Regional Investment Pioneers in South Asia

Page 172

150 l REGIONAL INVESTMENT PIONEERS IN SOUTH ASIA

reputational bias of low quality that may persist from decades earlier. Business culture could also play a part in limiting information flows, for example, if the South Asian business community tended to be relatively more modest during times of success and more secretive during downturns. Similarly, the large presence of family firms and unlisted firms, for which the public release of information is not required, could lead to a cautious attitude toward information sharing. Also, the presence of large, diversified business groups may create incentives to keep information flows within the affiliates. SMALL BILATERAL NETWORKS AND FEW RELATIONSHIPS Figure 4.2 reports the results of survey questions that asked whether managers felt sufficiently well connected in each of the countries to readily pursue emerging business opportunities. The results were similar to those relating to knowledge connectivity, with an average score of 1.85 (between “not at all” and “not very well” connected).

FIGURE 4.2  Bilateral Network Connection Scores, by Destination

G BG D BT N IN D LK A M D V N PL PA K

Score Score

4 3 2 1 0

AF

AF

AF

f. Maldives

i. Sri Lanka

AF G BG D BT N IN D LK A M D V N PL PA K

h. Pakistan

AF G BG D BT N IN D LK A M D V N PL PA K

g. Nepal

AF

AF

AF

G BG D BT N IN D LK A M D V N PL PA K

G BG D BT N IN D LK A M D V N PL PA K

e. North Eastern Region of India

G BG D BT N IN D LK A M D V N PL PA K

d. India_General

AF G BG D BT N IN D LK A M D V N PL PA K

4 3 2 1 0

Score

4 3 2 1 0

c. Bhutan 4 3 2 1 0

G BG D BT N IN D LK A M D V N PL PA K

Score Score

4 3 2 1 0

Score

4 3 2 1 0

b. Bangladesh 4 3 2 1 0

G BG D BT N IN D LK A M D V N PL PA K

Score Score

4 3 2 1 0

Score

a. Afghanistan 4 3 2 1 0

How well informed do you feel with social and business network contacts to pursue transactions abroad? Source: South Asian Regional Engagement and Value Chains Survey. Note: Scores range from 1 (low) to 4 (high). Colored bars represent countries whose score is 1 standard deviation above (green) or below (orange) the home country mean. As an example, the Afghanistan frame presents each of the other South Asian economies’ perceptions of how well connected it is in Afghanistan. Scores are for bilateral pairs of countries with 30 or more observations. AFG = Afghanistan; BGD = Bangladesh; BTN = Bhutan; IND = India_General (India without North Eastern Region); LKA = Sri Lanka; MDV = Maldives; NPL = Nepal; PAK = Pakistan.


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Articles inside

B.16 Robustness 3: Logit Estimation

3min
pages 255-261

Concluding Remarks: Toward a More Engaged South Asia

2min
page 221

Consolidated Direct Investment Survey Data Augmentation

1min
page 225

The Benefits of Own Data Collection through Firm-Level Surveys

2min
page 237

Services Imports, and Foreign Direct Investment Flows, 1990–2017

1min
page 218

Implications for Inward FDI Policy and Promotion

4min
pages 215-216

Emerging Business Practices and Policy Making

1min
page 217

Regulatory and Promotion Policies for OFDI

4min
pages 213-214

Physical and Digital Connectivity

2min
page 212

Information Frictions and Enhancing Knowledge Connectivity

8min
pages 208-211

Introduction

1min
page 207

References

7min
pages 203-206

Concluding Remarks

2min
page 197

Notes

2min
page 202

Bridges of Knowledge: Key Channels of Awareness of Investment Opportunities

2min
page 194

Beyond Entry: Evolution of Investment Destinations

2min
page 192

Information Frictions

6min
pages 189-191

4.6 Exporters Become Investors

9min
pages 182-185

4.7 The Role of Conglomerates and Business Groups in South Asia

4min
pages 186-187

4.1 Estimated Equation for the Determinants of Outward Investment

6min
pages 176-178

4.2 Bilateral Network Connection Scores, by Destination

4min
pages 172-173

Knowledge Connectivity, Networks, and Bilateral Trust in South Asia

2min
page 170

Introduction

5min
pages 167-169

References

7min
pages 163-166

Notes

2min
page 162

3.10 Detailed Motivations for Investing in South Asia

1min
page 146

Value Chain Perspective

1min
page 147

Industrial Classification of All Economic Activities

1min
page 140

Annex 3A: Investment Hubs: The India-Mauritius Connection and How Singapore Fits In

4min
pages 158-159

Scope of and Strategies for OFDI: Evidence from Firm Surveys and Case Studies

6min
pages 136-138

3.5 Special Economic Zones in South Asia and East Asia and Pacific, 2018

9min
pages 131-135

3.6 Global Trends in Inward FDI Policies, 2003–18

4min
pages 127-128

3.4 Timeline of India’s Gradual Path to Liberalization of OFDI

3min
pages 121-122

3.1 South Asian Intraregional Investment Stocks, by Country, 2017

1min
page 113

3.3 South Asian Outward Investment: A Historical Perspective

5min
pages 109-110

Outward FDI and Intraregional Investment: Evidence from CDIS and UNCTAD Data

2min
page 106

3.1 Defining Inward and Outward Foreign Direct Investment

4min
pages 102-103

3.2 Issues with Global Foreign Direct Investment Data

6min
pages 104-105

Introduction

1min
page 101

Policy Environment for Intraregional Investment

2min
page 116

Concluding Remarks

2min
page 95

Entry Costs (1 Low–9 High

1min
page 92

Information, Networks, and Learning: Variation of Entry Costs across Firms

5min
pages 93-94

at Home and Abroad

2min
page 83

Toward a Spectrum of Engagement Modes: Variation of Entry Costs across Modes

7min
pages 89-91

Foreign Market Entry Decision

4min
pages 86-87

Introduction

1min
page 79

2.1 Multinational Location Options and Frictions

1min
page 82

Incorporating a Value Chain Approach

4min
pages 80-81

References

4min
pages 76-78

Plan of the Report

2min
page 65

1.2 South Asian Intraregional Goods Exports and Imports, 2018 (US$ millions

8min
pages 61-64

1.1 Case Studies in South Asian Intraregional Investment

2min
pages 55-56

Low Intraregional Investment

2min
page 52

Relevance of the Report

4min
pages 57-58

Weak Track Record on Global Inward FDI

2min
page 50

Factors Influencing Regional Dynamics

2min
page 49

Introduction

8min
pages 45-48

Policy and Operational Implications

10min
pages 38-42

Regional Pioneers and the Determinants of Investment Entry: Which Firms Succeed and Which Firms Do Not?

7min
pages 35-37

Key Constraint: Restrictiveness of South Asian Inward and Outward FDI Policy Arrangements

2min
page 32

Key Constraint: Low Knowledge Connectivity and Bilateral Trust

2min
page 33

Investment Landscape: Low Levels of Inward FDI

2min
page 28

Key Drivers of Outward Investment of South Asian Firms

2min
page 31

Investment Landscape: Low Levels of Outward FDI

2min
page 29

1 Trends in World Trade in Goods versus Intellectual Property Payments

2min
page 27
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