Learning From “Alien Monks?” The Productivity Spillovers of Foreign-Invested Hotels in China

Yang, Yang; Mao, Zhenxing

doi:10.1177/1096348015614958

Cited by 13 publications

(6 citation statements)

References 84 publications

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“…The pioneering studies of Caves (1974) and Globerman (1979) indicate positive productivity spillovers from FDI to domestic firms of Australia and Canada, respectively. Similar evidence is supported by the following studies for both developed and developing host countries (Kokko, 1996;Sun, 2011;Suyanto et al, 2009;Yang and Mao, 2018). Nonetheless, some empirical papers find an insignificant or negative spillover effect of multinationals on local firms' productivity (Aitken and Harrison, 1999;Sadik and Bolbol, 2001).…”

Section: Fdi Inflows Tosupporting

confidence: 79%

Firm performance in the financial industry: the role of foreign entrants and their origin

Nguyen

2021

MBR

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Purpose This study aims to provide firm-level evidence on the relationship between the presence of financial services multinationals and indigenous counterparts’ performance, using a comprehensive sample of firms in the emerging financial industry in Vietnam. Design/methodology/approach This study uses the generalized method of moments with instrumental variables (IV/GMM) to deal with potential endogeneity problem. Of this technique, a pragmatic approach to constructing instruments is adopted, capitalizing on the geographical and industry segmentation of the local market. The empirical analyses also address statistical issues of the overall model significance, heteroskedasticity and multicollinearity. Findings The regression results reveal that foreign entrants have a positive and statistically significant association with indigenous firms’ labor productivity and the average wage, with a more pronounced impact on the latter. The increased entry of financial multinationals appears to be uncorrelated with indigenous firms’ profitability. The extended estimations also suggest that investor origin matters in determining spillover magnitude. The average estimate of Asian affiliates in the examined relationship is approximately half that of European affiliates, whereas foreign entrants originating from America show an insignificant role. Originality/value This study sheds light on the broader impacts of foreign financial affiliates by simultaneously exploring their impacts on three key dimensions of indigenous firm performance, namely, labor productivity, average wage and profitability. This paper also enriches the existing literature by disentangling the effects of foreign entrants from different regions of origin, which was largely neglected in the context of financial services multinationals.

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Section: Fdi Inflows Tosupporting

confidence: 79%

Firm performance in the financial industry: the role of foreign entrants and their origin

Nguyen

2021

MBR

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“…These developments facilitate easy access to finance, adequate foreign direct investment inflows, and a sound overall investment climate. These conditions are quintessential for boosting tourism entrepreneurship, which is a crucial channel of growth in the tourism sector (Jaafar et al, 2011;Lu & Chiang, 2003;Saayman & Slabbert, 2001;Yang & Mao, 2018). The pecking order hypothesis in the corporate finance literature also predicts that well-functioning banks and financial markets foster tourism entrepreneurship as firms can garner more capital instead of relying on costly leverage (Chen, 2010).…”

Section: Theoretical Link Between Financial Development and Tourism D...mentioning

confidence: 99%

Does Financial Development Raise Tourism Demand? A Cross-Country Panel Evidence

Khanna

Sharma

2021

Journal of Hospitality & Tourism Research

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This study examines the effects of bank and stock market development on three tourism demand indicators: number of tourist arrivals, expenditure to gross domestic product ratio, and expenditure per arrival. We analyze annual data spanning the period 1995-2018 for a sample of 207 countries. The theoretical contribution of this study is threefold: first, we assess a variety of financial development indicators; second, we employ cross-sectionally augmented distributed lags estimator that produces estimates robust to the dependence structure in the data; third, using data on a wide assortment of countries, we generalize the findings of several country-specific case studies. We observe that financial development affects both tourist arrivals and tourism expenditure positively. However, the gains in tourist arrivals are more significant relative to those in tourism expenditure. Furthermore, we find the responsiveness of tourism demand to financial development to vary with the income level.

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“… hotels_GDP : The number of star-rated hotels relative to the GDP of each city (in 100 million CNY). This variable captures the supply of the local hotel industry (Yang and Mao, 2018), where high supply leads to fierce competition that ultimately hinders hotel demand (Assaf and Cvelbar, 2011). The coefficient of this variable is expected to be negative. hotel45_perc : The percentage of four- and five-star hotels in each city.…”

Section: Methodsmentioning

confidence: 99%

Challenge or chance? Understanding the impact of anti-corruption campaign on China’s hotel industry

Yang

Wang

2021

Tourism Economics

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Anti-corruption has garnered increasing attention, especially in China, where President Xi launched an influential and far-reaching anti-corruption campaign in late 2012. A better understanding of the effects of anti-corruption efforts on the hotel sector can reveal insights into the development of the Chinese hotel industry. Based on the quarterly data on China’s hotel industry in 49 cities from quarter 2 of 2010 to quarter 4 of 2015, this study investigates how the anti-corruption campaign (measured by anti-corruption inspections and the number of corruption lawsuits) has influenced hotel industry demand in China. Hypotheses are developed from China’s unique cultural environment of guanxi combined with rent-seeking theory and the crowding-out principle. Empirical results confirm a significant and negative effect of the anti-corruption campaign on hotel lodging and food and beverage demand. Several factors, including a city’s administrative position as a provincial capital, hotel class, level of tourism dependence, and local residents’ entertainment expenditure, are found to moderate the effect of the anti-corruption campaign on hotels’ lodging demand significantly. Theoretical and practical implications are discussed in light of these findings.

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Learning From “Alien Monks?” The Productivity Spillovers of Foreign-Invested Hotels in China

Cited by 13 publications

References 84 publications

Firm performance in the financial industry: the role of foreign entrants and their origin

Firm performance in the financial industry: the role of foreign entrants and their origin

Does Financial Development Raise Tourism Demand? A Cross-Country Panel Evidence

Challenge or chance? Understanding the impact of anti-corruption campaign on China’s hotel industry

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