On the Relationship between Informal and Formal Institutions, Foreign Direct Investment, and Innovation in Emerging Markets: The Case of Russia, India, and China, 1990-2014

Natalya Smith; Katerina Thomas

doi:10.4018/978-1-5225-0276-0.ch009

On the Relationship between Informal and Formal Institutions, Foreign Direct Investment, and Innovation in Emerging Markets: The Case of Russia, India, and China, 1990-2014

Natalya Smith^*
, Katerina Thomas

^*Corresponding author for this work

Centre for Sustainable Business Practices

Research output: Contribution to Book/Report › Chapter › peer-review

Abstract

This chapter examines innovation in socio-institutional environments of three largest and most diverse emerging markets: Russia, India and China over the period 1990-2014. It considers formal (proxied by corruption) and informal (proxied by trust) institutions and non-linear forces. It also examines the role of Foreign Direct Investment (FDI) in (the likelihood of) fostering innovation and of two research and development (R&D) inputs: R&D expenditures and personnel. A significantly positive direct effect of trust and a negative direct effect of corruption are confirmed, whilst there is a significant non-linear decreasing relationship with trust and increasing relationship with corruption. Interestingly, FDI and R&D expenditures are found to decrease innovation, whilst R&D personnel increase innovation output across the sample.

Original language	English
Title of host publication	Multinational Enterprise Management Strategies in Developing Countries
Editors	Mohammad Ayub Khan
Publisher	IGI Global
Chapter	9
Pages	176-197
Number of pages	22
ISBN (Electronic)	9781522502777
ISBN (Print)	9781522502760
DOIs	https://doi.org/10.4018/978-1-5225-0276-0.ch009
Publication status	Published - 1 Jan 2016

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 16 Peace, Justice and Strong Institutions
SDG 17 Partnerships for the Goals

Access to Document

10.4018/978-1-5225-0276-0.ch009

Cite this

Smith, N., & Thomas, K. (2016). On the Relationship between Informal and Formal Institutions, Foreign Direct Investment, and Innovation in Emerging Markets: The Case of Russia, India, and China, 1990-2014. In M. Ayub Khan (Ed.), Multinational Enterprise Management Strategies in Developing Countries (pp. 176-197). IGI Global. https://doi.org/10.4018/978-1-5225-0276-0.ch009

@inbook{8b09b43c86ba4d6b93e19dd22e1b40ac,

title = "On the Relationship between Informal and Formal Institutions, Foreign Direct Investment, and Innovation in Emerging Markets: The Case of Russia, India, and China, 1990-2014",

abstract = "This chapter examines innovation in socio-institutional environments of three largest and most diverse emerging markets: Russia, India and China over the period 1990-2014. It considers formal (proxied by corruption) and informal (proxied by trust) institutions and non-linear forces. It also examines the role of Foreign Direct Investment (FDI) in (the likelihood of) fostering innovation and of two research and development (R\&D) inputs: R\&D expenditures and personnel. A significantly positive direct effect of trust and a negative direct effect of corruption are confirmed, whilst there is a significant non-linear decreasing relationship with trust and increasing relationship with corruption. Interestingly, FDI and R\&D expenditures are found to decrease innovation, whilst R\&D personnel increase innovation output across the sample. ",

author = "Natalya Smith and Katerina Thomas",

year = "2016",

month = jan,

day = "1",

doi = "10.4018/978-1-5225-0276-0.ch009",

language = "English",

isbn = "9781522502760",

pages = "176--197",

editor = "\{Ayub Khan\}, \{Mohammad \}",

booktitle = "Multinational Enterprise Management Strategies in Developing Countries",

publisher = "IGI Global",

}

On the Relationship between Informal and Formal Institutions, Foreign Direct Investment, and Innovation in Emerging Markets: The Case of Russia, India, and China, 1990-2014. / Smith, Natalya; Thomas, Katerina.
Multinational Enterprise Management Strategies in Developing Countries. ed. / Mohammad Ayub Khan. IGI Global, 2016. p. 176-197.

Research output: Contribution to Book/Report › Chapter › peer-review

TY - CHAP

T1 - On the Relationship between Informal and Formal Institutions, Foreign Direct Investment, and Innovation in Emerging Markets: The Case of Russia, India, and China, 1990-2014

AU - Smith, Natalya

AU - Thomas, Katerina

PY - 2016/1/1

Y1 - 2016/1/1

N2 - This chapter examines innovation in socio-institutional environments of three largest and most diverse emerging markets: Russia, India and China over the period 1990-2014. It considers formal (proxied by corruption) and informal (proxied by trust) institutions and non-linear forces. It also examines the role of Foreign Direct Investment (FDI) in (the likelihood of) fostering innovation and of two research and development (R&D) inputs: R&D expenditures and personnel. A significantly positive direct effect of trust and a negative direct effect of corruption are confirmed, whilst there is a significant non-linear decreasing relationship with trust and increasing relationship with corruption. Interestingly, FDI and R&D expenditures are found to decrease innovation, whilst R&D personnel increase innovation output across the sample.

AB - This chapter examines innovation in socio-institutional environments of three largest and most diverse emerging markets: Russia, India and China over the period 1990-2014. It considers formal (proxied by corruption) and informal (proxied by trust) institutions and non-linear forces. It also examines the role of Foreign Direct Investment (FDI) in (the likelihood of) fostering innovation and of two research and development (R&D) inputs: R&D expenditures and personnel. A significantly positive direct effect of trust and a negative direct effect of corruption are confirmed, whilst there is a significant non-linear decreasing relationship with trust and increasing relationship with corruption. Interestingly, FDI and R&D expenditures are found to decrease innovation, whilst R&D personnel increase innovation output across the sample.

U2 - 10.4018/978-1-5225-0276-0.ch009

DO - 10.4018/978-1-5225-0276-0.ch009

M3 - Chapter

SN - 9781522502760

SP - 176

EP - 197

BT - Multinational Enterprise Management Strategies in Developing Countries

A2 - Ayub Khan, Mohammad

PB - IGI Global

ER -

On the Relationship between Informal and Formal Institutions, Foreign Direct Investment, and Innovation in Emerging Markets: The Case of Russia, India, and China, 1990-2014

Abstract

UN SDGs

Access to Document

Fingerprint

Cite this