Pub Date : 2021-04-23DOI: 10.11648/J.JIM.20211001.13
Nya’akunat Elisha-Hosea Batat, E. Ahmadu
Having reviewed previous empirical studies on the relationship between foreign direct investment and economic growth, limited attention was given on the role of exchange rate on the relationship between foreign direct investment and economic growth. Therefore this study investigates the role of exchange rate on the relationship between foreign direct investment and economic growth over the period 1986 to 2018 using annual time series data sourced from the Central Bank of Nigeria Statistical Bulletin. Augmented Dicker-fuller Unit Root Test and ARDL model were used for the analyses. The ARDL Bounds test to cointegration revealed that economic growth, foreign direct investment, export, import and exchange rate do not have long run relationship over the period under study. The results showed that foreign direct investment has positive relationship with economic growth at maximum, average and minimum level of exchange rate but the relationship is only significant at maximum level over the period under study. This means that at maximum level of exchange rate, an increase in foreign direct investment will lead to a risein economic growth. The results also showed that export has significant positive relationship with economic growth meaning that an increase in export will lead to a rise in economic growth while import showed insignificant negative relationship with economic growth. Based on the results, the study recommended that further depreciation of Nigeria’s currency should be encourage so as to allow more inflow of foreign direct investment considering its positive impact on economic growth while the Nigerian Government is encouraged to design and implement policies that will spur export by eliminating stringent excise duties and discouraging import which exerts negative influence on economic growth.
{"title":"Nexus Between Foreign Direct Investment and Economic Growth in Nigeria: The Role of Exchange Rate","authors":"Nya’akunat Elisha-Hosea Batat, E. Ahmadu","doi":"10.11648/J.JIM.20211001.13","DOIUrl":"https://doi.org/10.11648/J.JIM.20211001.13","url":null,"abstract":"Having reviewed previous empirical studies on the relationship between foreign direct investment and economic growth, limited attention was given on the role of exchange rate on the relationship between foreign direct investment and economic growth. Therefore this study investigates the role of exchange rate on the relationship between foreign direct investment and economic growth over the period 1986 to 2018 using annual time series data sourced from the Central Bank of Nigeria Statistical Bulletin. Augmented Dicker-fuller Unit Root Test and ARDL model were used for the analyses. The ARDL Bounds test to cointegration revealed that economic growth, foreign direct investment, export, import and exchange rate do not have long run relationship over the period under study. The results showed that foreign direct investment has positive relationship with economic growth at maximum, average and minimum level of exchange rate but the relationship is only significant at maximum level over the period under study. This means that at maximum level of exchange rate, an increase in foreign direct investment will lead to a risein economic growth. The results also showed that export has significant positive relationship with economic growth meaning that an increase in export will lead to a rise in economic growth while import showed insignificant negative relationship with economic growth. Based on the results, the study recommended that further depreciation of Nigeria’s currency should be encourage so as to allow more inflow of foreign direct investment considering its positive impact on economic growth while the Nigerian Government is encouraged to design and implement policies that will spur export by eliminating stringent excise duties and discouraging import which exerts negative influence on economic growth.","PeriodicalId":42560,"journal":{"name":"Journal of Investment Management","volume":"10 1","pages":"13"},"PeriodicalIF":0.8,"publicationDate":"2021-04-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48189586","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 : 2021-04-16DOI: 10.11648/J.JIM.20211001.12
O. Eunice
The paper examined the accounting quality in the financial statement, concerning earnings management practices by managers. The financial statements provide critical information that is useful to various groups, investors, standard setters, shareholders and government. The practices of various methods of earnings management are classified into accounting-based and market- based earnings management. The study classified the earnings management techniques in various ways that affect the quality of financial statements in the pre and post-IFRS adoption. The introduction of IFRS and its accompanying standards in the area of earnings management might imply real improvements in the financial statements about the quality. The earnings management techniques include the following: earnings management towards a target, earnings smoothing, discretionary accruals, accruals quality, and timely loss recognition as against other proxies of accounting quality. These are opportunities managers have to get quality Financial Statements that accomplish their intentions. The essence is that they use them to achieve their objectives either getting the desired level of profit or not recording losses for the business. The review results are that in the pre-IFRS the earnings management in use was the accrual-based earnings technique in which managers adjust assumptions and estimates the accounting system. In the post-IFRS, managers revert to real transactions based earnings management which involves the timing and structuring actual business activities to achieve a desired financial reporting result (for example, the timing of the sale of equipment that will result in a gain in a quarter in which extra earnings are needed, delaying major repairs, advertising, research, and development expenses write–off, and foregoing capital projects that positive net present value).
{"title":"A Review of Management Earning and Real Transaction Manipulations Pre and Post IFRS Adoption in Nigeria","authors":"O. Eunice","doi":"10.11648/J.JIM.20211001.12","DOIUrl":"https://doi.org/10.11648/J.JIM.20211001.12","url":null,"abstract":"The paper examined the accounting quality in the financial statement, concerning earnings management practices by managers. The financial statements provide critical information that is useful to various groups, investors, standard setters, shareholders and government. The practices of various methods of earnings management are classified into accounting-based and market- based earnings management. The study classified the earnings management techniques in various ways that affect the quality of financial statements in the pre and post-IFRS adoption. The introduction of IFRS and its accompanying standards in the area of earnings management might imply real improvements in the financial statements about the quality. The earnings management techniques include the following: earnings management towards a target, earnings smoothing, discretionary accruals, accruals quality, and timely loss recognition as against other proxies of accounting quality. These are opportunities managers have to get quality Financial Statements that accomplish their intentions. The essence is that they use them to achieve their objectives either getting the desired level of profit or not recording losses for the business. The review results are that in the pre-IFRS the earnings management in use was the accrual-based earnings technique in which managers adjust assumptions and estimates the accounting system. In the post-IFRS, managers revert to real transactions based earnings management which involves the timing and structuring actual business activities to achieve a desired financial reporting result (for example, the timing of the sale of equipment that will result in a gain in a quarter in which extra earnings are needed, delaying major repairs, advertising, research, and development expenses write–off, and foregoing capital projects that positive net present value).","PeriodicalId":42560,"journal":{"name":"Journal of Investment Management","volume":"10 1","pages":"8"},"PeriodicalIF":0.8,"publicationDate":"2021-04-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46525267","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 : 2021-01-01DOI: 10.11648/j.jim.20211004.11
Ferede Mengistie Alemu
{"title":"Drivers of Deposit Mobilization in Private Commercial Banks of Ethiopia","authors":"Ferede Mengistie Alemu","doi":"10.11648/j.jim.20211004.11","DOIUrl":"https://doi.org/10.11648/j.jim.20211004.11","url":null,"abstract":"","PeriodicalId":42560,"journal":{"name":"Journal of Investment Management","volume":"1 1","pages":""},"PeriodicalIF":0.8,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"64819018","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 : 2021-01-01DOI: 10.11648/j.jim.20211004.12
Ajoma Simon Okwoche, Onah Gabriel Owojoku
{"title":"Enhancing the Cultural Tourism Experience of Wogada Kingdom","authors":"Ajoma Simon Okwoche, Onah Gabriel Owojoku","doi":"10.11648/j.jim.20211004.12","DOIUrl":"https://doi.org/10.11648/j.jim.20211004.12","url":null,"abstract":"","PeriodicalId":42560,"journal":{"name":"Journal of Investment Management","volume":"1 1","pages":""},"PeriodicalIF":0.8,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"64819074","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 : 2020-09-17DOI: 10.11648/J.JIM.20200903.13
Noverio Cesar, S. Wahyuni
Indonesian government is now aiming to develop SEZs as investment destination that have special policy to attract foreign direct investment (FDI). This strategy is intended to bring higher economic growth as the country wants to boost the performance of manufacturing sector. However, there are some cases of unsuccessful SEZs as the government of the countries fail to develop competitive SEZs. Thus, it is important for Indonesia to learn from other countries, particularly its competitive neighboring countries, such as Thailand of how this country can develop its SEZs. Thailand is becoming the center of world class manufacturing through the development of SEZs. This qualitative study aims to gives ideas on how Thailand develops its SEZs by looking at several factors, such as political-economy landscape, industrial policy, investment services, growth of SEZs, global value chain participation, and green industrialization. This research finds out that SEZ’s contribution towards FDI growth in Thailand has fluctuated in recent years due to political instability and tighten environmental policy. This study also reveals that Thailand has very clear industrial objectives with coherent investment incentive schemes as the main attractiveness for investors.
{"title":"Key Policy of Thailand Special Economic Zone","authors":"Noverio Cesar, S. Wahyuni","doi":"10.11648/J.JIM.20200903.13","DOIUrl":"https://doi.org/10.11648/J.JIM.20200903.13","url":null,"abstract":"Indonesian government is now aiming to develop SEZs as investment destination that have special policy to attract foreign direct investment (FDI). This strategy is intended to bring higher economic growth as the country wants to boost the performance of manufacturing sector. However, there are some cases of unsuccessful SEZs as the government of the countries fail to develop competitive SEZs. Thus, it is important for Indonesia to learn from other countries, particularly its competitive neighboring countries, such as Thailand of how this country can develop its SEZs. Thailand is becoming the center of world class manufacturing through the development of SEZs. This qualitative study aims to gives ideas on how Thailand develops its SEZs by looking at several factors, such as political-economy landscape, industrial policy, investment services, growth of SEZs, global value chain participation, and green industrialization. This research finds out that SEZ’s contribution towards FDI growth in Thailand has fluctuated in recent years due to political instability and tighten environmental policy. This study also reveals that Thailand has very clear industrial objectives with coherent investment incentive schemes as the main attractiveness for investors.","PeriodicalId":42560,"journal":{"name":"Journal of Investment Management","volume":"9 1","pages":"80"},"PeriodicalIF":0.8,"publicationDate":"2020-09-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48871322","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 : 2020-08-26DOI: 10.11648/J.JIM.20200903.11
Tensae Adane, Sisay Debebe
Enhancement of service delivery quality is crucial for any organization not only to realize the vision and mission but also to remain competitors in any business. To this end, this study aims to assess the effect of service quality on customer satisfaction at the federal attorney general of Ethiopia. In order to achieve this goal, a total of 110 representative customers selected based on a multi-stage sampling procedure. Descriptive statistics, Pearson correlation, and multiple regression model techniques were applied to analyze the collected primary data using a structured questionnaire. The finding shows that all five service quality dimensions (empathy, assurance, reliability, responsiveness, and tangibility) are highly correlated with customer satisfaction. The result of the model shows that frequency of service delivery, empathy, tangibility, and assurance services have a positive and statistically significant effect on the enhancement of service quality delivery and hence lead to attainments of overall customer satisfaction. Based on the findings of the study, the researcher recommended the attorneys to provide special attention for enhancing empathy, tangibility, and assurance services through designing practical enhancement short and long term plans.
{"title":"The Effect of Service Quality on Customer Satisfaction at Federal Attorney General of Ethiopia","authors":"Tensae Adane, Sisay Debebe","doi":"10.11648/J.JIM.20200903.11","DOIUrl":"https://doi.org/10.11648/J.JIM.20200903.11","url":null,"abstract":"Enhancement of service delivery quality is crucial for any organization not only to realize the vision and mission but also to remain competitors in any business. To this end, this study aims to assess the effect of service quality on customer satisfaction at the federal attorney general of Ethiopia. In order to achieve this goal, a total of 110 representative customers selected based on a multi-stage sampling procedure. Descriptive statistics, Pearson correlation, and multiple regression model techniques were applied to analyze the collected primary data using a structured questionnaire. The finding shows that all five service quality dimensions (empathy, assurance, reliability, responsiveness, and tangibility) are highly correlated with customer satisfaction. The result of the model shows that frequency of service delivery, empathy, tangibility, and assurance services have a positive and statistically significant effect on the enhancement of service quality delivery and hence lead to attainments of overall customer satisfaction. Based on the findings of the study, the researcher recommended the attorneys to provide special attention for enhancing empathy, tangibility, and assurance services through designing practical enhancement short and long term plans.","PeriodicalId":42560,"journal":{"name":"Journal of Investment Management","volume":"9 1","pages":"63"},"PeriodicalIF":0.8,"publicationDate":"2020-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48928460","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 : 2020-08-05DOI: 10.11648/j.jim.20200902.12
K. Degefa, Getachew Biru, Galmessa Abebe
The study is to describe the marketing system of inputs and outputs; identify weather there is marketing system inefficiencies and integration in inputs and outputs of maize and tomato marketing system in Bako Tibe and Guto Gida districts. From the result, there is an information gap with and among producers, Development Agents, input suppliers, traders, and consumers. The majority of the producers preferred cooperatives to sell their products. According to producers’ reported disease, low price of grain, poor market linkage, shortage of chemicals and unlicensed traders were the major challenges in both maize and tomato production. Shortage of inputs, farmers reluctant to buy inputs, high competition unlicensed traders, weak government support, and shortage of storage were the main challenges in input supply while low quality with poor awareness, low supply, unlicensed traders, brokers and demand fluctuations were also major challenges in traders. Enhancing the technical knowledge and skill of farmers, Development Agents, input suppliers, and buyers need the training to provide effective enabling service to increase market efficiency among the actors. Besides, build the capacity of farmer’s cooperatives in value chains of inputs and outputs, considering market-oriented extension service and improving the enabling environment in promoting competition in agribusiness marketing efficiency.
{"title":"Input-output Market Information Access and Methods of Selling Maize and Tomato Products in Bako Tibe and Guto Gida Districts, Ethiopia","authors":"K. Degefa, Getachew Biru, Galmessa Abebe","doi":"10.11648/j.jim.20200902.12","DOIUrl":"https://doi.org/10.11648/j.jim.20200902.12","url":null,"abstract":"The study is to describe the marketing system of inputs and outputs; identify weather there is marketing system inefficiencies and integration in inputs and outputs of maize and tomato marketing system in Bako Tibe and Guto Gida districts. From the result, there is an information gap with and among producers, Development Agents, input suppliers, traders, and consumers. The majority of the producers preferred cooperatives to sell their products. According to producers’ reported disease, low price of grain, poor market linkage, shortage of chemicals and unlicensed traders were the major challenges in both maize and tomato production. Shortage of inputs, farmers reluctant to buy inputs, high competition unlicensed traders, weak government support, and shortage of storage were the main challenges in input supply while low quality with poor awareness, low supply, unlicensed traders, brokers and demand fluctuations were also major challenges in traders. Enhancing the technical knowledge and skill of farmers, Development Agents, input suppliers, and buyers need the training to provide effective enabling service to increase market efficiency among the actors. Besides, build the capacity of farmer’s cooperatives in value chains of inputs and outputs, considering market-oriented extension service and improving the enabling environment in promoting competition in agribusiness marketing efficiency.","PeriodicalId":42560,"journal":{"name":"Journal of Investment Management","volume":"9 1","pages":"47"},"PeriodicalIF":0.8,"publicationDate":"2020-08-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41561713","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 : 2020-08-05DOI: 10.11648/j.jim.20200902.13
Asfaw Negesse Senbeta
The Government of Ethiopia focuses on Agricultural Commercialization to meet the challenge of improving rural incomes by introducing Agricultural commercialization cluster. However, there are no adequate studies on level of commercialization and factors affecting Farmers’ potato commercialization in Kofale District. This study was aimed to identify level and factors affecting farmers’ level of potato commercialization. A two stage random sampling procedure was used to select 150 sample households potato producer. Descriptive statistics and econometric model were used to analyze the data. About 18% of sample farm households were low level of commercialization, about 15% medium and about 67% of them categorized under high level of commercialization. Truncated model was used in the econometric analysis. Education status, land allocated for Potato production and Access to market information influenced level of potato commercialization positively and significantly. The study indicated that the government, stakeholders and concerned bodies need to focus on facilitating farmers to participate education by providing adult education and extension based education, strengthening the existing livestock providing improved health services and better livestock feed (forage), improve productivity of land by providing technology and disseminate market information to producers so as to improve intensity of potato commercialization.
{"title":"Factors Affecting Level of Potato Commercialization in Kofale District, West Arsi Zone, Oromia Regional State, Ethiopia","authors":"Asfaw Negesse Senbeta","doi":"10.11648/j.jim.20200902.13","DOIUrl":"https://doi.org/10.11648/j.jim.20200902.13","url":null,"abstract":"The Government of Ethiopia focuses on Agricultural Commercialization to meet the challenge of improving rural incomes by introducing Agricultural commercialization cluster. However, there are no adequate studies on level of commercialization and factors affecting Farmers’ potato commercialization in Kofale District. This study was aimed to identify level and factors affecting farmers’ level of potato commercialization. A two stage random sampling procedure was used to select 150 sample households potato producer. Descriptive statistics and econometric model were used to analyze the data. About 18% of sample farm households were low level of commercialization, about 15% medium and about 67% of them categorized under high level of commercialization. Truncated model was used in the econometric analysis. Education status, land allocated for Potato production and Access to market information influenced level of potato commercialization positively and significantly. The study indicated that the government, stakeholders and concerned bodies need to focus on facilitating farmers to participate education by providing adult education and extension based education, strengthening the existing livestock providing improved health services and better livestock feed (forage), improve productivity of land by providing technology and disseminate market information to producers so as to improve intensity of potato commercialization.","PeriodicalId":42560,"journal":{"name":"Journal of Investment Management","volume":"9 1","pages":"56"},"PeriodicalIF":0.8,"publicationDate":"2020-08-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46772761","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 : 2020-05-29DOI: 10.11648/J.JIM.20200902.11
Tran Duc Can, Nguyen Huu Xuyen, N. Minh, P. Hà, N. H. Anh, N. T. Huong
Supporting enterprises to master technology plays an important role in enhancing endogenous technological capacity of enterprises and promoting economic development based on science, technology and innovation. In Vietnam, the Government has paid attention and put priorities on supporting enterprises to improve their technological mastery. However, the technological level of Vietnamese enterprises is still low, negatively affecting the position and competitiveness of enterprises as well as economic development of the country. Based on assessment of the current status of technology mastering support policies, this paper proposes policy recommendations on improving technology mastery of enterprises in accordance with Vietnam's conditions in the context of the fourth industrial revolution. The research conducted a survey to investigate enterprises most of whom are in the mechanical industry to collect information on the current situation of enterprises’ technology and their benefits from supporting policies on enterprises’ technology mastery. Questionnaires were sent to 132 enterprises with 89 responses. Based on survey results, the authors suggest that the Vietnamese Government should create favorable conditions for enterprises to set up a research and development department in order to accelerate the process of research, improvement, decoding, mastering and innovation of technologies; support businesses in seeking technological information, improving the procedures of credit incentives for businesses in technology innovation and transfer, improving the capacity of human resources to master and apply scientific and technological advances; and create a more favorable legal corridor to accelerate the process of applying technologies of the fourth industrial revolution into production and business.
{"title":"Vietnam's Policy on Supporting Enterprises in Technology Mastering in the Fourth Industrial Revolution","authors":"Tran Duc Can, Nguyen Huu Xuyen, N. Minh, P. Hà, N. H. Anh, N. T. Huong","doi":"10.11648/J.JIM.20200902.11","DOIUrl":"https://doi.org/10.11648/J.JIM.20200902.11","url":null,"abstract":"Supporting enterprises to master technology plays an important role in enhancing endogenous technological capacity of enterprises and promoting economic development based on science, technology and innovation. In Vietnam, the Government has paid attention and put priorities on supporting enterprises to improve their technological mastery. However, the technological level of Vietnamese enterprises is still low, negatively affecting the position and competitiveness of enterprises as well as economic development of the country. Based on assessment of the current status of technology mastering support policies, this paper proposes policy recommendations on improving technology mastery of enterprises in accordance with Vietnam's conditions in the context of the fourth industrial revolution. The research conducted a survey to investigate enterprises most of whom are in the mechanical industry to collect information on the current situation of enterprises’ technology and their benefits from supporting policies on enterprises’ technology mastery. Questionnaires were sent to 132 enterprises with 89 responses. Based on survey results, the authors suggest that the Vietnamese Government should create favorable conditions for enterprises to set up a research and development department in order to accelerate the process of research, improvement, decoding, mastering and innovation of technologies; support businesses in seeking technological information, improving the procedures of credit incentives for businesses in technology innovation and transfer, improving the capacity of human resources to master and apply scientific and technological advances; and create a more favorable legal corridor to accelerate the process of applying technologies of the fourth industrial revolution into production and business.","PeriodicalId":42560,"journal":{"name":"Journal of Investment Management","volume":"9 1","pages":"40"},"PeriodicalIF":0.8,"publicationDate":"2020-05-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45001878","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 : 2020-03-07DOI: 10.11648/J.JIM.20200901.15
Nai-Yng Liu
ODI by Chinese multinationals’ has grown rapidly in recent decades, and the ratio of M&A investment to aggregate ODI flow has demonstrated a “W” shape history, while the global ratio has demonstrated an “M” shape history. The recent theoretical progress in new century supplied a new perspective focused on firm heterogeneity such as the firm’s factor mobility to explain the diversity of international organization of production choices including the mode choice of ODI. Respectively, we supposed three hypothesizes based on theoretical discussion with combining the new-classical international direct investment theory and the frontier theoretical progress of international organization of production. We use micro level data for more than 2200 large scale ODI transactions by Chinese multinationals to study the relationship between cross-border factor mobility and ODI mode choice with a panel logit estimation. Our results testified all three hypothesizes supposed. Firstly, the results provide evidence that cross-border factor mobility affects the choice between Greenfield and M&A ODI. Secondly, the results also support the view that ODI mode choices are influenced by characteristics of host economies. The ease of registering property has a positive effect on the probability of choosing Greenfield ODI, while the ease of obtaining credit, enforcing contracts and trading across borders has a positive effect on the probability of choosing M&A. Finally, we find that the probability of choosing M&A increases when a multinational belongs to an industry that relies on obtaining natural resources or investment takes place in an economy with high labor costs. In general, our research shows that ODI mode choices by Chinese multinationals varies across host countries and industries due to the internal trade-off impact from the firm heterogeneity such as factor mobility. Moreover, at the end we discussed two short boards of our empirical process due to the data shortage problem and take a positive prospect for the following research.
{"title":"Influence of Factor Mobility on Chinese Multinationals’ ODI Mode Choice: Theoretical and Empirical Analysis","authors":"Nai-Yng Liu","doi":"10.11648/J.JIM.20200901.15","DOIUrl":"https://doi.org/10.11648/J.JIM.20200901.15","url":null,"abstract":"ODI by Chinese multinationals’ has grown rapidly in recent decades, and the ratio of M&A investment to aggregate ODI flow has demonstrated a “W” shape history, while the global ratio has demonstrated an “M” shape history. The recent theoretical progress in new century supplied a new perspective focused on firm heterogeneity such as the firm’s factor mobility to explain the diversity of international organization of production choices including the mode choice of ODI. Respectively, we supposed three hypothesizes based on theoretical discussion with combining the new-classical international direct investment theory and the frontier theoretical progress of international organization of production. We use micro level data for more than 2200 large scale ODI transactions by Chinese multinationals to study the relationship between cross-border factor mobility and ODI mode choice with a panel logit estimation. Our results testified all three hypothesizes supposed. Firstly, the results provide evidence that cross-border factor mobility affects the choice between Greenfield and M&A ODI. Secondly, the results also support the view that ODI mode choices are influenced by characteristics of host economies. The ease of registering property has a positive effect on the probability of choosing Greenfield ODI, while the ease of obtaining credit, enforcing contracts and trading across borders has a positive effect on the probability of choosing M&A. Finally, we find that the probability of choosing M&A increases when a multinational belongs to an industry that relies on obtaining natural resources or investment takes place in an economy with high labor costs. In general, our research shows that ODI mode choices by Chinese multinationals varies across host countries and industries due to the internal trade-off impact from the firm heterogeneity such as factor mobility. Moreover, at the end we discussed two short boards of our empirical process due to the data shortage problem and take a positive prospect for the following research.","PeriodicalId":42560,"journal":{"name":"Journal of Investment Management","volume":"9 1","pages":"31"},"PeriodicalIF":0.8,"publicationDate":"2020-03-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42687981","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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