Research Handbooks in Business and Management series
Edited by Hemant Merchant
Chapter 1: How do emerging markets differ from developed markets? A conceptual and empirical analysis
The study of emerging markets (EMs) is one of the most popular themes in international business research, at least in terms of the rise in published academic studies and those presented at conferences worldwide. Despite the substantial increase in academic interest in EMs, there is an alarming lack of consensus about what characterizes these markets as ‘emerging’. An important part of management theory is being built without an accurate revision of some of its key assumptions. Implicitly the ‘emerging-ness’ is defined as the probability of the country achieving higher than average growth in the creation of economic wealth by including or attracting more resources or by using more efficiently existing factors of production. It appears that we academics view all countries that are not ‘developed’ as emerging—a problem that arises from the notable lack of a common definition of the term. We seem to be furiously investigating a phenomenon without really establishing its meaningful boundaries. Our study redresses this crucial neglect by testing the correspondence between existing definitions of EMs and countries that academics and practitioners deem to be ‘emerging’ markets.