Internationalization strategies of frontier Lusophone-African multinational enterprises: comparative case studies of Angola and Mozambique

Internationalization theories suggest that enterprises from emerging and frontier markets will adopt different entry modes than those in advanced economies. There are very few studies to date, however, examining the process of how multi-national enterprises (MNEs) from frontier markets internationalize or evaluating which factors influence their mode of entry into global markets. This research investigates the internationalization strategies of Lusophone Africa MNEs from Angola and Mozambique, more specifically their entry mode, to expand the framework for entry mode strategies to include the motivations and issues of MNEs from emerging and frontier economies. Surveys, as well as in-depth, in-country, qualitative interviews reveal that these frontier and emerging market MNEs opted for equity-based investment strategies as their preferred mode of entry. A significant group second group opted for e-commerce/e-business strategies, and direct and indirect exports. Finally, a smaller portion of the interviewees chose Greenfield investment as a mode of entry. Many of these MNEs could be classified as born global/INV.https://doi.org/10.1080/15475778.2017.1335127Accepted manuscriptPublished versio

The Forecasting Properties of Survey-Based Wage-Growth Expectations

In this paper, we evaluate survey-based wage-growth expectations in Sweden. Results show that the expectations are neither unbiased nor efficient forecasts. Evaluating out-of-sample forecasting performance, we find that the survey participants generally perform worse than a con-stant forecast based on reasonable assumptions regarding the inflation target and productivity growth. Our findings indicate that caution should be exercised when relying on these data for policymaking.Survey data;

Capital Budgeting Practices In Emerging Market Economies: Evidence From Listed Ghanaian Firms

This study investigates into the application of capital budgeting practices by listed firms on the Ghana Stock Exchange. A sample of listed firms from banking, brewery, manufacturing, distribution and insurance were selected. The key findings from the study show that firms listed on the Ghana Stock Exchange adopt text book capital budgeting techniques in practice. Most of them use NPV, PBP, DPBP and IRR. Though this demonstrates a clear reduction in the theory practice gap, the modified internal rate of return (MIRR), and the Accounting rate of return (ARR) have not attracted much attention compared to the NPV. This study thus confirms the popularity and usage of DCF capital budgeting methods (NPV and IRR) due to their simplicity. The study also finds that most of the firms use weighted average cost of capital (WACC) as the cost of capital in appraising investment projects. Key words: Capital budgeting techniques, investment decision, listed firms, Ghan

Economic growth effects of de facto and de jure trade globalization in ECOWAS

This paper examines the dynamics of trade globalization by analysing and comparing the economic growth effect of overall trade globalization with the growth effects of de facto and de jure trade globalization in the economic community of west African states (ECOWAS). Using fixed effects and random effects models, we separate the de facto measure of trade globalization from the de jure measure to prove that de facto trade globalization significantly and positively contributes to economic growth in ECOWAS, whereas de jure trade globalization does not. We also use pooled mean group estimates to prove that the growth effect of de facto trade globalization is significant only in the short run. By implication, relying only on the results of overall trade globalization can be misleading for policymakers, considering that the de facto and de jure measures of trade globalization yield different growth results. The findings of this study can aid policymakers within the region in identifying proper measures and tailoring trade policies to gain reasonable competitive advantage among other economic communities.O

MIGRANTS AND THE PROLIFERATION OF SMALL ARMS AND LIGHT WEAPONS IN THIRD WORLD COUNTRIES: A STUDY OF NORTH-EASTERN NIGERIA SINCE 1999

This study examines the effects of the proliferation of SALWs on the security of the Nigerian state. Although this issue has seldom been tackled in regular or academic literature, it reflects the author’s keen awareness that, in an era of globalization, migrants have been identified as important agents in the proliferation of SALWs into third-world countries. The paper seeks to provide an insight into the socio-economic and political variables operating in the source and destination of such movements, with particular emphasis on migrants and arms proliferation. The study uses the qualitative approach for data analysis, it relies on upon, data gathered through secondary sources, and is reinforced with the argument on the liberal theoretical framework of analysis. The paper concludes that, while weapons play a significant role in intensifying conflict that exerts enormous human and economic costs, the causes of such conflicts lie in political, economic, ethnic, and religious differences and disparities. Finally, the paper looks at the appropriateness of examining the full implications of SALWs as a border management theme and the role of complementary measures for facilitating border control

The Role of High-Tech Capital Formation for Swedish Productivity Growth

While using new data and standard growth-accounting techniques, this paper takes a closer look at the Swedish productivity revival in the second half of the 1990s. In particular, I find large total factor productivity growth in high-tech producing sectors and capital deepening associated with high-tech equipment elsewhere. In addition, for high-tech producers, high-tech capital deepening has as a rule contributed negatively to labor productivity growth - a result above all driven by large increases in hours worked in this sector. I also find that in the business sector, the contribution from high-tech capital deepening to labor productivity growth increased from about 1 percent 1994 to 9 percent 1999.

On Geography and Institutions as Determinants of Foreign Direct Investment. A cross country comparative analysis of sub-Saharan African relative to developing countries

This work explores what factors determine foreign direct investment (FDI) in sub-Sahara Africa (SSA) relative to non-sub-Saharan African countries, using a panel data set which encompasses most of the world´s developing countries between 1997 and 2006. The results indicate that institutions and infrastructure development promoted FDI to non-SSA but did not induce FDI to sub-Saharan Africa. Geography played a modest and indirect role. The marginal benefit from openness to trade was higher for SSA, which is closely related to resource-seeking FDI that did not translate into sustained economic growth, neither institutional change, but consequently crowded out the second FDI wave of manufacturing. At the same time, FDI into value-added manufacturing largely located in non-SSA countries acted as engine for scaling the economic development ladder through institutional improvement for a number of non-SSA countries. Hence, FDI has the potential to act as a reliable and equitable driver of sustained economic development and poverty alleviation. The destiny of the “resource curse” linked to FDI failure marks the novelty of this paper in the FDI and development literature.Foreign direct investment, developing countries, sub-Saharan Africa, resource curse, geography, institutions

A Study on the Impact of International Financial Reporting Standards Convergence on Indian Corporate Sector

In the present era of globalization, more than 3600 multinational companies are establishing their businesses in the different sectors in India. These Indian business firms are presenting financial statements as per IFRSs, Indian GAAPs, USGAAPs, Japan GAAP, etc., With a view to avoid this kind of inconvenience

Water for People, Water for Life

This report documents the serious water crisis we are facing at the beginning of the 21st century. This crisis is one of water governance, essentially caused by the ways in which we mismanage water. But the real tragedy is the effect it has on the everyday lives of poor people, who are blighted by the burden of water-related disease, living in degraded and often dangerous environments, struggling to get an education for their children and to earn a living, and to get enough to eat. The executive summary offers an analysis of the problem as well as pilot case studies for water management and recommendations for future action

Simultaneous Determination of NAIRU, Output Gaps, and Structural Budget Balances: Swedish Evidence

Economists are often concerned with estimates of three unobservable variables: the NAIRU, the output gap, and the structural budget balance. Although the main purpose of many existing methods is to remove effects stemming from the same business cycle, the three variables are estimated in different models. In this paper, we propose a new unifying approach to estimate NAIRU, output gaps, and structural budget balances in the same model. A structural VAR model, designed to take the non-stationarity of European unemployment into account, is applied and we provide Swedish evidence using yearly data for the period 1950-2004.