Eliza Nor, Tajul Ariffin Masron and Xiang Hu
This study analyzes the impact of exchange rate volatility (ERV) on inbound tourist arrivals from four ASEAN countries namely Indonesia, the Philippines, Singapore, and Thailand…
Abstract
This study analyzes the impact of exchange rate volatility (ERV) on inbound tourist arrivals from four ASEAN countries namely Indonesia, the Philippines, Singapore, and Thailand during 1970–2017. Volatility in the exchange rates between the tourist currency and ringgit Malaysia is measured using the Generalized Autoregressive Conditional Heteroskedasticity model. The results from Autoregressive Distributed Lagged models indicate that ERV has no significant impact on tourist arrivals from ASEAN to Malaysia. This implies that tourists from these countries may not be sensitive to ERV when choosing Malaysia as their travel destination. There are two possible explanations for the results. First, Malaysian ringgit has been depreciating against major currencies and regional currencies in recent years, which makes ringgit relatively cheaper than other ASEAN currencies. Second, the empirical results of the study support the argument that ERV has a more serious impact on tourist spending compared to tourist arrivals.
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Tatre Jantarakolica and Korbkul Jantarakolica
For the past decades, issues concerning the impact of economic integration on financial integration, especially exchange rate integration, has been criticized among several…
Abstract
For the past decades, issues concerning the impact of economic integration on financial integration, especially exchange rate integration, has been criticized among several regions such as ASEAN. This chapter intends to: (i) test for the exchange rate integration among the ASEAN-5, including Indonesia, Philippines, Malaysia, Singapore, and Thailand, using panel data techniques; and (ii) determine the impact of economic integration on the level of exchange rate integration among the ASEAN-5 countries. The purchasing power parity (PPP) is tested using panel unit root tests on monthly data. The results confirm the PPP among the ASEAN-5 countries due to lower transaction costs from ASEAN agreements. The chapter applies Multivariate GARCH (M-GARCH) models using daily data to determine the level of exchange rate integration among the ASEAN-3, including Malaysia, Singapore, and Thailand. The results of panel cointegration tests using quarterly data of economic integration and exchange rate integration confirm the impact of international trade openness on exchange rate integration. With free trade agreements leading to lower trade barriers, lower transaction costs, and low transportation costs, the economic integration among ASEAN countries practically leads to a higher degree of exchange rate integration. The findings imply that trade liberalization has the strongest effect on the real exchange rate. As such, regulators of ASEAN countries should pay more attention to the exchange rate policies of each other because of the interdependence of their exchange rates.
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Kamal Upadhyaya and Bruno Barreto de Góes
This paper aims to study the impact of economic freedom and some key macroeconomic variables on the foreign direct investment (FDI) inflow in Brazil.
Abstract
Purpose
This paper aims to study the impact of economic freedom and some key macroeconomic variables on the foreign direct investment (FDI) inflow in Brazil.
Design/methodology/approach
An econometric model is developed that includes FDI inflow as the dependent variable and macroeconomic variables such as the output, current account balance, the real exchange rate, openness and economic freedom as explanatory variables. Annual time series data from 1995 to 2022 is used. Before carrying out the estimation, the time series properties of the data are diagnosed using unit root tests and cointegration tests. Since the data series were found to be stationary in the first difference form and the variables in the model were cointegrated, an error correction model is developed and estimated.
Findings
The findings demonstrate that the size of the market (gross domestic product), current account balance and the economic freedom index significantly influence FDI inflow to Brazil. Although the signs of openness and the real exchange rate align with theoretical expectations, they do not attain statistical significance.
Originality/value
To the best of the authors’ knowledge, this is the first formal study on the impact of economic freedom on the FDI inflow in Brazil. The finding of this study adds value to the understanding of FDI dynamics in Brazil, highlighting the critical role of economic freedom and market size in attracting foreign investment.
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Katerina Berezina, Olena Ciftci and Cihan Cobanoglu
Purpose: The purpose of this chapter is to review and critically evaluate robots, artificial intelligence and service automation (RAISA) applications in the restaurant industry to…
Abstract
Purpose: The purpose of this chapter is to review and critically evaluate robots, artificial intelligence and service automation (RAISA) applications in the restaurant industry to educate professors, graduate students, and industry professionals.
Design/methodology/approach: This chapter is a survey of applications of RAISA in restaurants. The chapter is based on the review of professional and peer-reviewed academic literature, and the industry insight section was prepared based on a 50-minute interview with Mr. Juan Higueros, Chief Operations Officer of Bear Robotics.
Findings: Various case studies presented in this chapter illustrate numerous possibilities for automation: from automating a specific function to complete automation of the front of the house (e.g., Eatsa) or back of the house (e.g., Spyce robotic kitchen). The restaurant industry has already adopted chatbots; voice-activated and biometric technologies; robots as hosts, food runners, chefs, and bartenders; tableside ordering; conveyors; and robotic food delivery.
Practical implications: The chapter presents professors and students with a detailed overview of RAISA in the restaurant industry that will be useful for educational and research purposes. Restaurant owners and managers may also benefit from reading this chapter as they will learn about the current state of technology and opportunities for RAISA implementation.
Originality/value: To the best of the authors’ knowledge, this chapter presents the first systematic and in-depth review of RAISA technologies in the restaurant industry.
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Mohsen Bahmani-Oskooee and Augustine Chuck Arize
The purpose is to assess the asymmetric effects of exchange rate changes on the trade balance using data from African nations.
Abstract
Purpose
The purpose is to assess the asymmetric effects of exchange rate changes on the trade balance using data from African nations.
Design/methodology/approach
The methodology is based on the most recent development in asymmetry cointegration and error-correction modeling.
Findings
While the authors find short-run asymmetric effects in many of the countries in their sample, asymmetry cointegration yields support for the new definition of the J-curve in Algeria, Cameroon, Ethiopia, Morocco, Tanzania and Zambia.
Originality/value
This is the first study that applies nonlinear ARDL approach of Shin et al. (2014) using data from each of the 13 countries in Africa.
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Mohsen Bahmani-Oskooee and Tatchawan Kanitpong
The purpose of this paper is to assess asymmetric effects of exchange rate changes on Thailand’s trade balances.
Abstract
Purpose
The purpose of this paper is to assess asymmetric effects of exchange rate changes on Thailand’s trade balances.
Design/methodology/approach
The design methodology is based on the nonlinear ARDL approach of Shin et al. (2014).
Findings
The authors find strong support for the asymmetric effects of exchange rate changes on the Thailand trade balance with most partners, including the three largest partners, China, Japan and the USA.
Research limitations/implications
The long-run asymmetric effects revealed that while baht depreciation will hurt Thailand’s trade balance with China, it will improve its trade balance with the USA and has no effects with Japan.
Practical implications
The trade balance of different partners reacts differently to currency depreciation.
Social implications
A currency depreciation that improves the trade balance by promoting exports also helps to reduce the rate of unemployment.
Originality/value
No study has assessed the asymmetric effects of exchange rate changes on the Thailand’s trade balance with its major partners.
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This article presents a problem situation for study of the vexed eco‐bureau‐political question of job reservation in public administration, public sector and government‐aided…
Abstract
This article presents a problem situation for study of the vexed eco‐bureau‐political question of job reservation in public administration, public sector and government‐aided educational institutions. Such reservation in preference to the Union of India was augmented from 22.5 to 49.5 per cent in 1993. This was aimed at achieving “equity” causing distributive growth of the economy but growth itself may be thwarted by “efficiency” losses in public management. It could be that under a less equitous regime there is more growth so that the targeted protected groups end up with larger “entitlement”. The present dispensation gives larger “empowerment” in addition to extension of statutory representation to the “disadvantaged” and “deprived” groups in local‐level government. The article concludes with a review of the literature and some facts and data on the situation and basic conceptualization to clear the deck for research in the area which has been negligible and situate some hypotheses which may be demolished or proved.
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Dharmendra Dhakal, Gyan Pradhan and Kamal P. Upadhyaya
The purpose of this paper is to examine the economic development strategies of Nepal and Bhutan to understand the economic factors that have contributed to economic growth.
Abstract
Purpose
The purpose of this paper is to examine the economic development strategies of Nepal and Bhutan to understand the economic factors that have contributed to economic growth.
Design/methodology/approach
After a brief discussion of each country's modern history, their economies are examined together with their development strategies during the past half century. Standard economic growth models for Nepal and Bhutan are developed and estimated. To ensure the stationarity of the data series, tests of unit root are conducted. Further, a cointegration test is conducted and an appropriate error‐correction model is developed.
Findings
The results of the estimations reveal that domestic capital has been a significant source of economic growth in Nepal whereas foreign aid has not had any appreciable effect on growth. In the case of Bhutan, foreign assistance has been a significant source of growth while domestic capital has not.
Research limitations/implications
Bhutan and Nepal also differ in terms of non‐economic factors such as culture, language, politics, and religion. These factors may also help to explain the difference in economic performance of these countries. While important, these issues are beyond the scope this paper and indicate directions for further research.
Originality/value
It is one of the first attempts to compare the economic growth strategies of Nepal and Bhutan. It may provide useful insight to policymakers and others interested in economic growth in Nepal, Bhutan and other developing countries.
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Herbert Wamalwa, Radha Upadhyaya, Paul Kamau and Dorothy McCormick
While many studies have discussed the regulatory constraints that hinder industrial development in sub-Saharan Africa, little attention has been paid to the behavior of those…
Abstract
Purpose
While many studies have discussed the regulatory constraints that hinder industrial development in sub-Saharan Africa, little attention has been paid to the behavior of those firms that succeed despite a challenging business environment. The purpose of this paper is to fill this gap by focusing on specific strategies of a subset of successful industrial firms in Kenya.
Design/methodology/approach
The paper draws on two data sets. First, a quantitative data set based on a survey of food processing firms provides an overall profile of the sub-sector and the strategies employed by successful Kenyan firms. Second, qualitative in-depth case studies unpack the concept of strategy from the perspective of the firm, with the aim of showing the links between vision and strategy and the adaptive nature of firm strategy.
Findings
The quantitative data set reveals that the most important strategies used by agri-processing firms are differentiation strategies (selling at a premium), cost reduction strategies and niche strategies. A second major finding, based on the case study interviews, is that Kenyan firms adopt a combination of strategies to cope with the volatile business environment and grow their market. Furthermore, the qualitative interviews reveal that the vision of the leader is linked to firm strategy and firms follow an adaptive approach to strategy development.
Originality/value
The paper’s original contribution is the conclusion that while the existing typologies of strategy were acknowledged by respondents, their actual strategies were composites resulting from adaptive strategy development. This conclusion was made possible by the paper’s mixed methods approach.
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James W. Gabberty and Jennifer D.E. Thomas
This paper examines the depth, erudition, and rigor of contemporary research on knowledge management as a causal factor that influences the ultimate outcome of multinational…
Abstract
This paper examines the depth, erudition, and rigor of contemporary research on knowledge management as a causal factor that influences the ultimate outcome of multinational corporation (MNC) expansion, bounded by the confines of information and communication technology (ICT) competences identified as behavioral, business, and technological. Through discussion highlighting the dominant knowledge management (KM) research themes within the milieu of the global firm, readers will gain definitive and practical insight into relevant topics that may be used to stimulate development of growth strategies for the firm.