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

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 10 Reduced Inequalities

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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

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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. ",

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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

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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

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