Competition In Domestic Market Research Articles

Policy lessons from Okun’s law for African countries

ABSTRACT This article explores the intricate relationship between economic growth and unemployment across multiple African countries, with a focus on estimating the Okun’s coefficient. Data from the International Labour Office (ILO) and the World Bank’s databases for 39 African nations were utilised. Two distinct methodological approaches, first differences and the Hodrick-Prescott (HP) filter, were employed to assess result robustness. Findings reveal that in most African countries, the link between GDP growth and unemployment is weak or non-existent, unlike advanced economies. This divergence underscores unique economic structures and labour dynamics in African nations, necessitating tailored approaches to address unemployment. The study also investigates factors contributing to Okun’s coefficient variability in Africa, emphasising structural, demographic, and economic influences. Demographic trends, domestic market competition, and the rule of law are identified as key determinants. Consequently, policymakers are urged to prioritise measures targeting these factors to enhance job creation and economic stability. Additionally, the study highlights the role of growth volatility, particularly in Morocco, emphasising the need for policies to stabilise economic growth and mitigate unemployment fluctuations.

FDI inflows and export quality: Domestic competition and within-firm adjustment

Product quality is widely regarded as an important determinant for economic development. This paper investigates whether horizontal foreign direct investment (FDI) improves or deteriorates the quality of domestic firms’ exports. We use China’s FDI regulation changes in 2002 as an instrument variable (IV) for FDI penetration in China to identify the causal impact and introduce a theoretical model to rationalize our empirical work. We find that FDI inflows exert a significantly negative effect on Chinese firms’ export quality. The mechanism of the negative effect is that FDI intensifies the domestic market competition, which induces within-firm adjustment of product mix and lowers domestic firms’ incentive to invest in the quality of new products. In particular, while domestic firms drop some existing products and introduce new products, they invest less in the quality of new products and maintain the quality of continuing products.

Can export trade drive green transformation development of Chinese enterprises? based on the dual perspectives of export density and export domestic value-added rate

Using the Slack Based Measure model and the globally referenced Malmquist-Luenberger index, the green total factor productivity at the enterprise level is calculated from 2002 to 2013 in this paper. Based on this, the fixed effects model, system Generalized Method of Moments, and instrumental variable method are used to examine the impact of export trade on green transformation of enterprises from two perspectives: export density and export domestic value-added rate. The results show that the increased export density and export domestic value-added rate have greatly promoted the green development of enterprises. The internal mechanism is mainly reflected in the domestic market competition channels, management channels and terminal treatment channels. Heterogeneity analysis finds that the increase in export density has a significant promoting effect on the green transformation of coastal enterprises, enterprises engaged in general trade and comprehensive trade. The green effect of increasing the domestic value-added rate of exports on private enterprises and enterprises engaged in comprehensive trade is particularly evident. Both have a strong effect on improving green total factor productivity for enterprises established less than 40 years ago. The research conclusions provide important theoretical support for the coordinated and effective promotion of the development of open economy and green transformation.

Modeling the Relationship Between Market Orientation, Learning Orientation, and Performance of Moroccan SMEs: A Structural Equation Approach

In the field of entrepreneurship, Small and Medium Enterprises (SMEs) are highly regarded due to their substantial contributions to growth, development, and innovation. In Morocco, SMEs constitute nearly 97% of the country’s production sector, span various industries, generate 38% of national wealth74% of the workforce, as per the 2021 report from the Moroccan SME Observatory. However, in the face of international trade liberalization, these businesses face intense domestic market competition, impacting their competitiveness and performance. This study explores the significance of ‘market orientation’ and ‘organizational learning orientation’ as crucial managerial practices, enabling SMEs to gain competitive advantages, market differentiation, and higher performance. Utilizing the resource-based view and dynamic capabilities theory, the research investigates how learning orientation transforms market practices into improved organizational performance. The study distributed a questionnaire to 113 Moroccan SME managers and applied the Partial Least Squares Structural Equation Modeling (PLS-SEM) method to test hypotheses. The results indicate a positive impact of market orientation on Moroccan SME performance. Additionally, the study uncovers a partial mediating effect of organizational learning orientation in this relationship. These findings suggest that enhancing organizational learning orientation can amplify the benefits of market orientation for Moroccan SMEs, providing valuable insights for strategic decisions aimed at enhancing overall performance.

Will falling domestic labor compensation share really be improved when global trade slowdown?

The participation of Global Value Chains (GVCs) in the world’s major economies has changed from rising to falling since 2010. Based on GVCs income, SDA method and multiple panel regression, this paper explores the cross-cycle effect, mechanism and persistence paths of GVCs participation on domestic labor compensation share in 51 economies from 2000 to 2018. The paper concludes that the overall effect of participating in GVCs on domestic labor compensation share is negative. However, forward participation in GVCs perform better than backward GVCs participation in stabilizing domestic labor compensation share. Capital-biased technological progress and availability of overseas labor are conditions under which the GVCs participation undermines domestic labor compensation share. This paper propose to seize the opportunity to increase the labor compensation share through measures and policies, such as promoting fair competition in domestic market, servitization of industrial structure and the establishment of relational value chains.

In the name of the family: The effect of CEO clan culture background on firm internationalization

Clan culture is a traditional culture that is widespread in Asian countries, yet little is known about its impact on crucial firm decisions, such as internationalization. Drawing on upper echelons theory and imprinting theory, we suggest that a CEO’s clan culture background impacts firm internationalization through the mechanism of imprinting and strengthening the individual value of long-term orientation, and that this effect is subject to three conditional factors. Using a unique database of Chinese publicly listed firms, we confirm that (1) CEO clan culture background is positively related to the firm’s degree of internationalization, and (2) the imprint effect is strengthened when the CEO works locally or when the domestic market competition is intensive, but is mitigated when the economic policy at home is unpredictable. Finally, implications and limitations also are discussed.

Complaint electricity customer clustering method based on electricity big data

In the fierce domestic market competition, the improvement of service quality is an important goal of electricity companies. This paper proposes the k-means algorithm based on the improved wolf pack algorithm, which is suitable for the power company complains, there are many factors that affect user complaints. Firstly, the PCA method is used to reduce the dimension of the complaint user’s behavior influencing factors, so as to improve the accuracy of clustering. Secondly, due to the shortcomings of falling into local optimal solution and low clustering accuracy, this paper proposes an improved wolf pack algorithm, which proposes the interactive strategy of walking behavior, calling behavior and an adaptive siege strategy for behavior, the clustering accuracy and convergence speed are improved.This algorithm overcomes the shortcomings of the original algorithm. Moreover, it improves the efficiency and clustering quality of the algorithm and it can realize the accurate classification of users.

A New Idea for LNG Trade: Enhancing Market Competition through a Tanker-Based Trading System

This study proposes a new idea for liquefied natural gas (LNG) trade based on Japan’s natural gas market. As part of their high rate of economic growth in recent decades, many Asian countries, including Japan, have constructed natural gas supply chains that are characterized by natural monopolies and vertically integrated companies. In addition, although Japan has a 50-year history of LNG imports, its domestic natural gas distribution mechanisms are not designed to create connections among markets. Therefore, domestic spot and futures markets have never operated efficiently. To promote Japanese domestic market competition, this study proposes a “tanker-based trading system” involving LNG tankers owned by a consortium of Japanese firms and supported by the Japanese government. This trading system would enhance the market efficiency of LNG-based operating countries. Thus, a spot market for natural gas in Japan and East Asia can be created using LNG tankers, and the natural gas trading system in Japan can play a role in spot markets similar to the Henry Hub and the National Balancing Point. DOWNLOAD HISTORY | This article has been downloaded 143 times in Digital Commons before migrating into this platform.

Analysis of Brazilian wine competitiveness

The objective of this work was to evaluate Brazilian wine competitiveness in domestic market in relation to imported wines marketed in Brazil. The work is based on quantitative sources provided by different institutions: International Organization of Vine and Wine (OIV), Brazilian Union of Viticulture (UVIBRA), Ministry of Agriculture, Livestock, and Food Supply (MAPA) and Brazilian Agricultural Research Corporation (EMBRAPA). The data referring to marketing of Brazilian and imported wines refer to the period from 1993 to 2016; and for sparkling wines data refer to the period from 1998 to 2016. During the periods evaluated, there was a 73.86% increase in wine sales and a 446% increase in sparkling wines sale; however, when we compared the volume of Brazilian wines and Brazilian sparkling wines sold, there was a reduction of 38% in the marketing of these wines, while sparkling wines commercialization recorded an increase of 518% in the volume sold. Regarding the volume of imported products, there was an increase of 737% in imported wines marketing, and an increase of 275% in imported sparkling wines marketing. In 1993, only 19.3% of imported wines were sold in relation to the total volume marketed. As of 2016, imported wines accounted for 82.1% of the volume of wines sold in Brazil. For sparkling wines, there was an inverse situation, with a reduction in the marketing of imported sparkling wines in relation to the total sold, since in 1998 imported sparkling wine accounted for 29% of Brazilian sparkling wine market and in 2016 this percentage dropped to 18.2%. It is concluded that sparkling wines are the products with greatest potential of Brazilian wine market. While still wines presents low competitiveness in relation to imported wines, being necessary to create market strategies that propitiate a greater acceptance of Brazilian wines, besides fiscal incentives to the grape producers and winemakers, reducing production costs, resulting in a lower price paid by final consumer.

The Root of American Trade Protectionism：Using its Form Evolution of Mercantilism as Clues

Since 2018, the U. S. Government has launched a massive trade war, so it is necessary to reveal its ideological and historical root. We use the form evolution of American mercantilism as clues to do it. When comparing it with the classical form of mercantilism which was popular in Europe from the 16th to 18th century, we find that American mercantilism has evolved from the traditional form to the new form. The traditional form of American mercantilism existed mainly in the era of the rise （before 1913）. In the era, mercantilists inherited the traditional thought from British mercantilists; on the other hand, according to the socioeconomic status and geopolitical environment, American politicians put forward a set of economic development strategy, which was first proposed by Alexander Hamilton, then put forward by Henry Clay. It can be summed up as the American System”, which consists of three mutually reinforcing parts: tariff protection, internal improvement and the national bank. Among them, the tariff protection policy is the most important one, by which the United States has achieved the industrialization path driven by domestic demand （Jia Genliang et al., 2017）, so trade protectionism has become a national memory in the United States. Since the collapse of the Bretton Woods System in 1971, American mercantilism has developed its new form. Compared with the classical form, the new form is really a distorted expression. On the one hand, trade deficit has become a main fulcrum to maintain dollar hegemony, while the classical form emphasizes on trade surplus. On the other hand, dollar hegemony becomes the main means of depriving other countries’ wealth. Although one is in the era of metal currency, the other in the era of credit currency, dollar hegemonism is largely as same as bullionism in essence, which is the earlier form of classical mercantilism. Nowadays, double deficits” or the coexistence of trade deficit and fiscal deficit is the most important feature in American economy, and the trade protection policy is the most important means to maintain American hegemony. Historically, there is a deep economic strategy root for the evolution of American mercantilism. In the era of the rise, the United States hoped its national strength can be improved through the development of manufactures by the tariff protection policy and domestic market competition. Since 1971, the United States hoped its dollar hegemony can be recast to intensify American hegemony, so a series of abnormal economic policies and phenomena appeared. Since then, despite the form of American mercantilism has changed completely, the old ideas in classical mercantilism such as zero-sum game” are still in vogue because of the strategic demand of American hegemony. The above analysis implies that the United States would take such strategic actions as a trade war to suppress its most important strategic rivals, while it inevitably incurs the result of lose-lose”.

Sources of state discipline: lessons from Israel’s developmental state, 1948–1973

AbstractBoth the classic literature on the developmental state and more recent accounts of rapid-innovation-based (RIB) development highlight the importance of the state's capacity to discipline underperforming firms. Although long acknowledged, the sources of this capacity remain relatively understudied, and existing knowledge draws almost exclusively on the East Asian experience. To address this lacuna, I examine the successful industrialization experience of Israel in the two and a half decades following its independence (1948–1973). Drawing on archival materials and other original sources, I identify a novel path to state discipline. Whereas East Asian developmental states became disciplinarian through their engagement with export competition, in Israel, state elites generated discipline by leveraging their embedded relations with collectively owned enterprises to foster a competitive domestic market. In the conclusion, I explore the relevance of this model for more contemporary cases of RIB development in both developed and late-developing economies.

Examining the role of international entrepreneurial orientation, domestic market competition, and technological and marketing capabilities on SME’s export performance

PurposeThe purpose of this paper is to extend our understanding of the development of small- and medium-sized enterprise (SME) organizational capabilities and their contributions to export performance by incorporating two antecedents: one from the internal environment (international entrepreneurial orientation) and another from the external environment (domestic market competition).Design/methodology/approachA proposed framework built on resource-based view and contingency theory was tested using partial least squares with data collected from 470 Korean SMEs.FindingsInternational entrepreneurial orientation and domestic market competition both prompted SMEs to develop their technological and marketing capabilities, leading to enhanced performance in international markets. Full mediating effects of technological and marketing capabilities were discovered between international entrepreneurial orientation and export performance.Practical implicationsGiven the direct effect of organizational capabilities on export performance, SMEs should facilitate the spirit of international entrepreneurial orientation and heightened managerial awareness of domestic market competition to efficiently cultivate organizational capabilities.Originality/valueUnique findings indicate that SME capabilities can be optimally cultivated under the coexistence of an internal impetus (i.e. international entrepreneurial orientation) and a harsh external environment (i.e. domestic competition), demonstrating the significance of context in developing organizational capabilities.

REAL INTEREST RATE, INFLATION, EXCHANGE RATE, COMPETITIVENESS AND FOREIGN DIRECT INVESTMENT IN KENYA

Purpose: The purpose of this study was to establish the effect of real interest rates, exchange rate, inflation and competitiveness on FDI in Kenya. Methodology: The study used annual time series data for the period 1970-2016. The sources of data included World Bank Indicators and Kenya National Bureau of Statistics annual reports. Data was collected for the variables real interest rates, exchange rates, inflation rate, competitiveness/ease of doing business and FDI. The data for all the variables was in percentage. The study employed ordinary least square regression technique to determine the effect of real interest rate, exchange rate, inflation and competitiveness on FDI in Kenya. Results: From the findings, the study concluded that real interest rates and exchange rates have negative and significant influence on FDI inflows into Kenya. Further, the study concluded that competitiveness has a positive and significant influence on foreign direct investment inflows into Kenya. However, inflation was found to have insignificant influence on FDI.Unique Contribution to Policy: There is need for favourable interest rates, desirable exchange rates and liberalization of the economy by undertaking comprehensive programmes to trade reforms, designed to open the economy and increase its competiveness. The Kenyan government should also encourage freedom of capital transactions with foreigners and competition in domestic market.

Cooperatives as a tool of development organic agriculture in Russia

The organic direction of agriculture in the world is developing rapidly, the market turnover of organic products is growing rapidly. Russia has recently embarked on the path of organic agriculture, so there are difficulties that need to be addressed. The principles of organic agriculture: high-quality environmentally friendly products, a safe environment for their production, minimizing the negative effects of agricultural production on humans and the environment are correlated with the basic provisions of food security in Russia. In many countries producers of organic products are combined in various cooperatives. The purpose of the study: to consider organic agriculture and cooperatives from the point of view of their interaction, to identify opportunities for participants, to make proposals for the development of organic cooperatives, to identify ways to implement the problems. In the process of research on the topic, the author used methods: dialectical, abstraction, observation, description, deduction and induction, logical. Analytical indicators and dynamics of the current level of development of the world market of organic products and the market of organic products in Russia show that organic agriculture is becoming increasingly popular, although it implies the introduction of greater innovations compared to traditional agriculture, which causes the need for capital. The author carefully studied the problems existing in the organic sector. As a tool to overcome the obstacles faced by small farms, the author sees cooperatives. Positive examples from foreign and domestic practice served as a guide for this conclusion. The article formulates the author's definition of an organic cooperative, defines its mission and goals. The author highlighted the reasons and inducing to join in a cooperative, as well as the advantages received from enterprises; developed the structure of the organic coop; offered various types of cooperatives for the production and promotion of organic products on the market. The results of the study will contribute to the formation and development of a competitive domestic market of organic products.

An Analysis of Corporate Social Responsibility in India

India is a developing nation where business firms related to telecom area, basic equipment etc., needed for a business or society to operate is at a developing stage. But after when lots of countries communicate and talk with each other which happened in the year 1991, when was opened up to the world and the international companies were allowed to do business in the country and invest in different parts and areas, the situation of industrial development has seen a sea-change. When Huge Companies are allowed by the government, there is bound to be extreme increase in the competition in domestic market. Each company tries its level best to prove itself in the market. They work for profit and profit becomes the very basic need for the organizations which are working in the country. But with the change in time and increase in the level of reading and writing ability rate, people who use a product or service become more and more aware and understand different things happening around them. With these changes another new idea comes out and became visible in the market which is called corporate social responsibility CSR, and each company claims to follow this responsibility. In this paper we are going to carefully study how this idea is working in India and to what extent companies are following it for social and money-based growth of the country. It will try to decide and figure out the importance of CSR; the activities big business performs under CSR, its hits, effects and coming-together.

FORMULASI STRATEGI UNTUK PENGEMBANGAN PASAR INDUSTRI SEMEN DI JAWA TIMUR

Abstract:The cement industry is facing a new business era as more cement producers joining the domestic market competition that causesthe shift on the existing cement consumption map. This research aims to identify the company’s internal and external factors and to formulate best alternative strategy for the company “A” in facing the market competition in East Java Province. The strategy is formulated by using Strengths Weaknesess Opportunities andThreats(SWOT) analysis, Strategic Position and Action Evaluation (SPACE) and Grand Strategy (GS)matrix continuedby Quantitative Strategic PlanningMatrix (QSPM). Results show thatthe company should use aggressive strategy focusing on market penetration, aggressive promotion, increased selling power, and product development in order to expand the market in East Java Province.
 Keywords: Strategy Formulation, SWOT Analysis, SPACE, GS Matrix, QSPM.

The Moderating Influence of Competitive Intensity on the Relationship between CEOs' Regulatory Foci and SME Internationalization

Abstract The international business literature has mainly focused on the impact of top managers' psychological attributes on firms' strategic decisions. However, the potential moderating influence of industry conditions such as competition, has not been well explored. Deriving insights from the regulatory focus and upper echelons theories, this paper extends the international business and regulatory focus literature by investigating how the impact influence of CEOs' regulatory foci on firms' degree of internationalization depends on the intensity of competitive market conditions. Using primary data gathered from 289 small and medium-sized enterprises (SMEs) in Ghana, the findings of the study revealed when competition is intense in the domestic market, the potency of a CEO's promotion focus as a driver of internationalization is amplified. In addition, the research shows that intense domestic market competition weakens the negative influence of a CEO's prevention focus on a firm's degree of internationalization. These findings have important research and managerial implications for international business.

Internationalization And Performance: Evidence From Bangladeshi Banks

Internationalization of banking institutions has been evident to a greater extent recently due to the advancement of technology and increased global inter-connectedness of the business world. As the 'engine of economic growth', banks are the dominant players in Bangladesh financial market following the global footprint. Due to quick market saturation, highly competitive domestic market and need for innovation, banks in Bangladesh are tending to move towards international market. While internationalization of Bangladeshi banks has been more evident in the last decade, its impact on the financial performance of the banks remains unclear and unexplored. Using six financial performance measures and five internationalization variables, this paper examines the impact of different internationalization dimensions on financial performance of Bangladeshi scheduled banks. The study estimates 18 models on panel data of 35 scheduled banks for the period from 2005 to 2014 utilizing panel regression with Dricoll-Kraay Standard Error, Prais-Winsten Panel Corrected Standard Error alongside Fixed Effect and Random Effect estimation techniques. Estimations were carried separately for 'All Banks', 'State Owned Banks (SOBs)' and 'Private Commercial Banks (PCBs)'. As impacts appear largely heterogeneous, we calculate the net effect of internationalization. Findings suggest that the overall net effect of internationalization is negative for all banks while it is significantly damaging for the SOBs. On average, PCBs appear to have accrued positive benefit out of international banking operations. The paper also finds that physical presence in foreign countries, banks' current level of internationalization and age of international operation have significant impact on most of the performance measures. While regulations specific to international banking remains very limited in Bangladesh, this research calls for immediate attention of the policy makers and regulators to facilitate the early stage internationalization wave of the Bangladeshi banking sector. This paper contributes to existing literature by: using new dimensions to define internationalization, using a wider and comprehensive set of six financial performance measures, being the first study on internationalization of Bangladeshi banks, and generating some unique findings.

Channel Selection in a Gray Market Setting: Considering the Export Tax Rebate

This paper examines the influence of gray market on manufacturer’s channel selection when considering the export tax rebate. A two-country, three-stage model is used to investigate manufacturer’s optimal operation strategy. We get the equilibrium outcomes through a Stackelberg game in different scenarios. The results show that the Company U may have incentive to encourage gray market if market demand ratio and product differentiation satisfied some condition. In a gray market setting the manufacturer prefers external sales channel with the two-part tariff contract first, a direct channel second, and external sales channel with wholesale price contract third. The study also shows that the policy of the export tax rebate will enhance manufacturer’s profit and increase sales volume of gray market goods. In the extension, if manufacturer selects the direct channel, he can achieve optimal profit by giving decision power to sales department to determine retail quantity. Because the transfer price given by the manufacturer can convey signals of domestic market competition.

Современное состояние и перспективы развития гостиничной индустрии в Китайской Народной Республике

Today the competitive struggle for a guest in the highly competitive domestic market of hospitality is sharpened. It is connected with the development of hotel business in Russia and the decision of a large number of pressing problems such as a reduction of the tourist flows and number of business trips. Unfortunately, these issues cannot be always solved with the help of the experience of foreign colleagues. The article discusses the hotel business development in the People´s Republic of China and the reasons for its growth. The author considers further opportunities for problem-solving in the service sector in a highly competitive and describes innovative methods for the solution of social problems and increasing the standard of living through tourism in areas remote from the cities. Taking into account the huge potential of outgoing tourism in China, the whole world is struggling to attract tourists from China. According to the latest statistics of the Federal Agency for Tourism of the Russian Federation, the growth of tourist flow from Southeast Asia was recorded in Russia in 2015. For example, China has come on top by the number of foreign travelers, who visited our country, leaving behind Germany that was a leader in this for several years. The number of Chinese tourists coming to Russia already more than a million people a year. Today the following issues are actively studied. What visitors from China are interested in? What sites attract their attention? Which tourist attraction they choose firstly at all? What qualities are needed to increase the tourist flow from the PRC? The potential of Russia for tourists from China is huge, therefore research is conducted and program of some kind of prompts to the owners of the local hotels in the provision of high quality services for guests from China are introduced.