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Open Access
Article
Publication date: 9 June 2023

Segun Thompson Bolarinwa and Munacinga Simatele

The paper validates the threshold argument in the informality–poverty nexus. Recent literature and policy have argued the existence of a threshold in the relationship.

Abstract

Purpose

The paper validates the threshold argument in the informality–poverty nexus. Recent literature and policy have argued the existence of a threshold in the relationship.

Design/methodology/approach

The study adopts dynamic panel threshold analysis, estimated within the framework of system Generalized Method of Moments (SGMM) to control for endogeneity and simultaneity. Data from 40 selected sub-Saharan African countries between 1991 and 2018 are used for the study.

Findings

Empirical results confirm the existence of an average threshold of 31% share of informality in GDP. Also, the paper finds that threshold of informality that addresses mild and severe poverty varies between 24.32 and 36.75%.

Research limitations/implications

The work is limited to African economies. Evidence from other emerging and developed economies is suggested for further research.

Practical implications

Overall, the empirical results indicate a threshold in the informality–poverty nexus. Therefore, an excessive informality level does not benefit the African growth process. Policymakers and governments are advised to operate within the bounds of the threshold of informality that reduces poverty and improve the African economic growth process.

Originality/value

The paper is the first study to provide empirical findings on the nonlinear and threshold argument in the informality–poverty nexus, as far as the authors know.

Details

African Journal of Economic and Management Studies, vol. 15 no. 1
Type: Research Article
ISSN: 2040-0705

Keywords

Open Access
Article
Publication date: 24 January 2023

Ngoc Minh Nguyen

The paper examines the impact of foreign direct investment (FDI), either greenfield investment or cross-border mergers and acquisitions (M&As), on domestic entrepreneurship.

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Abstract

Purpose

The paper examines the impact of foreign direct investment (FDI), either greenfield investment or cross-border mergers and acquisitions (M&As), on domestic entrepreneurship.

Design/methodology/approach

This paper uses a panel dataset of 104 countries over ten years from 2006 to 2015 and multiple econometric techniques to control for potential endogeneity bias.

Findings

FDI, both in the form of greenfield investment and cross-border M&As, exerts positive spillover that encourages domestic entrepreneurial activities. While the benefit of greenfield investment in entrepreneurship is more pronounced in countries with higher levels of market capacity and institutional support, that of cross-border M&As is not influenced by these factors. On the other hand, human capital is important in promoting the positive effects of both types of FDI, and unless the level of human capital in the host economies reaches a certain threshold, greenfield investment can adversely affect domestic entrepreneurship.

Practical implications

Policies toward FDI need to focus on promoting the driving forces behind FDI spillover to counteract the potential negative crowding-out effect of FDI.

Originality/value

The paper contributes to the existing literature investigating the impact of FDI on domestic entrepreneurship by distinguishing between the two FDI modes of entry and taking into account the moderating effects of sociopolitical characteristics of the host economies.

Details

Journal of Economics and Development, vol. 25 no. 1
Type: Research Article
ISSN: 1859-0020

Keywords

Open Access
Article
Publication date: 11 November 2020

Filzah Md Isa, Shaista Noor, Goh Wei Wei, Sharifah Diyana Binti Syed Hussain, Hairunnisa Mohamad Ibrahim and Muhd Afiq Syazwan Ahmdon

Malaysia is considered to be a relatively young country as compared to other older countries such as Japan, China and Australia in terms of the ageing population. However, until…

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Abstract

Purpose

Malaysia is considered to be a relatively young country as compared to other older countries such as Japan, China and Australia in terms of the ageing population. However, until 2035, Malaysia will be in the ageing group countries as 15% of the entire population will be above 60 years of age. This situation is quite alarming as more and more ageing care centres will be required to fulfill the ongoing demands of the ageing population. The elderly care centres in Malaysia are categorised as public (sponsored by the government), private, and charity based that comes under religious centres. Currently, there are about 365 registered elderly care centres working in the main states of Malaysia, including Sabah and Sarawak, two states of the East Malaysia. Due to the importance of ageing population issues, the present study is conducted to explore the demographics facet of Malaysian’s elderly care centres. The main reason behind that lies on the fact that many of these centres are still labelled as being not well equipped and lacking behind in trained staff, equipment and also suffering from severe financial constraints but some still capable of working on a sustainability basis.

Design/methodology/approach

Qualitative Research Strategy has been adopted, and 28 centres throughout Malaysia are included in this study. About 18 Operators from different centres and 15 caregivers were interviewed to get the holistic view of ageing care and facilities in their respective centres.

Findings

The results highlight that the majority of centres are not receiving any financial help from the government, and few centres are doing small business such as supplying consumable medical and non-medical items and providing renting and rehabilitation centres facilities to sustain. The caregivers are facing issues such as excess workload, less salary, peer conflicts and non-cooperative centre leadership.

Originality/value

The present study may help to provide useful information to the policymakers, which enables them to formulate the strategies for ageing care centres in Malaysia. As this study provides insight of components that have an impact on the overall wellbeing of elderly care centres, hence, it could help the care services providers to act as a rising star for Malaysian’s social life comfort.

Details

PSU Research Review, vol. 6 no. 1
Type: Research Article
ISSN: 2399-1747

Keywords

Open Access
Article
Publication date: 30 July 2021

Tien Ha My Duong, Thi Anh Nhu Nguyen and Van Diep Nguyen

The paper aims to examine the impact of social capital on the size of the shadow economy in the BIRCS countries over the period 1995–2014.

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Abstract

Purpose

The paper aims to examine the impact of social capital on the size of the shadow economy in the BIRCS countries over the period 1995–2014.

Design/methodology/approach

The authors employ the Bayesian linear regression method to uncover the relationship between social capital and the shadow economy. The method applies a normal distribution for the prior probability distribution while the posterior distribution is determined using the Markov chain Monte Carlo technique.

Findings

The results indicate that the unemployment rate and tax burden positively affect the size of the shadow economy. By contrast, corruption control and trade openness are negatively associated with the development of this informal sector. Moreover, the paper's primary finding is that social capital represented by social trust and tax morale can hinder the size of the shadow economy.

Research limitations/implications

This study is limited to the case of the BRICS countries for the period 1995–2014. The determinants of the shadow economy in different groups of countries can be heterogeneous. Moreover, social capital is a multidimensional concept that may consist of various components. This difficulty of measuring the social capital calls for further research on the relationship between other dimensions of social capital and the shadow economy.

Originality/value

Many studies investigate the effect of economic factors on the size of the shadow economy. This paper applies a new approach to discover the issue. Notably, the authors use the Bayesian linear regression method to analyze the relationship between social capital and the shadow economy in the BRICS countries.

Details

Asian Journal of Economics and Banking, vol. 5 no. 3
Type: Research Article
ISSN: 2615-9821

Keywords

Open Access
Article
Publication date: 24 October 2022

Marcela Maestre Matos, Jahir Lombana-Coy and Francisco J. Mesías

This study aims to identify informal institutions for bottom-of-the-pyramid (BoP) business models in the agricultural sector through the case study of banana growers’ cooperatives.

Abstract

Purpose

This study aims to identify informal institutions for bottom-of-the-pyramid (BoP) business models in the agricultural sector through the case study of banana growers’ cooperatives.

Design/methodology/approach

A case study of six banana cooperatives from Colombia was conducted. The research followed a mixed design, using both qualitative and quantitative data and the application of structural equations.

Findings

This study shows that social capital, networking and alliances are essential in BoP businesses.

Originality/value

Authors defined a model of informal institutional factors for the generation of economic and social value in inclusive business, using the new institutional theory and the conceptual development of BoP in agri-business.

Details

Journal of Economics, Finance and Administrative Science, vol. 28 no. 55
Type: Research Article
ISSN: 2218-0648

Keywords

Open Access
Article
Publication date: 17 October 2022

Adi Saifurrahman and Salina Kassim

The primary objective of this paper is to identify and compare the collateral imposition practices among Islamic banks in Indonesia to serve micro, small and medium-sized…

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Abstract

Purpose

The primary objective of this paper is to identify and compare the collateral imposition practices among Islamic banks in Indonesia to serve micro, small and medium-sized enterprise (MSME) clients and explore the experiences and perceptions of MSME entrepreneurs pertaining to collateralisation in MSME financing.

Design/methodology/approach

This study was carried out by implementing a case study research strategy. The data was gathered primarily through the interview by utilising purposive uncontrolled quota sampling. The interview was conducted using semi-structured interview questions by targeting the two sides of Islamic financial inclusion: the Islamic banking industry (supply-side) and the MSME segment (demand-side).

Findings

This paper implies that the collateral provision is indeed an obligatory requirement for MSME to access regular financing in an Islamic bank, preferably the immovable type that consists of land and property. Subsequently, although the Islamic banks offer non-collateralised financing, their disbursement is still relatively scant and limited. Furthermore, despite the collateral issues, most MSME entrepreneurs positively perceive the bank’s collateralisation practice, indicating their awareness and understanding of the collateral purpose and function to access the financing facility.

Research limitations/implications

This paper merely observed six Islamic bank institutions and 22 MSME units in urban and rural areas in Indonesia using a case study approach. Therefore, the empirical findings and case discussions were limited to those around the corresponding Islamic banks and MSME participants.

Practical implications

By referring to the several disclosed issues associated with the collateral imposition practices, this paper presents several recommendations that might be considered by the policymakers and the Islamic banking industry to enhance the realisation of MSME Islamic financial inclusion from the collateral implementation aspect, and thereby, facilitating more inclusive growth for the MSME industry.

Originality/value

This paper is unique since the paper attempts to analyse and compare the collateral imposition practices and its perception from the two distinct sides of Islamic financial inclusion that were represented by Islamic banks and MSMEs in Indonesia by including different types of Islamic banks and different segments of MSME in their diverse business sector within the urban and rural locations.

Details

Islamic Economic Studies, vol. 30 no. 1
Type: Research Article
ISSN: 1319-1616

Keywords

Open Access
Article
Publication date: 3 February 2023

Kesavan Manoharan, Pujitha Dissanayake, Chintha Pathirana, Dharsana Deegahawature and Renuka Silva

Labour efficiency is the key component for the long-term sustainability of construction firms. Recent studies show that modernising organisational/managerial processes is…

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Abstract

Purpose

Labour efficiency is the key component for the long-term sustainability of construction firms. Recent studies show that modernising organisational/managerial processes is necessary to raise labour efficiency in many emerging nations. Construction supervision is a crucial element in organisational/managerial practices, which provide blood circulation to the project operations by directing labour. Accordingly, this study aims to quantify the impacts of crucial organisational/managerial elements on the efficiency of labour in building construction projects based on the viewpoint of construction supervisors.

Findings

A total of 28 factors were determined as critical, where lack of labour motivation, poor labour training facilities, poor performance evaluation practices, no labour rewarding mechanism and poor communication/cooperation between parties were judged to be the top five key issues in the list. The validity and reliability of the study findings were ensured through statistical tests and the experts' discussion outcomes. In view of the evolving challenges facing the industry, the results indicate that the organisational policies of construction enterprises in place addressing financial procedures, communication strategies, resource management and performance management practices must be enhanced.

Research limitations/implications

The study findings will make a substantial contribution to reducing the disparity between organisation/management policies and labour practices towards changing how the sector operates to increase labour efficiency in construction projects.

Originality/value

This study contributes to addressing the knowledge gap in the industry associated with the organisational protocols, especially to understand/predict how such elements are significant, how much they influence the efficiency of construction practices and what steps can be made to limit their effects on labour efficiency in construction. These could be crucial in modernising organisational policies and procedures for construction management.

Details

International Journal of Industrial Engineering and Operations Management, vol. 5 no. 1
Type: Research Article
ISSN: 2690-6090

Keywords

Open Access
Article
Publication date: 28 June 2021

Eduardo Ordonez-Ponce, Amelia Clarke and Adriane MacDonald

This study aims to understand how businesses can contribute to the achievement of the UN sustainable development goals (SDGs) by implementing Local Agenda 21 (or equivalent) plans…

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Abstract

Purpose

This study aims to understand how businesses can contribute to the achievement of the UN sustainable development goals (SDGs) by implementing Local Agenda 21 (or equivalent) plans in partnership with other organizations situated in their city. To this end, the present study examines drivers and outcomes from the perspective of business partners, as well as their relationships to the SDGs.

Design/methodology/approach

Through a mixed-methods approach this research studies 71 businesses from four large cross-sector partnerships formed to achieve local sustainability goals. Data were collected through a survey to determine why firms partner and what outcomes they obtain from partnering. Qualitative content analyses are used to determine the relationships between business drivers and outcomes from partnering for local sustainability and the SDGs.

Findings

From a resource-based view (RBV) perspective, findings show the value of local sustainability partnerships in relation to the SDGs. Many SDG targets are aligned with the top reasons why businesses join large community sustainability partnerships. Also, through the outcomes achieved by participating in the partnership businesses can further the SDGs.

Research limitations/implications

This research contributes to the literature and to practice through the understanding of businesses partnering for local sustainability, and its relationships to global sustainability. Firstly, the connections of business partners to local and global sustainability are better understood. Of note is the contribution made to the literature on sustainability-related drivers and outcomes expanding and refining RBV literature. Secondly, a positive connection has been established between businesses and the SDGs, proposing a virtuous model of relationship that summarizes the findings from this research. And thirdly, large cross-sector social partnerships are better understood.

Practical implications

Small- and medium-sized enterprises and large corporations with local offices can further both local and global sustainable development by engaging in local cross-sector sustainability partnerships.

Social implications

These research findings are crucial for those leading sustainability initiatives, so they can engage businesses actively in light of the important role they play in society improving their contributions and the chances for sustainability partnerships to achieve their goals.

Originality/value

This research contributes to the scale conversation by exploring community sustainability partnerships as a means to understand how business engagement in sustainability at the local level can contribute to the achievement of the SDGs and, ultimately, to global sustainability.

Details

Sustainability Accounting, Management and Policy Journal, vol. 12 no. 6
Type: Research Article
ISSN: 2040-8021

Keywords

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