Institutional quality and foreign direct investment in Ghana

Yakubu, Ibrahim Nandom

doi:10.1108/ribs-08-2019-0107

Cited by 34 publications

(25 citation statements)

References 45 publications

(48 reference statements)

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The role of institutions on both the inflow and effect of FDI is of much importance. Based on time series data for Ghana between the period 1985 and 2016, a positive and statistically significant effect of institutional quality on FDI was found by Yakubu (2020). The estimations using the autoregressive distributed lag (ARDL) approach also found that inflation significantly affects FDI in both the short run and long run while variables such as trade and growth in per capita GDP significantly affect FDI in the short run.…”

Section: Literature Reviewmentioning

confidence: 94%

“…In 1983, the introduction of the Economic Recovery Programme (ERP) in Ghana comprised the attraction of FDI as another core objective. The Ghana Privatization Programme introduced in the 1990s as well as the establishment of the Ghana Investment Promotion Centre in 1994 are all significant efforts to magnetize investors (Yakubu, 2020). In the quest to position itself as a hub in West Africa for foreign investors, Ghana hosts summits annually known as the Ghana Investment Summit.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Effects of foreign direct investment on economic growth in Ghana: the role of institutions

Kulu

Mensah

Sena

2021

Economics of Development

View full text Add to dashboard Cite

The role of institutions in both the inflow and the impact of foreign direct investment is of great im¬portance. The quality of institutions in a country can direct investment towards improving growth. This paper analyzes the individual and combined effect of foreign direct investment and institutions on economic growth in Ghana. The paper used the Auto Regressive Distributed Lag (ARDL) tech¬nique for secondary data obtained from 1995 to 2019. All data series, except for the quality institution index, were drawn from the World Bank Development Indicators. Institutional Quality Index data was obtained from the Heritage Foundation’s Economic Freedom Index website. The results of the ARDL model indicate that foreign direct investment and a quality institutional index together have a significantly positive effect on a country’s economic growth compared to their individual effects in both the short and long run. The study recommends that government policies should be aimed at attracting foreign direct investment while strengthening institutions and regulations to enhance output growth.

show abstract

Section: Literature Reviewmentioning

confidence: 94%

Section: Introductionmentioning

confidence: 99%

Effects of foreign direct investment on economic growth in Ghana: the role of institutions

Kulu

Mensah

Sena

2021

Economics of Development

View full text Add to dashboard Cite

show abstract

“…In particular, within the macro-level talent management literature, prior research has focused on the strategy formulation and implementation of talent management (Beamond et al , 2016). Upon implementing talent management strategies in emerging market economies, these MNCs must recognize local contextual factors and adapt their strategies to local conditions to respond to institutional voids and avoid negative outcomes (Beugelsdijk et al , 2018; Yakubu, 2020). In this regard, MNCs must consider several context-specific factors, including skill formation systems, in emerging market economies before translating talent management strategies into practices at the subsidiary level (Vaiman et al , 2012).…”

Section: Theory and Frameworkmentioning

confidence: 99%

How do MNCs translate corporate talent management strategies into their subsidiaries? Evidence from MNCs in Thailand

Napathorn

2020

RIBS

View full text Add to dashboard Cite

Purpose This paper aims to contribute to the literature on global talent management by examining how multinational corporations (MNCs) from developed and emerging economies manage talented employees in other emerging economies. Specifically, it aims to understand why MNCs from developed economies are likely to face lower levels of challenge than MNCs from emerging economies when translating corporate-level talent management strategies to their subsidiaries located in emerging economies and how local contextual factors influence the translation processes. Design/methodology/approach This paper undertakes a matched-case comparison of two MNCs, one from a developed economy and the other from an emerging economy, that operate in the emerging economy of Thailand. Evidence was obtained from semi-structured interviews field visits and a review of archival documents and Web resources. Findings Based on the obtained evidence, this paper proposes that MNCs from developed economies tend to face challenges in terms of skill shortages, and these challenges affect their translation of talent management strategies to the subsidiary level. By contrast, MNCs from emerging economies tend to face challenges in terms of both skill shortages and the liability of origin (LOR) (i.e. weak employer branding) in the translation process. Both groups of MNCs are likely to develop talent management practices at the subsidiary level to address the challenge of successfully competing in the context of emerging economies. Research limitations/implications One limitation of this research is its methodology. Because this research is based on a matched-case comparison of an MNC from a developed economy and an MNC from an emerging economy, both of which operate in the emerging economy of Thailand, it does not claim generalizability to all MNCs and to other emerging economies. Rather, the results of this research should lead to further discussion of how MNCs from developed and emerging economies translate corporate-level talent management strategies into subsidiary-level practices to survive in other emerging economies. However, one important issue here is that there may be a tension between the use of expatriates and local top managers at MNCs’ subsidiaries located in other emerging economies as drivers for knowledge sourcing in that the importance of expatriates may diminish over time as the subsidiaries located in those economies age (Dahms, 2019). In this regard, future research in the area of global talent management should pay special attention to this issue. The other important issue here is that it is possible that the two case study MNCs are very different from one another because of their organizational development stage, history and current globalization stage. Thus, this issue may also influence the types of talent management strategies and practices that the two case study MNCs have developed in different countries. In particular, MNCs from emerging economies (ICBC) may not have developed their global HR strategies, as they have not yet operated globally as in the case of MNCs from developed economies (Citibank). This can be another important issue for future research. Additionally, both MNCs examined in this research operate in the banking industry. This study, therefore, omits MNCs that operate in other industries such as the automobile industry and the hotel and resort industry. Future researchers can explore how both groups of MNCs in other industries translate their talent management strategies into practices when they operate in other emerging economies. Moreover, this study focuses only on two primary contextual factors, the skill-shortage problem and LOR; future research can explore other local contextual factors, such as the national culture, and their impact on the translation of talent management strategies into practices. Furthermore, quantitative studies that use large sample sizes of both groups of MNCs across industries might be useful in deepening our understanding of talent management. Finally, a comparison of talent management strategies and practices between Japanese MNCs and European MNCs that operate in Thailand would also be interesting. Practical implications The HR professionals and managers of MNCs that operate in emerging economies or of companies that aim to internationalize their business to emerging economies must pay attention to local institutional structures, including national skill formation systems, to successfully implement talent management practices in emerging economies. Additionally, in the case of MNCs from emerging economies, HR professionals and managers must understand the concept of LOR and look for ways to alleviate this problem to ensure the success of talent management in both developed economies and other emerging economies. Social implications This paper provides policy implications for the government in Thailand and in other emerging economies where the skill-shortage problem is particularly severe. Specifically, these governments should pay attention to solving the problem of occupation-level skill shortages to alleviate the severe competition for talented candidates among firms in the labor market. Originality/value This paper contributes to the prior literature on talent management in several ways. First, this paper is among the first empirical, qualitative papers that aim to extend the literature on global talent management by focusing on how MNCs from different groups of countries (i.e. developed economies and emerging economies) manage talented employees in the emerging economy of Thailand. Second, this paper demonstrates that the institutional structures of emerging economies play an important role in shaping the talent management practices adopted by the subsidiaries of MNCs that operate in these countries. In this regard, comparative institutionalism theory helps explain the importance of recognizing institutional structures in emerging economies for the purpose of developing effective talent management practices. Finally, there is scarce research on talent management in the underresearched country of Thailand. This study should, therefore, assist managers who wish to implement corporate-to-subsidiary translation strategies in Thailand and other emerging economies.

show abstract

“…Even if the authors did not find any convincing reason to worry about including only Japanese firms, future research could still consider multi-country acquirers and targets design to confirm the generalizability. Second, we measured the formal institutional variable, as many other studies did, by relying on secondary data sources (Dikova et al , 2010; Ilhan-Nas et al ,2018a, 2018b; Liou et al , 2016, 2017; Yakubu, 2020; Yiu and Makino,2002).…”

Section: Limitations and Future Research Avenuesmentioning

confidence: 99%

Formal institutional uncertainty and equity sought on foreign market entry: does industry matter?

Ahmed

Bebenroth

Hennart

2020

RIBS

View full text Add to dashboard Cite

Purpose This study aims to examine how the effect of host country formal institutional uncertainty on the percentage of equity sought in cross-border acquisitions (CBAs) is moderated by the host country industry (i.e. targets from the technology versus those from the non-technology industry). Design/methodology/approach This study is based upon the legitimacy perspective of institutional theory and uses Tobit regression analysis on a sample of 1,340 CBAs. Findings Results show that cross-border acquirers prefer a lower equity level for targets in institutionally less developed countries and that this negative effect of the host country institutional risk on the equity percentage sought is more pronounced for technology-based targets. Research limitations/implications Three major limitations of the study are as follows: The data were collected from only Japanese acquirers. The study measured formal institutional uncertainty by applying only secondary data. The study used the Bloomberg Industry Classification Systems, instead of the Standard Industry Classification that has been used widely in prior studies. Practical implications This study shows that the industry selected has a bearing on equity sought in CBAs. Investing in institutionally less developed countries is particularly challenging when the targets of acquisition are in the technology industry. Originality/value To the best of the authors’ knowledge, this is the first study that investigates the moderating effects of an industry on the relationship between host country formal institutional uncertainty and the percentage of equity sought in CBAs.

show abstract

Institutional quality and foreign direct investment in Ghana

Cited by 34 publications

References 45 publications

Effects of foreign direct investment on economic growth in Ghana: the role of institutions

Effects of foreign direct investment on economic growth in Ghana: the role of institutions

How do MNCs translate corporate talent management strategies into their subsidiaries? Evidence from MNCs in Thailand

Formal institutional uncertainty and equity sought on foreign market entry: does industry matter?

Contact Info

Product

Resources

About