On Exports and Economic Growth: Revisiting Export-Led Growth Hypothesis Including North-South Divide

Objective: The purpose of the present study is to revisit the export-led growth hypothesis in the wake of globalization. This will help in trade policy decisions and make it possible to standpoint whether the export promotion is a good idea to accelerate economic growth. Design: The ELG hypothesis is examined for 107 countries through panel data analysis using cointegration and panel regression tests from 1990 to 2018. The study finds strong support for the long-run relationship between exports and gross domestic product and the export-led growth hypothesis in a two-variable regression framework. Findings: It is evident from the long-run coefficient of dynamic ordinary least squared that a 1.0 percent increase in real exports increases the real gross domestic product by 0.53 percent. The long-run coefficient of real exports for the Global South (0.55) is found higher than that of the Global North (0.51), which indicates that in the wave of globalization, the evidence of export-led growth hypothesis is stronger for comparatively poor Global South than the richer Global North. Practical Implications: The results indicate implications for export promotion policy in the Global South countries to accelerate economic growth and increase real gross domestic product. Originality: The study is the first to explore the ELG hypothesis using a big pool of 107 countries, including the global north-south divide.

Free lunch or vital support? Export promotion in The Netherlands

Purpose The purpose of this paper is to add to the debate concerning the merits of export promotion efforts by governments by investigating the effect of export promotion program (EPP) participation on the export performance of Dutch small and medium-sized enterprises (SMEs). Design/methodology/approach The authors confront participation data of an EPP targeting SMEs with rich firm-level data and use propensity score matching techniques combined with regression analysis. Findings The authors show that exports generated by participants do generally rise in the years after program entry, however, export growth does not outpace that of comparable, but unsupported firms. Nonetheless, there is some evidence suggesting that export shares in sales rise faster among program entrants, particularly in the first and second years after participation. Furthermore, the authors present evidence suggesting that the probability of becoming a permanent exporter is higher for participants relative to beginning exporters that did not receive support from the program. Originality/value The analysis contributes to the still relatively small literature dealing with the impact of government export promotion instruments on export performance using firm-level micro-data. The subject of analysis are Dutch small businesses. SMEs, particularly operating in advanced economies, are a group that is not frequently considered separately in this respect.

The Level of Entrepreneurship in India

Entrepreneurship plays a paramount role in the magnification and development of the economy of any country. Entrepreneurship acts as a vaccine for a nation's economic prosperity, leading to the generation of employment opportunities, national income, rural development, technological development, industrialization, export promotion, etc. Many institutes and companies are involved in entrepreneurship development activities, and some join these programs as a stepping stone to becoming an entrepreneur. Entrepreneurs convert conceptions into economic opportunities through innovations considered a significant source of competitiveness in an increasingly globalizing world economy. Ergo, most regimes strive to augment the supply of competent and ecumenically competitive entrepreneurs in their respective countries. The primary purport of this research is to understand the paramountcy of entrepreneurship in India. Numerous factors need to be considered while expertise the significance of entrepreneurship. Entrepreneurs experience several opportunities and challenges inside the direction of pursuance in their goals and targets.

Effect of International Entrepreneurial Orientation on the Internationalization of SMEs: The Contingent Effect of Export Promotion Programs

The study argues that the role of export promotion programs (EPPs) is indirectly exhibited by enhancing the influence of managerial and organizational resources on the internationalization of SMEs. This study proposes that the dimensions of international entrepreneurial orientation (innovativeness, pro-activeness and risk-taking) will show varied strengths as predictors of the internationalization of SMEs’ with the influence of EPPs. Using structural equation modeling, data collected from 266 exporting SMEs in Nigeria were analyzed and it is concluded that SMEs’ risk-taking in internationalization increases with participation in EPPs. Similarly, there was an increase in innovativeness among internationalizing SMEs with increased participation in EPPs. Finally, participation in EPPs did not show any impact in pro-activeness attribute towards internationalization of SMEs. This study demonstrates the supportive role of institutions in SMEs’ managerial capacity building in overcoming internationalization challenges by developing the culture of risk taking and innovativeness.

Effect of International Entrepreneurial Orientation on the Internationalization of SMEs: The Contingent Effect of Export Promotion Programs

The study argues that the role of export promotion programs (EPPs) is indirectly exhibited by enhancing the influence of managerial and organizational resources on the internationalization of SMEs. This study proposes that the dimensions of international entrepreneurial orientation (innovativeness, pro-activeness and risk-taking) will show varied strengths as predictors of the internationalization of SMEs’ with the influence of EPPs. Using structural equation modeling, data collected from 266 exporting SMEs in Nigeria were analyzed and it is concluded that SMEs’ risk-taking in internationalization increases with participation in EPPs. Similarly, there was an increase in innovativeness among internationalizing SMEs with increased participation in EPPs. Finally, participation in EPPs did not show any impact in pro-activeness attribute towards internationalization of SMEs. This study demonstrates the supportive role of institutions in SMEs’ managerial capacity building in overcoming internationalization challenges by developing the culture of risk taking and innovativeness.

Identifying and decomposing peer effects on decision-making using a randomized controlled trial

Utilizing a randomized controlled trial (RCT) in traditional clusters of apparel and textile firms in Vietnam, this paper investigates peer effects on firm managers’ decisions to participate in seminars on export promotion. We invited 131 randomly selected firm representatives to three one-day seminars on export promotion. We use the number of randomly invited peers to identify peer effects. We further decompose the invited peers into peers invited to the same seminar, those invited to the earlier seminars, and those invited to the later seminars. We find that the former has a positive effect on firms' participation, whereas the latter two have no significant effect. These results imply that peer effects on participation primarily arise from the benefits of face-to-face interactions. The presence of positive peer effects suggests that multiple equilibria in terms of the share of participants within each village of firms may emerge, which is also consistent with our observations.

The Chaebol’s contribution on South Korea nation branding through Korean wave

Korean Wave atau yang dikenal dengan Hallyu Wave menjadi salah satu ciri nation branding dari Korea Selatan. Sebagai sebuah kebutuhan dari negara untuk memperkuat eksistensinya, kajian mengenai nation branding menjadi menarik untuk melihat bagaimana strategi yang dipilih dari aktor negara serta bagaimana bentuk kolaborasi yang mereka lakukan. Penelitian ini menelaah kontribusi Chaebol dalam penguatan nation branding melalui Korean Wave. Dengan menggunakan Nation Branding Index oleh Simon Anholt, penelitian ini melihat bagaimana bentuk kontribusi dan kolaborasi antar aktor dalam enam index, yakni national governance, export promotion, tourism, investment and immigration, cultural/heritage relations, dan public/ people. Hasil penelitian ini memperlihatkan usaha Chaebol melalui kerjasama, joint venture, produksi, distribusi, serta promosi konten-konten dalam hallyu terlihat berdampak signifikan baik dalam citra promosi maupun pemasaran produk kepada masyarakat internasional. The Korean Wave, also known as the Hallyu, is one of the nation branding’s characteristics of South Korea. As a need from the state to strengthen its existence, the study of nation branding is interesting to see how the strategies chosen by state actors are and what forms of collaboration they take. This study will examine the contribution of Chaebol in strengthening nation branding through the Korean Wave. By using the Nation Branding Index by Simon Anholt, this study looks at the forms of contribution and collaboration between actors in six nation branding indexes, namely national governance, export promotion, tourism, investment and immigration, cultural/heritage relations, and public/people. The results of this study show that Chaebol's strategies through cooperation, joint ventures, production, distribution, and promotion of hallyu content has a significant impact both in image promotion and product marketing to the international community towards South Korea.

The use and knowledge of export promotion programs in the early internationalization of Brazilian SMEs

PurposeThis paper aimed to evaluate the differences in the use and knowledge of export promotion programs (EPPs) between Brazilian SMEs that internationalized early and SMEs that internationalized in a gradual, traditional fashion. Additionally, it tested hypotheses that distinguish these two types of SME internationalization processes in an emerging market context.Design/methodology/approachThe authors tested four hypotheses in a sample of 540 SME Brazilian exporters. The sample was divided into two groups according to the born global (BG) criteria: 379 SMEs with gradual or traditional internationalization (TI) and 161 SMEs with early internationalization (EI).FindingsThe results indicate that Brazilian EI SMEs operate in more countries and continents than TI SMEs. In emerging countries such as Brazil, the domestic market continues to play an important role both for SMEs that internationalize early and those whose process is slower. Even though logistic regression could not classify the sample of TI and EI SMEs according to their knowledge about EPPs, the results led to the idea that EI SMEs currently use more specific EPPs than do TI SMEs.Practical implicationsManagers of successful SMEs from emerging markets need to incorporate EPPs into their internationalization strategy. In emerging markets with large domestic markets, SME managers can meet their growth needs by exploiting opportunities in both domestic and international markets.Originality/valueResearch on the early internationalization of SMEs has long focused on SMEs from developed markets and on internal factors. Moreover, the effects of EPPs on the firm' performance of large and SME firms has also been the subject of study. The value of this paper relies on the intersection of EPPs and the early internationalization of SMEs, even for firms in developed markets.

Impact of Trade Openness on Economic Growth in Emerging Economies: A Panel Data Analysis

The role of international trade in boosting economic growth is imperative in the era of globalization and trade liberalization. A trade openness policy can help stimulate economic growth mainly in two ways. Firstly, technology is transferred from developed countries to developing countries through imports. Secondly, the export promotion strategies facilitate the innovations and inventions promoting competition among the producers. In this way, research-intensive specialization culture is flourished in developing countries. This study aims at examining the effect of global trade orientation on growth in 23 emerging economies for the period 1995-2018. The panel data estimation approach including fixed effect and generalized method of moments (GMM) reveal a positive and statistically significant influence of trade openness on economic growth. The empirical results are robust to the various specifications, supporting the trade-led growth notion in the economies under consideration. The emerging economies can achieve higher growth rates through trade openness and export promotion strategies.