Editorial

Citation

Akbar, Y.H. (2006), "Editorial", International Journal of Emerging Markets, Vol. 1 No. 2. https://doi.org/10.1108/ijoem.2006.30101baa.001

Editorial

Welcome to Volume 1, Issue 2 of the International Journal of Emerging Markets! Our second issue continues the journal’s emphasis on fostering and promoting multidisciplinary research on the emerging markets of the world economy. Indeed, one of the main themes of this editorial note is to emphasize the importance of diversity in research. As the papers in this issue demonstrate, it is both intellectually stimulating but also academically relevant to consider emerging market research from a diverse range of disciplinary perspectives. We present five papers plus a book review below that take different methodological perspectives on the issues they examine. From questionnaire survey research (Saka-Helmhout) to comparative country analysis (Klonowski) through case study research (Goldstein and Bonaglia, Ghoshal, Chobanyan and Leigh), the papers offer a pleasing and interesting range of approaches.

The geographical scope of the papers is also pleasing. We have contributions on Central and East Europe, Turkey, Egypt and Armenia in this issue. One of the aims of IJoEM is to focus not only on the core emerging markets such as Brazil, Russia, India and China (the so-called BRIC countries), but also to focus on smaller, less researched areas and countries. This issue contributes to this aim.

One of the common themes of our papers in this issue is the ongoing debate over the contribution of multinational companies (MNEs) and international capital more generally to the economic development of the countries. Saka-Helmout and Karabulut examine the success of the Turkish apparel clusters to develop international competitiveness (and thereby develop relationships with MNEs). They argue broader institutional factors of an economy such as the receptiveness of entrepreneurial activities play a key role in fostering development rather than more directed/sector specific government policies. Chobanyan and Leigh argue that the Armenian government have to develop longer-term productivity enhancing public policy measures if the small land-locked country is to develop international competitiveness in the Porterian sense. Bonaglia and Goldstein examine the prospects of outward FDI for Egypt by focusing on the general investment climate in this North African country. They argue that despite poor geo-political motives and a weak investment climate, two Egyptian companies, Orascom and Oriental Weavers have emerged as significant multinationals. The strategies for internationalization of these companies have been quite different – Orascom based on aggressive overseas expansion in regional mobile telecom markets whereas Oriental Weavers have used exports as their main international expansion mode. What they have in common, the authors argue, is a willingness to avoid rent-seeking, risk averse behavior in favor of more risk-taking strategies. The authors call for governments in emerging markets to promote the latter form of entrepreneurial behavior if these countries are to move up the investment-development path.

Klonowski offers readers of IJoEM an interesting examination of the state of venture capital (VC) in Central and East Europe. A relatively under-researched topic, Klonowski demonstrates that Poland is a core market for VC activity. The region in general is an important region for VC in general but that VC investors need to be aware of the heterogeneity of the region and to have a “one-size-fits-all” investment strategy for all regions would be a mistake.

Our two other papers, Ghoshal on the Turkish currency crisis, are more macroeconomic analyses. Ghoshal’s analytical case demonstrates the dangers of inappropriate macroeconomic policy that lead to real exchange rate appreciation, causing imbalances in capital flows (inevitably in the form of capital flight). The policy implication is that governments in developing countries should avoid rapid external liberalization before sufficient domestic institution building has occurred.

Yusaf H. AkbarSouthern New Hampshire University