The Role of Institutional Linkages and Regional Institutions in the Location Choice of Outward Foreign Direct Investment: Empirical Evidence from Chinese Firms

Differently from the prior studies that look at the determinants of Outward foreign direct investment (OFDI) location choice, based on the institution theory and employing a comprehensive and unique micro-level dataset of Chinese firms, this study is the first to integrate institutional linkages (Confucius Institute) and regional institutions into one framework and looks at the role of the location choices of Chinese OFDI. The results show that Chinese firms prefer to invest in countries with the presence and higher number of Confucius Institutes including Confucius classrooms. Moreover, the institutional linkage of Confucius Institutes can alleviate the possible negative effects caused by the distance between China and the host country, which suggests Confucius Institutes help Chinese firms against liabilities of foreignness and risks and costs of operation in more distant host countries. We also find that the availability and quality of China’s regional institutions have a strong impact on local firms’ willingness and capability of participating.

Women’s Labor Market Participation in Bangladesh: A Logistic Regression Analysis

As women around the world struggle for equality, there is a need for measuring their progress. The problem regarding women’s employment is more acute in Bangladesh. The conservative nature of Bangladesh’s society is a significant obstacle in the achievement of their goals in life. The aim of this study is to explore the factors that affect the empowerment of women and determine the factors significantly associated with women’s labor participation in Bangladesh. The study represents the current condition of women participating in the labor market in Bangladesh. A total of 375 structured questionnaires were distributed and 188 usable questionnaires were returned. SPSS version 20.0 was used and the analysis was carried out using binary logistic regression and bivariate analysis. Logistic regression was used to determine the risk factors for women’s labor participation. The findings revealed that women’s labor market participation is influenced by age, education and their partners’ education, as education is also an important factor that changes human behavior significantly. This study has also proven that women with higher levels of education have more employment opportunities.

Does the Formal Financial Sector Enhance Small Business Employment Generation in Nepal: Evidence from Cross-Sectional Data

Small business enterprises are widely recognized as a driving force of economic growth and development in any nation. Empirical evidence has shown that they contribute to job creation, help to alleviate poverty, and increase a nation’s level of productivity. In the exponential increase of small businesses, the role of the financial sector is crucial. This paper aims to identify the role of formal financial support in small business employment generation in Bouddhanath, Kathmandu. The study adopted a descriptive research design. Purposive sampling was used to select 285 business owners. A structured questionnaire was designed to collect their responses. Primary and secondary data was employed to analyze user status. Data analysis was performed with the help of descriptive analysis and a financial support index. The results showed that financial support plays a critical role in the enhancement of the small business sector, allowing businesses to create employment opportunities which further helps to maintain the Nepalese economy. The major challenges to the growth of small businesses in Nepal lie in securing initial funding and overreliance on credit. In addition, the ability to afford quality staff has an equally strong effect on the success of small businesses. Business growth clearly depends on the role of the formal financial sector to achieve the desired outcomes.