Foreign Direct Investment Effect on Economic Growth in Selected Asian Countries

KHIN THEINGI AUNG,김현석 한국무역통상학회 2022 무역통상학회지 Vol.22 No.6

The purpose of this study is to examine the impacts of foreign direct investment (hereafter FDI) on economic growth in selected Asian countries: Brunei, Indonesia, Malaysia, Thailand, and Vietnam. The study also utilizes instrumental variables including regulatory quality, government effectiveness, corruption control, political stability and absence of violence, voice and accountability, and rule of law to explain differences in institutions and macroeconomic policies in the host countries. Data was gathered from the World Bank and the Worldwide Governance Indicators(hereafter WGI) between 2002 and 2019 and analyzed using ordinary least squares(hereafter OLS), two stage least squares(2SLS), and generalized method of methods(hereafter GMM) methodologies. These selected Asian countries have seen higher FDI inflows in recent years, it is important to figure out the reason, and we would like to concentrate on the influence of FDI on economic growth in each of these Asian countries, together with the effect of these instrumental factors on FDI. This study show that the impact of FDI on a country's GDP growth rate is dependent on the economy's institutional quality. The FDI and domestic investment are positively connected and have an influence on economic growth in these selected Asian countries when instrumental characteristics such as accountability, corruption control, political stability, and the absence of violences are taken into account. The country's macroeconomic policies and institutional stability have an impact on its economic growth. For FDI-driven growth to materialize, comprehensive institutional stability and macroeconomic policies are required.

Investment Value of an Internet Company in China: A Case Study of Tencent Holdings Company

Xiao Xiong(Xiao Xiong) 아시아무역학회 2022 Journal of Asia Trade and Business Vol.9 No.2

Purpose - Traditional industries can usually be estimated and analyzed from multiple angles, such as the balance sheet. However, the proportion of other intangible assets in valuations is high and cannot be reflected in the balance sheet in Internet companies. Therefore, through various valuation methods to study and evaluate the investment value of the stock of Internet industry listed companies, finding heavily investing listed companies in the Internet industry has important practical significance. Design/Methodology/Approach - Starting from the theory of value investment, combined with financial analysis methods and valuation analysis methods, the study analyzes the company’s business, finances, and valuation to achieve the purpose of correcting the company’s stock investment. Findings - The value of Tencent, which we calculated through the PE valuation method and the branch valuation method, is close to the average stock price of Tencent in the past years, indicating that in the long run, the market is relatively rational. The value of the current stock price is lower than our valuation, explaining that the current market price is at a relatively underestimated level, and it has certain investment value. Research Implications - This study adopts the PE and the branch valuation methods, making the stock value research method more objective, more scientific, and rigorous to help investors maximize information effectiveness, and make rational judgments to find investment opportunities or investment risks earlier.

Entrepreneurial Inclination and Factors Affecting Entrepreneurial Intention Among Bachelor of Science in Agriculture (BSA) Students at the University of the Philippines Los Baños (UPLB)

Kenneth L. Medina(Kenneth L. Medina ),Jeanette Angeline B. Madamba(Jeanette Angeline B. Madamba ),James Roldan S. Reyes(James Roldan S. Reyes ),Agnes T. Banzon(Agnes T. Banzon ),Arlene C. Gutierrez(Ar 아시아무역학회 2022 Journal of Asia Trade and Business Vol.9 No.1

Purpose - Most studies on entrepreneurial intention were focused on developed countries. In developing and agriculture-based economies like the Philippines, there is limited entrepreneurial intention studies conducted among university students, who are potential entrepreneurs in the country. This study intends to bridge this gap by providing insights about the entrepreneurial inclination and entrepreneurial intention of Bachelor of Science in Agriculture (BSA) students at the University of the Philippines Los Baños (UPLB). Design/Methodology/Approach - Ajzen’s (1991) Theory of Planned Behavior (TPB) was utilized to explore factors affecting the entrepreneurial intention of the BSA students. A total of 108 students were surveyed using an online questionnaire, and data analysis tools included Cronbach’s alpha, frequency analysis, chi-square, and binary logistic regression. Data analysis focused on each batch of students. Findings - The study found that Batch 2012 and below showed a greater number of students with high personal attitude, perceived behavioral control, and entrepreneurial intention. On the other hand, Batch 2015 students exhibited the lowest entrepreneurial intention. Generally, the respondents had high entrepreneurial intention; however, low perceived behavioral control or self-efficacy was also recorded. In terms of entrepreneurial inclination, all batches showed high inclination, except for Batch 2015, where the majority of the students did not have an entrepreneurial role model and had not taken an entrepreneurship course or subject. An equation model was constructed for Batch 2015 students, wherein personal attitude and subjective norm were found to be significant with intention. Research Implications - The study findings imply the need for certain colleges in UPLB to undertake strategies tailor-fit for addressing gaps in entrepreneurial inclination and intention for every batch.

How Does Financial Technology Affect the Credit and Risk of Commercial Banks in China?

Miao Cheng(Miao Cheng) 아시아무역학회 2022 Journal of Asia Trade and Business Vol.9 No.1

Purpose - Fintech integrates the characteristics of “finance + technology”, applying emerging technologies such as big data, cloud computing, artificial intelligence, and blockchain, leading to a great challenge to existing financial service providers. With the rise in development of financial technology, Chinese fintech firms and online payments including third-party and mobile payments systems have attracted worldwide attention. Therefore, this paper aims to study the potential impact of financial technology on the traditional credit business of the banking sector from the perspectives of credit expansion and risk-sharing. Moreover, this study also explores how fintech influences Chinese commercial banks with the moderating effect of corporate governance. Design/Methodology/Approach - The study used a firm-level panel data of 34 Chinese banks over a period of 10 years from 2011 to 2020. The study applies a fixed regression method for hypotheses examining the relationship between fintech development and the credit supply and risk-taking of commercial banks. Findings - The results indicate that the development of fintech has significant impacts on the scale of credit loan and the level of risk bearing. Further research finds that board independence as a moderator positively and significantly influences fintech and bank credit loan scales, while board independence positively but insignificantly affects fintech and risk control in the banking sector. Research Implications - This paper enriches our understanding of the impacts of fintech on traditional financial institutions, and provides a new method for the operations of the banking sector. In addition, this paper provides a new research perspective for managers, especially in Chinese banking, to expand credit business under the moderating role of corporate governance mechanism.

Valuation of a Pre-Revenue Startup: The Case of a Philippine Software Company

Cris Edwin B. Bonalos(Cris Edwin B. Bonalos ),Dinah Pura T. Depositario(Dinah Pura T. Depositario ),Normito R. Zapata Jr.(Normito R. Zapata Jr. ) 아시아무역학회 2022 Journal of Asia Trade and Business Vol.9 No.2

Purpose - This study aimed to valuate a pre-revenue software startup in the Philippines by applying various valuation tools. Also, it aimed to verify these tools’ advantages and disadvantages in the context of a pre-revenue startup. Design/Methodology/Approach - The study employed a case study approach. Valuation methods used were the Venture Capital Method, Chicago Method, Development Milestone Method, and Cayenne Consulting Calculator. In performing these methods, quantitative and qualitative data were used. Such data were mostly provided and validated by the company’s executive management or offices. Findings - Based on the comparisons made among the pre-revenue valuation methods, the Chicago Method is determined to be the most recommended method. This method considered various factors relating to where the company is currently, and weighed different scenarios the in which the company could be. Research Implications - Further research on possible strategies for the startup’s sustainability and survivability is recommended. Such strategies may include further evaluating and recalibrating operations, and sourcing capital from angel investors.

A Study on the Risk-Return Evaluation of Corporate Annuity Portfolios in China

Tiaoyao Zhen(Tiaoyao Zhen) 아시아무역학회 2022 Journal of Asia Trade and Business Vol.9 No.1

Purpose - The purpose of this study is to evaluate the risk-return of China’s corporate annuity portfolio. In addition, it aims to enhance the quality of corporate annuity principals to strengthen corporate annuity control and risk-return evaluation by setting performance benchmarks to evaluate the investment portfolio mechanism of the investment manager. Design/Methodology/Approach - This study combines modern portfolio theory, financial regulation theory, and risk management theory to analyze the risk-return of corporate annuity portfolios of Qiming Venture Partners. The three analysis methods, VaR, Mean-Variance, and Sharp, were used to establish a risk-return analysis mechanism for the portfolio of corporate annuities and securities. Findings - The results of the study show that the risk-return prediction evaluation model is useful for the preinvestment and post-investment risk-return evaluation of annuity portfolios, and for companies to evaluate the effectiveness of investment manager portfolios. Research Implications - Corporate annuities need to be cautious in launching new products. They should prioritize the allocation of equity assets with more mature portfolios, and relax country-specific allocation limits. The number of investment portfolios should be increased, the types of asset allocation portfolios should be enriched, and the risk regulation system should be actively applied.

Factor Analysis for RPA Market Growth in Japan

Kyudong Cho 아시아무역학회 2019 Journal of Asia Trade and Business Vol.6 No.2

The purpose of this study is to analyze the factors of market growth by analyzing the changes in the RPA market in recent industrial changes called the 4th industrial revolution. In particular, the growth of the japan RPA market can be attributed to the special characteristics of the Japanese labor market and the policy support from the Japanese government, which is a countermeasure against the declining birthrate and aging population. A decline in productivity is expected, and the work style reform policy issued by the Japanese government is thought to be strongly attributable to RPA market growth. And we will see how this RPA can continue to grow in Japan. In this study, to analyze based on information obtained from literature surveys and interviews. In addition, since RPA was directly developed, it can be recognized that the RPA software has been verified. This study confirmed the reason for the growth of the RPA market in Japan. This discovery can also identify similar markets where RPA market growth is expected. It was also possible to confirm to what level RPA has developed in terms of technology. Factors to consider in order to establish a new market in society have been derived. Until now, the factors of market growth in the RPA market have not been analyzed. It is also possible to identify growth forecasts and growth factors for similar markets, including South Korea.

China-Korean Cooperation in Tourism Development and Docking Mechanism

Guanshuang Jiang,Ping Li,Yuai Cai 아시아무역학회 2015 Journal of Asia Trade and Business Vol.2 No.1

In recent years, with the expanding of economic and cultural exchanges between China and South Korea, and the gradually deepening understanding of the two peoples, China-Korean tourism is rapidly heating up. Especially the FTA signed by Japan-China-South Korea on June 1, 2015, the tourism year hold in each country, and the favorable policies such as signing of visa-free, zero-tariff, which are all promoting China-Korean tourism faces new opportunities and challenges in tourism development. Paper from the five aspects in geography advantages, cultural traditions, international relationship, economic and trade, and tourism resources to analysis the cooperation fundamental in China-Korean tourism at first, discuss the advantages in tourism development system of the two countries, and combine with the tourism cooperation status, propose the recommends for China-Korean tourism cooperation and development, build the connection mechanism, with a view to achieve the further development of China-Korean tourism in the new era, create the new thoughts in China-Korean tourism development, achieve win-win China-Korean cooperation, and promote the development of China-Korean tourism cooperation into a new stage.

The Rice Agri-enterprises’ (RAEs) Predictors of Success

Rey A. Castillo,Margie J. Clavano 아시아무역학회 2021 Journal of Asia Trade and Business Vol.8 No.1

Purpose - The agriculture industry is one of the prolific industries which play a significant role in the Philippine economy. As an important sector of this industry, rice is a staple food for over half the world’s population. However, this sector has faced many challenges such as lack of support, rural to urban migration, limited education, quality of inputs, unsatisfactory price, and lack of facilities, indicators of the “business as usual mentality” of the rice farmers. The study takes off from the idea that rice farmers must treat their farms as enterprises to address those challenges and become successful rice agri-enterprises. Design/Methodology/Approach - The study used the Theory of Firm as its theoretical foundation. It employed a Resource-Based View (RBV) and Industrial Organization (I/O) approach to assess the internal and external aspects of the enterprise. The methods used to attain the objectives of this study are descriptive-causal procedure, self-constructed survey questionnaire, sample size identification using Slovin s formula, stratified, cluster and purposive sampling techniques, and ordinal logistic regression. Findings - Results of the study revealed that internal variables such as Accounting for Agriculture, Farm Management, Farm Value-Adding Activities and Marketing of Farm Output still need to be implemented all the time; also, external variables such as Buyer Factor, Competition, Economic Factor, Enablers, Political Factor, Technological Factor and Supplier Factor are still needed to be considered all the time. Results revealed Farm-Value Adding Activities, Accounting for Agriculture, and Supplier Factor as predictors of success for the Rice Agri-Enterprise. Thus, the application of these variables with a focus on the predictor variables may address the challenges cited in this study and are expected to contribute to the success of the Rice Agri-Enterprises in Region XI. Research Implications - The study results will help rice-agri enterprises become successful by applying the predictor variables for success. The results are recommended to be adopted by government agencies and prepare targeted activities supporting these enterprises. Also, Higher Education Institutions offering business courses can develop programs and prepare course materials wherein findings of this study are considered.

An Assessment of an Inclusive Business Model (Ibm) in The Philippines: The Case of the Kalasag Farmers Producers Cooperative (KALASAG-FPC)

Cathrene P. Amante(Cathrene P. Amante ),Jeanette Angeline B. Madamba(Jeanette Angeline B. Madamba ),Jewel Joanna S. Cabardo(Jewel Joanna S. Cabardo ),Juan Paulino S. Trespalacio(Juan Paulino S. Trespa 아시아무역학회 2022 Journal of Asia Trade and Business Vol.9 No.1

Purpose - This paper evaluated the inclusive business model (IBM) adopted by the KALASAG Farmers Producers Cooperative (KALASAG-FPC) in San Jose City, Nueva Ecija, Philippines. Specifically, the study assessed the Farmer Entrepreneurship Program (FEP) of Jollibee Foods Corporation (JFC) relative to KALASAG-FPC in order to describe how an IBM affected the farmers' lives and their business operations. By determining the perceived level of inclusiveness of the IBM from three perspectives, strategies were crafted to improve business model inclusivity. Design/Methodology/Approach - In discussing the activities in the business model and the business operations of the cooperative, the case approach, and the IBM principles and radar chart from the study entitled “Is Inclusive Business for you? Managing and upscaling an inclusive company: Lessons from the field” by Sopov et al. (2014) were used. Findings - The results showed that the business model was perceived by the farmers, program implementers, and the main researcher to be the most inclusive in three different areas, but least inclusive in one same area. Therefore, the discussion focused on what led to these perceptions, and what can be done to enhance the inclusivity of the business model. Research Implications - The recommendations focused on activities that promote the chain-wide collaboration of the IBM players in order to solve problems faced not only by the farmers but also by the program implementers and partners. The study’s contribution lies in demonstrating the application of the 2014 study framework on an IBM in the Philippine context.