ISSN 1854-6935 1 Managing 1 1 t EDITOR Maja Mesko Researc y v v v * 9 rvrr journal Managing Global Transitions International Research Journal issn 1854-6935 • www.mgt.fm-kp.si EDITOR Maja Mesko, University ofPrimorska, Slovenia, maja.mesko@fm-kp.si ASSOCIATE EDITORS Andrej Bertoncelj, University ofPrimorska, Slovenia, andrej. bertoncelj@fm-kp.si Gandolfo Dominici, University of Palermo, Italy, gandolfo. dominici@libero. it Alexander Laszlo, Buenos Aires Institute of Technology, Argentina, alaszlo@itba.edu.ar managing and production editor Alen Jezovnik, University ofPrimorska Press, Slovenia, alen.jezovnik@upr.si EDITORIAL BOARD Jani Beko, Univerza v Mariboru, Slovenia, jani.beko@uni-mb.si Heri Bezic, University ofRijeka, Croatia, bezic@efri.hr Guido Bortoluzzi, University of Trieste, Italy, guido. bortoluzzi@deams.units.it David L. Deeds, University of St. Thomas, usa, david.deeds@gmail.com Evan Douglas, Griffith Universitiy, Australia, e.douglas@griffith.edu.au Dean Fantazzini, Moscow School of Economics, Russia, fantazzini@mse-msu.ru Henryk Gurgul, agh University of Science and Technology, Poland, henryk.gurgul@gmail. com Andras Inotai, Hungarian Academy ofScien- ces, Hungary, inotai.andras@krtk.mta.hu Felicetta Iovino, University ofSannio, Italy, fiovino@unisannio.it Hun Joon Park, Yonsei University, South Korea, hjpark@yonsei.ac.kr Renata Karkowska, University of Warsaw, Poland, rkarkowska@wz.uw.edu.pl Tanja Kosi Antolic, Institute of Macroeco-nomic Analysis and Development, Slovenia, tanja. kosi-antolic@gov.si Leonard H. Lynn, Case Western Reserve University, usa, leonard.lynn@case.edu Monty Lynn, Abilene Christian University, usa, monty.lynn@coba.acu.edu Massimiliano Marzo, University of Bologna, Italy, massimiliano.marzo@unibo.it Judita Peterlin, University of Ljubljana, Slovenia, judita.peterHn@ef.uni4j.si Mirjana Pejic Bach, University of Zagreb, Croatia, mpejic@efzg.hr Sanja Pekovic, University ofCrna Gora, Montenegro, psanja@ac.me Sandra Penger, University of Ljubljana, Slovenia, sandra.penger@ef.uni-lj.si Zdenko Prohaska, University ofRijeka, Croatia, zdenko.prohaska@efri.hr José Solana Ibanez, Technical University of Cartagena, Spain, jose.solana@cud.upct.es Marinko Škare, University ofPula, Croatia, mskare@unipu.hr Nada Trunk Širca, International School of Social and Business Studies, Slovenia, trunk.nada@gmail. com Šarka Velčovska, Technical University of Ostrava, Czech Republic, sarka.velcovska@vsb.cz Manfred Weiss, Johann Wolfgang Goethe University, Germany, m. weiss@jur. uni-frankfurt. de INDEXING AND ABSTRACTING Managing Global Transitions is indexed/ listed in the International Bibliography of the Social Sciences, EconLit, ibz Online, DOAj, Erih Plus, EconPapers, Cabell's, EBSCO, and ProQuest. SUPPORTED BY Slovenian Research Agency. Revija Managing Global Transitions je namenjena mednarodni znanstveni javnosti; izhaja v angleščini s povzetki v slovenščini. Izid revije je finančno podprla Javna agencija za raziskovalno dejavnost Republike Slovenije iz sredstev državnega proračuna iz naslova razpisa za sofinanciranje izdajanja domačih znanstvenih periodičnih publikacij. Managing Global Transitions International Research Journal VOLUME 16 ■ NUMBER 3 ■ FALL 2018 ■ ISSN 1854-6935 195 Is Health Care Necessity or Luxury Good? Panel Data Analysis on the Example of the seehn Countries Saša Obradovic and Nemanja Lojanica 215 Discovering Chinese Product Strategies on Stimulating Attitude and Intention: Involvement of Innovation, Country-of-Origin and Knowledge Ramadania, Rianti Ardana Reswari, and Endang Dhamayantie 235 Macroeconomic Implications of Exchange Rate Depreciation: The Nigerian Experience Ekundayo P. Mesagan, Olorunfemi Y. Alimi, and Ismaila A. Yusuf 259 Different Ways of Environmental Issue Management by Active Citizens: Case Studies from Hungary Adrienn Reisinger and Katalin Bandy 279 Modern Trends in Chinese Foreign Direct Investment in Africa: An oli Approach Henri Bezuidenhout and Ewert P. J. Kleynhans 301 Abstracts in Slovene https://doi.org/10.26493/1854-6935.16_3 AIMS AND SCOPE Managing Global Transitions (mgt) is a quarterly, scholarly journal that covers diverse aspects of transitions and welcomes research on change and innovation in increasingly digitalized and networked economic environments, from a societal, organizational, and technological perspective. mgt fosters the exchange of ideas, experience and knowledge among developed and developing countries with different cultural, organizational and technological traditions. mgt invites conceptual, theory-development, empirical and review papers and case-based studies advancing the field of transitions in societies, organizations and technologies. TOPICS COVERED Transitions in Societies • Geo-political transitions, transition experiments, pathways and mechanisms • Social, demographic, cross-cultural, ethical, geo-political and security aspects of transitions • Social change, prosperity, wellbeing, happiness • Policy making, government regulation, social responsibility • Knowledge-based society and world futures • New and emerging metrics for measuring, assessing and evaluating societal transitions Transitions in Organizations • Organizational analysis and design, modeling, developments and changes in organizational learning and behavior • International strategy and strategic alliances, networked businesses and operations • Entrepreneurship and leadership, decision making • Knowledge sourcing and innovation management, personal development, education and training, hrm • Business systems and business models • Connective intelligence and collective intelligence in organizational behavior Transitions in Technologies • Managing technological/organizational change and innovation • Technology networks, technology transfer benefits and risks, technology acquisition and diffusion • Smart technologies and development discontinuities, renewable sources and sustainability • Digitalization, IOT, ICT, cybernetics, forecasting • Technological traditions, strategic surprise and response systems • Studies that promote understanding of the dynamics of socio-technical systems change • Science and technology policy that fosters transformative advancement • Modeling technological change in vuc a (volatile, uncertain, complex, ambiguous) environments SUBMISSIONS The manuscripts should be submitted as e-mail attachment to the editorial office at mgt@fm-kp.si. Detailed guide for authors and publishing ethics statement are available at www.mgt.fm-kp.si. editorial office University of Primorska Faculty of Management Cankarjeva 5, 6104 Koper, Slovenia mgt@fm-kp.si • www.mgt.fm-kp.si published by University of Primorska Press Titov trg 4, 6000 Koper, Slovenia zalozba@upr.si • www.hippocampus.si \ Pi Is Health Care Necessity or Luxury Good? Panel Data Analysis on the Example of the seehn Countries Sasa Obradovic University of Kragujevac, Serbia sobradovic@kg.ac.rs Nemanja Lojanica University of Kragujevac, Serbia nlojanica@kg.ac.rs The main goal of this paper is oriented on examining the potential link between economic growth and health expenditure in the South-Eastern European Health Network (seehn) countries over the period 1995-2014 by applying panel econometrics. The panel co-integration testing approach and panel vecm are used to investigate the long- and short-run causality between the economic growth, health expenditure and life expectancy (trivariate model). The empirical results show that there is a long-run relationship between the observed variables. It was confirmed that health is a luxury good in the long term, while it is a necessity product in the short term. Finally, it should be noted that economic policy in these countries should be directed to the targeted increase in expenditure on health care, in order to increase overall economic activity. Also, the economic policy should be oriented to adequate combination of public and private financing in health care. Key Words: health expenditure, economic growth, South-Eastern Europe Health Network, panel co-integration, panel vecm jel Classification: C23, H51, 110, 115 https://doi.org/10.26493/1854-6935.16.195-214 Introduction Health has been a clear objective since the founding of the United Nations, when the Universal Declaration of Human Rights set striving to achieve 'the highest attainable standard of physical and mental health' (Sachs 2014). In many segments of the world, this goal has not been fully realized. Making progress in the area of health and economic development represents major challenges of modern times. Health issues are very sensitive in every society. Providing good health services in budget-conscious environments, such as South East European countries, presents Managing Global Transitions 16 (3): 195-214 196 Saša Obradovic and Nemanja Lojanica the question of a great importance. According to see 2020 Strategy (Regional Cooperation Council 2013), sustainable growth will only become a reality if there is a strong expenditure in human capital, such as health. On the basis of numerous theoretical and empirical studies, which will be mentioned further in this paper, health is seen as a significant factor that has a great positive effect on the economic growth. On the other hand, the growth of economic activities improves the material conditions of life, and thus should have a positive impact on health. In order to promote health, governments of South Eastern Europe countries formed seehn (South-Eastern Europe Health Network) forum. Despite notable improvements in health care, seehn has identified a lot of weaknesses, such as lack of financial sustainability, demographic ageing, and so on. Modernization of health care policy in the seehn countries is one of the prerequisites for further integration process. These are the reasons why the countries of South-Eastern Europe Health Network will be discussed in this analysis. Regarding the foregoing, the main goal of this study is to investigate the relation between health expenditures and economic growth on the sample of seehn countries in the period 19952014. Contribution of the paper is as follows. Firstly, the current study for the first time has used the panel data covering the seehn countries for revealing the nature of relation between health expenditure and economic growth. Secondly, this study employs Pesaran second generation panel unit root test to determine the order of the integration of panel series. Thirdly, we use simultaneously Pedroni and newly developed Wester-lund co-integration analysis to confirm the test results. The findings of this study may also serve as a form of tutorial to the other small open economies with similar health challenges. Also, to the best of the author's knowledge, there is no study which tested the empirical regularity on the long-term relationship between health care and economic growth on the sample of seehn countries. This article is organized in five sections: apart from the introductory remarks, the second section provides recent literature overview of links between health expenditures and economic growth. In the third section, we introduce the data and starting from the model, in which it is assumed that economic growth and health expenditure are two-way related, the basic econometric tests that will be used in the work are shown. In the fourth section, the results of the research and discussion are presented. Finally, the fifth section presents the concluding remarks and policy implications. Managing Global Transitions Is Health Care Necessity or Luxury Good? 197 Literature Review Pioneer research into the relation between the economic growth and health expenditure is present in the studies of Kleiman (1974) and New-house (1977). Specifically, they found a positive relation between health variables and economic growth. Theoretically speaking, it can be said that higher output means more money, which among other things means greater expenditure in health care (Fuchs 1998). Because of the significant expenditure in healthcare during the last four decades, Elk et al. (2010) pointed out that it is important to get more insights about the role of health as a determinant of growth. According to Lucas (1988), health care can be seen as the engine of growth, since the expenditure in health care involves the investment in human capital, which provides workers with better health, higher productivity and ultimately, a higher level of output (Barro 1991). These statements about the potential relations between health and economic growth are clearly related to a positive relationship between these two variables. Conversely, it is important to point out the research conducted by Acemoglu and Johnson (2006), which showed that an increase in the life expectancy leads rather to a larger increase in the total population than in the economic growth, which ultimately reduces output per capita. So, here we have a negative relation between the variables. However, Acemoglu and Johnson (2006) stated certain limitations of this result, among which stands out the fact that the results relating to a period of more than 60 years may not be applicable in today's environment. Ye and Zhang (2018) highlighted that in order to improve the quality of national health, life quality and happiness, oecd countries should actively look to optimize policy related to health care expenditure, such as by enhancing the efficiency of health costs to promote sustainable economic development. Wang and Lee (2018) showed that economic growth stimulates health expenditure growth, but health expenditure growth reduces economic growth. The above-mentioned theoretical attitudes found their place in empirical studies too, on the basis of which it is possible to distinguish four key types of causal relations between health expenditure and economic growth. Each of these relations carries with itself certain policy implications. Therefore, in accordance with the results of previous studies, the causal relations between these two variables are categorized into the following groups: • Growth hypothesis implies unidirectional causality from health expenditure to economic growth. The implication of this result is eco- Volume 16 • Number 3 • Fall 2018 198 Saša Obradovic and Nemanja Lojanica nomic growth dependence from the investments in health expenditure. Among others, the results in accordance with this hypothesis are obtained in the researches of Devlin and Hansen (2001), Bloom and Canning (2008), Bukenya (2009), Magazzino (2011), Majdi (2012). Also, Erdil and Yetkiner (2009) show that one-way causality runs from health to income in high-income countries. • Growth detriment implies unidirectional causality from the economic growth to health expenditure. This direction of causality can also be called the 'income view.' With this result, the economic growth is a key determinant of growth in health expenditure. This hypothesis is in accordance with the empirical results of Hartwig (2010), Chen et al. (2013), Ozturk and Topcu (2014), Khan et al. (2016), Halici-Tuluce, Dogan, and Dumrul (2016). • Feedback hypothesis implies a two-way causality between health expenditure and economic growth. The increased investment in health expenditure leads to creating a healthier environment, increased productivity and higher output. On the other hand, a higher level of output will involve a higher demand for the health care system. The implications of this hypothesis are related to the fact that excessive control of costs in the health system may limit the economic activity. The empirical results in accordance with this hypothesis can be found in the studies of Pradhan (2010), Tang (2011), Chen, Clarke, and Roy (2014). • Neutrality hypothesis implies the absence of a causal relation between these two variables. Newhouse (1977) gives the explanation of this result, noting that in this case, the formation of the appropriate health care policy should not depend on the economic activity. This result was confirmed in the studies of Cetin and Ecevit (2010), Balaji (2011). In contrast to afore-mentioned findings, Chen (2015) pointed out that none of these four types of causality are valid for usa over the entire period of 1934-2010. It is evident that in the empirical studies that have examined the relation between health expenditure and economic growth, ambiguity of the results exists. The results are not consistent. The reason should be sought in the fact that during the study of the connection between the variables, several approaches were used while modelling this connection. Gerdtham and Lothgren (2000) distinguish the following econometric approaches, which are most commonly used: cross-section Managing Global Transitions Is Health Care Necessity or Luxury Good? 199 bivariate regressions, cross-sectional multivariate regressions, panel data models and cointegration analysis. By applying the panel cointegration analysis, Gerdtham and Lothgren (2002) indicate that health expenditure and gdp are cointegrated around linear trends. The panel data were also used in the following studies: Hitiris and Posnett (1992), Barros (1998), Roberts (1999), Baltagi and Moscone (2010). With the implementation of the appropriate economic policy, it is important to calculate the income elasticity for health care as well. This is very important for the financing model itself as well as for the health care resource distribution. If the income elasticity of health care is greater than one, then health expenditures will be considered as a luxury good. This implies that the health expenditures increase faster than income. Proponents of the idea that healthcare is a luxury good feel that it should be treated like any other good and should be left to the functioning of market forces. On the other hand, health care expenditures could be a necessity good. This suggests income increases faster than health expenditures. Proponents of the idea that this good is necessary for life, support the idea of the government intervention in the healthcare sector of a country (Di Matteo 2003). In previous studies, as well as in the case of establishing causality between the variables, there is no agreement between the authors whether the healthcare is a luxury or a necessity good. Blazquez-Fernandez, Cantarero, and Perez (2014) revealed increasing income elasticity over time along with huge heterogeneity across oecd countries. Chen, Lin, and Chang (2009) indicate that health care is necessity for countries with per capita income lower than $ 1920 per year and is luxury for other countries. According to Kleiman (1974), Newhouse (1977), Leu (1986), Gerdtham et al. (1992), Schieber and Maeda (1999), Getzen (2000), Mus-grove, Zeramdini, and Carrin (2002), Murthy and Okunade (2009), Hassan et al. (2014), Khan and Mahumud (2015), healthcare is a luxury good, while Freeman (2003), Sen (2005), Yu and Chu (2007), Baltagi and Moscone (2010), Narayan, Naeayan, and Smith (2011), Farag et al. (2012), Yavuz, Yilanci, and Ozturk (2013), Khan et al. (2016), Pattnayak and Chadha (2016), Abdullah, Siddiqua, and Huque (2017), consider it as a necessity good. Data and Methodology In accordance with the primary objective of this study, the following hypotheses will be tested: Volume 16 • Number 3 • Fall 2018 200 Saša Obradovic and Nemanja Lojanica H1 There is a long-run relationship between the economic growth and health expenditures. h2 Health expenditures generate the economic growth. h3 The rate of economic activity largely determines health expenditures. In that sense, three variables will be used: Gross domestic product (gdp), health expenditure (he) and life expectancy (le). This study uses gross domestic product and health expenditure as variables of interest, while life expectancy is used as a control variable. To test the potential link between the variables, we used a sample of the seehn countries (Albania, Bulgaria, Bosnia and Herzegovina, Croatia, fyr Macedonia, Moldova and Romania) and panel data set from 1995 to 2014. Information on the movement of the variables is taken from the World Bank website (http://www.worldbank.org), that is, World Development Indicators. Economic growth is expressed by the gross domestic product (gdp), which is measured by the purchasing power parity in the international prices (constant 2011$ ), while for the healthcare expenditure, indicator Health expenditure (h e) is used as well, measured by the purchasing power parity in the international prices (constant 2011$). Life expectancy is measured at birth, total (years). The values of gdp and he variables are displayed per capita, while for statistical reasons, the values of all indicators are shown in logarithmic form (ln). The total number of observations is 140 (20 time periods in 7 countries). Table 1 shows the descriptive statistics in these countries during the mentioned period of time. The South Eastern Europe countries differ in their overall level of the economic development. According to the World Bank country classification (see http://www.worldbank.org), Moldova belongs to lower-middle income economy, Albania, Bosnia and Herzegovina, Bulgaria, fyr Macedonia and Romania are upper-middle income countries, while Croatia is high-income economy. Also, the highest level of health expenditure is realized in Croatia, and the lowest in Moldova. Moreover, the life expectancy in Moldova is lower than in all other observed countries. Visually speaking, he is in line with the level of gdp per capita. Numerous theoretical assumptions listed above, emphasize the importance of investing in health care to increase the economic growth, and the impact of total output on variations in the health care expenditure. Expenditure in health care should enable the absence of chronic diseases and should increase labour productivity, by which the economic prosperity can be affected, as well. A higher level of the economic growth implies Managing Global Transitions Is Health Care Necessity or Luxury Good? 201 table 1 Descriptive Statistics in the seehn Countries (1995-2014) Category Country Mean Std. Dev JB* gdp per capita Albania 6977.756 2213.898 1.726 Bulgaria 12298.23 3116.458 2.406 b&h 7354.182 2265.241 2.652 Croatia 17995.38 2846.805 1.813 fyr Macedonia 9707.933 1567.024 2.096 Moldova 3249.976 800.479 1.568 Romania 14166.81 3476.459 2.312 he per capita Albania 389.335 135.739 1.884 Bulgaria 721.440 364.756 1.303 b&h 562.655 276.251 1.679 Croatia 1137.250 427.876 2.233 fyr Macedonia 636.351 132.717 1.350 Moldova 290.697 148.864 2.340 Romania 568.916 335.862 2.190 le Albania 75.491 1.783 1.694 Bulgaria 72.559 1.386 0.973 b&h 74.733 1.352 2.71 Croatia 74.879 1.809 1.856 fyr Macedonia 73.879 0.981 1.141 Moldova 68.218 1.637 2.601 Romania 71.951 1.902 0.867 notes * Jarque and Bera (1980). a higher income, too, and thus the expenditures in health care should be increased. On this basis, it could be said that there is a positive two-way causality between these variables. Accordingly, we assume that the connection between the economic growth and health expenditure can be summarized as follows: ln(GDp)it = 6j + j81ln(HE)!-t + J82ln(LE)!-t + s^t, (1) ln(HE)!t = yi + ailn(GDp)it + a2ln(LE)t + S2,it, (2) where i = 1,2,..., N is the index of the country, t = 1,2,..., T is the time index, fi1, fi2, a1, and a2 indicate the long-term effects of the independent on the dependent variable, and di and yi are country-specific fixed ef- Volume 16 • Number 3 • Fall 2018 202 Saša Obradovic and Nemanja Lojanica table 2 Cross Section Dependency Test ho: No cross-section dependence in residuals Probability Breusch-Pagan lm test 0.0000 fects, while s1>it and e2,it are error terms. Taking into account that potential existence of common shocks among selected countries could result in creating contemporaneous correlation, it is very important to specify cross-sectional dependencies. Breusch and Pagan (1980) lm test for cross-equation correlation is used for testing cross-sectional dependence, because the number of time periods (T) is larger than cross-sectional units (N). The result of the cross-sectional independence test is reported in table 2. Probability value is below the 0.05, the effect is statistically significant. The Breusch-Pagan lm test strongly rejects the null hypothesis of no cross-sectional dependence. In that sense, the second generation panel unit root test should be used. The second generation tests imply that there is a correlation between individual units of panel. Since existence of the correlation between cross-sectional data is already shown, this study applies the test developed by Pesaran (2007). In order to determine long-term relationship, Pedroni (1999) test of co-integration in a panel has been used here. The null hypothesis that variables are not co-integrated is tested against the alternative hypothesis that variables in a panel are co-integrated. The Pedroni panel co-integration test can be presented in the following form: yit = Oi + Pit + filiXlit + ■■■ + fiMiXMit + eit, (3) where M is the number of regressors, fiM is the coefficient, Oi and pi represents deterministic components. Pedroni defines seven types of such tests. The first four tests (within groups) are based on the separate evaluations of models for individual units. By grouping the obtained results, the variable dimension is formed, according to which co-integration is evaluated. The second group of tests (between the groups) implies that evaluation is being performed for each separate unit, and then relevant value of test statistics is formed according to the mean value of Dickey Fuller statistics for all i units. The next test that will be used to examine the cointegration is Westerlund (2007). Based on the error correction model (ecm), this test implies four panel cointegration tests (Ga, Gt, Pa and Pt). These four test statistics are normally distributed and based on structural dynamics rather than residuals dynamics. Also, they do not include any common factor restriction, and these tests are general enough Managing Global Transitions Is Health Care Necessity or Luxury Good? 203 to be robust against heterogeneity and cross section dependence. West-erlund (2007) cointegration test is appropriate for small-sample and it is possible to get reliable results. Also, this test has a power relative to other popular residual-based panel cointegration tests. The null hypothesis is tested by determining whether error correction is present for individual panel members and for the panel as a whole. If the null of no cointegra-tion is rejected, then co-integration between the variables exists. Taking into account that all the variables are integrated of order 1, cointegration test assumes the following data generating process: Ayit = S'jdt + atyi(t-i) + n\xi{t-x) where dt = (1 -t)' holds the deterministic components, 5' represents the associated vector of parameters, while at is the speed adjustment term. If ai < 1 then cointegration exists, while if at = 1, there is no cointegra-tion. After testing cointegration, evaluation of the long-run parameters is carried out with the help of the panel Dynamic Ordinary Least Square (dols) developed by Pedroni (2001). This approach allows greater flexibility in the case of presence of heterogeneous cointegration vectors. Kao and Chiang (2000) have emphasized that dols is less biased in respect to fmols while Pedroni (2000) has indicated that there is a lower degree of distortion in dols than in fmols. Dynamic ols in the panel model can be shown in the following form: where . /=1 Ayit-j kXit-j a 1 a2 ecit-1 + Slit Slit (7) + + Managing Global Transitions Is Health Care Necessity or Luxury Good? 205 table 4 Panel Co-Integration Tests, Series ln(GDp)it, ln(HE)it ln(LE)it (1) Test statistics Statistic Probability Weighted stat. Probability (a) Panel pp-statistics -2.140 0.016** -2.058 0.019 Panel ADF-statistics -3.480 0.000* -3.018 0.001 (b) Group pp-statistics -2.104 0.018** - - Group ADF-statistics -3.181 0.000* - - (2) Test statistics Value Z-value Probability Gt -2.660 -3.227 0.001* Ga -6.359 -0.259 0.398 Pt -4.279 -1.354 0.088*** Pa -6.214 -2.005 0.023** notes (1) Pedroni (1999) cointegration test, null hypothesis: no cointegration; (2) Westerlund (2007) ecm cointegration test, null hypothesis: no cointegration; (a) within dimension; (b) between dimension. *, ** and *** refer to 1%, 5% and 10% of the test significance. rejected by the panel pp statistic, panel adf statistic, group pp statistic and group adf statistic. In line with the statistically significant results, it can be said that there exists cointegration between variables. Also, the results of Pedroni cointegration test, when ln(HE),t is seen as a dependent variable, are reported in the table 5. We consider ln(GDp),t and ln(LE),t as independent variables. The same outcome, in terms of the statistical significance of the results, as in the first case, points to the existence of the cointegration between the variables. To check the robustness of Pe-dorni's cointegration results, we also employ Westerlund (2007) for both cases, and the results are shown in the table 4 and table 5. For testing the cointegration when ln(GDp)t is considered as a dependent variable, the null hypothesis of no cointegration was rejected by 3 (out of 4) statistics of Westerlund (2007). In the specification when ln(HE),t is considered as a dependent variable, 3 among 4 statistics of Westerlund (2007) were found to be statistically significant. For assessment of the long-run effects of economic growth on health expenditures and vice versa, dols method is used. As in the case of coin-tegration testing between the variables, two cases are also examined here. Table 6 contains the estimation results of long-run relationship among the economic growth, health expenditure and life expectancy. Firstly, the economic growth is considered as a dependent variable. It is evident that there is a positive and statistically significant relationship between the Volume 16 • Number 3 • Fall 2018 206 Saša Obradovic and Nemanja Lojanica table 5 Panel Co-Integration Tests, Series ln(HE),t, ln(GDp),t, ln(LE)it (1) Test statistics Statistic Probability Weighted stat. Probability (a) Panel pp-statistics -1.822 0.034** -2.369 0.009' Panel ADF-statistics -2.673 0.004* -3-035 0.001 (b) Group pp-statistics -2.575 0.005* - - Group ADF-statistics -3-319 0.000* - - (2) Test statistics Value Z-value Probability Gt -2.498 -2.818 0.002* Ga -5.118 0.342 0.634 Pt -6.031 -2.673 0.004* Pa -5.544 -1.644 0.050** notes (1) Pedroni (1999) cointegration test, null hypothesis: no cointegration; (2) Westerlund (2007) ecm cointegration test, null hypothesis: no cointegration; (a) within dimension; (b) between dimension. *, ** and *** refer to 1%, 5% and 10% of the test significance. economic growth and health expenditure. The income elasticity coefficient, in respect to health expenditure, varies from 0.371 to 0.498. In fact, this result can be justified by the observation that the economic growth of the seehn countries depends largely on the investments in health care (human capital). Furthermore, in case when the economic growth is a dependent variable, the coefficient which stands for life expectancy is 1.863 which means that health improvement has a significant influence on the economic growth. This result is in agreement with theoretical views that increased investments in healthcare prolong the anticipated life expectancy of people, which ultimately affects the economic growth. And in the second case, when the health expenditure is a dependent variable, the positive long-run statistically significant relation between the health expenditures and economic growth is also evident. This result can be explained by the fact that with the accomplishment of the economic activity in the seehn countries, more funds will be available to public and private institutions, which will enable the increase of the share of resources that is allocated to the health sector. In the present case, the elasticity coefficient of health expenditure with respect to income varies from 1.014 to 1.573. The Wald test was observed to be significant in two (out of three cases), which means that the elasticity coefficient is greater than unity. Thus, the health expenditure in the seehn countries can be argued as a luxury good. Since this is a test on the sample of 7 countries, Managing Global Transitions Is Health Care Necessity or Luxury Good? 207 table 6 Dynamic Ordinary Squares Least Estimator Results Dep. var. Variable Pooled Weighted Grouped ln(GDp),t ln(HE) it 0.435* (9.444) 0.371* (9.357) 0.498* (5.222) ln(LE)if -0.032 (-0.028) 1.863** (0.040) -0.933 (-0.504) ln(HE) it ln(GDp)it 1.573* (8.635) 1.344* (7.477) 1.014* (3.907) ln(LE)if 7.191* (3-532) 8-797* (4-140) 11-319* (3-314) Wald testf i-statistic 3.147* 1.914** 0.053 X2 statistic 9-904* 3.663** 0.003 notes fHo: Coefficient of ln(GDp)it is not greater than unity (equal to one). * Significant at 1% levels. ** Significant at 5% levels. t-statistics are reported in parentheses. the reassessment of dols regression is made, in the way that in each of the subsequent evaluation one country was excluded, and the previously excluded was returned. Strong impact of economic growth on the health expenditure is not a result of outliers. The obtained values of coefficients, as well as the corresponding values of t-statistics are shown in table 7. When the panel pooled is the estimation method, the coefficients are statistically significant in all seven situations, and they range from 1.178 (when Croatia is excluded) to 1.857 (when Bulgaria is excluded). In the second case, when panel weighted is the estimation method, the results vary from 1.1 (when Croatia is excluded) to 1.527 (when Bulgaria is excluded). As it can be seen, the obtained coefficients are always statistically significant and greater than unity. Such results indicate that health care is a luxury good, and this is not the result of possible outliers. Table 8 presents results of vecm model. The t-statistic for error correction term when the economic growth is a dependent variable indicates that the null hypothesis can't be rejected at the 5-percent level. On the other hand, when the health expenditure is considered as a dependent variable, the t-statistic for error correction term indicates that the null hypothesis can be rejected at the 1-percent level. From this, it can be concluded that the statistical long-run causality is unidirectional, and it runs from the economic growth to health expenditure. Also, in the short-run, there is one-way causality between the health expenditure and economic growth, and it runs from the economic growth to health. Elasticity of the health expenditure with respect to the income is 0.419. In other words, 1% of increase in the economic growth increases the health expenditures for 0.419 percent. In contrast to the long-term results, health care is a necessary product and not a luxury. The results suggest that there exists a pos- Volume 16 • Number 3 • Fall 2018 208 Saša Obradovic and Nemanja Lojanica table 7 Dynamic Ordinary Least Square Regression When One Country Is Excluded from the Analysis Excluded (1) (2) (3) (4) Romania 1.515 10.072 1.347 8.247 Moldova 1.526 7.998 1.236 6.910 fyr Macedonia 1.620 8.844 1.401 7.567 Croatia 1.178 6.271 1.100 7.167 B&H 1.606 8.027 1.513 6.938 Bulgaria 1.857 7.594 1.527 6.252 Albania 1.634 8.517 1.496 7.915 notes Column headings are as follows: (1) coefficients on health expenditure (pooled), (2) t-statistics of the coefficients, (3) coefficients on health expenditure (weighted), (4) t-statistics of the coefficients. table 8 Panel Vector Error Correction Model: Long Run Causality and Short Run Dynamics Independent variables Dependent variables Aln(GDp),f Aln(HE)if ecu-! -0.011 ( -1.097) 0.059* (2.920) Aln(GDp),t-1 0.329* (5.399) 0.419* (3.270) Aln(HE),u-1 0.029 (0.708) -0.093 (-1.084) Aln(LE),u-i 1.353 (1.416) -1.126 (-0.561) Constant 0.016* (2.951) 0.061* (5479) R2 = 0.347; DW = 2.152 R2 = 0.128; Dw = 1.784 notes * indicates significance at the 1% level. i-statistics are reported in parentheses. itive relationship between the health expenditure and economic growth in the long and short run. Furthermore, we also observed unidirectional causality between the health expenditure and economic growth. Conclusion and Policy Implications This paper employs the panel data econometrics to investigate a link between the health expenditure and economic growth in the seehn countries. Although many studies have recently been used conducted on the health care spending-economic growth nexus, there is no study that has investigated this relationship in sehhn. Thus, this paper intends to fill the gap in the empirical literature in this tradition. Recently, these countries have invested a lot of efforts to improve the health care policy. Pol- Managing Global Transitions Is Health Care Necessity or Luxury Good? 209 icy makers started to consider the growth of economic activity as an appropriate tool which can generate improvements in health expenditures. Also health, as a part of human capital, has been recognized as one of the key drivers of economic growth. The three main outcomes could be summarized as follows. First, there is co-integration among the economic growth, health expenditures and life expectancy. This suggests that there is a long-run relationship between the economic growth and health expenditure which is in accordance with the hypothesis number one. Second, in the long run, health expenditures cause positive changes in the economic growth. This result is in line with the second hypothesis. The third outcome is that in the long run, elasticity of the health expenditure with respect to the income is greater than unity. Therefore, health care can be considered as a luxury good. It can be pointed out that this finding is not the result of possible outliers. Nevertheless, in the short run, elasticity of the health expenditure with respect to income is less than unit, which means that health care is a necessary product. The third premise of the study is confirmed by a positive effect of the economic growth to health expenditure in the long and short-run. Finally, on the basis of these outcomes, it is possible to suggest policy implications for these countries. It is essential for policymakers to formulate a long-run oriented policy, which will be directed towards the targeted increase of investment in health care, in order to increase the overall economic activity. It is necessary to strengthen the delivery of high-quality health promoting services at all levels of care. Also, it is of great importance to harmonize the cross border public health legislation and enable a Free Trade Area from the public health perspective. Strengthening of the institutions and improving of inter-sectoral governance of the health sector at all levels, including health information infrastructure and regional cross-border information exchange, present very specific goals for these countries. Since the empirical results confirmed that health is a good that is necessary for life in the short-run, an important role for this sector should be performed by the government. In contrast to the short-run, the long-run result implies that consumers' preferences drive the health expenditure above the economic growth. This suggests that public financing should play a subsidiary role. Consequently, the adequate combination of public and private financing will be needed to improve the health care policy in order to ensure that the seehn countries can benefit from the growth. Volume 16 • Number 3 • Fall 2018 210 Saša Obradovic and Nemanja Lojanica These countries are lagging behind in the level of the income per capita, compared to the eu average. 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Managing Global Transitions Discovering Chinese Product Strategies on Stimulating Attitude and Intention: Involvement of Innovation, Country-of-Origin and Knowledge Ramadania Universitas Tanjungpura, Indonesia ramadhania@ekonomi.untan.ac.id Rianti Ardana Reswari Universitas Tanjungpura, Indonesia riantiardana@student. untan. ac. id Endang Dhamayantie Universitas Tanjungpura, Indonesia endang.dhamayantie@ekonomi.untan.ac.id Globalization has succeeded in broadening consumers' choice via technological assistance which provides sufficient variety of information. Companies shall face competition, both at domestic and international level, which is more intensified than prior to globalization. Chinese brands are increasingly popular overseas and reaching out to compete with other global brands. Global consumers are also continuously looking up for newest product innovations yet having the lowest price tag in the market. Their search brings about knowledge and attention on Chinese brands. This research aims to analyse the influence of product innovation, country of origin, and product knowledge on purchase intention through brand attitude. To collect data, close-ended questionnaires were handed over to 100 respondents. The data were then calculated using SmartPLS 3.2.7. The findings indicated that in order to create more favourable brand attitude, a company needs to focus on efforts to generate customer memory about product specification. Key Words: product innovation, country of origin, product knowledge, brand attitude, purchase intention jel Classification: M3, 03 https://doi.org/10.26493/1854-6935.16.215-234 Introduction Wide expansion of international markets for consumer goods resulted from globalization affects companies' approaches toward modern cus- Managing Global Transitions 16 (3): 215-234 216 Ramadania, Rianti Ardana Reswari, and Endang Dhamayantie tomers. A recent phenomenon shows that Chinese firms are no longer focusing on domestic market and going 'global.' Current researchers found that there are many underlying motives for Chinese firms to go global, in which 'creating a single and globally recognized brand' is one (Fetscherin and Sardy 2008; Fan 2006). Constantly, global firms remain focused on managing sales volume and brand equity by offering customers some values and beliefs which can stimulate purchase intention. One of the newly emerging concepts in business literature is brand attitude (Ghor-ban 2012). Some researchers pointed out that brand attitude is formed to achieve an ultimate goal of creating consumers' purchase intention (Sicilia, Ruiz, and Reynolds 2006). Prior research empirically investigated the concept and demonstrated a significant, positive relationship between attitude and purchase intentions of consumers (Sheeraz et al. 2016; Chan et al. 2013). Globalization is highly related to advancement of technology in business sector. Product innovation refers to an adoption of a new or significantly improved production method (Seng and Ping 2016). It is conducted to maintain a sustainable competitive advantage. Hence, product innovation has a considerable influence on attitudes and purchase intention of potential consumers. Expansion of international market affects consumers' perspectives toward a product's country of origin. Consumers tend to possess their own perception towards country of origin. Along with progression of information, consumers' attitudes to domestic and foreign products are gradually shifting. The products of developing countries are not perceived to have good quality and negative attitudes toward these products are studied by (Schooler 1965). This study discusses consumers' views towards Chinese products. In contrast, other studies found that the more global the brand is, the better quality it is offered; hence, it receives more favourable attitude (Holt et al. 2004). Various information and choice are currently available one click away from customers. It is a particularly important source of information for customers because they rely on product information to lower possible dissatisfaction or perceived risk (Olson and Jacoby 1972). In a recent study, Cakici and Shukla (2017) pointed out that consumers' product knowledge has a significant effect on their purchase intention. Attitudes also acted as a mediator for the relationship between product knowledge and purchase intention (Juharsah and Hartini 2014). Currently, some new brands entering global market are mostly from China and those brands are demanded by consumers. Lack of production of domestic product Managing Global Transitions Discovering Chinese Product Strategies 217 and product necessity factors as well contributes to shape different consumer attitudes towards certain foreign products (Ramadania, Gunawan, and Rustam 2015) For instance, Xiaomi's action camera succeeds in penetrating new market and creating favourable brand attitude, which in turn, generate purchase intention. Emerging demands for action cameras in Indonesia remain strong, due to rising trends of travelling. In addition, some Indonesian consumers usually capture every moment to be uploaded to social media. This consumer behaviour phenomenon is seen as a promising opportunity. Some previous studies (Seng and Ping 2016; Juharsah and Hartini 2014) solely examined the relationship between attitude and purchase intention without any mediation from brand attitude. Past literatures did not incorporate product innovation, country of origin, and product knowledge into one conceptual model. Literature Review Product Innovation. Product innovations refers to cross-functional activities within a company. In order to create a successful innovation process, marketing effort needs to be integrated with r&d, manufacturing, and finance (Mohr and Sarin 2009). Technical and management systems within an organization shall simultaneously innovate to discover new or distinctive market offerings. When an innovation succeeds, it brings a superior value to the organization. Country of Origin (coo). Anwar et al. (2013) stated that co o is described as different brands belong to the different countries. The brands belong to a certain country can be included into country-of-origin. Consumers form their expectations based on the perceived image of the country. The impact of coo also known from 'made in' will probably affect consumer attitudes and purchase intentions toward foreign and domestic product is most often developed study in the field of international marketing (Ramadania, Gunawan, and Jamaliah 2013; Amine 2008). Product Knowledge. Lin and Zhen (2005) asserted that product knowledge is generated from awareness or understanding about the product, and also reflects consumers' confidence about it. In other words, Beatty and Smith (1987) referred to product knowledge as a consumer's perception toward certain products, including their previous experience of using the product. Consumers construct various product knowledge structure based on various degrees of familiarity toward a product (Park and Volume 16 • Number 3 • Fall 2018 218 Ramadania, Rianti Ardana Reswari, and Endang Dhamayantie Lessig 1981). Those with higher product knowledge tend not to employ preconceived idea to judge product quality. Brand Attitude. Brand attitude is a needed communication effects if brand purchase is to occur (Percy and Rossiter 1992). It refers to one-dimensional consumer attitude as a sum of evaluations on a product, which may be effective to examine attitude as a multidimensional construct consisting of a network of interconnected beliefs and evaluations (Bagozzi and Silk 1983). Consumer Purchase Intention. Purchase intention is a decision-making process which studies the reason to buy a particular brand by a consumer (Shah et al. 2012). Hellier et al. (2003) believed that behaviour intention is the judgment or opinion about repurchasing a particular product from the same enterprise under the current premise and possible conditions of an individual. Behaviour intention is a subjective tendency for consumers to purchase their targeted product. hypothesis development Consumer purchase intention is frequently cited by marketing strategists as an advice about new progress and/or existing product decision. It can be simplified using 'likelihood of buying' and 'product recommendation.' A company may propose some strategies to influence consumers' judgement toward their brand or product. Previous literatures explained that novelty-seekers consumers tend to have more favourable attitudes toward acquiring innovative products (Manning, Bearden, and Madden 1995). This attitude influences intention and behaviour through its effects on attitude (Ajzen and Fishbein 2005). coo is a factor considered by consumers on purchase decision making (Lee 2013). Somansundaram (1993) argued that consumers with high level of product knowledge also form extreme beliefs and attitudes toward a company or its products. Hence, it is concluded that product knowledge affects purchase intention (Lin and Lin 2007). A positive attitude toward a brand allows consumers to decide on their purchase; while negative brand attitude obstructs consumers in making purchases (Cheng and Chang 2008). From figure 1, the formulated hypotheses are depicted besides the arrows in the conceptual framework. Scholars believed that product innovation is one of the consideration factors affecting consumers to make purchase decision (Boyd and Charlotte 1999). It also shows that product innovation plays important role in determining potential consumers' Managing Global Transitions Discovering Chinese Product Strategies 219 Product Innovation (^^Country of Origin Product Knowledge figure 1 Research Hypothesis H3 purchase and attitude. Novelty-seekers consumers tend to have more favourable attitudes toward acquiring innovative products (Manning, Bearden, and Madden 1995). Therefore, the first hypothesis is formulated, as follows: hi Product innovation has significantly influence with brand attitude. If the product comes from highly reputable country, most consumers have positive attitudes toward it. A person seems to hold a distinct and specific opinion about various aspects of a product or brand which later affects their intention to buy (Oh and Jeong, 2015). On the other hand, if the product comes from non-reputable country, consumers possibly forms negative attitudes (Bhakar and Bhakar 2013). Based on such theoretical support, the second hypothesis is formulated: H2 Country of origin has significantly influence with brand attitude. Lin and Chen (2006) highlighted that product knowledge is positively related and significantly influences consumers' purchasing decisions. However, through attitude as mediation variable, product knowledge significantly affects purchase intention (Juharsah and Hartini 2014). Consumers show their affections distinctively for a brand based on their own personal knowledge. A possible explanation for this different behaviour lies in the fact that novices lack in the necessary knowledge and experience to distinguish important product attributes (Beattie 1982). Hence, it is concluded that: H3 Product knowledge has significantly influence with brand attitude. A brand can fulfil multiple roles to influence consumers' decisionmaking process or choice behaviour (Sheeraz et al. 2016). Commonly, consumers' attitudes strongly influence their purchase behaviours (Taute et al. 2017; Priester et al. 2004). Positive attitude toward a brand allows consumers to make purchases; while negative brand attitudes obstruct Volume 16 • Number 3 • Fall 2018 220 Ramadania, Rianti Ardana Reswari, and Endang Dhamayantie consumers in making purchases (Cheng and Chang 2008). Thus, the fourth hypothesis is: H4 Brand attitudes significantly influence with consumer purchase intention. Research Methodology The primary data in this study were obtained from online and printed questionnaires. The raw data were subsequently proceeded using SmartPLS 3.2.7 for Windows to determine the frequency of responds from the respondents. Likert scale was employed to measure research variables in which the respondents were asked to indicate a degree of agreement and disagreement about the variables and ranged between 1-5, from very low to very high (Suwatno 2007). Research population was classified as infinite; hence, as the sample, this research used purposive sampling which was determined after the samples fulfilled certain criterion. Hair et al. (2010) stated that minimum sample size shall be 100-150 to ensure stable Maximum Likelihood Estimation (mle). Total sample in this research was 100 respondents who were identified as potential Chinese brands consumers. pls began with testing measurement model to test the validity of constructs and reliability of instruments. Validity test in pls was implemented through convergent validity test, discriminant validity test, and average variance extracted (ave) test. Furthermore, reliability test was used to measure the consistency of items in measuring the variables. It can also be used to measure respondents' consistency in answering instruments. Overall, the response rate for online survey was higher than paper survey in this research. Data Analysis and Results There were some specific characteristics of the respondents for this study, including gender, education, age, revenue, and occupation. The total number of female respondents were as many as 54 females (54%). Most respondents (66% or 66 people), who were interested in Chinese brands, were freshman undergraduate students. Those below 31 years old were estimated to be accounted for 95% of the total respondents. It was also observed that most respondents earned less than idr 3 million for their monthly incomes (78% of total respondents). Majority (70%) respondents were college students. Table 2 illustrates summary of characteristics of respondents. Managing Global Transitions Discovering Chinese Product Strategies 221 table 1 Measurement of Constructs Variable Indicator Item Product Inno- Technological innovation vation (X1), adaptedfrom Service innovation Damanpour (1999). New products Market breakthrough The products regularly update its production technology. The products instantly update the service through Internet. The products often lead ahead of other brands in launching new products. The products readily update its functions to meet consumer's needs. Country of Origin (X2), adapted from Yasin, Noor, and Mohamad (2007). Innovation of the country in production The level of technological progress of the country of origin Production design Productive creativity Production quality The prestige of the home country of the brand The image of the home country of the brand as developed country I am sure that Chinese product have great innovation. I look for the label 'Made in China' to ensure that I buy products with newest technology. I look for product from China to ensure that the camera that I will purchase have good design. I believe China have variety of products to choose. I am seeking for Chinese product to ensure that I buy good quality product. I believe that Chinese product determining the brand prestige. I believe product from China determining country image that I perceived. Continued on the next page By continue making progress in innovation and new approach toward mid-range market, Chinese firms have been tremendously successful in recent years. Most respondents admittedly agree that Chinese brands regularly upgraded all types of electronic devices, which were also seen as attempts to survive in market competition. The result affirmed that country of origin served as an information cue prior to product purchasing. Country of origin or consumers' attitude towards products' origin can be influenced by cultural values and perceptual stereotypes. Product knowledge was associated with information and experience which built a memory of a product. Gathering information was not a big deal for customers in the Internet era. Relatively, Chinese brands were perceived in a posi- Volume 16 • Number 3 • Fall 2018 222 Ramadania, Rianti Ardana Reswari, and Endang Dhamayantie table 1 Continued from the previous page Variable Indicator Item Product Knowl- Knowledge about the prod- I feel knowledgeable about the products. edge (x3), uct adapted from Willingness to understand I want to understand the products ac- Brucks (1985) tively. and Lin and Chen (2006). Memory of product infor- I actually stored in my memory about mation the products' information. Differentiation of product I am able to tell the differences of the and brand products and other brand of product firms. Brand Attitudes Favourability My attitude toward product' brand is (yi), adapted favourable. from Miniard Conation component My attitude toward product' brand is et al. (1991). positive. Affective component I like product' brand. Cognition component My overall evaluation of product' brand is good. Consumer Pur- Explorative interest I intend to try the products. chase Intention Referential interest I would consider purchasing the prod- (Y2), adapted ucts. from Barber et al. (2012). Transactional interest I plan on buying the products. Preferential interest I am interested in using the products. tive attitude from most respondents. Chinese brands themselves mostly widen their market share by offering a cheaper alternative for consumers who demanded for lower product price, compared to either Western or Eastern products. Furthermore, the data interpretation in this study included outer model, inner model, mediating effect, and ¿-statistics test result. The outer model in partial least square (pls) specified the degree of validity and reliability of the relationships between latent variables and indicators. Firstly, convergent validity occurred when the construct measurements were correlated with one another. As a general rule of thumb, outer loadings should obtain the value of 0.70 or higher; while 0.5 ave score was considered satisfactory (Avkiran 2018). Items with outer loadings of 0.6 might be considered acceptable, while items with outer loadings less than 0.5 should be eliminated from analysis (Ghozali 2008). The results of validity test are presented in table 3, including outer loadings and ave scores. Managing Global Transitions Discovering Chinese Product Strategies 223 table 2 Characteristics of Respondents Category Item f % Gender Male 46 46 Female 54 54 Education Senior High School 66 66 Diploma Degree 4 4 Bachelor Degree 27 27 Master Degree 2 2 Doctoral Degree 1 1 Age 17-20 years old 26 26 21-30 years old 69 69 31-40 years old 3 3 41-50 years old 1 1 > 50 years old 1 1 Revenue < Rp. 3.000.000 78 78 > Rp. 3.000.000-7.500.000 17 17 > Rp. 7.500.000-11.500.000 1 1 > Rp. 11.500.000-15.500.000 2 2 > Rp. 15.500.000 2 2 Occupation College Student 70 70 Civil Servant 2 2 Private Employees 18 18 Entrepreneur 4 4 Housewife 1 1 Unemployment 5 5 Invalid measurement could mystify the research objectives and data interpretations; hence, it should be removed to clearly investigate the correct measurement items and obtain desired results. Moreover, discriminant validity was an assessment to ensure that a reflective construct has the strongest relationship with its own indicators in pls path model (Hair et al. 2017). The outer loadings and constructs were adequate yet valid, as illustrated in table 4. Finally, reliability test is vitally important for both data stability and consistency. The measurement model with composite reliability above the threshold value of 0.70 for each construct was considered satisfactory. Volume 16 • Number 3 • Fall 2018 224 Ramadania, Rianti Ardana Reswari, and Endang Dhamayantie table 3 Convergent Validity Test Construct Measurement item Loading AVE Product Innovation (xi) pii 0.893 0.680 PI2 0.827 PI3 * PI4 0.749 Country of Origin (12) cooi 0.706 0.538 C002 0.740 C003 0.756 C004 0.700 C005 0.765 coo6 * C007 * Product Knowledge (X3) PKl 0.881 0.777 PK2 0.866 PK3 0.896 PK4 * Brand Attitude (y 1) BAl 0.867 0.774 BA2 0.883 B A3 0.885 B A4 0.885 Purchase Intention (Y2) CPIl 0.886 0.786 cPI2 0.812 cPI3 0.907 cPI4 0.937 notes * Deleted due to low outer loading result. The reliable statement item also required Cronbach Alpha value higher than 0.60 for all constructs (Abdillah and Hartono 2015). Reliability test results were summarized in table 5. Based on the summaries in table 5, composite reliability values for all constructs fulfilled the requirement of 0.70. The results displayed that product innovation obtained 0.932; country of origin was 0.853; product knowledge recorded 0.86; brand attitude was 0.912; and purchase intention was recorded at 0.936. Thereby, high composite reliability values led to the consistency of Cronbach Alpha scores for all constructs. Thus, it Managing Global Transitions Discovering Chinese Product Strategies 225 ta B L E 4 Discriminant Validity Test (1) (2) (3) (4) (5) (6) PI1 0.893 0.295 0.450 0.485 0.375 PI2 0.827 0.274 0.365 0.470 0.371 PI4 0.749 0.277 0.365 0.353 0.228 cooi 0.259 0.706 0.303 0.459 0.423 C002 0.336 0.740 0.209 0.282 0.262 C003 0.156 0.756 0.199 0.266 0.248 C004 0.389 0.700 0.196 0.417 0.341 C005 0.196 0.765 0.304 0.352 0.310 PK1 0.389 0.248 0.881 0.395 0.421 PK2 0.477 0.318 0.866 0.452 0.466 PK3 0.382 0.327 0.896 0.445 0.481 BA1 0.484 0.566 0.479 0.867 0.687 BA2 0.452 0.412 0.387 0.883 0.714 BA3 0.434 0.378 0.389 0.885 0.734 BA4 0.509 0.428 0.468 0.885 0.735 CPI1 0.339 0.455 0.513 0.745 0.886 CPI2 0.311 0.258 0.377 0.568 0.812 CPI3 0.392 0.402 0.491 0.751 0.902 CPI4 0-379 0.459 0.449 0.798 0.937 N0TES Column headings are as follows: (1) item, (2) Product Innovation, (3) Country of Origin , (4) Product Knowledge , (5) Brand Attitude, (6) Purchase Intention. TABLE 5 Reliability Test Variable (1) (2) (3) (4) Product Innovation (xi) 0.765 0.932 >0.70 Reliable Country of Origin (12) 0.790 0.853 >0.70 Reliable Product Knowledge (X3) 0.856 0.864 >0.70 Reliable Brand Attitude (y 1) 0.903 0.912 >0.70 Reliable Purchase Intention (Y2) 0.909 0.936 >0.70 Reliable notes Column headings are as follows: (1) Cronbach alpha, (2) composite reliability, (3) scale, (4) description. confirmed the reliability of measurement items. Meanwhile, the structural model was also acknowledged as inner model. It emphasized on Volume 16 • Number?, • Fall 2018 226 Ramadania, Rianti Ardana Reswari, and Endang Dhamayantie x \ T C002 33 0.827 0.749 Product C003 0l706 ^ 0.740; "0.756. C004 4—0.700' ' 0.765 XXTS 0-315 0.Ö67 0.883 0.885 0.885 C005 Country of Origin (COO) 0.886 0.812 0.907 0.937 Brand Attitude (BA) Purchase Intention 60 -z -a 50 -c re u 40 -° 30 i 20 10 -0 02468024680246802468024 77777888889999900000111 99999999999999900000000 50 Years •MS TO HC »INV •EX figure 2 Exchange Rate, Money Supply, Trade Openness, Human Capital, and Investment 0 to a us dollar and 24.62% respectively within the considered periods. For other explanatory indicators, the average values of investment, total trade and money supply to the size of the Nigerian economy were 14.67%, 47.69% and 22.51% correspondingly. The graphical illustrations of our variables are depicted in figures 1 and 2. Figure 1 shows the trend analysis of exchange rate and macroeconomic performance such as per capita income, trade balance, price instability and interest rate. Trend movement of the exchange rate and other explanatory variables like financial deepening, trade openness, human cap- Managing Global Transitions Macroeconomic Implications of Exchange Rate Depreciation 249 table 2 Correlation Matrix GDP TB INF INT EX MS TO HC INv GDP 1 tb 0.115 1 INF -0.403 -0.002 1 INT -0.482 0.532 0.331 1 ex 0.555 0.465 -0.291 0.243 1 INV -0.038 0.014 0.003 0.064 0.080 1 HC -0.304 0.166 0.116 0.494 0.258 0.092 1 TO 0.278 0.669 -0.090 0.476 0.796 0.356 0.201 1 MS 0.267 -0.431 -0.099 -o.567 - -0.423 0.193 -0.378 -0.421 1 table 3 adf Unit Root Tests for the Variables at Levels and First Differences Variables Levels First difference Results No trend Trend No trend Trend GDP 0.2521 -0.2053 -5.9050** -6.5328** I(1) tb -3.6708** -5.1622** - - I(0) INF -3.2838* -3.2934 -6.8328** -6.8010** I(1) INT -2.3267 -2.3738 -7.2042** -7.2501** I(1) ex 0.9479 -1.5310 -5.7889** -6.1582** I(1) INv -4.6314** -5.7012** - - I(0) Hc -1.0342 -2.2190 -4.2636** -4.2158** I(1) TO -2.4497 -2.0148 -7.9537** -8.3016** I(1) Ms -3.3666* -3.5246** - 1(0) notes ** and * denotes significance level at 1% and 5% respectively. ital and investment are shown in figure 2. The trend reviews of the figures do not show clear direction (whether positive or negative) of all the macroeconomic indicators with the exchange rate. The inconclusiveness of the direction of our variables necessitates the need for an empirical analysis. Table 2 shows the results of the correlation coefficients indicating that the problem of multicollinearity has been checked for our autoregressive distributed lag (ardl) outputs. The first pre-estimation test conducted was to establish the order of integration of all indicators as they are critical to the estimation because estimating a time series model with non- Volume 16 • Number^ • Fall 2018 250 Ekundayo P. Mesagan, Olorunfemi Y. Alimi, and Ismaila A. Yusuf table 4 Result of ardl Bounds Test for Cointegration Relationship Dependent variables Functions F-statistics gdp Model ardl (4,1,3,4,4) Fgdp(gdp|hc, ex , to, inv) 4.0483** Price instability Model ardl (4,4,3,4,3) Finf(inf|ex, to, ms, gdp) 6.6905*** Interest rate Model ardl (1,4,0,4,2) Fint(int|ex, to, inv, ms) 4.4786** Trade balance Model ardl (2,0,1,0,1) Ftb(tb|ex, to, inv, gdp) 8.5002*** 1% 5% 10% 1(0) 1(1) 1(0) I(I) I(o) 1(1) Critical bound values 3.74 5.06 2.86 4.01 2-45 3-52 notes ***, **, and * denote rejection of null hypothesis at 1%, 5% and 10% significance levels respectively. stationary regressors could lead to spurious regression. This study used the Augmented Dickey Fuller (adf) test by Dickey and Fuller (1979) to ascertain the stationarity level of all variables. The unit root result suggests that all the variables are of order one except trade balance, investment and money supply which are found to be integrated of order zero. The results of the unit root tests are presented in table 3. The result from the integration test confirmed the appropriateness of the chosen estimation technique (ardl). Moreover, the results of the ardl bounds tests for cointegration are presented in Table 4. The Akaike Info Criterion (aic) was used to select the orders of the ardl models. The result revealed that the computed f-statistics are greater than the upper bound critical values indicating that the null hypotheses of no cointegration are rejected at 5% significance level. This implies that there is satisfactory evidence in support of a unique and stable long-run relationship between currency depreciation and macroeconomic performance in Nigeria. Empirical Results and Discussion Tables 5 and 6 present both the long-run estimates and the diagnostic and stability tests respectively. Models 1-4 revealed the ardl models for output growth, price instability, interest rate and trade balance correspondingly. Table 5 shows that naira depreciation has a positive and significant impact on all the indicators of macroeconomic performance considered within the periods except for output per capita which was found insignificant at 5% significance level. In magnitude terms, a 10% change in depreciation of Naira would positively increase output per capita, inflation Managing Global Transitions Macroeconomic Implications of Exchange Rate Depreciation 251 table 5 Results of the Estimated ardl Long-Run Coefficients Independent Dependent variables variables (l) (2) (3) (4) Constant 12.335 (2.904)***- -1.529 (3.630) -3.267 (1.947) 6.354(1.670)*** HC 0.08l (0.208) EX 0.06l (0.087) 0.108 (0.004)** 0.200 (0.058)*** 1.437 (0.312)*** TO -0.101 (0.045)** 0.084 (0.283)* 0.707 (0.279)** -0.381 (0.143)** INV -0.054 (0.06l) 0.932 (0.395)** 0.233 (0.153) MS 0.300 (0.239) -0.076 (0.287) GDP -0.020 (0.398) -0.741 (0.223)*** notes Column headings are as follows: (1) output growth, (2) price instability, (3) interest rate, (4) trade balance. ***, **, and * denote rejection of null hypothesis at 1%, 5% and 10% significance levels respectively. rate, interest rate and trade balance per capita by 0.61%, 1.08%, 2.0% and 14.37% respectively. It suggests that Naira depreciation stimulates economic activity and trade balance but adversely affects the cost of doing business and create price instability. The result is in tandem with the findings of Ogbonna (2011); Umoru and Oseme (2013) and Adediran, Yusuf, and Adeyemi (2014) that currency depreciation improves trade balance and output growth. However, the improvement has its economic costs in terms of high cost of business and inflation. Thus, the study found that naira depreciation enhances economic performance. The result also found that openness to trade has a significant and adverse effect on trade balance and the overall output growth of the Nigerian economy. A 10% increase in trade openness deteriorates per capita output and trade balance by 1.01% and 3.81% respectively. Likewise, openness to trade has a positive and significant impact on inflation rate and interest rate. It implies that inflation rate and interest rate increase by 0.8% and 7.1% respectively as a result of 10% increase in openness of trade. The result further showed the coefficients of investment have a positive impact on interest rate and trade balance while it negatively affects output. A10% increase in investment leads to a decrease in output by 0.54%. Also, an increase in investment by 10% leads to an increase in interest rate and trade balance by 9.3% and 2.33% respectively. The result also indicates that the coefficient of money supply has no significant impact on inflation rate and interest rate. Conversely, the coefficient of income per capita has a negative but insignificant impact on the inflation rate. Volume 16 • Number?, • Fall 2018 252 Ekundayo P. Mesagan, Olorunfemi Y. Alimi, and Ismaila A. Yusuf table 6 ardl Short-run Coefficients: Model 1 Variables Coefficient Std. error t-statistics Probability A(gdp(-i)) 0.103691 0.171844 0.603400 0.5527 A(gdp(-2)) -0.138708 0.171330 -0.809598 0.4272 A(gdp(-3)) 0.285443 0.164249 1.737872 0.0969 A(hc) 0.238296 0.176991 1.346376 0.1925 A(ex) -0.086272 0.040394 -2.135766 0.0446 A(ex(-i)) -0.030093 0.049479 -0.608186 0.5496 A(ex(-2)) -0.048727 0.040808 -1.194074 0.2458 A(to) -0.065438 0.056581 -1.156537 0.2604 A(to(-i)) 0.041455 0.062322 0.665169 0.5132 A(to(-2)) -0.093743 0.064255 -1.458911 0.1594 A(to(-3)) 0.137556 0.063402 2.169584 0.0417 A(inv) -0.053294 0.082225 -0.648154 0.5239 A(inv(-i)) 0.183514 0.087796 2.090242 0.0489 A(lNV2)) -0.188776 0.088033 -2.144369 0.0439 A(inv(-3)) 0.203321 0.066493 3.057752 0.0060 ect(-i) -0.216512 0.100963 -2.144469 0.0432 The dynamic short-run estimates report both positive and negative relationship between the lags of Naira depreciation and macroeconomic performance, as presented in tables 6-9. The coefficients of the error correction term (ect) for the models were found to be negative and significant at 5% significance level ranging within the magnitude of 11.2% and 48.5%. It implies that approximately, 11.2% to 48.5% disequilibrium in the previous year's shocks on macroeconomic performance converge to longrun equilibrium in the current year. Thus, this supports the existence of long-run relationship between exchange rate and macroeconomic performance in Nigeria. The diagnostic and stability tests are presented in table 10. The estimated models passed all diagnostic tests indicating that the error terms have same variance, are normally distributed and uncorrelated. The functional form test confirms that the models are well specified except output growth and interest rate models that failed the serial correlation and functional form tests respectively. The results of cumulative sum and cumulative sum of square fall within the critical bounds at 5% significance level indicating that the parameters are stable over the sample periods. Managing Global Transitions Macroeconomic Implications of Exchange Rate Depreciation 253 table 7 ardl Short-run Coefficients: Model 2 Variables Coefficient Std. error t-statistics Probability A(cpi(-i)) 0.691703 0.134822 5.130471 0.0001 A(cPl(-2)) -0.334044 0.155172 -2.152728 0.0444 A(cpi(-3)) 0.296855 0.152035 1.952538 0.0658 A(ex) 0.015639 0.052347 0.298749 0.7684 A(ex(-i)) -0.131723 0.060822 -2.165715 0.0433 A(ex(-2)) 0.120070 0.066886 1.795148 0.0886 A(ex(-3)) -0.144823 0.055389 -2.614639 0.0170 A(to) -0.022886 0.060006 -0.381400 0.7071 A (to(-i)) 0.061598 0.070359 0.875482 0.3922 A(to(-2)) -0.121883 0.068936 -1.768052 0.0931 A(ms) -0.127220 0.075814 -1.678055 0.1097 A(ms(-i)) 0.165312 0.088561 1.866651 0.0775 A(ms(-2)) -0.006453 0.085367 -0.075590 0.9405 A(ms(-3)) -0.110480 0.067213 -1.643730 0.1167 A(gdp) -0.758488 0.215093 -3.526319 0.0023 A(gdp(-i)) 0.527733 0.264206 1.997429 0.0603 A(gdp(-2)) -0.885079 0.225297 -3.928498 0.0009 ect(-i) -0.252040 0.044018 -5.725830 0.0000 Conclusion The Nigerian economy depends so much on the proceeds of crude oil exports, which is foreign currency denominated. Hence, it has serious implications on the Nigerian economy pertaining to budget preparation. It also makes the economy susceptible to external shocks. The recent fall in the international crude oil price plunged the country into recession and put pressure on its external reserve. This prompted a study of this nature between 1970 and 2015. The study adopted the ardl bound testing approach to establish the macroeconomic implications of exchange rate depreciation on income, inflation rate, interest rate and trade balance. It was confirmed that naira depreciation has a positive and significant impact on all the indicators of macroeconomic performance except for output per capita, which was found to be insignificant. This suggests that Naira depreciation stimulates economic activity and trade balance but also cause price instability and high-interest rate. Volume 16 • Number^ • Fall 2018 254 Ekundayo P. Mesagan, Olorunfemi Y. Alimi, and Ismaila A. Yusuf table 8 ardl Short-Run Coefficients: Model 3 Variables Coefficient Std. error t-statistics Probability A(ex) 0.449025 0.109941 4.084253 0.0004 A(ex(-i)) 0.072957 0.147115 0.495923 0.6241 A(ex(-2)) -0.272227 0.155551 -1.750076 0.0919 A(ex(-3)) 0.321780 0.113559 2.833594 0.0088 A(to) 0.342377 0.129655 2.640682 0.0138 A(inv) -0.353070 0.176507 -2.000321 0.0560 A(inv(-i)) 0.009363 0.253250 0.036972 0.9708 A(lNV(-2)) -0.050365 0.248222 -0.202902 0.8408 A(inv(-3)) -0.303311 0.191648 -1.582647 0.1256 A(ms) 0.137267 0.177800 0.772032 0.4471 A(ms(-i)) -0.431731 0.160977 -2.681945 0.0125 ect(-i) -0.484618 0.111190 -4-358479 0.0002 table 9 ardl Short-Run Coefficients: Model 4 Variables Coefficient Std. error t-statistics Probability A(tb(-i)) 0.290198 0.142747 2.032955 0.0497 A(ex) 0.160992 0.043268 3.720828 0.0007 A(to) 0.598303 1.736739 0.344498 0.7325 A(inv) 0.260575 0.172362 1.511791 0.1396 A(gdp) 1.175869 0.619252 1.898855 0.0659 ect(-i) -0.112026 0.019275 -5.812040 0.0000 The study is in line with Junz and Rhomberg (1973), Wilson and Takacs (1979), and Bahmani-Oskooee and Kara (2003), which suggested that currency depreciation enhances trade balance of countries operating fixed exchange rate. It is also in tune with Ali and Anwar (2011), which found that exchange rate fluctuation results in a price increase and an improvement in the trade balance. The study confirms the existence of a long-run relationship between exchange rate depreciation and macroeco-nomic performance in Nigeria. We therefore conclude that exchange rate depreciation has severe implications on macroeconomic performance in Nigeria. To this end, it is pertinent to diversify trade by embarking on export promotion strategies that can sustain gains of exchange rate movements and mitigate its negative consequences on the economy. Managing Global Transitions Macroeconomic Implications of Exchange Rate Depreciation 255 table 10 Model Diagnostic and Stability Tests Test statistics Dependent variables (1) (2) (3) (4) Serial correlation 5.1299(0.017) 5.789 (0.009) 4.214 (0.270) 1.841 (0.175) Funct. form 1.2351(0.231) 2.063 (0.054) 0.948 (0.352) 0.814(0.433) Normality 1.420 (0.492) 1.100(0.577) 1.199 (0.349) 0.499 (0.779) Heteroskerdasticity 0.503 (0.935) 1.328 (0.317) 0.473 (0.934) 1.373 (0.289) cusuM Stable Stable Stable Stable cusuMQ Stable Stable Stable Stable ect(-1) -0.217(0.101)***- -0.252 (0.044)***- -0.485 (0.111)***- -0.112 (0.019) notes Column headings are as follows: (1) output growth, (2) price instability, (3) interest rate, (4) trade balance. The values in brackets are the probability values for the diagnostic and stability tests; *** and ** denote rejection of null hypothesis at 5% and 10% significance levels respectively. References Abeysinghe, T., and T. L. Yeok. (1998). 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'Exchange Rates and the Trade Balance: The Case of Singapore (1970 to 1996).' Journal of Asian Economics 12:47-63. This paper is published under the terms of the Attribution-NonCommercial-NoDerivatives 4.0 International (cc by-nc-nd 4.0) License (http://creativecommons.org/licenses/by-nc-nd/4.o/). Managing Global Transitions Different Ways of Environmental Issue Management by Active Citizens: Case Studies from Hungary Adrienn Reisinger Széchenyi István University, Hungary radrienn@sze.hu Katalin Bándy Széchenyi István University, Hungary bandy@sze.hu The paper illustrates how active citizens can manage environmental issues by participation in local or national programs or events. The aim of this paper is to provide - on the one hand - the theory of social participation of active citizens with the focus on environmental issues. On the other hand, the paper attempts to illustrate the topic with three good examples from Hungary based on secondary information and interviews. The first one is a program of school gardens; the second one is an issue in Szentgotthárd and is related to the case of a planned incinerator, which was banned by the debut of local civic organisations some years ago. The third program namely TeSzedd (the program is about collecting litter in an organised campaign in Hungary) is a case, which is initiated by a top down approach but managed by local citizens. The results show that citizens can be active in shaping environmental issues but the most important factor seems to be that they need to be concerned personally about the issues. Key Words: active citizens, social participation, environmental issues, management, good examples jel Classification: R11, L31 https://doi.org/10.26493/1854-6935.16.259-277 Introduction Environmental issues can be managed by different kind of actors and different kind of ways. This study illustrates how the active citizens can participate in managing these kinds of issues. Recently, researchers have shown an increased interest in social participation in environmental issues. The aim of this study is to examine good cases in Hungary related to environmental issues management and to add to the literature by providing a list about the different kind of activities in environmental issues. Managing Global Transitions 16 (3): 259-277 26o Adrienn Reisinger and Katalin Bándy These three cases are involved in the research: the method of school gardens, a case in Szentgotthárd and the TeSzedd Program (the program is about collecting litter in an organized campaign in Hungary). The first part of the study provides a literature overview about active democracy, active citizenship and environmental issues. This part lays out the dimensions of environmental participation and the activity list related to participation. The article continues by introducing three good cases in Hungary The last part presents the conclusions. The paper provides guidance also for practitioners and researchers and it also adds some possible good examples about managing environmental issues to the literature. It is possible to believe that learning how to manage these types of activities is our common responsibility. Theoretical Background: Active Democracy, Active Citizenship and Environmental Issues Active democracy (Reisinger 2009) means that citizens take part in those local, regional, national, or just like international issues, which can influence their life and wellbeing. In this democracy, citizens are open for shaping their environment, telling their ideas and solving problems together with other citizens or institutions. Participation of citizens and civil organisations can be termed social participation which is related to social responsibility; people who care about their society in a given way are responsible not just for their own life but also for their society (Nárai-Reisinger 2016). Newman and Tonkens (2011) have also investigated the relationship between participation and responsibility. Active democracy and social participation need active citizens. The question arises: who the active citizens are. 'Citizenship defines rights and responsibilities, in turn creating a dynamic debate about the duties of citizens as members of the community. Traditionally, active citizenship has included participating in elections or referendums, standing for a political office, and actively or passively engaging as member of a political party or politically affiliated organisation. However, this strict definition has expanded. A core element of active citizenship is now seen as engagement in civil society through membership in or support of organisations, involvement in political debates and public consultation processes, participation in demonstrations or protests, volunteering, and awareness of topical issues.' (European Youth Forum 2013, 3) As it can be seen, participation is the core concept in this term. Also Hoskins (2006, 10) demonstrates active citizenship as 'participation in civil society, community and/or po- Managing Global Transitions Different Ways of Environmental Issue Management 261 litical life, characterised by mutual respect and non-violence and in accordance with human rights and democracy.' Based on these approaches, it is important that active citizenship is more than just voting and knowing the rights, it means that active citizens take certain actions in favour of the society. In the literature, there is no unified concept about the potential activities of an active citizen; the approaches vary from author to author. In one of her previous studies, Reisinger (2017) identified 33 activities along the following fields (Jochum, Pratten, and Wilding 2005; Bee 2017): • activities related to civil/non-profit organisations or good cases, • activities concerned with local governments, • activities from home, • personal responsibility, • monitoring and/or intervention in local/national issues, and • political participation. Each of the above activity groups include such activities, which are in some from related to environmental issues. Of course it does matter how far-reaching these issues are, who their participants are, and how much time is provided to get information about the given environmental issue, dispute, learn, evaluate the situation and to make a decision if it is needed. It also does matter whether it is a political/governmental issue or an activity that does not require decision-makers participation, that is to say the activity is the local initiation of the citizens. The question may arise why the participation of citizens, civil organisations is necessary at all in these issues. Gabriella Kiss (2013,30) drew up its advantage that 'the more value we involve in the process, the more the knowledge will be and the more the acceptance and trust will increase, and the more we learn democracy and are able to handle the risks together or to agree in avoiding them.' Moreover, activity also means that type of behaviour when citizens behave by protecting their environment, e.g. collecting waste selectively, not lavishing resources, as well as when they appear as supporters in case of environmental issues. In case of these we do not speak about participation in decision-making but about issues affecting our environment in our everyday life. Figure 1, which was created by the authors based on information from the literature and the practice, illustrates the dimensions of participation in environmental issues. Environmental conscious approach and environmental responsibility are needed to appear in rearing at an early age so that a society could have Volume 16 • Number?, • Fall 2018 26o Adrienn Reisinger and Katalin Bándy the highest possible number of active citizens in case of environmental issues. Environmental conscious behaviour means that people habitually pay attention to protect their environment (Major 2012). A citizen will participate in social issues if they feel responsibility towards social actors and processes, which is also true for the participation in environmental issues. Besides responsibility, commitment and the will to act are also needed, thus those citizens who besides realising where they can reach changes with their participation, support, and ideas, also invest time and energy so that their activity could be seen in practice will participate actively in managing and supporting environmental issues. We think that formal education and familial patterns have determining role in this process. In case of education Yueh (2007 cited by Khademi-Vidra 2017, 68) enhances that 'countries in Europe determined that environmental problems are specific to each country and each region and so countries should produce their own Environmental Education programs to solve their own problems.' There are many ways of being active in environmental issues (table 1). This form of the categorisation of activities cannot be found in the literature, thus table 1 is the own concept of the authors and it collects and categorises the activities of environmental issue management. On the one hand citizens can be active in indirect way, which means that they do not take part directly in activities, but they support them, or they are in- Managing Global Transitions Different Ways of Environmental Issue Management 263 table 1 Types of Environmental Issue Management Activities Dimensions Indirect way Direct way (1) (2) (3) Environ- Getting infor- Collecting mental mation about litter; Selective conscious environmental waste collection; activity issues. Purchasing environmentally- friendly items; Energy-saving practices. Supporting Donating to Signing up peti- Volunteer activ- Signing up peti- environ- civil/non-profit tion. ity in civil/non- tion. mental organisations profit organi- issues dealing with sations dealing environmental with environ- issues; 1% do- mental issues; nation; Writing Being a member blogs on en- in civil/non- vironmental profit organi- topics; Writing sations dealing letters to local with environ- representatives mental issues; about environ- Being a leader in mental issues. civil/non-profit organisations dealing with environmental issues; Working for civil/nonprofit organisations dealing with environmental issues. Continued on the next page formed. Perhaps it can be thought that these activities are not real participation but we think that they are. E.g. donating to civil/non-profit organisations dealing with environmental issues is a very important activity, because these organisations have an important role in environmental protection and environmental issue management. On the other hand citizens can be active directly, too, through many kinds of activities. Table 1 illustrates the activities based on the four dimensions shown in figure 1. Volume 16 • Number?, • Fall 2018 26o Adrienn Reisinger and Katalin Bándy table 1 Continued from the previous page Dimensions Indirect way Direct way (1) (2) (3) Citizen Organising pe- Organising peti- Organising peti- initiated tition; Signing tion; Collecting tion; Protesting; participa- up petition; Col- litter; Protesting; Interest concilia- tion lecting litter; Interest concilia- tion. Protesting; Inter- tion. est conciliation. Decision- Participating in Giving opin- Giving opinions makers public hearings ions and ideas to to environmental initiated or local forums; environmental strategies and participa- Giving own strategies and plans; Protest- tion ideas in public plans; Protest- ing; Protesting hearings or local ing; Protesting through legal forums; Partic- through legal way; Interest ipating in Citi- way; Interest conciliation; zens' Juries and conciliation; Signing up peti- in other forms Signing up peti- tion. of consultative tion. methods; Giving own ideas in Citizens' Juries and in other forms of consultative methods; Giving opinions and ideas to environmental strategies and plans; Signing up petition. notes Column headings are as follows: (1) personally, (2) through civil/non-profit organisations, (3) through organised movements. Case Studies from Hungary In this part, we illustrate good practices, which represent the literature background appropriately, and provide a good basis to synthesise it and think it further. methods The aim of this study is to illustrate three Hungarian cases about the environment issue management. This qualitative method offers an effective and reliable way to illustrate environmental issue management. Different Managing Global Transitions Different Ways of Environmental Issue Management 265 authors have introduced management techniques also with case studies (Kiss 2013; Kasymova and Gaynor 2014; Motherway 2003; Barclay 2016). The following three cases are involved to be examined: • Local level: school gardens • Regional level: the case of Szentgotthárd • National level: TeSzedd Program (the program is about collecting litter in an organised campaign in Hungary) Of course, there are other good examples in Hungary, however, our aim was to illustrate cases, which have many years of history, are successful, and show in a complex way how variably the citizens can contribute to environmental issue management. We chose cases, which illustrate well at different territorial levels how citizens can participate in environmental issues and form them. Although school gardens are nationally existing organisations, their operation is managed at local level, so they strengthen local participation. In case of school gardens, the emphasis is not put on solving a problem, but on environmental education, environmental consciousness and participation. The case of Szentgotthárd is a good example of how civil organisations and citizens can cooperate against an investment in favour of the area. The third example is a nationally organised movement, a few days long litter collection the aim of which is to clean the country, build community, and to raise environmental consciousness. We think that the method chosen is properly linked to the topic, since we can effectively illustrate with good practices and examples how diversely the citizens can be active in environmental issues management in practice. Table 2 illustrates into which group of activity introduced in table 1 the good cases chosen by the authors could be categorised. The cases are based on the following information: • homepages of the cases, • documents, • literatures, • interviews during 2018 spring: 1. András Albert Halbritter: founding member of the Hungarian Foundation for School gardens, 2. Cecilia Szigeti: local coordinator of the TeSzedd in Györ. GARDEN BASED LEARNING: SCHOOL GARDENS School gardens are not new organisations, their history dates back to the Middle Ages (Subramaniam 2002). Philosophers like e.g. Rossueau, Volume 16 • Number?, • Fall 2018 26o Adrienn Reisinger and Katalin Bándy table 2 The Cases Introduced by the Authors Based on the Groups of Table 1 Dimensions Indirect way Direct way (1) (2) (3) Environmental conscious activity Szentgotthard TeSzedd School gardens TeSzedd Supporting environmental issues Szentgotthard School gardens Szentgotthard Szentgotthard Citizen initiated participation School gardens Szentgotthard School gardens Szentgotthard Szentgotthard TeSzedd Decision-makers initiated participation Szentgotthard Szentgotthard Szentgotthard TeSzedd notes Column headings are as follows: (1) personally, (2) through civil/non-profit organisations, (3) through organised movements. Comenius or Montessori at the beginning of the 20th century, all emphasised the role of school gardens and practical education. 'School gardens provide a real world context for learning that is distinguishable from typical hand-on learning activities in the classroom, which tend to be simulation of real world experiences.' (Ratcliffe 2007,101, cited by Wei 2013, 15) School gardens are places in kindergartens, schools where children can learn how to plant and grow e.g. vegetables, but the method is more than just gardening. The different kinds of activities in the garden develop personality, healthy living, responsibility and many kinds of social skills (e.g. cooperation, communication, creativity, etc.). Plants are only tools for teaching children these kinds of things. There are many reasons why school gardens can contribute to social well-being and environmental consciousness; here are some of them (Desmond, Grieshop, and Subramaniam 2004, 25): • Gardens can create opportunities for children to discover fresh food, make healthier food choices and become better nourished. • Gardens offer dynamic settings in which to integrate every discipline including science and maths, language arts, history and social studies, and art. • Young people can experience deeper understandings of natural systems and become better stewards of the earth. Managing Global Transitions Different Ways of Environmental Issue Management 267 • School garden projects nurture community spirit and provide numerous opportunities to build bridges among students, school staff, families, local businesses, and community based organisations. o Links with school gardens, school food service programmes, and local farms can ensure a fresh nutritious diet for children while teaching about sustainable food systems. School gardens can contribute to active citizenship because participating in school gardens teaches how to think and take care about ourselves, about our environment and about life. It helps being responsible for the environment, learning how to be conscious about the environment and gives certain methods to manage environmental issues. As Ozer (2007, 861) summarised: 'school gardens are a promising approach in promoting the physical, psychosocial, and intellectual development of school-aged children [...].' School gardens have gained a real popularity all over the world, the first gardens appeared at the beginning of the 19th century, nowadays there are countries where the number of gardens are of the order of thousands; e.g. in Hungary there are more than 1 100 school gardens and their number have been still growing. To support and coordinate Hungarian gardens the Hungarian Foundation for School Gardens was established in 2015. Founding members are all school garden leaders, so they not just manage the organisation but also participate in the everyday work of a certain garden. The goal of the civil organisation can be read on the homepage of the foundation (www.iskolakertekert.hu): 'We would like to achieve by children's own experience the practical learning of responsible environment use, as an adult the ability to think responsibility on their environment. We would like to support children to obtain basic gardening knowledge after finishing schools as teenagers, by which they could contribute to their food supply, thus reducing the dependence and insecurity feelings.' With the following types of activities the foundation can contribute to the development of the school gardens and thereby can raise consciousness in environmental issues: • establishing the Hungarian School Garden Network, • maintaining a homepage to provide information, • establishing a professional team, • coordinating the work of gardens, • organising programmes. Volume 16 • Number?, • Fall 2018 26o Adrienn Reisinger and Katalin Bándy In Hungary school garden-based education was present in teacher's training more than one and a half centuries ago, and the revival of this movement is related to the Department of Natural Sciences Course-Pedagogy at the Apaczai Csere Janos Faculty of Szechenyi Istvan University in Gyor. Students participating in teacher's training get training about what it means to maintain a school garden, to cultivate it and to teach and coordinate those children who participate in the operation of it. The students cultivate the school garden located in the area of the faculty together with the pupils of the university's elementary school. The leader of the school garden is a founding member of the foundation as well, moreover, he is an associate professor of the university too. the case of szentgotthard Conflict is inseparable from development. There is no development process which would take place without discrepancies; the definition of advancement, development includes discrepancy [...] If a development action takes place in a given territory, the starting point of the involved active participants is not necessarily the same. Everyone may have their own specific conception about the procedures to be followed, even if development is the common point for all of them. [Caul-Futy 1997, 7] One of the success stories of active citizenship movement at regional level was an environmentally damaging investment that had been impeded by the joint action of a Hungarian city and its inhabitants and the joined civil organisations (the introduction of the investment is based on the study of Bandy (2010), and is a further-thought, revised, and completed version of it). The only cross-border industrial park of Hungary (and Europe) is the Szentgotthard-Heiligenkreuz Industrial Park, which was established in 1997. In 2006 Begas Kraftwerk GmbH planned to build in this industrial park, a thermal waste recycling plant which is apt for incinerating 200 000 tons of waste annually. According to the company's investment promise including 115 million euro, the plant maybe apt for the economic and long-term supply of electricity and heat energy to regional plants. The developed energy would fully supply the whole industrial park, the province of Burgenland (Austria), and a part of Szentgotthard as well (Lebensministerium 2009). However, the inhabitants of Szentgotthard, the leaders of the city, several civil organisations, and some environmental initiations found the Managing Global Transitions Different Ways of Environmental Issue Management 269 building of the incinerator troubling. According to their objection, even though the incinerator would be built on the Austrian side, it would be only 100 meters away from the Hungarian border, in the immediate vicinity of Szentgotthard city having 10000 inhabitants, and right next to three national parks. It was troubling that the plant would be built on the easternmost part of Burgenland, the furthest from Austrian cities in a place where the prevailing wind direction is north-eastern. It all meant that environmental burden would mostly affect Hungary, the Orseg National Park, the Szentgotthard Thermal Park (investment value is 6.5 million euro), and the psychiatric institution in the surrounding area, the rehabilitation hospital, and the two elementary school educating one thousand children. The investor got its own experts to make an impact study (rvh 2009) to prove that the plant would produce clean and cost-effective energy out of harmless waste. Begas emphasised its commitment to environmental protection and its high level of responsibility towards the quality of life in the region. In its environmental impact, study it clearly pointed out that the proper operation of the waste recycling plant did not have a negative impact on either the region or the direct environment. By building the energy park, Begas promised the creation of workplaces, and also adumbrated the possibility to minimize the costs of regional waste transport by building the plant. The city of Szentgotthard and its local government as well as the civil organisations learnt about the plan of Begas to build the plant right next to the Hungarian border first from Austrian, then from Hungarian media in the spring of 2006. Although the leadership of the city immediately asked for official information from the province of Burgenland, they did not get anything. After that, the city of Szentgotthard turned to the Hungarian Ministry of Environment and Water. The Ministry asked for official reference from the Austrian government, but it was rejected by the Austrians by referring to the unavailability of an impact study which could be a basis for an official reference. It is a highly important milestone that almost right after the news about the planned plant a civil initiation, the Pronas (Pro Natura St. Gotthard Civil Cooperation Association) an association containing more civil organisations was formed. The primary aim of Pronas initiation was to impede the building of the incinerator, and right after its establishment, it showed activity in this case. It attracted the attention with regular presentations, forums and demonstration, and maintained the interest to im- Volume 16 • Number?, • Fall 2018 26o Adrienn Reisinger and Katalin Bándy pede the investment. Due to government interest, Begas stated in an official announcement that they aimed at incinerating the waste produced in Burgenland. It is, however, contradictory considering the capacity of the planned plant. Burgenland's annual amount of waste, which is apt for incineration, is 15 thousand tons, while the capacity of the plant is 250 thousand tons according to the investor. Technical parameters were examined by an independent engineer expert office (Data Bridge 2007) which, based on the investor's data, stated that the plant might be apt for incinerating even 325 thousand tons of waste annually. Due to these discrepancies, it was assumed that the investor did not only want to destroy the waste of Burgenland, but the plant's capacity provided the possibility to destroy the waste of other provinces and later probably that of the neighbouring countries. Knowing the rate and amount of dangerous and non-dangerous waste is extremely important. Site selection was troubling from the viewpoint of air protection as well, especially if we consider that fact that the investor wanted to build the plant in an area surrounded by natural reserves. The Austrian impact study did not consider these aspects and did not contain alternative solutions. Based on the expert opinions, the local government of Szentgotthard stated its attitude, and tried to solve the problem by continuously involving higher forum. Accessing the status of party was a very important element in the process. The Viennese law firm entrusted by the local government highlighted that providing the status had been legitimate according to the Austrian legislations. The initiation got a wider space by accessing the status of party since some decrees could be impeded by it (the study of Gajdics 2012 describes the role of party status in more details). Civils reacted to the problem very fast, and then an exemplary environmental struggle began by accessing the status of party. Pronas, as the only civil organisation having a party status, was able to act more effectively against the investment than the initiations of private individuals. They acquired financial sources by tender options for the events and the professional work, and then they fought against the building of the plant for six and a half years. Their activity was characterised by spectacular demonstrations and professionalism, the result of which was that they, as parties in the authorisation process, made themselves all the professional materials. Petitions compiled for Umweltsenat represented both professionally and legally such a based viewpoint, which was apt for making arguments in the course of decision-making. In the meantime, the 'simple' environ- Managing Global Transitions Different Ways of Environmental Issue Management 271 mental issue, beyond the legal process, became a political and diplomatic issue as well. Therefore the civils and the local government were backed by the competent ministry of the Hungarian government and the then President of the Republic (Laszlo Solyom). The Ministry of Environment and Water (kvvm 2008) also published its viewpoint according to which the requirement for constant governmental interference is reasonable. Due to the civil movement's significant activity, they succeeded in gaining over and bringing out all the highest representatives of the country over, and in extending the problem to internationalisation. Because of the desperate work, the media dealt with the incineration on a daily basis. In this case, the importance of active citizenship highlighted that its tools were much wider than protest. Manifestations may include such effective tools, which mean the category of civil obedience, e.g. human chain, banners, strikes, halfway road closure. In 2007 the activity of Pronas brought Pro Pannonia into being, which was a cooperation against the incineration consisting of three countries (Slovenia, Austria, Hungary); and also in 2007 the Austrian cooperation partner of Pronas, an environmental civil organisation, the Bigas (Bürgerinitiative gegen Abfallschweinerei) was established. It can be said that as a result of the significant civil cooperation, Pronas represented the interests and the wish of the inhabitants against the incineration in the most effective way, because due to its enduring activity the investor withdrew its plan to build the incinerator. The enduring work of six and a half years, 162 events, and the cooperation of 30 thousand people proved the power of active citizenship aspiration as well as its exemplary successfulness (table 3). Conflict is inseparable from development. Based on the case of Szent-gotthard, an important statement can be made: the cooperation of an affected community with the support of civil organisations may reach exemplary results. The plant would have alreadybeen built in the Szentgott-hard-Heiligenkreuz Industrial Park if the civil organisations had not cooperated with the city and the citizens following the public protest. In this case the importance and the efficiency of the civil organisation can be measured in that it did not only play the role of a 'communication channel' (Reisinger 2010) during the mediation between the citizens and the investor, but it represented the case as a party during the legal forums. TESZEDD! PROGRAM The national level of the volunteer movement is the 'TeSzedd' Volunteering for a clean Hungary program (http://szelektalok.hu/teszedd). The Volume 16 • Number?, • Fall 2018 26o Adrienn Reisinger and Katalin Bándy table 3 The Chronological Order of the Most Important Events against the Incineration Plant Important dates Events May 2006 News from the papers about the investment as a fact June 2006 Civil protest at the border July 2006 begas Information Day in a Public Forum November 2006 Establishment the pronas 2006-2008 Several conferences, protests, court files, referendum February 2009 Burgenland Provincial Office gives permission for the plant 2009 More protests (inc. hunger strike), involving international lawyers June 2010 Judicial permission in Austria for the investment January 2012 In Güssing (Austria) Arnold Schwarzenegger's agitation for en- vironmental friendly energy. Energy Globe Award for the ex- governor (usa). May/June 2012 The Administrative Court Vienna cancelled the permission November 2012 Declaration in official t v channel in Austria (orf): 'There will be no waste incinerator' 2013-2015 Acknowledgements, conferences about the success, awards, prizes notes Based on Woki (2015). acronym 'TeSzedd' in English is 'YouPick Campaign' (official) which means that you pick up the litter yourself from the council land. This is a waste picking day, a national clean-up program organised by the Ministry of Rural Development and National Waste Management Agency. It has been taking place for seven years and organised in every September, and lasts three days long. The movement was first organised in Hungary in 2011 as an action against the illegal dumping of waste. The aims of the action are as follows: • to bring together all those who want to do it in order to live in a cleaner, healthier environment, • to destroy the illegally decomposed garbage dumps, • to promote an environmentally conscious way of thinking, • to focus public attention on the importance of preserving a sustainable environment, • preventing waste generation, • to raise citizens' awareness on the litter problem, • help changing people's behaviour. Managing Global Transitions Different Ways of Environmental Issue Management 273 table 4 'TeSzedd' in Numbers Year Number of participants (registered) Number of venues Litter (in 1000 tons) 2011 162 000 1 500 No data 2012 110 000 1 500 3 2013 75 500 1 074 2,5 2014 180 000 1 800 2-3 (estimation) 2015 170 000 1 590 2,3 2016 190 000 2 240 2,8 2017 175 000 1 732 2,5 notes Based on data from http://szelektalok.hu/teszedd/, www.ewwr.eu/en/take _part/lets-clean-up-europe, www.kormany.hu,www.opsz.hu/teszedd-programleiras, www.unesco.hu/termeszettudomany/fenntarthato-fejlodesre/teszedd-orszagos. In 2014 Hungary joined with its national program to the 'Let's Clean Up Europe' ('European Clean-Up Day') organised in all eu member countries. The head organiser is the European Committee's ewwr life+program, the European Week for Waste Reduction. Since 2014 Hungary has taken part in these two movements in May and September. The organisers want to inspire people to get outdoors, get active and help clear up the rubbish that lies around us. The movement is growing year by year by the joining of people who have had enough of other people's litter and are willing to do something about it. The movement is also an excellent opportunity to develop a closer relationship between schools, kindergartens and families, but it is also a perfect team-building program for teams. Table 4 illustrates the development of the program year byyear. In 2014, when Hungary first joined to the 'Let's Clean Up Europe' program, the country alone (among all eu participant countries) fulfilled the collection of the amount of waste which the eu expected to be collected by all eu members in a four year period. Joining to the program is easy: the volunteer can find the territorial coordinator person on the movement's website (http://szelektalok.hu/). After it he needs to register by choosing the nearest point to the volunteer location (find venue and date). Then the volunteer must go to the venue. On the spot, the coordinator and the other organisers provide all the equipment necessary including gloves, bags and best practices for collecting litter. Participants can join to the movement also collectively Volume 16 • Number?, • Fall 2018 26o Adrienn Reisinger and Katalin Bándy e.g. from firms, public administration organisers and from the army, too. The value of the work done by the volunteers is around 5 million euro per year. The number of the volunteers could be much more than that of the registered ones, because of the possibility to join randomly on the chosen venue. That is why the estimated number of the participants may be more by 30-40%. The activity left a great impact on the community since they are already aware of cleaning their areas. Volunteering is a perfect way to participate in our community, meet people, and use the skills we have or learn new ones. It is also a great opportunity to try new challenges and connect with like-minded others. Conclusion The main aim of the paper was to show the literature overview of the environmental issues management and active citizenship and to introduce three Hungarian good cases about the practice. The method we used is broadly in line with the topic. We attempted to find out the dimensions and types of activities of environmental issue management. Our findings add to the growing body of literature on determining the types of activities in a direct and indirect way in four dimensions shown in this paper based on the concept of the authors. The good practices introduced by the authors can also be fitted in these dimensions. The paper illustrated three cases in Hungary, the first case is a teaching method for young people, the school gardens. This case is not about solving a certain environmental issue, but is a good method to raise a generation who consciously deals with their environment, takes responsibility for their environment and for each other, learns to work together and to be creative, and by these as adults they will be able to become aware of those processes that require their participation. All in all, we stated that school gardens can be one of the main tools for educating active citizenship. In this process the Hungarian Foundation for School Gardens, the civil organisation introduced in this paper, plays an important role. The case of Szentgotthárd is not only valuable as a success story, but it also illustrates well the issues of sustainability and development. The building of the incinerator could have solved a regional problem if we only examine one side. Because of its capacity, the destruction of huge amount of waste could have been handled successfully in an organised way. The plant promised workplaces, electricity-supply for the region free of charge, which creates very important advantages in economic opera- Managing Global Transitions Different Ways of Environmental Issue Management 275 tion and development. The growth of a system's capacity is useful as long as it is sustainable. If the 'by-product' of growth is destruction and demolition, development cannot be a need (Lányi 2012,11). The cooperation of local small communities is an important tool for ecological sustainability and environmental protection. Local cooperation induces global results. The domestic 'TeSzedd' program is a well-organised and successful action, but fortunately is not unparalleled. Local initiations have been growing everywhere all over the world, from Estonia to Egypt, from Kosovo to the United States. Globally millions of people join to waste collection actions, accomplishing a work valuing tens of millions of dollars or euros by country. In the global 'Let's do it!' movement 9 million people could be involved in 110 countries over 6 years (http://szelektalok.hu/globalis-szemetszedes/). It is a significant result, especially if we highlight that all these are based on individual responsible thinking and volunteering. Results show that citizens can be active in shaping environmental issues but the most important factor seems to be that they need to be concerned personally about the issues. We think that the cases introduced in this paper are good ones as examples of environmental issue management and can contribute to the social participation and to active citizenship. In the future the knowledge about activities can be further extended and deepened by studying and analysing other cases and this knowledge can further develop both the theoretical basis and the possibilities of practical implementation. Acknowledgments Supported by the ÚNKP-17-4 New National Excellence Program of the Ministry of Human Capacities. References Bándy, K. 2010. 'Szentgotthárd kontra Begas-Kraftwerk Gmbh: Konflik-tusok egy hulladékégeto korül.' In Válság kozben, fellendülés elott, edited by M. Losoncz and C. Szigeti. Gyor: Széchenyi István Egyetem. https://kgk.sze.hu/images/dokumentumok/kautzkiadvany2010/bandy %20katalin.pdf Barclay, N. 2016. 'The Role of Community Participation for Green Storm-water Infrastructure Development.' PhD Dissertation, Clemson University, Clemson, sc. Bee, C. 2017. Active Citizenship in Europe. London: Palgrave Macmillan. Volume 16 • Number?, • Fall 2018 26o Adrienn Reisinger and Katalin Bándy Caul-Futy, L. 1992. 'Fejlesztés és konfliktus.' Parola - folyóirat a kózósségi fejlesztomunkáról 3 (1): 7. Data Bridge. 2007. 'Levegovédelmi transzmissziós számítások üzemi pont-forrásokraaz rvh Reststoffverwertungs Gmbh beruházásában a Hei-ligenkreuz-Szentgotthárd ipari parkban létesítendo termikus hulladé-khasznosító mü Környezeti Hatástanulmányának értékeléséhez.' Szé-kesfehérvár, Data Bridge. Desmond, D., J. Grieshop, and A. Subramaniam. 2004. Revisiting GardenBased Learning in Basic Education. Rome: Food and Agriculture Organization of the United Nations; Paris: International Institute for Educational Planning. European Youth Forum. 2013. 'Policy Paper on Citizenship Education.' http://www.youthforum.org/policypaper/policy-paper-on-citizenship -education/ Gajdics, Á. 2012. 'Ügyféli jogok érvényesítése.' In Cselekedj lokálisan! Tár-sadalmi részvétel környezeti ügyekben, edited by A. Pánovics and V. Glied, 169-80. Pécs: Publikon. Hoskins, B. 2006. A Framework for the Creation of Indicators on Active Citizenship and Education and Training for Active Citizenship. Ispra: Joint Research Centre. Jochum, V., B. Pratten, and K. Wilding. 2005. Civil Renewal and Active Citizenship: A Guide to the Debate. London: Novo. Kasymova, J., and T. S. Gaynor. 2014. 'Effective Citizen Participation in Environmental Issues: What Can Local Governments Learn?' State and Local Government Review 46 (2): 138-45. Khademi-Vidra, A. 2017. 'Curriculum Planning of the Environmental Education.' Journal of Central European Green Innovation 5 (1): 65-80. Kiss, G. K. 2013. 'Társadalmi részvételi eszközök értékelése környezeti ügyekben.' PhD dissertation, Corvinus University, Budapest. KVVM. 2008. 'A magyar Környezetredelmi és Vízügyi Minisztérium ál-láspontja a Heiligenkreuzba tervezett hulladékégeto környezeti hatás-tanulmányával (kht) kapcsolatban folyó Espoo-i egyezmény szerinti eljárás keretében.' http://www.kvvm.hu/cimg/documents/Hivatalos _magyar_allaspont_20080326.pdf Lányi, A. 2012. 'Fenntarthatóság és közpolitika' In Cselekedj lokálisan! Társadalmi részvétel környezeti ügyekben, edited by A. Pánovics and V. Glied, 9-31. Pécs: Publikon. Lebensministerium. 2009. Thermische Abfallbehandlung in Österreich: Zahlen, Daten, Fakten. 2nd ed. Vienna: Lebensministerium. Major, L. 2012. 'A környezeti nevelés szerepe a környezettudatos magatartás formálásában.' Iskolakultúra 9:67-79. Managing Global Transitions Different Ways of Environmental Issue Management 277 Motherway, B. 2003. 'Public Involvement in Environmental Decision-Making in Ireland.' Working Paper, The Policy Institute, Dublin. Nárai, M., and A. Reisinger. 2016. Társadalmi felelosségvállalás és részvétel: a lokális és területi kózósségifolyamatokban. Budapest and Pécs: Dialóg Campus. Newman, J., and E. Tonkens. 2011. Active Citizenship.' In Participation, Responsibility and Choice, edited by J. Newman, and E. Tonkens, 179-200. Amsterdam: Amsterdam University Press. Ozer, E. J. 2007. 'The Effects of School Gardens on Students and Schools: Conceptualization and Considerations for Maximizing Healthy Development.' Health Education & Behavior, 34 (6): 846-63. Ratcliffe, M. M. 2007. 'Garden-Based Education in School Settings: The Effects on Children's Vegetable Consumption, Vegetable Preferences and Ecoliteracy.' PhD dissertation, Tufts University, Medford, ma. Reisinger, A. 2009. 'Részvételi demokrácia és társadalmi részvétel: elméleti megkozelítések.' Civil Szemle 4:5-23. -. 2010. 'Társadalmi részvétel a helyi fejlesztéspolitikában: különös tekintettel a civil/nonprofit szervezetek szerepére.' PhD dissertation, Széchenyi István University, Györ. -. 2017. 'Az aktív állampolgárság: fogalmi rendszer és kutatási koncep- ció.' In Új Nemzeti KiválóságProgram 2016/17 Tanulmánykotet, 138-48. Györ: Széchenyi István Egyetem. RVH. 2009. '"Thermische Reststoffverwertungsanlage"' in der kg. Heiligenkreuz im Lafnitztal.' http://www5.umweltbundesamt.at/uvpdb/ docs/Bescheide/ThermReststoffverwertungsanlage_Heiligenkreuz/ Genehmigungsbescheid.pdf Subramaniam, A. 2002. 'Garden-Based Learning in Basic Education: A Historical Review.' Monograph, Summer, 1-12. Wei, K. M. 2013. 'Garden-Based Learning: The Rationale, the Purpose, the Function.' https://www7.nau.edu/itep/main/SGardn/docs/About/ Garden-based_learning.pdf Woki, Z. 2015. Szentgotthárdi csata a hulladékégeto ellen. Gencsapáti: Szülö-föld Kônyvkiadô. Yueh, M. 2007. 'Introducing a New Subject: The Case of Environmental Education in Taiwanese Junior High Schools.' PhD dissertation, University of Waikato, Hamilton. This paper is published under the terms of the Attribution-NonCommercial-NoDerivatives 4.0 International (cc by-nc-nd 4.0) License (http://creativecommons.org/licenses/by-nc-nd/4-0/). Volume 16 • Number 3 • Fall 2018 Modern Trends in Chinese Foreign Direct Investment in Africa: An oli Approach Henri Bezuidenhout North-West University, South Africa henri.bezuidenhout@nwu.ac.za Ewert P. J. Kleynhans North-West University, South Africa 11289570@nwu.ac.za This study evaluates the subtle differences that the various types of foreign direct investment (fdi) of China in Africa offers, as revealed by the data, using the 'Ownership, Location and Internalisation Advantages' oli approach. Chinese fdi is analysed using source country comparisons, sectoral comparisons and an investigation of Chinese fdi practices. Data visualisation techniques and analyses infer similarities and differences between Chinese and other investors in Africa. These alternative methods are driven by the nature of the available data and its resulting statistical possibilities. The significance of this study is that it disambiguates the available data and compares along theory. Many stylised facts are assumed concerning Chinese fdi; this study, however, quantifies and tests these assumptions. The results show that China follows investment patterns of other investors, although heavily skewed towards oil, coal and gas, and other resource sectors. China otherwise tends to invest in medium growth, diversified economies, predominantly Nigeria and Egypt; except in Ethiopia where investment in communications dominates; Cameroon where chemicals dominate; Angola where investments in real estate outperform investment in the coal, oil and gas; and in South Africa and Tanzania that have a more even spread between sectors compared to the rest of the continent. Key Words: foreign direct investment, fdi, Africa, China, oli, eclectic paradigm jel Classification: F20, F21, F23 https://doi.org/10.26493/1854-6935.16.279-300 Introduction The global economic expansion of China is growing in importance and is receiving more than its due share of attention, especially concerning trade and foreign direct investment (fdi) between China and other developing states. The global slowdown and structural change of the Chinese Managing Global Transitions 16 (3): 279-300 280 Henri Bezuidenhout and Ewert P. J. Kleynhans economy have highlighted Africa's dependence on fdi as the steep decline in fdi is affecting Africa (unctad 2013,40). The landscape in fdi to Africa has changed significantly during the preceding decade, as India and China are becoming significant investors in the continent (see http://www.fdimarkets.com). Chinese fdi has, however, incurred severe criticism from the Organisation for Cooperation and Development members, as they interpret Chinese involvement as a re-colonisation of Africa with the pure aim of exploitation (Claassen, Loots, and Bezuiden-hout 2012, 11583). China's possible impact on Africa is one of the most contemporary debated topics, with Sino-African relations increasing in significance since 2000. The main hypothesis of the article is to evaluate whether Chinese f d i in Africa is only resource based or contains other aspects of the eclectic paradigm of Dunning (1980). This is done through source country comparisons, sectoral comparisons and an investigation of Chinese fdi practices. The methodology is based on data visualisation techniques and analyses are used to infer similarities and differences between Chinese investors and the theoretical 'Ownership, Location and Internalisation Advantages' - oli criteria. This alternative method is driven by the nature of the available data and its resulting statistical possibilities. Under the leadership of Chinese president, Xi Jinping, Chinese policy towards Africa has, however, changed towards a more cooperative and co-developmental focus (Buckley 2013). At a major policy speech in Dar es Salaam, Tanzania, in 2013, he confirmed that Chinese cooperation with Africa will be 'people to people' focused, where China will ensure that Africans benefit from the relationship. The Economist (2013a), a long-time critic of Chinese fdi in Africa, also recently published an article on the changing nature of Chinese fdi in Africa and its possible positive benefits. In two separate articles, they highlighted the slowdown of the Chinese economy and the resulting slowdown in resource-seeking fdi in Africa. Furthermore, a shift in Chinese attitudes focuses on Africa as a place to do business rather than a place to merely acquire resources. The Economist (2013b) also highlights changing African attitudes toward Chinese fdi and towards China. Africa is becoming more assertive and focused on harnessing benefits from fdi, while Africans are viewing China more and more as a competitor, or even a collaborator, rather than a supplier of aid. This study aims to investigate Chinese f d i in Africa at a country and Managing Global Transitions Modern Trends in Chinese Foreign Direct Investment in Africa 281 sectoral level in order to gain a firmer understanding of the nature of Chinese fdi in Africa and to deduce conclusions on the possible effects thereof. The approach will be according to the eclectic f d i theory. Chinese fdi flows into Africa between 2003 and 2012 are examined with a view to verify the changing trends suggested. The significance of this study lies in the fact that it actually disambiguates the available data and compares it with theory. Many stylised facts are assumed concerning Chinese fdi; this study quantifies and tests these assumptions and evaluates the benefits sought by China from its fdi in Africa. The subtle differences that the various types of foreign direct investment (f d i) of China in Africa offer, which are revealed by the data, are also investigated. fdi in Africa The United Nations Conference on Trade and Development (unctad) provides a thorough overview of basic fdi figures in Africa. fdi inflows to Africa were US$50 billion in 2012, although Africa still receives less than 5% of the global fdi. While fdi increased in North, East and Central Africa, West and Southern Africa saw declines (unctad 2013, 40). All currency in this article is noted in us dollar. The rates of return on investment in Africa have on average dropped substantially since 2008, to pre-2005 levels, while re-invested earnings from 2008 to 2012 have increased substantially (unctad 2013, 33-4). This can be seen as the result of global economic movements and economic declines in the home country, especially the traditional partners of Europe and North America. South Africa is listed among the top 20 prospects for fdi according to international standards of investment promotion (unctad 2013, 23). It should be noted that many African countries are not on the list. The absence of African countries from the list is not surprising as the level of development in most African countries does not enable high levels of investment promotion facilitation in tandem with the negative image that the African countries hold globally. Figures of 2011 and 2012 also predict a shift towards African consumers, and local manufacturing in Africa is moving towards fdi and away from the traditional investment in resource sectors (unctad 2013,40-2). This article will show that Chinese firms are orientating themselves strategically as development partners of African markets for future growth. f d i inflows into Africa during the first decade of the third millennium (2003-2012) are illustrated in figure 1. After a significant growth phase Volume 16 • Number3 • Fall 2018 282 Henri Bezuidenhout and Ewert P. J. Kleynhans 0_ 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 figure 1 fdi Inflows into Africa 2003 to 2012 (million usd, based on data from http://unctad.org) 250000 _ 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 25000 _ 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 figure 2 fdi into Africa 2003-2012: Greenfields (top) versus m&as (bottom) (million usd, based on data from http://www.fdimarkets.com and https://zephyr2.bvdep.com) from 2004 to 2008, there was a steep decline until 2010, after which a slight recovery has occurred. The slight increase from 2011 to 2012 only occurs due to merger and acquisition (m&a) activities, as Greenfields fdi dropped to just above 2004 levels; where Greenfields fdi refer to new business ventures (unctad 2013, 40). The trends in terms of mergers and acquisitions (m&a), as well as Greenfields fdi are reflected in figure 2. The decline in Greenfields in 2012 as opposed to the increase of m&a activity from 2010 is highlighted in the comparison. Mergers and acquisitions form a relatively small percentage of fdi in Africa of only 8% and are concentrated around the more developed economies of Africa, such as South Africa and Egypt (Bezuidenhout, Managing Global Transitions Modern Trends in Chinese Foreign Direct Investment in Africa 283 United States United Kingdom France India China Germany 16372 Japan 13996 Russia 13771 Brazil 9647 figure 3 Major Source Countries for Greenfields fdi into Africa (million USD; based on data from http://www.fdimarkets.com) Cloete, and Claassen 2014, 3). This study will therefore focus on Greenfield fdi, as Chinese fdi through m&as was limited to only 11 deals during the period, according to Bureau van Dijk (see https://zephyr2 .bvdep.com). A breakdown and comparison of the major investors in Africa between 2003 and 2012, indicating Greenfields fdi, are provided in figure 3. The United Arab Emirates, the largest investor in Africa, is omitted from this graph because they focus mostly on the real estate and oil sectors of the Middle East and North African (mena) countries (see http://www.fdimarkets.com). The United States of America (usa) is by far the largest investor in Africa, followed by the historical colonial powers of the United Kingdom and France. fdis from India and China have risen to the level where they are jointly the size of the usa, while that of countries such as Brazil and Russia have grown to equal Japan and Germany. unctad (2013,40) also highlights the growth of fdi bydevelop-ing African economies. Considering the relative size of Greenfields fdi to recipient countries in Africa, the men a countries form a distinctive group as opposed to the varied pattern across Sub-Saharan Africa (ssa). In ssa, four groupings can be discerned, namely Nigeria, South Africa and Angola as the largest recipients of fdi, Ghana and Mozambique as the second tier, the East African cluster of Uganda, Kenya and Tanzania and lastly, the rest of the ssa countries. The breakdown of Greenfields f d i in Africa by sector from 2003 to 2012 compared to the inflows from 2008 to 2012 is provided in table 1. Notably, most sectors remain at their relative size to the others. There is also a severe skewedness toward fdi in the real estate, metals and coal, oil and natural gas sectors that is highlighted by the large percentage share 103814 87397 60547 52182 45314 Volume 16 • Number 3 • Fall 2018 284 Henri Bezuidenhout and Ewert P. J. Kleynhans table 1 Recipient Sectors for Greenfields fdi into Africa (us$ million) Sector fdi by sector (2003 -2012) fdi inflow (2008- 2012) (1) (2) (1) (2) Coal, oil and natural gas 366,027.91 41.3 210,116.25 40.3 Real estate 168,459.36 19.0 96,668.79 18.6 Metals 117,955.53 13.3 60,603.05 11.6 Communications 44,219.19 5.0 30,821.03 5.9 Chemicals 29,437.56 3.3 17,599.27 3.4 Hotels & tourism 28,367.20 3.2 13,931.40 2.7 Alternative/renewable energy 23,680.55 2.7 19,233.41 3.7 Food & tobacco 17,842.04 2.0 13,070.48 2.5 Building & construction materials 17,377.18 2.0 12,092.63 2.3 Automotive oem 13,682.80 1.5 9,015.69 1.7 Transportation 12,039.36 1.4 6,066.86 1.2 Financial services 10,651.01 1.2 7,103.14 1.4 Warehousing & storage 6,574.50 0.7 2,746.60 0.5 Business services 6,283.82 0.7 4,094.17 0.8 Leisure & entertainment 6,183.80 0.7 5,629.10 1.1 Software & it services 5,485.00 0.6 3,956.40 0.8 Minerals 4,333.14 0.5 2,297.10 0.4 Beverages 4,235.87 0.5 3,119.39 0.6 Paper, printing & packaging 3,852.72 0.4 2,854.62 0.5 Total 886688.54 100.0 521,019.38 100.0 notes Based on data from http://www.fdimarkets.com. of the sectors. This gives rise to the speculation about resource exploitation by multinationals (mnes) in Africa at the expense of local development. Chinese fdi in Africa After joining the wto in 2001, China officially allowed private foreign investment in fdi projects with its 'open door' policy (Claassen, Loots, and Bezuidenhout 2012, 11583). The Ministry of Commerce (see http://english.mofcom.gov.cn) in China is the custodian of Chinese fdi data. Their most recent official figures indicate that US$2.52 billion of Chinese fdi flowed to Africa during 2012, with a total Chinese fdi stock Managing Global Transitions Modern Trends in Chinese Foreign Direct Investment in Africa 285 20000 _ figure 4 Chinese Greenfields fdi in Africa (million usd, based on data from http://www.fdimarkets.com) in Africa of US$21.23 billion. It estimates that approximately 2 000 Chinese firms are active in 50 African countries. These figures contradict the figures of the fDi Markets database and that of Bureau van Dijk as they only show Chinese firms being active in 27 African countries through fdi (see http://www.heritage.org). This discrepancy is explained by the Chinese Ministry of Commerce (see http://english.mofcom.gov.cn) using all foreign investment as standard, while fDi Markets use the international standard as set by the Organisation for Cooperation and Development benchmark definition of fdi, which requires a minimum 10% stake or direct management voice (Organisation for Cooperation and Development 2008). Resultantly, to adhere to international standards, the fDi Markets database is utilised as a source in this study as it also allows for comparison between countries and recorded deals are independently verifiable. As shown in figure 3, China has risen to become a prominent investor in Africa. According to figure 4, Chinese fdi in Africa generally follows the overall trend as was shown in figure 2. The similarity in the pattern between the total fdi inflows and Chinese fdi is reflected by the smoother increase between 2004 and 2007, a spike in 2008 and a smaller spike in 2010. According to fdi Markets (http://www.fdimarkets.com), 2012 saw us$1764 million total Greenfields fdi in Africa and a total Chinese Greenfields fdi of US$45 313 million. Greenfields fdi makes up more than 95% of Chinese fdi in Africa (see http://www.fdimarkets.com and https://zephyr2.bvdep.com). AsnapshotofthedestinationcountriesforChineseGreenfields fdi in Africa is provided in figure 6. Nigeria, Angola and Algeria are the major recipients of Chinese fdi. It is noteworthy that fdi in Angola primarily went into the real estate sector and not the coal, oil and natural gas sector, as one would expect, as is the case with Algeria and Nigeria. Furthermore, the research results indicate that South Africa and Kenya Volume 16 • Number?, • Fall 2018 286 Henri Bezuidenhout and Ewert P. J. Kleynhans Algeria 2926 Angola Botswana 200 Cameroon 842 Chad 2212 Congo (drc) 815 Cote d'lvoire 30 Egypt 3212 Ethiopia 1842 Gabon | 51 Ghana 355 Kenya 147 Liberia 2600 Madagascar | 425 Mozambique | 251 Namibia | 270 Niger 2376 Nigeria Rwanda | 30 Senegal 881 South Africa 1772 Sudan 3069 Tanzania | 246 Tunisia | 43 Uganda 114 Zambia 2843 Zimbabwe 739 figure 5 Chinese Greenfields fdi in Africa, Destination Countries (million usd, based on data from http://www.fdimarkets.com) are the only countries that receive a high percentage of diverse sectoral investments (noting to 'Greenfields fdi'). Also noteworthy is the dominance of the communications sector in Ethiopia, as well as chemicals in Tanzania and Cameroon. Overall, there is a strong dominance of the resource sectors and real estate. Literature Review In order to investigate Chinese f d i in Africa critically, this study links with the 'Ownership, Location and Internalisation Advantages Model,' known as the oli model of Dunning (1980,9), which focuses on ownership, location and internalisation advantages (oli). This model was invented by Dunning in the 1980s and has been widely used as foundation theory in fdi studies ever since. The eclectic paradigm or oli frame- Managing Global Transitions 6403 10620 Modern Trends in Chinese Foreign Direct Investment in Africa 287 work was first developed by Dunning (1980) in his study 'Towards an Eclectic Theory of International Production: Some Empirical Tests.' Using the eclectic paradigm and its subsequent determinants, fdi can be categorised and the behaviour of multinational enterprises (mnes) can be evaluated (Blonigen 2005,383). mne activities can be investigated along the oli categories and a definitive argument can be made about their investment focus, as well as the theoretical impact the fdi will have on the recipient economies. The first level of the oli model categorises fdi according to the advantages gained by multinational enterprise (mne) investing in a foreign market. These include ownership, location and internalisation advantages (Dunning and Lundan 2008). Ownership advantages reflect on the comparative advantage of the firm. If it has a greater comparative advantage, it will invest. Location advantages focus on the gains of comparative advantages through acquiring resources and market position. Internalisation advantages are the advantages gained using own production and internal specialisation (Dunning and Lundan 2008). From an mne perspective, Dunning (1981) groups these advantages according to 'oli' as follows: (1) Firms that have ownership of firm-specific assets, which will determine whether it will be advantageous for them to invest; (2) firms that have a location advantage and will only invest if it is more cost efficient for the firm to exploit firm-specific assets abroad rather than only in the home country; and (3) firms that will also have an internalisation advantage and it must be more advantageous for the firm to use its assets internally rather than contracting with other firms in the host country. u n c ta d (2000) and subsequent work by Dunning and Lundan (2008) further interpret mne fdi motives as the result of the four categories based on the original oli model. 'Market-seeking fdi' occurs when an mne wants to expand the consumer market for its product (goods and/or services) to new consumers. 'Resource-seeking fdi' focuses on the acquisition of resources or access to resources. These include natural resources and production inputs, such as production materials and labour (Slaughter 2002). 'Strategic-asset-seeking fdi' is the result of the mnes' mandate to create shareholder wealth by acquiring tangible or intangible assets to enhance its strategic comparative advantage. These include technologies and intellectual property, as well as regional headquarters (Krueger and Strauss 2014). 'Efficiency-seeking fdi' seeks to enhance firm productivity through cost minimisation or economies of scale in Volume 16 • Number?, • Fall 2018 288 Henri Bezuidenhout and Ewert P. J. Kleynhans table 2 Typology of fdi and Incentives Resource-seeking Market-seeking Strat. asset-seeking Efficiency-seeking Location of: natural Market potential: Acquiring strategic Lower costs: mostly resources, raw ma- market dimensions, assets: brands and export oriented, terials low-skilled income per capita, market positioning, availability of skills labour, agglomera- customer-specific expertise, technol- at low costs, close tion benefits preferences, kind of ogy, distribution to markets, low goods and services networks, human relocation costs to be provided capital Low response to both tax and nontax incentives Low response to both tax and nontax incentives Low response to both tax and nontax incentives High response to tax and non-tax incentives fdi drivers based on other factors than incentives All firms need to be treated equally fdi driven by location Affects firms' competitive edge notes Based on James (2013). global production networks (gpns). It can also be described as the rationalising of the firm's production structure or organisational structure (Sachwald 2005). A typology of fdi, differentiating between tax and non-tax incentives to mnes by James (2013), is provided in table 2. This allows for a more in-depth assessment of the four fdi categories, namely resource-seeking, market-seeking, strategic asset-seeking and efficiency-seeking. His analysis is based on responses by mnes to these incentives by increased fdi. Although this study does not focus on incentives, the typology provides a significant overview of the four fdi categories. unctad (2010) and Krueger and Strauss (2014) provide a further synthesis of the determinants of fdi according to the oli theory. Added are categories that influence fdi as a whole, but handle the different categories in different manners. These variables relate to policy frameworks and business facilitation. Table 3 provides an overview of the policy framework and the business facilitation variables. The area of business facilitation is highly relevant for efficiency-seeking fdi, as is seen in table 2. They also provide a more concrete way of studying the fdi categories in terms of economic variables. An overview of the economic variables, which form the determinants of fdi, is provided in table 4. When it comes to the effects of f d i in each of the four categories, there is a great difference in results and opinions. The oli paradigm focuses Managing Global Transitions Modern Trends in Chinese Foreign Direct Investment in Africa 289 table 3 F Di: Policy and Facilitation Variables Policy framework for fdi Business facilitation Economic, political and social stability; Rules regarding entry and operations; Standards of treatment of foreign operations; Policies on functioning and structure of markets (esp. competition, m&a; and corporate governance); Privatisation policy; Trade policy (tariffs and ntbs) and coherence of fdi and trade policies; Tax policy; Good governance; Protection of property rights (including intellectual property); Industrial and regional policies; development of competitive clusters; Stable exchange rates. Investment promotion (incl. image building, actions to reduce information asymmetries); Investment incentives (e.g. fiscal, financial and regulatory); Technical services, including: hassle costs (e.g. related to corruption and administrative efficiency), social amenities (e.g. bilingual schools and quality of life), after-investment services, and services to centralise procedures and information. NOTES (2013). Adapted from Vale Columbia Center on Sustainable International Investment mainly on value added and more productive chains, knowledge and skills spillovers, changing consumer behaviour, enhanced good governance, infrastructure development and economic growth (Dunning and Lun-dan 2008,319). Although most authors focus on the benefits of fdi for developing countries, the positive effects are directly linked to policies and institutions to facilitate the linkages and spillovers (Kosack and Tobin 2006, 205). Receiving fdi is not a guarantee for actual economic benefit; careful planning and responsible governance are required to materialise these gains. In the following section, the available data as determinants, as well as the limitation on analysis placed by the data, will be discussed. Data and Limitations Data for Chinese fdi in Africa are not regularly accessible. The Financial Time's fDi Markets database for Greenfields fdi is used in this study as a source of sector-specific Chinese fdi in African countries. The data covered by the Financial Times database is compiled from fdi deals between 2003 and 2012 for all African countries. The main limitations of using the fDi Markets database are that some deals are not recorded due to a specific lack of information and subsequently cannot be compared to fdi figures published by unctad, the World Bank and the International Monetary Fund (imf). However, the data published by them are recipient country totals that do not break Volume 16 • Number 3 • Fall 2018 290 Henri Bezuidenhout and Ewert P. J. Kleynhans table 4 The Determinants of fdi Resource-seeking Market-seeking Strat. asset-seeking Efficiency-seeking Access to raw materials; Access to natural resources; Access to low-skilled labour Market size ; Per capita income; Market growth; Access to regional and global markets; Country-specific consumer preferences; Structure of markets Access to skilled labour; Access to new competitive advantages; Technological and other created assets; Availability of and access to strategic infrastructure Cost of resources and assets listed under resource-or asset-seeking; Other input costs, i.e. transportation and communication costs; Costs of other intermediate products; Membership of a regional integration agreement; Low-cost unskilled or skilled labour; Different comparative advantages of countries; Better deployment of global resources notes Adapted from Vale Columbia Center on Sustainable International Investment (2013). down to sector level or source country information. Lastly, it should be noted that not all countries received Chinese fdi, not all received fdi annually and not all received fdi into every sector. The vast majority of deals are in the coal, oil and natural gas and metals sectors. These limitations limit the application of econometric techniques, as the short sample period and irregular investment intervals per country and sector (which generates missing values) will render the time series sample size too small for satisfactory analysis. A base investigation was therefore conducted, based on a graphical analysis to establish a basis for future analysis, as more data becomes available that will satisfy the statistical requirements. Data on Chinese investment in 27 African countries for the decade 2003 to 2012 were used. It is worth noting that, after 2008, only Rwanda, Gabon and Tanzania, of these, did not receive any Chinese fdi. A comparison of the destination countries and sectors of Greenfields Chinese fdi in Africa is made in figure 6. Only South Africa and Egypt received highly diverse investments, and the coal, oil and natural gas as well as the communications sectors are the only sectors Managing Global Transitions Modern Trends in Chinese Foreign Direct Investment in Africa 291 figure 6 Overview of Chinese Greenfields fdi in Africa 2003 to 2012 by Host Country and Sector (based on data from http://www.fdimarkets.com) that have a wide dispersion in terms of destination countries. For determinant comparisons, the World Bank Development Indicators (see http://data.worldbank.org) were used, as well as the United Nations Development Program (undp) Human Development Index (hdi) (see http://hdr.undp.org). It should be noted that World Bank data are not equally available for the destination countries and as a result the latest available values were always used. In cases where averages are used, averages over the sample period 2003 to 2012 were taken. The Research Methodology and Empirical Results This study investigates Chinese Greenfields fdis in terms of country and sectoral comparisons and Chinese f d i practices. Data visualisation techniques and analyses are used to infer similarities and differences between Chinese and other investors in Africa. This method was chosen for the special information statistical possibilities it may yield and because of data restrictions. The detail on the graphs of this analysis might not be very clear in this format of the journal, but the aim is to infer and indicate general trends. In order to disambiguate Chinese fdi in Africa, each of the four oli categories were investigated in terms of the major determinants listed in the literature. The exception to this is resource-seeking fdi. Total fdi and the total f d i minus resource sectors are used. f d i minus resource Volume 16 • Number 3 • Fall 2018 292 Henri Bezuidenhout and Ewert P. J. Kleynhans sectors focuses on the f d i that is not resource based to evaluate it against the 0li criteria. If it shows 0li behaviour it shows that Chinese fdi is not only resource seeking, but also follows 0li behaviour. Only the strongest relationship in each category was reported, although the general trend is the same for all sets in that the same relationship can be seen between the two. The following section discusses the research findings in terms of resource-seeking, market-seeking, efficiency-seeking and strategic asset-seeking fdi. RES0URCE SEEKING In this category, the total fdi inflows from 2003 to 2012 were compared to the total fdi inflows from 2003 to 2012 minus the major resource sectors of coal, oil and natural gas, metals, minerals and tobacco and food. Logically, if fdi in countries is non-resource seeking, they should rank much higher in the rankings than with the resources included. Similarly, if the fdi focus was solely resource driven, they should have had a steep decline in the rankings. The results of total Greenfields f d i compared to the total f d i minus the resource sectors are listed in table 5. Liberia, Niger, Namibia, Sudan, Senegal and Gabon all show steep declines leading to the conclusion that the focus in these countries is mainly resource seeking. Ghana is on the borderline, but is still considered mainly resource driven. In contrast, Ethiopia, South Africa, Cameroon, Mozambique, Cote d'lvoire, Rwanda, Zimbabwe, Tanzania, Botswana and Kenya all show steep increases in the ranking, implying that the focus in these countries is mainly non-resource driven. Observations made are therefore confirmed, especially in the case of Ethiopia, Cameroon, South Africa, Tanzania and Kenya. The rest of the countries all remain approximately at the same level in the rankings. Noteworthy are Nigeria, Angola, Algeria (the oil countries) and the Democratic Republic of Congo (drc), all known to be highly priced in resource-seeking f d i regions. This implies that these countries receive a relatively broader spectrum of fdi as indicated in figure 6. The comparison between total fdi and agricultural land yields a positive relationship, as illustrated in figure 7. This confirms the findings of Claassen, Loots, and Bezuidenhout (2012) and suggests that Chinese firms are pursuing investments in future Chinese food security. The results are summarised in table 6 and discussed below. In summary, it can Managing Global Transitions Modern Trends in Chinese Foreign Direct Investment in Africa 293 table 5 Chinese Greenfields fdi in Africa: Country Ranking with and without Resource Sectors (1) (2) (3) (4) (5) Nigeria Angola Congo (drc) (+3) Ethiopia (+9) Liberia (-20) Angola Ethiopia Tunisia (+2) South Africa (+7) Niger(-20) Egypt Nigeria Angola (+1) Cameroon (+7) Namibia (-10) Sudan South Africa Algeria (+1) Mozambique (+7) Sudan (-9) Algeria Cameroon Zambia (+1) Cote d'Ivoire (+7) Senegal (-6) Zambia Egypt Uganda (+1) Rwanda (+7) Gabon (-5) Liberia Algeria Madagascar (=) Zimbabwe (+6) Ghana (-4) Niger Zambia Chad (-1) Tanzania (+6) Chad Zimbabwe Nigeria (-2) Botswana (+6) Ethiopia Chad Egypt(-3) Kenya(+5) South Africa Congo (drc) Senegal Mozambique Cameroon Sudan Congo (drc) Tanzania Zimbabwe Botswana Madagascar Madagascar Ghana Kenya Namibia Senegal Mozambique Cote d'Ivoire Tanzania Rwanda Botswana Ghana Kenya Uganda Uganda Tunisia Gabon Tunisia Cote d'lvoire Rwanda notes Column headings are as follows: (1) total fdi, (2) fdi without resource sectors, (3) small differences, (4) large positive difference, (5) large negative difference. Based on data from http://www.fdimarkets.com. be concluded that, although there is a strong focus on resource-seeking fdi by Chinese firms, there is also a strong tendency towards a more diverse reasoning in their investments. The findings on the Greenfields f d is minus resources in terms of three benefit seeking categories analysed against certain criteria are discussed in table 6. Volume 16 • Number?, • Fall 2018 294 Henri Bezuidenhout and Ewert P. J. Kleynhans 11000 9000 . 8000 _ 7000 . 6000 . 5000 . 4000 . 3000 _ 2000 . 1000 -V—2T^- 0 _ 19 10 24 2511 7 3 12 23 1614 30 400000 600000 800000 1000000 1200000 1400000 figure 7 Comparison of Total fdi (ordinate, million usd) and Agricultural Land (abscissa, km2) (based on data from http://www.fdimarkets.com and http://data.worldbank.org) notes (1) Algeria, (2) Angola, (3) Botswana, (4) Cameroon, (5) Chad, (6) Congo (drc), (7) Cote d'Ivoire, (8) Egypt, (9) Ethiopia, (10) Gabon, (11) Ghana, (12) Kenya, (13) Liberia, (14) Madagascar, (15) Mozambique, (16) Namibia, (17) Niger, (18) Nigeria, (19) Rwanda, (20) Senegal, (21) South Africa, (22) Sudan, (23) Tanzania, (24) Tunisia, (25) Uganda, (26) Zambia, (27) Zimbabwe. market seeking Market-seeking fdi is assessed by comparing fdi inflows with market size, per capita income, market growth and trade connectedness. Both total fdi and total fdi minus the resource sectors were evaluated. Total fdi minus resource sectors was reported, unless the fdi total is significantly more positive. The results are summarised in Table 6. When market size, as a factor of market seeking, is considered as the difference between total fdi and resources plus total population of the recipient countries, there seems to be a strong positive relationship between these variables, except in the case of Angola. There is also a strong positive relationship between total fdi minus the resource sectors, and per capita production and income (gdp) of the recipient countries. Here the only exceptions are in the case of a few outliers, such as Angola and Equatorial Guinea. The results of a comparison between total fdi minus the resource sectors and the average gdp growth for the recipient countries indicated that there is a positive relationship between Chinese fdi and Managing Global Transitions Modern Trends in Chinese Foreign Direct Investment in Africa 295 table6 oli comparison of Chinese Greenfields fdi Minus Resource Sectors in Africa Criteria (1) (2) (3) Total population Strong positive gdp per capita Positive Positive Positive Average gdp growth Positive Positive Logistics performance index Positive Positive Positive Ease of doing business Strong Positive Strong positive Labour force Strong positive Liner shipping connect. index No sig. relation No sig. relation Mobile cellular subscription Positive Positive Positive Human development index Positive Positive Positive notes Column headings are as follows: (1) market seeking, (2) efficiency seeking, (3) strategic asset seeking. Based on data from http://www.fdimarkets.com. economies with high economic growth. Connectedness and trade were tested using the Logistics Performance Index (lpi) and an indicator of the ease of cost-effective shipping. A comparison between total fdi minus the resource sectors and the Logistics Performance Index (lpi) for the recipient countries revealed that although the overall lpi Index does not have any significant relationship, the ease of arranging cost-effective shipping does show a positive relationship. This indicates a mixture of efficiency-seeking and market-seeking fdi. The major recipients of Chinese fdi is provided in table 5. The result does indicate a preference for 'gateway' countries, as Nigeria, Ghana, Ethiopia, Kenya, Egypt and South Africa that are all respectively viewed as the dominant countries in the respective regions of Africa. Combining market size, market income, market growth, logistics and regional gateways provides a picture of a strong market orientation in Chinese fdi, which is not resource focused. This supports unctad's assertion of a change in fdi behaviour towards the African consumer and shows that Chinese firms are strategically placing themselves in the African market for future business and growth. The following section reports on the empirical findings about efficiency seeking. efficiency seeking To test for efficiency-seeking fdi, the focus shifts to the costs involved in business and labour. Country-by-country data are nearly impossible Volume 16 • Number?, • Fall 2018 296 Henri Bezuidenhout and Ewert P. J. Kleynhans to obtain for most countries and the focus was therefore on comparing total fdi and total fdi minus resource sectors with the World Bank Doing Business Index and the available labour force. The research results on efficiency seeking are also summarised in Table 6. The individual relationships mirror most of the market-seeking relationships. For most of these relationships, the total fdi also shows a slightly better positive relationship than when the resource sectors are omitted. This suggests that even resource-seeking fdi has an efficiency-seeking component. Chinese firms will therefore rather invest in more efficient business environments than in more inefficient ones. With the exception of Angola, there is a strong positive relationship between the size of the labour force and Chinese fdi. Total fdi minus resource sectors also provides stronger positive results than total fdi. This implies that the quality of the labour force is a strong consideration for Chinese firms. The Liner Shipping Connectivity Index (lsci) was also compared with total fdi minus the resource sector's yields. This comparison is done in order to further the results of the Logistics Performance Index (lpi) in the market-seeking fdi section. The relationship in this case is a much stronger positive relationship. This indicates that seeking efficiency is the main consideration in terms of trade connectedness. In both total fdi and total fdi minus resource sectors, Chinese firms show a consistent behaviour of seeking efficient cost-saving fdi. The following section reports on the findings concerning strategic asset seeking. strategic asset seeking Strategic asset-seeking fdi is a more difficult category to test for on a macro-level, especially without firm-specific information. Mobile cellular connections given in Table 6 were used as a proxyto test for technology investment and connectedness, while the quality of life and skilled labour requirements were evaluated using the undp's hdi. The hdi also provided more information and background as a proxy for the availability of technology and the absorptive capacity of it by the country. The results of the lpi and lsci also confirm that port infrastructure has a significant role to play. When mobile cellular subscription was compared with the total fdi minus the resource sectors, the results show a strong positive trend in the relationship. The implication is that there is a strong correlation between Chinese fdi and the availability of technology in recipient countries, as Managing Global Transitions Modern Trends in Chinese Foreign Direct Investment in Africa 297 indicated in Table 6. Under strategic asset-seeking fdi, the hdi was also tested to confirm whether the preference is towards more skilled or unskilled labour, and the results show a preference for better skilled labour markets. When the Human Development Index (hdi) is compared to the total f d i minus the resource sector, the results revealed that, except for Angola, there is a general strong positive relationship between the variables. Chinese firms therefore prefer investing in countries with a higher quality of life, skilled labour and the availability of technology. When it comes to Chinese fdi in Africa, excluding resources, there is a specific strong positive relationship with the determinants of strategic asset-seeking fdi. The following section summarises the research results of this study. Summary of Results This study differs from previous studies on the topic in that it investigated Chinese investment (fdi) in African countries quantitatively, considering the available data. It disambiguates the available data and made a unique contribution to the existing knowledge base, as it confirmed some stylised fact on Chinese fdi in Africa, while contradicting others, generating interesting and informative results This study revealed that China is mostly following investment patterns of other investors, although heavily skewed towards oil, coal and gas, as well as other resource sectors. China otherwise tends to invest in medium growth, diversified economies, predominantly in Nigeria and Egypt. A specific exception is Ethiopia, where investment in communications dominates; Cameroon, where chemicals dominate; Angola, where Chinese investment in the coal oil and gas sector was outperformed by the real estate investments; and South Africa and Tanzania that have a more even spread between sectors than the rest of the continent. Although there is a strong tendency towards resource-seeking fdi by Chinese firms, it can be concluded that there is also a strong tendency for more diverse reasoning in the investments, while a focus on food security is also confirmed. Combining market size, market income, market growth, logistics and regional gateways indicates a strong market-seeking orientation in Chinese fdi that is not resource focused. This supports unctad's assertion that a change in fdi behaviour towards the African consumer is in progress and that Chinese firms are positioning themselves strategi- Volume 16 • Number?, • Fall 2018 298 Henri Bezuidenhout and Ewert P. J. Kleynhans cally in African markets for future business and growth. In both total f d i and total f d i minus resource sectors, Chines firms show a consistent behavioural tendency of seeking efficient cost-saving fdi. Ease of doing business, total labour force and the Liner Shipping Connectivity Index (ls c i) all show significant positive relationships with Chinese fdi. This confirms a local manufacturing element in all sectors, which is not only extraction based. When Chinese f d i in Africa, excluding resources, is considered, there is a strong positive relationship with the determinants of strategic asset-seeking fdi. Chinese firms invest more in countries with a higher quality of living, skilled labour and available technology. Conclusion This study analysed Chinese fdi in Africa based on the oli framework of'Ownership, Location and Internalisation Advantages.' Differentiating Chines f d i into the categories determined by f d i literature enables an understanding of the nature and reasoning behind the investment decisions of Chinese firms. This is especially important in light of continuing criticism in Western media regarding the motivation for Chinese investments in Africa as a new form of colonialism and exploitation. Chinese fdi also shows strong elements of market-seeking, efficiency-seeking and strategic asset-seeking behaviour. It was shown that Chinese fdi in Africa follows global trends and, from a theoretical perspective, has a much broader scope than the sceptics focus on. Although a strong resource-seeking focus exists among Chinese fdi, very few countries experience only resource-seeking fdi. Elements of food security and long-term food production can also be verified. Africa is set to reap the benefits of the developmental loans and infrastructure development along with the growth elements of fdi and its spillover effects. The focus on market-seeking, efficiency-seeking and strategic asset-seeking fdi will also transfer technologies and will lead to skill and productivity increases as well as a growing consumer base. If African countries manage this process well, to allow for competition and crowding in of local firms, Chinese fdi will make a great contribution towards the transformation of the economic landscape of Africa. Chinese investment in Africa can therefore be seen as a long-term-oriented economic presence. Chinese investment is also linked to inexpensive developmental loans and infrastructure development projects. The implication is that China is creating a future market for its products Managing Global Transitions Modern Trends in Chinese Foreign Direct Investment in Africa 299 and its brands with a very long-term horizon. China has become a major player in fdi in Africa. They will remain a dominant force and may eventually even become the most dominant force. References Bezuidenhout, H., S. E. Cloete, and C. Claassen. 2014. 'The Determinants of Indian fdi in Africa: A Structural Equation Approach.' Journal of Economic and Financial Sciences 7 (3): 775-96. Blonigen, B. A. 2005. 'A Review of the Empirical Literature on fdi Determinants.' Atlantic Economic Journal 33 (4): 383-403. Buckley, C. 2013. 'China's Leader Tries to Calm African Fears of His Country's Economic Power.' The New York Times, 26 March. Claassen, C., E. Loots, and H. Bezuidenhout. 2012. 'Chinese Foreign Direct Investment in Africa: Making Sense of a New Economic Reality.' African Journal of Business Management 6 (4): 11583-97. Dunning, J. H. 1980. 'Toward an Eclectic Theory of International Production: Some Empirical Tests.' Journal of International Business Studies 11 (1): 9-31. -. 1981. International Production and the Multinational Enterprise. London: Allen and Unwin. Dunning, J. H., and S. M. Lundan. 2008. Multinational Enterprises and the Global Economy. 2nd ed. Cheltenham: Edward Elgar. James, S. 2013. Tax and Non-Tax Incentives and Investments: Evidence and Policy Implications. Washington, d c: World Bank. Kosack, J., and J. Tobin. 2006. 'Funding Self-Sustaining Development: The Role of Aid, fdi and Government in Economic Success.' International Organization 60 (1): 205-43. Krueger, R., and I. Strauss. 2014. 'Regional Integration as a Determinant of fdi?' African Development Bank Working Paper Series, African Development Bank, Abidjan. Organisation for Cooperation and Development. 2008. oecd Benchmark Definition of Foreign Direct Investment. 4th ed. Paris: Organisation for Cooperation and Development. Sachwald, F. 2005. 'Impact of Changing Production Location on Foreign Direct Investment.' Tokyo Club Foundation for Global Studies, Tokyo. Slaughter, M. J. 2002. 'Skill Upgrading in Developing Countries: Has Foreign Direct Investment Played a Role?' oecd Development Centre Working Paper 192. http://www.oecd.org/dev/1949135.pdf -. 2004. 'Skill Upgrading in Developing Countries: Has Inward Foreign Direct Investment Played a Role?' In Labor and the Globalization of Production, edited by W. Milberg, 121-45. London: Palgrave Macmil-lan Volume 16 • Number 3 • Fall 2018 300 Henri Bezuidenhout and Ewert P. J. Kleynhans The Economist. 2013a. 'The Alibaba Phenomenon.' 23 March. -2013b. 'Little to Fear But Fear Itself: Slowing Demand for Raw Materials Will Not Derail African Economies.' 21 September. UNOTAD. 2000. World Investment Report 2000. Geneva: unotad. -. 2010. World Investment Report 2010. Geneva: unotad. -. 2013. World Investment Report 2013. Geneva: unotad. Vale Columbia Center on Sustainable International Investment. 2013. 'Background Paper for the Eighth Columbia International Investment Conference on Investment Incentives: The Good, the Bad and the Ugly.' https://doi.org/10.7916/D8C82JVS This paper is published under the terms of the Attribution-NonCommercial-NoDerivatives 4.0 International (cc by-nc-nd 4.0) License (http://creativecommons.org/licenses/by-nc-nd/4.o/). Managing Global Transitions Abstracts in Slovene Ali je zdravstveno varstvo potreba ali luksuzna dobrina? Analiza panelnih podatkov na primeru držav članic Zdravstvene mreže Jugovzhodne Evrope Saša Obradovic in Nemanja Lojanica Glavni cilj tega prispevka je proučiti potencialno povezavo med gospodarsko rastjo in izdatki za zdravstvo v državah članicah Zdravstvene mreže Jugovzhodne Evrope v obdobju 1995-2014 z uporabo panelne ekonometrije. Pristop testiranja panelne kointegracije in vektorski model korekcije napak se uporabljata za raziskovanje dolgoročne in kratkoročne vzročne povezave med gospodarsko rastjo, izdatki za zdravstvo in pričakovano življenjsko dobo (trivariatni model). Empirični rezultati kažejo dolgoročno razmerje med opazovanimi spremenljivkami. Potrjeno je, da je zdravje dolgoročno luksuzna dobrina, kratkoročno pa potreba. Ob koncu je potrebno opozorilo, da bi morala biti gospodarska politika v teh državah usmerjena v ciljno povečanje izdatkov za zdravstveno varstvo z namenom povečanja splošne gospodarske dejavnosti. Tudi ekonomska politika bi morala biti usmerjena v ustrezno kombinacijo javnega in zasebnega financiranja v zdravstvu. Ključne besede: izdatki za zdravstvo, gospodarska rast, zdravstvena mreža Jugovzhodne Evrope, panelna kointegracija, panel Klasifikacija jel: C23, H51, 110, 115 Managing Global Transitions 16 (3): 195-214 Odkrivanje kitajskih proizvodnih strategij za vzpodbujanje odnosa in namere: vključevanje inovacij, države porekla in znanja Ramadania, RiantiArdana Reswari in Endang Dhamayantie Globalizacija širi možnosti izbire s pomočjo tehnologije, ki zagotavlja dovolj različnih informacij. Podjetja se tako na domači, kot na mednarodni ravni soočajo s konkurenco, ki je bolj intenzivna kot v obdobju pred globalizacijo. Kitajske blagovne znamke so v tujini vse bolj priljubljene in si prizadevajo tekmovati z drugimi svetovnimi blagovnimi znamkami. Globalni potrošniki nenehno iščejo najnovejše proizvode z najnižjo ceno na trgu. To iskanje usmerja znanje in pozornost na kitajske blagovne znamke. Namen te raziskave je raziskati vpliv novih izdelkov, države izvora in poznavanja izdelkov na nakupno namero glede na blagovno znamko. Za pridobitev podatkov so bili stotim anketirancem izročeni vprašalniki zaprtega tipa. Podatki so bili nato preračunani Managing Global Transitions 16 (3): 301-303 302 Abstracts in Slovene z uporabo Smart pls 3.2.7. Rezultati so pokazali, da se mora podjetje -da bi ustvarilo ugodnejši odnos do blagovne znamke - osredotočiti na prizadevanja za ustvarjanje spomina kupcev glede specifikacij izdelkov. Ključne besede: inovativnost izdelkov, država porekla, poznavanje izdelkov, odnos do blagovne znamke, nakupni namen Klasifikacija jel: M3, 03 Managing Global Transitions 16 (3): 215-234 Makroekonomske posledice depreciacije menjalnih tečajev: nigerijska izkušnja Ekundayo P. Mesagan, Olorunfemi Y. Alimi in Ismaila A. Yusuf Ta študija preučuje makroekonomske posledice depreciacije menjalnega tečaja v Nigeriji. Za podatke, ki zajemajo obdobje 1970-2015, je uporabljen kointegracijski pristop za testiranje avtoregresivnih porazdeljenih zamikov. Empirični rezultati potrjujejo, da depreciacija naira pozitivno in opazno vpliva na vse kazalnike makroekonomske uspešnosti, razen na proizvodnjo na prebivalca, ki je zanemarljiva. To pomeni, da depreciacija naira vzpodbuja trgovinsko bilanco, nestabilnost cen in povečuje obrestno mero. Depreciacija valute torej ne koristi gospodarstvu države. Poleg tega študija potrjuje, da obstaja dolgoročna povezava med depreciacijo menjalnih tečajev in makroekonomskimi rezultati v Nigeriji. Trgovinska in izvozna diverzifikacija sta potrebni za ohranitev dobičkov, povezanih z gibanji menjalnih tečajev in blaženje njihovih negativnih učinkov na gospodarstvo. Ključne besede: depreciacija valute, proizvodnja, stopnja inflacije, obrestna mera, trgovinska bilanca Klasifikacija jel: B22, E31, E43, F31, 040 Managing Global Transitions 16 (3): 235-258 Različni načini, na katere aktivni državljani rešujejo okoljska vprašanja: študije primerov iz Madžarske Adrienn Reisinger in Katalin Bandy Prispevek prikazuje, kako lahko aktivni državljani rešujejo okoljska vprašanja s sodelovanjem v lokalnih ali nacionalnih programih ali pri dogodkih. Po eni strani je namen prispevka predstaviti teorijo družbene vključenosti aktivnih državljanov s poudarkom na okoljskih vprašanjih. Po drugi strani pa gre za poskus predstaviti temo s pomočjo treh dobrih primerov iz Madžarske, ki temeljijo na drugotnih informacijah in intervjujih. Prvi je program šolskih vrtov; v Szentgotthardu gre za vprašanje Managing Global Transitions Abstracts in Slovene 303 načrtovane sežigalnice, ki je bila pred nekaj leti prepovedana zaradi dejavnosti lokalnih civilnih organizacij. Tretji program, t. i. Te Szedd (program zbiranja smeti v organizirani kampanji na Madžarskem), pa kaže pristop od zgoraj navzdol, ki ga upravljajo lokalni prebivalci. Rezultati kažejo, da so državljani lahko dejavni pri oblikovanju okoljskih vprašanj, vendar se zdi najpomembneje to, da se za tovrstna vprašanja tudi osebno zavzamejo. Ključne besede: aktivni državljani, družbena vključenost, okoljska vprašanja, upravljanje, dobri primeri Klasifikacija jel: R11, L31 Managing Global Transitions 16 (3): 259-277 Sodobni trendi v kitajskih neposrednih tujih naložbah v Afriki: pristop na temelju lastništva, lokacije in internalizacije Henri Bezuidenhout in Ewert P. J. Kleynhans Ta študija ocenjuje razlike, ki jih različne vrste neposrednih tujih naložb Kitajske v Afriki ponujajo, kot kažejo podatki, z uporabo pristopa 'lastništva, lokacije in internalizacije.' Kitajske neposredne tuje naložbe so analizirane s pomočjo primerjav z izvornimi državami, sektorskih primerjav in raziskav kitajskih praks s področja neposrednih tujih naložb. Tehnike vizualizacije podatkov in analize kažejo podobnosti in razlike med kitajskimi in drugimi vlagatelji v Afriki. Te alternativne metode temeljijo na naravi razpoložljivih podatkov in statističnih možnostih, ki iz tega izhajajo. Študija je pomembna, saj razkriva razpoložljive podatke in primerja teorije. Kitajskih neposrednih tujih naložb se drži slab sloves prirejanja podatkov; študija te predpostavke količinsko opredeli in preveri. Rezultati kažejo, da Kitajska sledi naložbenim vzorcem drugih vlagateljev, čeprav je močno usmerjena proti naftnemu, premogovnemu in plinskemu sektorju ter sektorjem drugih virov. Kitajska sicer najpogosteje vlaga v srednjo rast, raznolika gospodarstva, predvsem v Nigeriji in Egiptu - v Etiopiji prevladujejo naložbe v komunikacije, v Kamerunu naložbe v kemikalije, v Angoli naložbe v nepremičnine, ki presegajo naložbe v premog, nafto in plin - ter v Južni Afriki in Tanzaniji, ki imata bolj enakomerno razporeditev med sektorji v primerjavi s preostalim delom celine. Ključne besede: neposredne tuje naložbe, Afrika, Kitajska, pristop na temelju lastništva, lokacije in internalizacije, eklektična paradigma Klasifikacija jel: F20, F21, F23 Managing Global Transitions 16 (3): 279-300 Volume 16 • Number?, • Fall 2018