Ardl) Bounds Testing Approach
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Volume 11, Number 1 ISSN 1544-0222 PDF ISSN 1544-0230 JOURNAL OF INTERNATIONAL BUSINESS RESEARCH Balasundram Maniam, Editor Sam Houston State University Susan E. Nichols, Editorial Advisor San Diego State University – Imperial Valley Campus The Journal of International Business Research is owned and published by the DreamCatchers Group, LLC. Editorial Content is controlled by the Allied Academies, a non-profit association of scholars, whose purpose is to support and encourage research and the sharing and exchange of ideas and insights throughout the world. Page ii Authors execute a publication permission agreement and assume all liabilities. Neither the DreamCatchers Group nor Allied Academies is responsible for the content of the individual manuscripts. Any omissions or errors are the sole responsibility of the authors. The Editorial Board is responsible for the selection of manuscripts for publication from among those submitted for consideration. The Publishers accept final manuscripts in digital form and make adjustments solely for the purposes of pagination and organization. The Journal of International Business Research is owned and published by the DreamCatchers Group, LLC, PO Box 1708, Arden, NC 28704, USA. Those interested in communicating with the Journal, should contact the Executive Director of the Allied Academies at [email protected]. Copyright 2012 by the DreamCatchers Group, LLC, Arden NC, USA Journal of International Business Research, Volume 11, Number 1, 2012 Page iii EDITORIAL REVIEW BOARD Olga Amaral M. Meral Anitsal San Diego State University, Imperial Valley Campus Tennessee Tech University Kavous Ardalan Leroy Ashorn Marist College Sam Houston State University M. Douglas Berg Tantatape Brahmasrene Sam Houston State University Purdue University North Central Donald Brown James Cartner Sam Houston State University University of Phoenix Amitava Chatterjee Eddy Chong Siong Choy Texas Southern University Multimedia University, Malaysia Partha Gangopadhyay Hadley Leavell University of Western Sydney, Australia Sam Houston State University Stephen E. Lunce Pacha Malyadri Texas A&M International University Osmania University, India Amat Taap Manshor Mohan Rao Multimedia University, Malaysia University of Texas - Pan Am Khondaker Mizanur Rahman Francisco F R Ramos CQ University Australia Coimbra Business School, Portugal Charles Rarick Anthony Rodriguez Purdue University Calumet Texas A&M International University John Seydel Vivek Shah Arkansas State University Southwest Texas State University Kishor Sharma Henry C. Smith, III Charles Sturt University, Australia Otterbein College Stephanie A. M. Smith Victor Sohmen Otterbein College Umeå University, Sweden Prakash Vel University of Wollongong in Dubai Journal of International Business Research, Volume 11, Number 1 2012 Page iv TABLE OF CONTENTS EDITORIAL REVIEW BOARD .................................................................................................. III LETTER FROM THE EDITORS ................................................................................................ VII RELATIONSHIPS AMONG EXPORT, FDI AND GROWTH IN INDIA: AN APPLICATION OF AUTO REGRESSIVE DISTRIBUTED LAG (ARDL) BOUNDS TESTING APPROACH ................................................................................................ 1 Kishor K. Guru-Gharana, Texas A & M University-Commerce EMPIRICAL STUDY ON AFRICAN ENERGY RESOURCES AND CHINA’S OUTFLOW FOREIGN DIRECT INVESTMENT ..................................................... 19 Ming Wang, California State University, Los Angeles THE EFFECT OF INVESTING IN HIRING, HUMAN RESOURCE PLANNING, AND EMPLOYEE DEVELOPMENT ON LABOR PRODUCTIVITY: CASE OF LEBANON .................................................................................................................. 29 Josiane Fahed-Sreih, Lebanese American University ISSUES IN INNOVATION FOR NORWEGIAN SMES ............................................................ 53 Sherry Robinson, Penn State University, Buskerud University College Hans Anton Stubberud, Buskerud University College MANAGERIAL ACCOUNTING AS A TOOL FOR CORPORATE STRATEGY: SYNERGY CREATION AND ANERGY INHIBITION ............................................................ 63 Kazunori Itō, Senshu University School of Commerce Mohsen Souissi, Fayetteville State University THE RELATIONSHIP BETWEEN CHINESE REAL ESTATE MARKET AND STOCK MARKET .............................................................................................................. 73 Xiaohui Gao, Shanghai University of Finance and Economics Jingyi Li, Shanghai Taxation Bureau Anthony Yanxiang Gu, State University of New York at Geneseo Journal of International Business Research, Volume 11, Number 1, 2012 Page v INVESTMENT AND TRADE BETWEEN WEST AFRICA AND CHINA: THE SENEGALESE CASE ......................................................................................................... 81 Ndao Elhadji Omar, Shanghai University of Finance and Economics A COMPARATIVE ANALYSIS OF THE ADOPTION RATES OF SOCIAL NETWORKING AND MICROBLOGGING BETWEEN INDUSTRIALIZED AND DEVELOPING NATIONS ............................................................................................... 107 Charles Jobs, DeSales University UNCERTAINTY AVOIDANCE INDEX AND ITS CULTURAL/COUNTRY IMPLICATIONS RELATING TO CONSUMER BEHAVIOR ................................................ 119 Abhay Shah, Colorado State University – Pueblo DO THE OLYMPICS CREATE SUSTAINED INCREASES IN INTERNATIONAL TOURISM? ............................................................................................... 135 Kathleen H. Gruben, Georgia Southern University Steven E. Moss, Georgia Southern University Janet Moss, Georgia Southern University Journal of International Business Research, Volume 11, Number 1 2012 Page vi Journal of International Business Research, Volume 11, Number 1, 2012 Page vii LETTER FROM THE EDITORS We are extremely pleased to present the Journal of International Business Research, an official journal of the Academy of International Business Research. The AIBR is an affiliate of the Allied Academies, Inc., a non profit association of scholars whose purpose is to encourage and support the advancement and exchange of knowledge, understanding and teaching throughout the world. The JIBR is a principal vehicle for achieving the objectives of the organization. The editorial mission of this journal is to advance the knowledge and understanding of international business throughout the world. To that end, the journal publishes high quality, theoretical and empirical manuscripts which advance the discipline. The manuscripts contained in this volume have been double blind refereed. The acceptance rate for manuscripts in this issue, 25%, conforms to our editorial policies. Our editorial policy is to foster a supportive, mentoring effort on the part of the referees which will result in encouraging and supporting writers. We welcome different viewpoints because in differences we find learning; in differences we develop understanding; in differences we gain knowledge and in differences we develop the discipline into a more comprehensive, less esoteric, and dynamic metier. The Editorial Policy, background and history of the organization and of the Allied Academies, and calls for conferences are published on the Allied Academies website. Please visit our site and know that we welcome hearing from you at any time. Balasundram Maniam, Editor Sam Houston State University Susan E. Nichols, Editorial Advisor San Diego State University – Imperial Valley Campus Journal of International Business Research, Volume 11, Number 1 2012 Page viii Journal of International Business Research, Volume 11, Number 1, 2012 Page 1 RELATIONSHIPS AMONG EXPORT, FDI AND GROWTH IN INDIA: AN APPLICATION OF AUTO REGRESSIVE DISTRIBUTED LAG (ARDL) BOUNDS TESTING APPROACH Kishor K. Guru-Gharana, Texas A & M University-Commerce ABSTRACT Most of the study of causal relationship of GDP or growth with Trade and Foreign Direct Investment in the context of India rely on cross country comparisons, or simple correlations/regressions disregarding nonstationarity properties. Some papers which consider time series properties depend on VAR or VECM or Johansen-Juselius cointegration technique which is shown to suffer from potential pretest biases, influence of nuisance parameters and asymptotic unreliability. The pitfalls of these techniques especially considering the uncertainty in ascertaining the order of cointegration of the variables in the system have been well documented in the literature and also briefly mentioned in this paper. Therefore, this study employs the more recent and robust ARDL bound testing approach suggested by Pesaran e al. (2001) to study the long-run and short-run relationships among these three time series. This technique has been shown to have good small sample properties and provide more robust and asymptotically reliable results under wide variety of situations regarding the cointegration relationships among the time series. This study also focuses on the post liberalization period and clearly shows that the post- liberalization period significantly differs from the pre-liberalization period in the GDP- Export-FDI nexus. This study finds strong support for Export-led growth hypothesis only in the post liberalization period. INTRODUCTION India is an interesting and increasingly important case for the study of relationship among growth, Trade and Foreign Direct Investment. India is the second