Emerging Market Economy

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Export Performance of Emerging Market Economy during Global Crisis Period

Export Performance of Emerging Market Economy during Global Crisis Period

Most studies show a large decline in trade across countries, especially emerging market and developing economies. Shelbourne (2010) shows that the global financial crisis of 2007-2010 impacted trade both globally and more severely for the European emerging market economies, as compared to other regions of the world. It is found that exports for over one half of these European economies declined by more than 50 per cent between the third quarter of 2008 and the first quarter of 2009. The terms of trade also deteriorated significantly. Meyn and Kennan (2009) show the impact on LDC exports was extensive though varying across sectors. Demand for exports contracted during ther period. In addition to declining prices and lower demand for some goods, the global financial crisis has also affected developing countries by aggravating the price volatility for some commodities, increasing revenue uncertainty for commodity-dependent countries. On the other hand, Liu (2011 shows that “overshooting effect” on exports during crises cannot be explained by demand or volatility in exchange rates. Because of the adjustment in inventory and overcorrection in demand forecast by every entity of the supply chain when facing an economic crisis, exporting countries, which were at the upstream end of the supply chain, faced a much greater demand oscillation than the demand at the retailer end. A longer supply chain implies larger demand variability and bigger export fluctuations when economic crisis occurs.

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Analysing the Sources of Growth in an Emerging Market Economy: The Thailand Experience

Analysing the Sources of Growth in an Emerging Market Economy: The Thailand Experience

Apart from the Asian miracles achieved by the four Asian tigers, Thailand has been widely recognised as one of the Asian growth success stories. Over the past few decades, the country has achieved impressive growth progress, elevating it from a low-income to an upper-middle income economy in 2011 (World Bank, 2017). During the boom years of 1986 to 1996, the economy grew at an average annual rate of 7.5%. Despite the negative spill-over effects of the Asian financial crisis during the late 1990s, the country’s growth momentum remained strong. The average annual grow rate of the economy was 5% during the period 1999 to 2005. The average growth rate only slowed down to 3.5% in the recent period 2005 to 2015 (World Bank, 2017). Against this backdrop, efforts to identify the sources of growth would be invaluable to the policymakers of the country. To this end, our study serves to provide a comprehensive understanding of economic drivers of growth during the past few decades. It provides some insights into how policymakers could raise long-term growth to further push the country towards attaining a high-income status in the future, amidst the recent economic slowdown.

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Capital Investment Appraisal Practices in the Emerging Market Economy of Sri Lanka

Capital Investment Appraisal Practices in the Emerging Market Economy of Sri Lanka

very few studies have looked at the terrain of capital budgeting over the last four decades within the country setting. While existing studies have provided some insights into the capital budgeting practices of Sri Lanka, these have been limited in scope, focusing mainly on the purpose of investment for capital budgeting, methods employed and their antecedent factors. In contrast, the current study aims to expand on previous studies by covering different aspects of capital budgeting practices employed by firms operating in different sectors of the economy. In this regard, the current study compares the results generated with those gained from previous empirical studies done in the US, Europe and India. It is hoped that this comparison can facilitate in filling in the research gaps in terms of contextual setting. Although capital budgeting theory appears to be applicable to all countries, to a certain extent, the actual practices of capital budgeting varies according to the “country effect” (Graham & Harvey, 2001; Hermes, Smid & Yao, 2007). Therefore, the findings of this study are expected to benefit both the academicians and practitioners. The results would assist academicians in terms of conducting future research and also in revising the curriculum adopted by business schools currently operating in Sri Lanka and similar emerging countries in terms of economic development. This study will also benefit practitioners by helping firms and organisations to make better investment decisions by using the right capital budgeting technique.

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Contemporary Indian Management Practices in the Dynamic Emerging Market Economy

Contemporary Indian Management Practices in the Dynamic Emerging Market Economy

tres (Kumar, Kumar Sethi, 2012). India is the world’s largest sourcing destination for the IT industry (http://in- diainbusiness.nic.in/newdesign/index.php). The Indian IT and ITeS industry is today divided into four major segments – IT services, business process management (BPM), software products and engineering serv- ices, and hardware. The Indian IT sector is expected to grow by 11 percent per annum and triple its current annual revenue by FY 2025. In the area of the Internet economy, it is relevant to know that India’s Internet user base reached over 350 million by June 2015, the third largest in the world, while the number of social media users grew to 143 million by April 2015 and the number of smartphones grew to 160 million. Public cloud services revenues in India are also relevant. An increased penetration of the Internet (including rural areas) and a rapid emergence of e-commerce are the main drivers of continued growth of data centre co- location and hosting market in India. Indian IT’s core competencies and strengths have attracted significant investments. It is illustrative that there has been a ten-fold increase in the venture funding that went into In- ternet companies.

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Principles of Microeconomics

Principles of Microeconomics

We illustrate a more common case in Figure 7.11 (b), where the LRAC curve has a flat-bottomed area of constant returns to scale. In this situation, any firm with a level of output between 5,000 and 20,000 will be able to produce at about the same level of average cost. Given that the market will demand one million dishwashers per year at a price of $500, this market might have as many as 200 producers (that is, one million dishwashers divided by firms making 5,000 each) or as few as 50 producers (one million dishwashers divided by firms making 20,000 each). The producers in this market will range in size from firms that make 5,000 units to firms that make 20,000 units. However, firms that produce below 5,000 units or more than 20,000 will be unable to compete, because their average costs will be too high. Thus, if we see an industry where almost all plants are the same size, it is likely that the long-run average cost curve has a unique bottom point as in Figure 7.11 (a). However, if the long-run average cost curve has a wide flat bottom like Figure 7.11 (b), then firms of a variety of different sizes will be able to compete with each other. We can interpret the flat section of the long-run average cost curve in Figure 7.11 (b) in two different ways. One interpretation is that a single manufacturing plant producing a quantity of 5,000 has the same average costs as a single manufacturing plant with four times as much capacity that produces a quantity of 20,000. The other interpretation is that one firm owns a single manufacturing plant that produces a quantity of 5,000, while another firm owns four separate manufacturing plants, which each produce a quantity of 5,000. This second explanation, based on the insight that a single firm may own a number of different manufacturing plants, is especially useful in explaining why the long-run average cost curve often has a large flat segment—and thus why a seemingly smaller firm may be able to compete quite well with a larger firm. At some point, however, the task of coordinating and managing many different plants raises the cost of production sharply, and the long-run average cost curve slopes up as a result.

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FINANCIAL MARKET REGULATION: A REFORM IN EMERGING MARKET

FINANCIAL MARKET REGULATION: A REFORM IN EMERGING MARKET

To strengthen the regulation of commodity forward market, our finance minister proposed to merge the FMC(forwards markets commission) with the capital market and SEBI, FMC is a statutory body which was set up in 1953 and FCRA(forward contracts regulation act) is the regulatory authority takeover by the ministry of finance, government of India. The merger will prevent the illicit off-market trades which extends to many parts of the country. Such merger will definitely help in curbing such practice with SEBI having jurisdiction to regulate the commodity market in addition to its well-managed capital market.

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Dynamic Interaction Between Foreign Institutional Investors And Market Return In An Emerging Economy: Evidence From India

Dynamic Interaction Between Foreign Institutional Investors And Market Return In An Emerging Economy: Evidence From India

Table 3 presents the VAR estimates of the system equations. Equation 3 and equation 4 is estimated for all the variables. As it is mentioned above, in VAR estimates, optimum lag selection is very important. This study has relied on SIC lag length selection criteria. The minimum value of information criteria was at length 4 in case of LFIIG and LFIIS while it is 5 in case of LFIIP The model is significant as the F-statistics is significant in all the series. It can ascertained from the above table, that the coefficient of past market returns in the first and second lag are positive and significantly explaining the FII purchases and market return significantly negative in explaining the FII sales at first lag. This confirms that the foreign investors are positive feedback traders in Indian capital market. However, this study found that first lag of FII gross and FII sales have significant impact on Nifty returns .The FIIs sale and FIIs purchase variables are significantly influenced by the lagged market returns. Each of the flow variables are significantly and positively impacted by their own lags. This indicates that foreign investors tend to follow the other foreign investors in Indian market. Furthermore, this study has also used exogenous variable that is dummy for global financial crisis as it was drastic event that affected Indian market. It is evident from the above results that global financial crises have significant negative impact on market return as well as on FII flows.

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Principles of Macroeconomics 2e

Principles of Macroeconomics 2e

Contractual rights, then, are based on property rights and they allow individuals to enter into agreements with others regarding the use of their property providing recourse through the legal system in the event of noncompliance. One example is the employment agreement: a skilled surgeon operates on an ill person and expects payment. Failure to pay would constitute property theft by the patient. The theft is property the services that the surgeon provided. In a society with strong property rights and contractual rights, the terms of the patient–surgeon contract will be fulfilled, because the surgeon would have recourse through the court system to extract payment from that individual. Without a legal system that enforces contracts, people would not be likely to enter into contracts for current or future services because of the risk of non-payment. This would make it difficult to transact business and would slow economic growth. The World Bank considers a country’s legal system effective if it upholds property rights and contractual rights. The World Bank has developed a ranking system for countries’ legal systems based on effective protection of property rights and rule-based governance using a scale from 1 to 6, with 1 being the lowest and 6 the highest rating. In 2013, the world average ranking was 2.9. The three countries with the lowest ranking of 1.5 were Afghanistan, the Central African Republic, and Zimbabwe. Their GDP per capita was $679, $333, and $1,007 respectively. The World Bank cites Afghanistan as having a low standard of living, weak government structure, and lack of adherence to the rule of law, which has stymied its economic growth. The landlocked Central African Republic has poor economic resources as well as political instability and is a source of children used in human trafficking. Zimbabwe has had declining and often negative growth for much of the period since 1998. Land redistribution and price controls have disrupted the economy, and corruption and violence have dominated the political process. Although global economic growth has increased, those countries lacking a clear system of property rights and an independent court system free from corruption have lagged far behind.

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Incentives from Exchange Rate Regimes in an Institutional Context

Incentives from Exchange Rate Regimes in an Institutional Context

Full floating results in excessive volatility in immature markets with large foreign inflows, but some flexibility may moderate volatility. FX markets have a tendency towards excessive movement, as market participants tend to follow each other. Hedging removes the effect of currency movement in any one direction on profits by creating exposure in the opposite direction. Limited two-way movement improves incentives for hedging and therefore reduces currency risk. Since the number of agents whom a change in the nominal exchange rate affects falls, market stability rises. No hedge can cover a currency crisis, but random small movements reduce one-way bets that could otherwise magnify the movements, as happened during the East Asian crises when exchange rates were largely fixed. Currency risk aggravates systemic, liquidity and credit risk in thin EME financial markets. Global and regional measures are also required to reduce these risks, but this paper brings out the contribution of exchange rate regimes.

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INFORMAL ECONOMY AND MONEY LAUNDERING IN ALBANIA

INFORMAL ECONOMY AND MONEY LAUNDERING IN ALBANIA

Licensed under Creative Common Page 739 development of the country. The informal economy in Albania was first appeared during the transition phase of the centralized economy to the market economy, because in this period, the development of the regulatory, legal, institutional and fiscal framework remained far behind in comparison with the development of free enterprise, according to official statistics in Albania the informal economy currently accounts for about 33 percent of GDP. Given the features of Albania, the size of the current informal economy poses a serious threat to the fair competition, which is the main tool for development. Businesses that operate in the "gray" zone of the economic sector tend to avoid tax obligations (performing evasion) in order to reduce the costs of paying taxes and insurance. In these conditions they gain a considerable advantage compared with those businesses that conduct their activities according to the rules and regulations in power. Unfair competition has not only led to the bankruptcy of businesses that operate according to the rules, but has encouraged "leak" or "transfer" of businesses from the formal to the informal economy. Some key factors that influenced the growth of this sector in Albania are as follow:

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Has the financial crisis spurred demand for stronger state regulation? CEPS Working Document No. 336/September 2010

Has the financial crisis spurred demand for stronger state regulation? CEPS Working Document No. 336/September 2010

Furthermore, a report on the approval of the market economy conducted by the advisory board of the German Ministry for Economics and Science and Technology identifies unemployment as one of the main drivers for citizen approval of the German market economy (Bundesminesterium 2010: 7-8). Although there exists no specific empirical literature on the determinants of citizens’ confidence in the free market economy, a field of empirical analyses has been formed in economics under the heading of popularity functions. Its literature is vast and the first thorough overview is Paldam & Nannestad 1994. This paper does not go into detail concerning popularity functions, but the basic idea in the literature is to link public opinion data on government support to macro-economic determinants 7 and identify the causal relationships. These macro-economic variables are most often GDP growth per capita, inflation and unemployment (see Paldam & Nannestad 1994: 218). Furthermore, there is one empirical study by Shiller et al. (1991), who analyse the popularity of markets among US and Soviet Union citizens in 1990.

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The Resource-based View  and SME Internationalisation:  An Emerging Economy Perspective

The Resource-based View and SME Internationalisation: An Emerging Economy Perspective

Home-Resource Base Characteristics of Internationalising Emerging Economy SMEs As seen above, internationalising firms from emerging economies leverage their stocks of technological and market knowledge, intellectual and social capital, domestic reputation, new technology and unique product and service offerings, and labour cost advantage. However, due to deficiencies in the institutional environment of emerging economies, and the smallness of the firms themselves, not all internationalising SMEs can access critical resources required for internationalisation. Though prior research on barriers to internationalisation in emerging economy contexts is limited, it can still be concluded from existing studies that internationalising emerging economy SMEs often lack such critical resources as venture capital (Nowiński & Rialp, 2013), international experience, human capital and managerial skills, international network ties (Liu et al., 2008; Nowiński & Rialp, 2013; Thai & Chong, 2008), ICT technology and skills (Thai & Chong, 2008), and advanced technology (Liu et al., 2008). These findings should be interpreted with caution, however, and generalisations cannot be made without taking into consideration the specifics of the national institutional context and the stage the specific country is at in its transition to the market economy, as differences across emerging economies emerging economy can be pronounced. We therefore propose:

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Emerging Structure of Rajasthan Economy in India

Emerging Structure of Rajasthan Economy in India

Indian economy has undergone a significant structural change since Independence. This is highlighted by the change in the sector-wise composition of income and workforce over the years. The decade of 1990s witnessed major policy changes in the Indian economy and its State/Union territory economies. Each state of the Indian union is different in terms of its natural, social, political and economic features. Therefore, the pattern of growth of each sub-national unit is unique. Historically, Rajasthan has predominantly been an agricultural economy; the percentage share of primary sector in gross domestic product as well as labour force has been the highest. But over the years, there has been a change in the sector-wise distribution of state domestic product. The tertiary sector has become an important sector in terms of its contribution to the state domestic product. However the primary sector still occupies a dominant position in terms of its share in the distribution of sectoral workforce.

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Acupressure: The Emerging Role of Market Ordering in Global Copyright Enforcement

Acupressure: The Emerging Role of Market Ordering in Global Copyright Enforcement

As the foregoing discussion demonstrates, market pressures in the na- ture of coercing advertisers played the most prominent role in Chinese Internet video sites’ rebirth as copyright adherents. This case study shows that in markets where copyright law enforcement is weak and piracy is the norm, one can achieve a shift to copyright-friendly norms through an indirect, market-pressure enforcement strategy. Importantly, it also shows that once this shift has occurred, the erstwhile pirate who now in- vests in content acquisition becomes more than just a licensee and reve- nue source; it becomes a stakeholder in the copyright ecosystem. After all, substantial investments in content acquisition provide little value if competitors continue to serve the same content without incurring the li- censing costs. Indeed, pressuring third parties—in this case advertisers— caused those third parties to become indirect stakeholders in the copy- right ecosystem as well. By using market pressures to increase the size of the copyright ecosystem and the number of its stakeholders, audiovisual copyright owners were able to ensure far greater, ongoing adherence to copyright law than they could have through direct legal enforcement of their rights. While the online video sites still have to prove their model, and piracy within the online video industry remains a threat, the market- pressure strategy has already paid enormous dividends to copyright owners.

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Marketing Strategy Formulation for the Introduction of Eukula Strato German Wood Finishes in Local Market of Emerging Indian Economy

Marketing Strategy Formulation for the Introduction of Eukula Strato German Wood Finishes in Local Market of Emerging Indian Economy

The major objective of this design was the description of market characteristics and functions. The research design adopted in this study was multiple cross-sectional descriptive research. It was because; there were three samples of the respondents viz. Finishers, Furniture manufacturers and Interior designers. The data obtained through this design were subjected to quantitative analysis .The findings from this research helped to formulate the marketing strategy for Eukula Strato.

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The Emerging Role of Haryana in Indian Economy

The Emerging Role of Haryana in Indian Economy

Conclusion: Now we can trace out that Haryana has been emerging as a industrial hub. Gurugram district has shown a remarkable progress in IT sector Haryana contributes 3.63 percent to India’s gross state domestic product. During 2014-16 Haryana’s compound annual growth rate reached at 12.12 percent in the year of 2015-16 at the current price the total gross state domestic product of Haryana remained about 75.3 Billion U.S. Dollar. The state has been successful to attract FDI equity inflows worth U.S. Dollar 62.15 Billion from April 2000 to March 2016. Recently the government of Haryana has implemented new policy of FDI and some incentives under industrial and investment policy. Therefore Haryana stands at 14 th number on ease of doing business. Micromax has also made a plan to set up a mobile handset manufacturing unit in NCR region. Today Haryana is preferred for auto components manufacturing and there are more

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A Free Market Economy Model for Resource Management in Wireless Sensor Networks

A Free Market Economy Model for Resource Management in Wireless Sensor Networks

Many of the “tasks” that a sensor node performs can be considered as “services” that benefit other nodes while incurring a “cost” to the node performing the service. For example, most of the area in a physical region that needs to be continuously monitored is covered by multiple sensors in order to provide extended sensing lifetimes by letting sets of nodes alternately enter sleep mode and to compensate for faulty nodes or external sa- botage attempts. Thus, a node that stays active and provides processing and/or sensing services for a time period T incurs a “cost” (since valuable battery capacity must be utilized during T) while providing a “service” to neighboring nodes by permitting them to enter sleep mode during T. As another example, a node that relays packets between two other nodes in the network provides a “service” to those two other nodes while incurring a heavy “cost” since wireless radio transmission requires a high level of energy usage [3]. Clearly, it will benefit a node to not provide such sensing or packet relaying services. However, if all nodes behaved in such a selfish manner, then the WSN would become useless as no sensing or multihop packet deliveries would occur. Thus, for these types of distributed resource control problems, it is proposed that a free market economy model be used to provide fair distribution and use of resources and services in a fully distributed autonomous manner.

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The Exchange Rate Response of Credit Constrained Exporters: The Role of Location

The Exchange Rate Response of Credit Constrained Exporters: The Role of Location

To characterise our two transition economies we mix the production structure and the credit market location, in a way still not captured by neither a developed nor a de- veloping country exporter. The two transition economies are thus either characterised by the combination of a foreign credit market and a domestic production structure or by the combination of a domestic credit market and an international production struc- ture. This places transition economies in between the developed and the developing economy, but also allowing for different paths to global integration. The interaction between the balance-sheet effects that accompany the various combinations of the loca- tion of production relative to the location of the credit market and the first- and the second-hand market for capital inputs creates a context specific export supply response that differ both between countries at different stages of development and across transi- tion economies with different strategies to globalisation.

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A SCIENTOMETRIC ANALYSIS OF THE WOMEN EMPOWERMENT (1985-2018)

A SCIENTOMETRIC ANALYSIS OF THE WOMEN EMPOWERMENT (1985-2018)

Emerging nations like India is the fastest growing economy in the globe and provides enormous opportunities to women as entrepreneurs, political representatives and professionals. The legislation in India introduced a new law in 2013 and made it compulsory for each company to have at least one woman on the board as a director leads to the rise of women's visibility but not that much effective. The involvement of women in the workplace and business is slightly less in developing countries when compared to developed countries. For example, women participation in India is 31.6%, USA – 45%, UK – 43%, Canada – 42%, France – 32% , Indonesia - 40%, Sri Lanka and Brazil – 35% (Sinha et al., 2019). Hence, women are portrayed as a weaker gender in physical and emotional aspects at a global level. Thus, the prospects of women's development context in business and commerce are still unexplored. The challenges of the business world in the present scenario are treacherous for women compared to men and when they face several obstacles to achieve their business success (Allen and Truman, 1993). Fortuitously due to technology innovation across the world has opened new channels and opportunities for women to explore their potentialities and business opportunities. Similarly, the world has achieved progress towards women’s empowerment in the Millennium Development Goals (MDGs set by the United Nations in 2000). Further, the overall impact of empowering women will increase social & financial stability in both rural and urban areas in terms of standard of living and facilitates education to their children (Chakraborty et al., 2019).

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Innovation activity of corporations in emerging economies

Innovation activity of corporations in emerging economies

Abstract. The paper considers macro parameters of corporation innovation activity in the BRICS countries. The authors determine transnational corporation behavior strategies in the context of creating and transferring new knowledge, where developed countries (the USA, European countries and Japan) play an important role and take a leading position in this process. Companies from emerging economies focus on using and adopting innovations. The reason for this is that knowledge "is coded" specifically, consequently the participants of its exchange have to be in similar intellectual space. Nevertheless, the market-leading corporations from the BRICS countries join the world chains of innovation creation, building their networks to satisfy their branches needs concerning technological decisions and personnel training

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