What drives the differences in domestic value added in exports between old and new E.U. member states?

Vrh, Nataša

doi:10.1080/1331677x.2018.1438910

Cited by 28 publications

(21 citation statements)

References 37 publications

(38 reference statements)

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“…A sizable section of the literature has reported the presence of high DVA-content in developed country exports (Cappariello, 2012;Dollar et al, 2019a;Vrh, 2018;Wang et al, 2017). GVC participation has deepened in several Asian developing countries, with a transition in their DVA-content as well (Javed & Atif, 2021;Javorsek & Camacho, 2015;Taguchi, 2014).…”

Section: Review Of Literaturementioning

confidence: 99%

Determinants of Domestic Value Added in Exports: Empirical Evidence from India’s Manufacturing Sectors

Aggarwal

Chakraborty

Bhattacharyya

2021

Global Business Review

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Over the last decade, trade policy reforms have significantly influenced the internationalization of Indian manufacturing firms, leading to deeper participation of the country in global value chains (GVCs) and international production networks (IPNs). With the growing participation of foreign firms in the value chain, the domestic value-added (DVA) content embodied in Indian exports have displayed a declining trend. Recently, in 2020, India has decided to launch the ‘Atmanirbhar (self-reliant) Bharat Abhiyan’, which, in principle, aims to consolidate the manufacturing sector, leading to increasing DVA embodied in exports (DVA-content), apart from employment generation. The current article attempts to analyse the drivers of India’s DVA in exports for select manufacturing industries over 2000–15 by using the OECD trade in value added (TiVA) database. The empirical results reveal that sectoral DVA content is positively influenced by both domestic capital and foreign direct investment (FDI), and labour skill intensity, but negatively influenced by the presence of unskilled workers. Moreover, FDI inflows in sectors characterized by high skill-intensity and high-relative growth rate play a crucial role in influencing DVA content. Finally, the presence of larger and more capital-intensive firms is found to be a major driver of DVA. On the policy front, therefore, the empirical results underline that export promotion policies alone will not be able to resolve employment worries, a major concern in India, as vast numbers of unskilled and low-skilled workers trapped in the agricultural sector or working in unorganized and micro-industries fail to figure in the country’s export value addition. A concerted effort towards labour skill enhancement as well as technology transfer is necessary for exports to play a more positive role.

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Section: Review Of Literaturementioning

confidence: 99%

Determinants of Domestic Value Added in Exports: Empirical Evidence from India’s Manufacturing Sectors

Aggarwal

Chakraborty

Bhattacharyya

2021

Global Business Review

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“…On the basis of FDI theory, Franco et al (2008), Hou (2003) researched that FDI decisions are backed by three motivations includes, search for market, resource, and efficiency. According to Vrh (2018), international performance is highly influenced by investments (tangible plus intangible both). Chiu et al (2015), Lu and Beamish (2001) analyzed the motivations" impact on subsidiary performance which helps to examine reasons why firms employ FDI strategy and how it is related to performance and growth.…”

Section: Parents' Related Attributesmentioning

confidence: 99%

Can Parents Be Attributed to Their Subsidiary Performance? A Multi-Level Analysis for Performance Determinants of Multinational Enterprises in Pakistan

Zahra¹,

Siddiqui²

2020

WJBM

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International firms are highly sensitive to the performance of their subsidiaries and want to understand the factors behind their monetary success. Thus, numerous strategies are employed by these International firms to explore subsidiaries’ performance determinants; usually, these include subsidiary level attributes, ignoring the parent’s impact along with its country. To address this gap we construct a multi-level research that focuses the subsidiary, parent attributes along with countries’ Governance Indicators while predicting the determinants of subsidiary performance in Pakistan.We use two different levels i.e. parent & subsidiary level; multi-level analysis approach with HLM (Hierarchical Linear Model) in this research paper. Governance indicators of both parents and subsidiaries were taken explanatory factors along with Market growth, size, Performance, R & D, capital structure as well as asset management policies of parent. Subsidiary level factors included parents’ ownership, size, equity, and capital investment. 26 multinational companies listed on Pakistan Stock Exchange were included. Data was taken from the year 2012 to 2018. Selected companies cover around ten sectors of Pakistan Stock Exchange.The study revealed that on both levels; parents and subsidiaries, Governance institutions are more influencing factors rather than companies’ own attributes. We recommend that before investing in a country, international businesses should take into account Governance institutions (by World Bank); more than their own attributes.Originality/value - This study contributes to the existing approaches to determining subsidiary performance through adding Governance institutions and parent level attributes. Especially it explores the determinants of subsidiary performance in a developing country; Pakistan in the Asia continent.

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“…Firms' resources and capabilities influenced and/or reinforce strategy in external markets, then positive impact on performance (Dhanaraj and Beamish, 2003;Monteiro et al (2019). Tangible and intangible investments will further influence international performance (Vrh, 2018). Referring to the FDI theory, there are three motivations for doing FDI: market-seeking, resource-seeking and efficiency-seeking (Franco et al, 2008;Hou, 2002).…”

Section: Parent Company Attributesmentioning

confidence: 99%

Determinants of international subsidiaries’ performances

Tan

2019

IJOEM

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Purpose One important strategy Multinational Enterprises (MNEs) employ to compete in the global market is to engage in foreign investment, but firms must know how they can perform better in the host country market. International subsidiaries’ performances play a chief role for MNEs’ globalization strategy. The purpose of this paper is to construct multi-level research with parent-level data at the higher level and subsidiary-level data at the lower level. Design/methodology/approach This study helps capture the rapid growing trend in emerging markets and uses a sample of Taiwanese enterprises and their subsidiaries in China. The data come from the Taiwan Economic Journal database. Precisely, the authors obtain 711 Taiwanese MNEs and 4,458 of their subsidiaries in China. Findings This study finds among the parent company’s attributes that firm size, firm total performance, depth of internationalization and foreign shareholding have significant impacts on subsidiary performance, while within the subsidiary’s attributes, subsidiary size, subsidiary-owned capital and total investment fund significantly affect subsidiary performance. Originality/value In order to capture subsidiary performance, this study uses a multi-level analysis approach with the Hierarchical Linear Model statistic method to separate parent company attributes and subsidiary-owned attributes as two distinct levels. This method fills the gap in the literature by analyzing subsidiary performance and clarifying that foreign direct investment is a multi-level phenomenon that cannot be analyzed using a one-level analysis method.

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What drives the differences in domestic value added in exports between old and new E.U. member states?

Cited by 28 publications

References 37 publications

Determinants of Domestic Value Added in Exports: Empirical Evidence from India’s Manufacturing Sectors

Determinants of Domestic Value Added in Exports: Empirical Evidence from India’s Manufacturing Sectors

Can Parents Be Attributed to Their Subsidiary Performance? A Multi-Level Analysis for Performance Determinants of Multinational Enterprises in Pakistan

Determinants of international subsidiaries’ performances

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