FALL 2013
VOLUME14, NUMBER2

DOES THE PERCEIVED ENJOYMENT OF SOCIAL NETWORK SITES INFLUENCE THE DEVELOPMENT OF SOCIAL CAPITAL? A COMPARATIVE STUDY OF JAPAN AND BRAZIL

Marcos Hideyuki Yokoyama

This study examines the relationship between the use of Social Network Sites and the formation of social capital. Using data from a web survey of employees in Japan (n = 244) and Brazil (n = 251), positive associations between SNS use and social capital development were found in both countries. Cultural differences seem to influence this process; in Brazil, intensity of SNS use has a stronger association with bridging and bonding social capital when perceived enjoyment is high; in Japan, employees use SNS for usefulness and enjoyment reasons, but perceived enjoyment does not interfere with social capital gains. Implications and future research are discussed.


https://doi.org/10.51240/jibe.2013.2.1          PDF

DETERMINANTS OF FDI INFLOWS TO DEVELOPING COUNTRIES: A PANEL DATA ANALYSIS

Qayoom Ab, Ramachandran Muthiah, and Sofi Irfan

The aim of this paper is to identify, by estimating a panel econometric model, the factors determining FDI inflows to developing countries over a long period. The study is based on a sample of 32 developing countries. In our analysis, FDI inflows are modeled as a function of the market size, total reserves, infrastructure, labour cost and degree of openness-for the host countries. Using data from 1982 to 2008, a panel data estimator suggests that the market size, total reserves, infrastructure and labour costs are the main determinants of FDI inflows to developing countries. Our interesting finding is that openness of an economy is insignificant in determining the FDI inflows.


https://doi.org/10.51240/jibe.2013.2.2          PDF

MOVING BEYOND FDI AND CLUSTERS: PLATFORM PERSPECTIVE TOWARDS MUTUAL VALUE CREATION

So Hyun Yim

This paper integrates two independent studies of foreign direct investment and cluster through platform perspective. In order to sustain and maximize rent creation for both the investing firm and the host country, this paper suggests a shift in our perspective from exploiting advantages unilaterally to creating values mutually. Four factors, compatibility, complementarity, connectivity and commerciality, are presented to have positive impacts on sustaining value co-creation and maximizing spillover effects. The four factors, carefully chosen through rigorous studies from the platform perspective as well as other relevant studies, give meaningful implications for carrying out effective and sustainable ODA and CSR activities as well.


https://doi.org/10.51240/jibe.2013.2.3          PDF

FORECASTING STOCK MARKET VOLATILITY: EVIDENCE FROM SIX EMERGING MARKETS

Naliniprava Tripathy and Ashish Garg

This paper forecasts the stock market volatility of six emerging countries by using daily observations of indices over the period of January 1999 to May 2010 by using ARCH, GARCH, GARCH-M, EGARCH and TGARCH models. The study reveals the positive relationship between stock return and risk only in Brazilian stock market. The analysis exhibits that the volatility shocks are quite persistent in all country’s stock market. Further the asymmetric GARCH models find a significant evidence of asymmetry in stock returns in all six country’s stock markets. This study confirms the presence of leverage effect in the returns series and indicates that bad news generate more impact on the volatility of the stock price in the market. The study concludes that volatility increases disproportionately with negative shocks in stock returns. Hence investors are advised to use investment strategies by analyzing recent and historical news and forecast the future market movement while selecting portfolio for efficient management of financial risks to reap benefits in the stock markets.


https://doi.org/10.51240/jibe.2013.2.4          PDF

EXPORT-LED GROWTH HYPOTHESIS: ECONOMETRIC EVIDENCE FROM MALAYSIA

Hassanudin Mohd Thas Thaker, Tan Siew Ee, and Sushant Vaidik

The objective of this paper is to test the validity of the Export-led Growth Hypothesis (ELGH) in the Malaysian economy. Malaysia has always been considered to have attained its growth primarily through exports (Okposin, Bassey, Hamid, Halim, and Boon, 1999; Mun, 2008; Mahathir, 1990). In the past, several studies on this topic have been conducted but their analyses were limited to relationships using Bound-testing, Autoregressive –Distributed Lag (ARDL) and the Toda Yamamoto analysis. Empirical data and analysis in our paper cover a 21 – year span and quarterly time-series data (1991:Q1 – 2012:Q4) are used to test this ELG hypothesis. Also, many dynamic econometric measures including the Augmented Dickey Fuller (ADF) and Phillip – Perron (PP) unit root tests, Cointegration test as well as the Vector Error Correction model (VEC) for the long run have been applied. Based on these generic models, both real exports and capital stock (productivity) are found to have stimulated positive adjustments to economic growth in the long run whereas real exchange rate is found to have influenced economic growth negatively. Overall, our conclusion is that the ELG hypothesis seems applicable to Malaysia in the long run.


https://doi.org/10.51240/jibe.2013.2.5          PDF