Institutions and Market Reform in Emerging Economies: A Rent Seeking Perspective

Mudambi, Ram; Navarra, Pietro; Paul, Chris

doi:10.2139/ssrn.280796

Cited by 13 publications

(16 citation statements)

References 30 publications

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“…Second, this study adds new insights to the literature on international diversification strategy and performance. Prior studies (Chacar & Vissa, 2005;Chacar et al, 2010;Delios & Henisz, 2003;Dunning & Narula, 2003;Mudambi, Navarra, & Paul, 2002) showed that institutional difference in home and host countries is an important factor in MNEs' performance. However, there is still little understanding in the literature of the specific institutional drivers of performance variation in international diversification.…”

Section: Discussionmentioning

confidence: 99%

The role of international institutional complexity on emerging market multinational companies’ innovation

Park

2017

Global Strategy Journal

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Research Summary This study examines the role of international institutional complexity, which is defined as the scope and multiplicity of institutional dimensions across foreign markets, on emerging market multinational companies’ (EMMCs) innovation performance. We propose that international institutional complexity provides learning opportunities for EMMCs’ innovation performance but also incurs higher management costs to handle information overload from overextended internationalization. We further propose that the host exposure and the heterogeneity of an EMMC's top management team (TMT) moderate the main effect of international institutional complexity on EMMC innovation. The empirical testing utilizes a longitudinal panel dataset of 7,072 foreign expansion steps by 767 Chinese firms from 2001 and 2010 and offers strong support for the proposed hypotheses. Managerial Summary Despite the emergence of EMMCs over the past 30 years, there is little understanding of how international institutional complexity impacts EMMCs’ innovation capabilities. By analyzing a longitudinal panel dataset of 7,072 foreign expansion steps by 767 Chinese firms from 2001 and 2010, we find that the international institutional complexity of an EMMC has an inverted U‐shaped impact (first increasing and then decreasing) on its innovation, such that a moderate level of international institutional complexity generates the most innovation output. We also find that TMT host exposure and TMT heterogeneity positively moderate the relationship between international institutional complexity and EMMCs’ innovation performance. Our study contributes to better understanding EMMCs’ international strategies in enhancing their innovation capabilities.

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Section: Discussionmentioning

confidence: 99%

The role of international institutional complexity on emerging market multinational companies’ innovation

Park

2017

Global Strategy Journal

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“…Overall, the evidence is mixed on the impact of federalism on economic freedom. Mudambi, Navarra, and Paul () found plurality‐voting and presidential systems consistent with greater economic freedom, but the number of districts was negatively related to economic freedom. Likewise, an early study by Lawson and Block () found no relationship between various measures of fiscal decentralization and economic freedom.…”

Section: The Determinants Of Economic Freedommentioning

confidence: 99%

The Determinants of Economic Freedom: A Survey

Lawson

Murphy

Powell

2020

Contemporary Economic Policy

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A large literature has found positive associations between economic freedom and income, growth, and a variety of other desirable outcomes. This paper surveys the literature that seeks to explain the causes of economic freedom. Some of the most consistent findings in this literature are that current levels of economic freedom are strongly correlated with past levels; freer countries have more difficulty continuing to improve their economic freedom; democracy and political freedom are positively associated with economic freedom; and inequality is negatively related. (JEL E02, E14, O17, O43, P1)

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“…The effects of economic freedom on other indicators of human well-being have also been investigated: the quality of life, education standards, life expectancy, human development and environmental protection all seem to increase as economic freedom expands (Northon, 1998;Esposto and Zaleski, 1999). Moreover, the rising number of authoritarian governments converted to democracy in the last two decades led to a surge of interest in the relationship between political regimes and economic freedom (Mudambi et al ., 2002). Although with minor exceptions (Clague et al , 1996;Dawson, 1998), empirical findings consistently show a positive relationship between political and civil liberties, on the one hand, and economic freedom, on the other, in both developed and developing countries (North, 1993;De Melo et al , 1996;Lundström, 2002).…”

Section: Motivationmentioning

confidence: 99%

Theoretical Foundations of Empirical Measures of Freedom: A Research Challenge to Liberal Economists

Bavetta¹,

Navarra

2004

Economic Affairs

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Institutions and Market Reform in Emerging Economies: A Rent Seeking Perspective

Cited by 13 publications

References 30 publications

The role of international institutional complexity on emerging market multinational companies’ innovation

The role of international institutional complexity on emerging market multinational companies’ innovation

The Determinants of Economic Freedom: A Survey

Theoretical Foundations of Empirical Measures of Freedom: A Research Challenge to Liberal Economists

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