Meet the editor

Dr. Vito Bobek works as an international management professor at the University of Applied Sciences FH Joanneum, Graz, Austria. He has published more than 400 units in his academic career and visited twenty-two universities worldwide as a visiting professor. Dr. Bobek is a member of the editorial boards of six international journals and a member of the Strategic Council of the Minister of Foreign Affairs of the Republic of Slovenia. He

has a long history in academia, consulting, and entrepreneurship. His own consulting firm, Palemid, has managed twenty significant projects, such as Cooperation Program Interreg V-A (Slovenia-Austria) and Capacity Building for the Serbian Chamber of Enforcement Agents. He has also participated in many international projects in Italy, Germany, Great Britain, the United States, Spain, Turkey, France, Romania, Croatia, Montenegro, Malaysia, and China. Dr. Bobek is also a co-founder of the Academy of Regional Management in Slovenia.

Chee-Heong Quah, Ph.D., is a senior lecturer at the Faculty of Business and Accountancy, University of Malaya, Kuala Lumpur, Malaysia. His research interests encompass international economics, monetary integration, financial crisis, optimum currency areas, and Austrian economics. His works have been published in scientific journals such as *Asia Pacific Business Review*; *International Finance*; *Journal of Business, Economics, and Management;*

*Journal of the Asia Pacific Economy*; *Actual Economic Problems*; *African Journal of Business and Management*; *South Asian Journal of Management*; and *International Journal of Asia Pacific Studies*.

Contents

**Section 1**

*by Pascal Salin*

Liberalism, the Only True Humanism

Does Culture Matter and Why? *by Sabina Silajdzic and Eldin Mehic*

Africa's Journey to Industrialization *by Chimezirim Young and Ayo Oyewale*

"Pandemic" in a Stateless Society

*by Chee-Heong Quah*

on National Development

**Section 2**

*by Gonca Atici*

**Preface XI**

Critical Issues of Economic Development of Emerging Markets **1**

**Chapter 1 3**

**Chapter 2 11** Institutions, Culture and Foreign Direct Investment in Transition Economies:

**Chapter 3 41**

**Chapter 4 61**

**Chapter 5 87**

Country Case-Studies **97**

**Chapter 6 99**

**Chapter 7 119**

The Influence of Economic Activity of Women in Malaysia and Guatemala

Are African Stock Markets Inefficient or Adaptive? Empirical Literature

*by Adefemi A. Obalade and Paul-Francois Muzindutsi*

*by Verena Habrich, Vito Bobek and Tatjana Horvat*

Digital and Digitalized Economy in EMs: A Focus on Turkey

## Contents



Preface

First, a clarification of when a country is classified or considered an "emerging market" should be provided. There are some varieties within the existing literature of this specific field. The literature defines the critical characteristic of an emerging market as a permanent change. Such markets show attributes of an evolving economy, ongoing improvement of living standards, and stable development of their economy and institutional structures. Overall, an emerging market must be in a steady state of economic and social evolution. The wealth of the country is neither extraordinarily high nor extremely low. The economy and political situation are not

However, according to the literature, the widely used economic development measure of emerging markets is the doubling of per capita income. The United States needed 47 years from 1838 onward, and Britain needed even longer with 58 years starting from 1780. The Asian countries overtook them by far, needing only 34 years during the countries' industrial-economic liberalization through the United States in 1885, and South Korea achieved a doubling in 11 years in 1966. China topped that growth by achieving a doubling of per capita income in only nine years, followed by another doubling in the subsequent nine years, and achieved this a third time as well. India showed a slower but steady growth and managed a doubling in 25 years the first time. It can be concluded that a country is considered an emerging market when it shows the following characteristics: steadily changing but improving economy, certain liberalization of the economy, increasing living standards, and working institutions. In addition, it must be able to double its per capita income—expanded by the indicator of a still low indicted economy which

Some chapters in this book outline preconditions necessary to clarify the origin and development of an emerging market. According to the literature, two principal strategies exist for the acceleration of an emerging economy. The first path is based on the fact that every country striving for an emerging economy can learn valuable lessons from countries that went through all development phases before them. According to their advanced and wealthy economies, the Asian countries went through that development in the last two decades to become high-level emerging markets. Those countries became so-called Organization for Economic Cooperation and Development (OECD) countries and provided sufficient guidelines for creating

Those guidelines include several historical experiences, observations, and analyses that indicate the chances of success or failure of specific strategic approaches to become an emerging nation. Historic observation of economists suggests that market economies typically have good chances to outperform a planned economy, which increases when production activities become more information-intensive and sophisticated. Furthermore, it could be determined that there is no evidence of significant economic development under the governmental form of autarky since a certain liberalization of an economy, its openness to trade, as well as the support of

too protective among foreign capital and actions.

demarcates from an industrial fully developed country.

a development strategy.
