil Abia, Princewill U. Okwoche, I. Ifelunini","doi":"10.1177/00157325231214047","DOIUrl":"https://doi.org/10.1177/00157325231214047","url":null,"abstract":"China’s political and economic engagement in Africa has increased over the last two decades, resulting in a significant increase in Chinese foreign direct investment (CFDI) into the region. In this study, the link between CFDI and the productivity of labour is investigated in 22 sub-Saharan African countries from 2003 to 2020. The study utilised panel cointegration techniques that are suitable in the absence of cross-sectional dependence and take stationarity and long-run relationships into consideration. The findings from the panel dynamic ordinary least squares (OLS) and the fully modified OLS revealed that CFDI is important for driving labour productivity in the long run. In the short run, however, the study finds no significant influence of CFDI on labour productivity. Further findings reveal that CFDI Granger causes labour productivity. Additionally, the study finds that capital per labour is a necessity for boosting the productivity of labour in the region. The study recommends that African countries strengthen investment promotion agencies that actively facilitate CFDI and also negotiate favourable trade and investment agreements with China that promote technology transfer and skills development. JEL Codes: C23, F21, J24","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":null,"pages":null},"PeriodicalIF":1.3,"publicationDate":"2024-01-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139623174","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-01-11DOI: 10.1177/00157325231214045
I. Shah, Ghowhar Ahmad Wani
This study examines the moderating role of institutional quality on a remittance-poverty relationship using a panel of 16 transition economies for 2002–2020. The study used pooled mean group/autoregressive distributed lag estimation with unit root and cointegration tests. The poverty is proxied by household consumption expenditure. After establishing cointegration, remittances and institutional quality index were found to positively affect poverty alleviation in the long run. The interactive term showed that remittances and institutional quality complemented the remittance-poverty relationship. In addition, a unidirectional causal relationship existed from remittance to poverty alleviation and institutional quality to poverty. Further, bidirectional causality existed between remittances and institutional quality, which confirms their complementary nature in the remittance-poverty relationship. Lastly, policy prescriptions are provided in the conclusion of the article. JEL Codes: F22, F24, J61
{"title":"Role of Governance Quality in Remittances-poverty Relationship: New Insights from Transition Economies","authors":"I. Shah, Ghowhar Ahmad Wani","doi":"10.1177/00157325231214045","DOIUrl":"https://doi.org/10.1177/00157325231214045","url":null,"abstract":"This study examines the moderating role of institutional quality on a remittance-poverty relationship using a panel of 16 transition economies for 2002–2020. The study used pooled mean group/autoregressive distributed lag estimation with unit root and cointegration tests. The poverty is proxied by household consumption expenditure. After establishing cointegration, remittances and institutional quality index were found to positively affect poverty alleviation in the long run. The interactive term showed that remittances and institutional quality complemented the remittance-poverty relationship. In addition, a unidirectional causal relationship existed from remittance to poverty alleviation and institutional quality to poverty. Further, bidirectional causality existed between remittances and institutional quality, which confirms their complementary nature in the remittance-poverty relationship. Lastly, policy prescriptions are provided in the conclusion of the article. JEL Codes: F22, F24, J61","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":null,"pages":null},"PeriodicalIF":1.3,"publicationDate":"2024-01-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139533388","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-01-09DOI: 10.1177/00157325231214042
C. Agu, Jonathan E. Ogbuabor, Benjamin Udoka Onah
This study examines how international tourism, foreign aid inflow, international trade and economic growth are responding to terrorism in Sub-Saharan Africa (SSA), and how institutions are moderating these interactions. To answer these questions, we examined a panel of 40 SSA countries for the period 2010–2020 based on the system generalised method of moments framework. Our results revealed that: (a) terrorism impacts adversely on tourism, foreign aid inflow, trade and overall economic growth in SSA; and (b) institutional quality has not been effective in mitigating the adverse effects of terrorism on tourism, foreign aid inflow, trade and economic growth in SSA. Policy implications are discussed. JEL Codes: C33; F10; F35; F43; L83; N20
{"title":"How Is Institutional Quality Moderating the Effect of Terrorism on International Tourism, Trade, Foreign Aid Inflow and Economic Growth in Sub-Saharan Africa?","authors":"C. Agu, Jonathan E. Ogbuabor, Benjamin Udoka Onah","doi":"10.1177/00157325231214042","DOIUrl":"https://doi.org/10.1177/00157325231214042","url":null,"abstract":"This study examines how international tourism, foreign aid inflow, international trade and economic growth are responding to terrorism in Sub-Saharan Africa (SSA), and how institutions are moderating these interactions. To answer these questions, we examined a panel of 40 SSA countries for the period 2010–2020 based on the system generalised method of moments framework. Our results revealed that: (a) terrorism impacts adversely on tourism, foreign aid inflow, trade and overall economic growth in SSA; and (b) institutional quality has not been effective in mitigating the adverse effects of terrorism on tourism, foreign aid inflow, trade and economic growth in SSA. Policy implications are discussed. JEL Codes: C33; F10; F35; F43; L83; N20","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":null,"pages":null},"PeriodicalIF":1.3,"publicationDate":"2024-01-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139444482","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-01-09DOI: 10.1177/00157325231204471
R. Edeme, Imide O. Israel, Ekene ThankGod Emeka, Azotani Christain Ogochukwu
This study explores the effect of trade and industrialisation on environmental sustainability in Africa. To achieve the study objective, the pooled mean group estimation strategy was employed on data from 1990 to 2019 for 38 selected African countries. Findings are indicative that trade has a negative and significant effect on ecological footprint in the long run. It is iemplied that trade enhancement has the tendency to enhance environmental sustainability in African countries. In addition, industrialisation has a positive and significant effect on ecological footprint. Implied is that industrialisation dampens environmental sustainability in African countries. Similarly, foreign direct investment inflows into African countries exert a positive but insignificant effect on ecological footprint. The result further depicts that economic growth positively and significantly impacts ecological footprints in African countries. Also, renewable energy consumption has a negative and significant effects on ecological footprint, suggesting that the adoption of renewable energy plays a crucial role in enhancing environmental sustainability in African countries. The short-run result reveals no significant relationship between trade, industrialisation, foreign direct investment and ecological footprints. Population growth has a positive effect on ecological footprint, albeit not a statistically significant effect. Furthermore, the result depicts that renewable energy consumption has a negative and significant effect on ecological footprints in African countries. On the strength of the findings, we recommend the stimulation of domestic trade and the strengthening of industrial policies to ensure environmental sustainability in African countries. JEL Codes: C33, F14, F18, R11
{"title":"Effect of Trade and Industrialisation on Environmental Sustainability: The Case of African Countries","authors":"R. Edeme, Imide O. Israel, Ekene ThankGod Emeka, Azotani Christain Ogochukwu","doi":"10.1177/00157325231204471","DOIUrl":"https://doi.org/10.1177/00157325231204471","url":null,"abstract":"This study explores the effect of trade and industrialisation on environmental sustainability in Africa. To achieve the study objective, the pooled mean group estimation strategy was employed on data from 1990 to 2019 for 38 selected African countries. Findings are indicative that trade has a negative and significant effect on ecological footprint in the long run. It is iemplied that trade enhancement has the tendency to enhance environmental sustainability in African countries. In addition, industrialisation has a positive and significant effect on ecological footprint. Implied is that industrialisation dampens environmental sustainability in African countries. Similarly, foreign direct investment inflows into African countries exert a positive but insignificant effect on ecological footprint. The result further depicts that economic growth positively and significantly impacts ecological footprints in African countries. Also, renewable energy consumption has a negative and significant effects on ecological footprint, suggesting that the adoption of renewable energy plays a crucial role in enhancing environmental sustainability in African countries. The short-run result reveals no significant relationship between trade, industrialisation, foreign direct investment and ecological footprints. Population growth has a positive effect on ecological footprint, albeit not a statistically significant effect. Furthermore, the result depicts that renewable energy consumption has a negative and significant effect on ecological footprints in African countries. On the strength of the findings, we recommend the stimulation of domestic trade and the strengthening of industrial policies to ensure environmental sustainability in African countries. JEL Codes: C33, F14, F18, R11","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":null,"pages":null},"PeriodicalIF":1.3,"publicationDate":"2024-01-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139444675","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-01-09DOI: 10.1177/00157325231215548
U. Kathjoo, A. Fazili
The two Asian giants, China and India, share a long history of political acrimony and simmering border disputes. This often disrupts their bilateral economic relationship along with the overall dynamics of the regional balance of power and the global multi-polarisation order. Under such a scenario, this study aims to measure the impact of a hypothetical removal of all trade barriers between China and India on the overall exports and welfare of 73 sample countries while preserving the geographical trade costs. Employing the structural gravity model under a general equilibrium setting, the counterfactual scenario reveals that India, followed by China, is the main beneficiary of full-scale integration in terms of trade growth and welfare. Indian consumers gain while producers tend to lose through a decrease in prices. Chinese welfare gains are shared among its producers and consumers with light asymmetry. Next, we simulate a unilateral removal of all trade barriers while preserving the effects of geography for exports from China to India. The results reveal that asymmetric trade liberalisation leads to smaller gains for both countries at the expense of certain groups and the aggregate national welfare. JEL Codes: D58, F02, F17, O57
{"title":"Removing Trade Barriers Between China and India: A Counterfactual Analysis on Export Growth and Welfare","authors":"U. Kathjoo, A. Fazili","doi":"10.1177/00157325231215548","DOIUrl":"https://doi.org/10.1177/00157325231215548","url":null,"abstract":"The two Asian giants, China and India, share a long history of political acrimony and simmering border disputes. This often disrupts their bilateral economic relationship along with the overall dynamics of the regional balance of power and the global multi-polarisation order. Under such a scenario, this study aims to measure the impact of a hypothetical removal of all trade barriers between China and India on the overall exports and welfare of 73 sample countries while preserving the geographical trade costs. Employing the structural gravity model under a general equilibrium setting, the counterfactual scenario reveals that India, followed by China, is the main beneficiary of full-scale integration in terms of trade growth and welfare. Indian consumers gain while producers tend to lose through a decrease in prices. Chinese welfare gains are shared among its producers and consumers with light asymmetry. Next, we simulate a unilateral removal of all trade barriers while preserving the effects of geography for exports from China to India. The results reveal that asymmetric trade liberalisation leads to smaller gains for both countries at the expense of certain groups and the aggregate national welfare. JEL Codes: D58, F02, F17, O57","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":null,"pages":null},"PeriodicalIF":1.3,"publicationDate":"2024-01-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139441362","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-01-09DOI: 10.1177/00157325231214319
Thi Lam Ho, Bao-Chau Xuan Nguyen, Thu Hoai Ho
Against the backdrop of impressive economic growth, the attractive foreign direct investment (FDI) and international trade of Asian countries, this study attempts to examine whether trade-offs between three aspects of economic growth, FDI, international trade and environmental degradation. Panel Autoregressive Distributed Lag (P-ARDL) model with pooled mean group estimates has been applied on panel data from 1996 to 2019. Panel Vector Error Correction model (VECM) Granger causality test is also used to identify multidimensional causal relationships between variables. The research results confirm the existence of a long-term equilibrium relationship between environmental degradation (CO2 emission) and the combination of economic growth, FDI and trade openness. In the short run, income positively affects CO2 emission while negative impacts and lower income elasticity have been found in the long run, implying that CO2 emission decreases and reverses its direction when income rises. Contrasting results collected from two groups of developed versus developing countries, the author reveals a linear relationship with a positive direction between economic growth and environmental degradation in developing countries while opposite results have been shown in developed nations, which supports the environmental Kuznets curve hypothesis in Asian countries. This study also provides sound proof for the ‘pollution haven hypothesis’ and the scale effects on FDI attraction and international trade. By applying relatively new estimators in the field of econometrics to compare the differences between Asian developed and developing countries, the research highlights the appropriate policies contributing to sustainable economic growth, attractive FDI and growing green trade with minimum adverse effects on the environment. JEL Codes: C33, F18, F21, F43, O44, Q40, Q51, Q53
{"title":"Is There a Trade-off Between Economic Growth, Foreign Direct Investment, International Trade and Environmental Degradation? A Comparison Between Asian Developed and Developing Countries","authors":"Thi Lam Ho, Bao-Chau Xuan Nguyen, Thu Hoai Ho","doi":"10.1177/00157325231214319","DOIUrl":"https://doi.org/10.1177/00157325231214319","url":null,"abstract":"Against the backdrop of impressive economic growth, the attractive foreign direct investment (FDI) and international trade of Asian countries, this study attempts to examine whether trade-offs between three aspects of economic growth, FDI, international trade and environmental degradation. Panel Autoregressive Distributed Lag (P-ARDL) model with pooled mean group estimates has been applied on panel data from 1996 to 2019. Panel Vector Error Correction model (VECM) Granger causality test is also used to identify multidimensional causal relationships between variables. The research results confirm the existence of a long-term equilibrium relationship between environmental degradation (CO2 emission) and the combination of economic growth, FDI and trade openness. In the short run, income positively affects CO2 emission while negative impacts and lower income elasticity have been found in the long run, implying that CO2 emission decreases and reverses its direction when income rises. Contrasting results collected from two groups of developed versus developing countries, the author reveals a linear relationship with a positive direction between economic growth and environmental degradation in developing countries while opposite results have been shown in developed nations, which supports the environmental Kuznets curve hypothesis in Asian countries. This study also provides sound proof for the ‘pollution haven hypothesis’ and the scale effects on FDI attraction and international trade. By applying relatively new estimators in the field of econometrics to compare the differences between Asian developed and developing countries, the research highlights the appropriate policies contributing to sustainable economic growth, attractive FDI and growing green trade with minimum adverse effects on the environment. JEL Codes: C33, F18, F21, F43, O44, Q40, Q51, Q53","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":null,"pages":null},"PeriodicalIF":1.3,"publicationDate":"2024-01-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139444001","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-12-08DOI: 10.1177/00157325231190509
Chandrakanti Behera
Using a rich firm-level panel dataset of Indian manufacturing over 2010–2018, this study aims to identify the spillover effects associated with foreign direct investment (FDI). To this end, we distinguish spillover effects into horizontal (Intra-industry linkage) and vertical (backward or downstream and forward or upstream Inter-industry linkages) FDI channels. We employ various semi-parametric methods to tackle the endogeneity issues in productivity estimation. We find that backward spillover from the downstream multinational enterprises is the only source of total factor productivity gains. However, the magnitude of negative forward–vertical linkage is larger than the positive backward–vertical effect. The analysis also broadly compares technology spillovers for domestic and all firms in the sector. Finally, we investigate productivity spillover across industries based on their technology intensity. Our findings suggest that industry heterogeneity is a key driver of FDI spillover. JEL Codes: F23, D24, O33, L1
{"title":"Foreign Direct Investment and Technology Spillovers: An Analysis of Indian Manufacturing","authors":"Chandrakanti Behera","doi":"10.1177/00157325231190509","DOIUrl":"https://doi.org/10.1177/00157325231190509","url":null,"abstract":"Using a rich firm-level panel dataset of Indian manufacturing over 2010–2018, this study aims to identify the spillover effects associated with foreign direct investment (FDI). To this end, we distinguish spillover effects into horizontal (Intra-industry linkage) and vertical (backward or downstream and forward or upstream Inter-industry linkages) FDI channels. We employ various semi-parametric methods to tackle the endogeneity issues in productivity estimation. We find that backward spillover from the downstream multinational enterprises is the only source of total factor productivity gains. However, the magnitude of negative forward–vertical linkage is larger than the positive backward–vertical effect. The analysis also broadly compares technology spillovers for domestic and all firms in the sector. Finally, we investigate productivity spillover across industries based on their technology intensity. Our findings suggest that industry heterogeneity is a key driver of FDI spillover. JEL Codes: F23, D24, O33, L1","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":null,"pages":null},"PeriodicalIF":1.3,"publicationDate":"2023-12-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138589142","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The main purpose of this study is to develop models that illustrate the impact of celebrity endorsement on consumer purchase intention, taking into consideration the important dimension of culture: individualism (Spain) versus collectivism (India). The study utilises the analytical model of the fuzzy forgotten effects theory to build a model for decision-making in choosing an effective parameter that affects consumer purchase intentions with respect to celebrity endorsement across two distinct cultures. These models provide insights into the impact of celebrity endorsement over time and across different stages of the consumer decision-making process. The contributions of this research will help marketers to select appropriate celebrity parameters for celebrity endorsements across varied cultures, which would be fruitful for the brand in the long term. This research will also draft a framework for branding managers that can be adopted by companies to increase profitability. This paper applies the theory of forgotten effects with the analysis of cause and effect in the field of marketing. The main contribution of this article is that it allows the second-generation effects to be considered during the decision-making process, which could go unnoticed by decision-makers at first, thereby reducing the risks associated with decision-making. JEL Codes: M31, C02
本研究的主要目的是开发模型来说明名人代言对消费者购买意愿的影响，同时考虑到文化的重要维度:个人主义(西班牙)与集体主义(印度)。本研究利用模糊遗忘效应理论的分析模型，构建了影响两种不同文化中名人代言消费者购买意愿的有效参数选择决策模型。这些模型提供了对名人代言随时间和消费者决策过程不同阶段的影响的见解。本研究的贡献将有助于营销人员为不同文化的名人代言选择合适的名人参数，这将对品牌产生长期的有益影响。这项研究还将为品牌经理起草一个框架，可以被公司采用，以提高盈利能力。本文将遗忘效应理论应用于营销领域的因果分析。本文的主要贡献在于，它允许在决策过程中考虑第二代效应，这一效应最初可能被决策者忽视，从而降低了与决策相关的风险。JEL代码:M31, co2
{"title":"Decision-making in Choosing an Effective Celebrity Endorsement Strategy Using Fuzzy Forgotten Effects: A Cross-cultural Study","authors":"Karan Patel, Francicso-Javier Arroyo-Cañada, Jaime Gil-Lafuente","doi":"10.1177/00157325231214046","DOIUrl":"https://doi.org/10.1177/00157325231214046","url":null,"abstract":"The main purpose of this study is to develop models that illustrate the impact of celebrity endorsement on consumer purchase intention, taking into consideration the important dimension of culture: individualism (Spain) versus collectivism (India). The study utilises the analytical model of the fuzzy forgotten effects theory to build a model for decision-making in choosing an effective parameter that affects consumer purchase intentions with respect to celebrity endorsement across two distinct cultures. These models provide insights into the impact of celebrity endorsement over time and across different stages of the consumer decision-making process. The contributions of this research will help marketers to select appropriate celebrity parameters for celebrity endorsements across varied cultures, which would be fruitful for the brand in the long term. This research will also draft a framework for branding managers that can be adopted by companies to increase profitability. This paper applies the theory of forgotten effects with the analysis of cause and effect in the field of marketing. The main contribution of this article is that it allows the second-generation effects to be considered during the decision-making process, which could go unnoticed by decision-makers at first, thereby reducing the risks associated with decision-making. JEL Codes: M31, C02","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":null,"pages":null},"PeriodicalIF":1.3,"publicationDate":"2023-12-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138604577","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-12-04DOI: 10.1177/00157325231195667
Aadil Amin, Asif Tariq, Masroor Ahmad
This study comprehensively investigates the impact of trade openness and human capital on India’s unemployment rate using time-series data from 1990 to 2019. The ARDL bound testing approach was used to determine the long and short-run relationship among the variables. The empirical findings indicate that trade openness and human capital have a negative impact on the unemployment rate in both the long and short run, suggesting that trade openness and human capital have reduced the unemployment rate in India. These results have significant implications for policymakers in crafting policies that promote continuous trade openness and help reduce unemployment in India. To succeed, trade liberalisation must be integrated into a reasonable set of structural and macroeconomic policies, supplemented by complementary policies such as maintaining an adequate inflation rate and macroeconomic stability and nurturing human capital. The study recommends that India should prioritise improving and enhancing efficient schooling and training programs, with a particular focus on career skills for young people. Policymakers can use the study’s findings to guide policy decisions to reduce unemployment and promote trade openness. JEL Codes: E24, F14, F63, C32
{"title":"Does Trade Openness and Human Capital abate Unemployment? Empirical Evidence from India","authors":"Aadil Amin, Asif Tariq, Masroor Ahmad","doi":"10.1177/00157325231195667","DOIUrl":"https://doi.org/10.1177/00157325231195667","url":null,"abstract":"This study comprehensively investigates the impact of trade openness and human capital on India’s unemployment rate using time-series data from 1990 to 2019. The ARDL bound testing approach was used to determine the long and short-run relationship among the variables. The empirical findings indicate that trade openness and human capital have a negative impact on the unemployment rate in both the long and short run, suggesting that trade openness and human capital have reduced the unemployment rate in India. These results have significant implications for policymakers in crafting policies that promote continuous trade openness and help reduce unemployment in India. To succeed, trade liberalisation must be integrated into a reasonable set of structural and macroeconomic policies, supplemented by complementary policies such as maintaining an adequate inflation rate and macroeconomic stability and nurturing human capital. The study recommends that India should prioritise improving and enhancing efficient schooling and training programs, with a particular focus on career skills for young people. Policymakers can use the study’s findings to guide policy decisions to reduce unemployment and promote trade openness. JEL Codes: E24, F14, F63, C32","PeriodicalId":29933,"journal":{"name":"Foreign Trade Review","volume":null,"pages":null},"PeriodicalIF":1.3,"publicationDate":"2023-12-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138603861","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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