AIB 2012 Conference Proceedings - Academy of International ...

MONDAY
Entrepreneurship, Competitiveness and Economic Growth of BRICS Countries: An Empirical Analysis of Data
From GEM and GCI
Raimundo Eduardo Silveira Fontenele, Universidade de Fortaleza
Paulo Francisco Barbosa Sousa, Universidade Federal do Ceara
Alexandre Oliveira Lima, Universidade de Fortaleza
Entrepreneurship can help economic growth in some countries by the introduction of new products on the
market or by the evolution of existing products, as much as by changes in the production process and increases
in market competition. This study investigates the influence of per capita income, health care and primary
education, higher education and training, and technology and sophistication of businesses, in the differences in
the total rate of entrepreneurship among BRICS countries, which refers to Brazil, Russia, India, China and South
Africa. The survey was conducted with a multivariable statistical analysis. The regression was obtained in two
models, of which the first used the overall value of the CGI (overall index) as a proxy for competitiveness, while
the second model used the twelve indicators that make up the GCI each separately. The results reinforce the
hypothesis that there is a positive relationship between the indices of competitiveness and the rate of
entrepreneurship. (For more information, please contact: Raimundo Eduardo Silveira Fontenele, Universidade de
Fortaleza, Brazil: fontenele@unifor.br)
Session: 2.1.12 - Interactive
Track: 12 - Value Creation and Work
The Geography of Value Creation: Clusters, Networks, Ethnic Ties
Presented On: July 2, 2012 - 09:00-10:15
Chair: Gabriele Suder, SKEMA Business School and ANUCES Fellow
International Input-Output Dynamics as a Measure of the Geography of Value-Distribution Across Asia and of
Market Integration
Gabriele Suder, SKEMA Business School and ANUCES Fellow
Satoshi Inomata , JTRO- IDE
Irina Jormanainen, Aalto School of Economics
Bo Meng, JETRO- IDE
Regional integration, the interdependence in regional trade and production networks, has important implications
for economic development and the location of international business activity. This paper adopts a novel
approach to analyze the evolution of such production networks in Asia over time. We study its impact on the
location of production hubs, indicating a high density of cross-border interaction and geographic dynamics as
part of the interrelation of value addition and geographical location of cross-border production activity. We
undertake a longitudinal study using empirical evidence about the period 1985-2000 and analyze interlinkages
and underlying factors affecting the change in the geographic distribution of network hubs, with an emphasis on
Country-specific advantages (CSAs). Our empirical methodology is based on the analysis of Input-Output data
for nine Asian countries in three of the most integrated sectors of the manufacturing industry. We calculate
their coefficient of variation and mapping, and assess countries' gain and give-out potential of value in the
production process. We support our results with an assessment of inward and outward investment flow
locations and the convergence of locations of production network hubs and FDI. The findings demonstrate that
the distribution of production hubs changes significantly over time; the emergence of Asian economies is
embedded in overall regional integration. Value-added hubs center on and evolved around China and Japan.
This is confirmed by the evolution of FDI locations. We argue that changes in country-specific advantages and
specialization in Asian countries explain this result of rapid internal regional development and the need to
respond to the pressures of the global business environment. (For more information, please contact: Gabriele
Suder, SKEMA Business School and ANUCES Fellow, France: gabriele.suder@skema.edu)
AIB 2012 Conference Proceedings
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