scholarly journals Does corruption matter for FDI flows in the OECD? A gravity analysis

2021 ◽  
Author(s):  
Tobias Zander
Keyword(s):  
Fixed Effects ◽  
General Effect ◽  
Fdi Inflows ◽  
Governance Indicators ◽  
Specific Effects ◽  
The World ◽  
The Difference ◽  
World Governance Indicators ◽  
Source Countries ◽  
The Empirical Analysis

AbstractIn this paper, the effect of corruption on foreign direct investment (FDI) flows is analyzed. The literature is thus far divided regarding the effects of corruption: One hypothesis argues that corruption greases the wheels of government and is therefore beneficial while the other hypothesis argues that it sands the wheels of government leading to suboptimal results in an economy. For the empirical analysis, a dataset consisting of bilateral FDI data from the OECD and the control of corruption measure from the World Governance Indicators of the World Bank is compiled. To further analyze the effects of corruption the Panama Papers revelation is used as a corruption increasing event and the implementation into law of the OECD Anti-Bribery Convention is used as a corruption decreasing event. Finally, the difference between corruption levels in the target and the origin country, will be examined. Then, a gravity model with dyadic and time-fixed effects is employed to analyze the data. Findings are ambiguous in that corruption is positively correlated with FDI inflows in the target country and negatively correlated with FDI inflows in the origin country. The Panama Papers variable shows strong evidence, that the release of the Panama Papers resulted in a drop in FDI flows. Therefore, it seems that corruption has complex country specific effects and that target and source countries have to adopt varying policies with regards to corruption. The general effect of corruption harms FDI flows, as shown by the Panama Papers revelation.

scholarly journals Aid for Trade Flows and Recipient-Countries’ Integration into the World Market for Services Exports: Do Merchandises Exports and Foreign Direct Investment Inflows Matter?

2020 ◽  
pp. 2350001 ◽  
Author(s):  
Sena Kimm Gnangnon ◽  
Susana Del Mar Ramirez Ramirez
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Export Performance ◽  
World Market ◽  
Fdi Inflows ◽  
Performance Effect ◽  
The World ◽  
Aid For Trade ◽  
The Empirical Analysis ◽  
Positive Effect

An important literature on the recipient-countries’ export performance effect of Aid for Trade (AfT) flows has focused on the goods side. The few existing studies on the services exports effects of AfT interventions have reached mixed results, reflecting a positive or weak effect. This study aims to complement these few studies by examining the effect of AfT flows on recipient-countries’ share of services exports in the world services exports (‘services export integration’), including through two main channels: their share of merchandises exports in the world merchandises exports (‘merchandises export integration’) and the size of Foreign Direct Investment (FDI) inflows. The empirical analysis, based on a sample of 105 countries over the period 2002–2016, has shown that these two channels definitely matter for the effect of AfT flows on countries’ services export integration. Specifically, by fostering countries’ merchandises export integration, AfT flows can promote their services export integration. Furthermore, promoting FDI inflows enhances the positive effect of AfT flows on countries’ services export integration.

scholarly journals Governance and Domestic Investment in Africa

2019 ◽  
Vol 8 (1) ◽  
pp. 63-80 ◽  
Author(s):  
Chimere Okechukwu Iheonu
Keyword(s):  
Fixed Effects ◽  
Principal Component ◽  
Domestic Investment ◽  
Fixed Effects Model ◽  
African Countries ◽  
Cross Sectional ◽  
Data Set ◽  
Governance Indicators ◽  
World Governance Indicators ◽  
The Impact

The study empirically examined the impact of governance on domestic investment in 16 African countries with a balanced panel data set, between the years 2002 and 2015. The study employed six unbundled governance indicators from the World Bank, World Governance Indicators and constructed three bundled governance indicators using the Principal Component Analysis. The Driscoll and Kraay Fixed Effects model which accounts for serial correlation, groupwise heteroskedasticity and cross-sectional dependence were employed with empirical results revealing that all the indicators of governance positively and significantly influence domestic investment in Africa, except for government effectiveness which happens to be insignificant. Also, Voice/Accountability and the Control of Corruption exert more influence on domestic investment as indicated by their coefficient values. Furthermore, economic growth is also an important factor in explaining domestic investment in Africa. Policy recommendations are discussed.

Aid for Trade flows and Recipient-Countries' Integration into the World Market for Services Exports: Do Merchandises Exports and Foreign Direct Investment Inflows matter?

2020 ◽  
Author(s):  
SENA KIMM GNANGNON ◽  
Susana Del Mar Ramírez
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Export Performance ◽  
World Market ◽  
Fdi Inflows ◽  
Performance Effect ◽  
The World ◽  
Aid For Trade ◽  
The Empirical Analysis ◽  
Positive Effect

Abstract An important literature on the recipient-countries' export performance effect of Aid for Trade (AfT) flows has focused on the goods side. The few existing studies on the services exports effects of AfT interventions have reached mixed results, reflecting a positive or weak effect. The present study aims to complement these few studies by examining the effect of AfT flows on recipient-countries' share of services exports in the world services exports ('services export integration'), including through two main channels: their share of countries' merchandises exports in the world merchandises exports ('merchandises export integration') and the size of foreign direct investment (FDI) inflows. The empirical analysis, based on a sample of 105 countries over the period 2002-2016, has shown that these two channels definitely matter for the effect of AfT flows on countries' services export integration. Specifically, by fostering countries' merchandises export integration, AfT flows can promote their services export integration. Furthermore, promoting FDI inflows enhances the positive effect of AfT flows on countries' services export integration.

Public Opinion on Dimensions of Governance in East Asia: An Analysis of Citizen and Expert Evaluations

2007 ◽  
Vol 8 (3) ◽  
pp. 285-303
Author(s):  
MATTHEW CARLSON
Keyword(s):  
East Asia ◽  
World Bank ◽  
Financial Institutions ◽  
Multivariate Test ◽  
Governance Indicators ◽  
The World Bank ◽  
The World ◽  
Expert Assessments ◽  
World Governance Indicators ◽  
Cross National

In recent years, institutional financial institutions such as the World Bank have taken a keen interest in the links between governance and economic development in East Asia and in other regions of the world. However, the concept of governance has proven difficult to measure in cross-national studies and its meaning in the minds of citizens and experts may differ noticeably. This article examines elite and mass perceptions of governance using the World Governance Indicators developed by scholars affiliated with the World Bank and survey data derived from the 2006 wave of the AsiaBarometer Survey conducted in seven ‘Confucian’ societies. The results of the analysis capture considerable variation at the country and individual levels for how citizens and experts perceive governance in this region of the world. In addition, a multivariate test uncovered some convergence between citizen and expert assessments but only for some of the various governance components.

scholarly journals GOOD GOVERNANCE IN BANGLADESH: A STUDY OF WORLD GOVERNANCE INDICATORS

2021 ◽  
Vol 3 (3) ◽  
pp. 201-216
Author(s):  
Mohammad Nur Ullah ◽  
Muhammad Sayadur Rahman
Keyword(s):  
World Bank ◽  
Qualitative Data ◽  
Good Governance ◽  
Governance Structure ◽  
Law And Order ◽  
Governance Indicators ◽  
The World Bank ◽  
The World ◽  
World Governance Indicators ◽  
Mixed Approach

The inclusive philosophy of good governance is almost indispensable for the progress of state democracy in Bangladesh. However, the Bangladesh government is fighting a malicious virus in the governance structure that is visible in all sectors of the state. Against this backdrop, an attempt has been made to comprehend the general state of good governance in Bangladesh according to World Governance Indicators (WGI) of the World Bank. This study is based on mixed approach containing quantitative data from World Bank website (world economy.com) and qualitative data from existing literatures. The collected data have also been analyzed through table, chart and text. This paper found, the current situation in Bangladesh is appalling and detrimental to the socio-economic development of the country. This situation is crisscrossed by overpopulation, politicization, bureaucratization, corruption, poverty, broken law and order, and the narrow game of politics. This paper then outlines some of the policy guidelines needed to define good governance principles in Bangladesh. The results of this study are expected to be useful for policymakers in devising appropriate strategies to ensure good governance at all levels of government.

scholarly journals Risks and issues: reactions of Vietnam and the experience to the world in the first wave of coronavirus pandemic

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hai Hong Dinh
Keyword(s):  
Disaster Response ◽  
Decisive Role ◽  
Great Powers ◽  
Future Research ◽  
General Effect ◽  
Content Type ◽  
Cause And Effect ◽  
The World ◽  
The Future ◽  
The Difference

PurposeThis paper mentions the quick reactions of Vietnam to avoid explosive catastrophes before and during the first wave of the coronavirus pandemic. The work presented here has profound implications for future research of disaster response and preparation for future pandemics. In order to estimate the causal general effect of the pandemic, the authors have to do a quantitative survey at the end of the pandemic.Design/methodology/approachThe difference in damage caused by the pandemic between the great powers and Vietnam is the quick reaction. It plays a decisive role. In attempting to tackle emerging phenomena in the pandemic, this study is deliberately broad-based. Considerable attention is given to explaining each methodological choice. It centers on a core case of Vietnam. Using data from multiple methods, it adopts publish media and contemporary research during the pandemic as a way to draw out key themes within the core case.FindingsThe paper focuses on the lessons for the post-pandemic consist of the Buddhist conception (cause and effect) based on the quick reaction of the Vietnamese government and the adaptation of Vietnamese people. This is a key success for the future anti-pandemic process.Research limitations/implicationsThe paper is not exploring the pandemic within a larger scale of all nations to approach a general lesson for the world.Practical implicationsThe success of the first anti-pandemic phase does not guarantee that subsequent efforts will be successful. Respecting the “opponent” (the coronavirus) is the best way to avoid falling into the deadly subjective trap that some great powers have encountered.Social implicationsThis article highlights the rapid response of the Vietnamese before and during the coronavirus pandemic. From that, the article draws some lessons for the next similar disasters based on the cause and effect.Originality/valueA quick reaction is one of the most important ways to deal with any disaster. After a half year of the coronavirus pandemic spread, Vietnam has 408 infectious cases and no deaths within 96,208,984 people (The Ministry of Health of Vietnam on July 22nd, 2020). Vietnam achieved success with the least expensive price that should be finding in risks and issues in the future.

scholarly journals Who is More Accountable? Federal or State Malaysian Statutory Bodies

2019 ◽  
Vol 3 (2) ◽  
pp. 15-26
Author(s):  
Nurhidayah Yahya ◽  
Jamaliah Said ◽  
Nor Balkish Zakaria
Keyword(s):  
World Bank ◽  
Country Risk ◽  
Average Score ◽  
Four Dimensions ◽  
Governance Indicators ◽  
The World Bank ◽  
Significant Difference ◽  
The World ◽  
The Difference ◽  
High Level

The World Bank on Governance Indicators in the aspect of ‘Voice and Accountability’ reported accountability for Malaysia had declined to 34% in 2017 from 37% in 2013. Data from the International Country Risk Guide showed a decrease in accountability since 2011 from 4.46 to 4 points out of 6 points in the year 2012. Public sector organisations like statutory bodies might also face issues of accountability. This study aims to evaluate and compare the accountability outcomes of federal and state statutory bodies through a questionnaire. The measurement for accountability based on four dimensions, namely transparency, evaluation, stakeholders' participation and complaint and response. Based on 194 responses received from top management of Malaysian statutory bodies, the overall accountability outcome has shown an above-average score of 5.97 for both federal and state statutory bodies. This shows that Malaysian statutory bodies have delivered a high level of accountability. The test for the difference between the means scores of independent T-tests also shows that there is no significant difference between the accountability level of federal and state statutory bodies. Despite the different level of obligation and legislation, both types of statutory bodies seem to deliver an equally high level of accountability outcomes.

Productivity, institutions, and market beliefs: three entrepreneurial interpretations

2017 ◽  
Vol 6 (2) ◽  
pp. 164-180 ◽  
Author(s):  
Pál Czeglédi
Keyword(s):  
Formal Institutions ◽  
Market Institutions ◽  
Content Type ◽  
Country Level ◽  
Governance Indicators ◽  
The World ◽  
Penn World Table ◽  
Schumpeterian Hypothesis ◽  
Market Beliefs ◽  
World Governance Indicators

Purpose Inspired by the debates among economists about the role of beliefs and informal institutions in economic development, the purpose of this paper is to derive and test different hypotheses about the ways beliefs about the market economy, institutions and policies, and productive entrepreneurship are intertwined. Design/methodology/approach The paper derives from the literature three hypotheses unified around the idea of (political, cultural, and market) entrepreneurship. The paper then tests these hypotheses by running various country-level regressions intended to check the relationships between formal institutions and policies (measured by World Governance Indicators and by the Economic Freedom of the World index), productive entrepreneurship (measured by total factor productivity form the Penn World Table), and different kinds of market beliefs from the World Values Survey (WVS). Findings The sociological hypothesis says that more pro-market beliefs provide incentives for innovation by recognizing entrepreneurship as a dignifying activity. The political hypothesis says that people with more pro-market beliefs will demand, and therefore live with, more pro-market institutions and policies. The “Schumpeterian” hypothesis says that it is market institutions that make it possible for entrepreneurs to run against anti-market beliefs, and innovate. The results support the Schumpeterian hypothesis, mainly because market beliefs predict institutions and policies as well as productivity very poorly, while formal institutions and policies make a much better job of this. Originality/value The paper contrasts three different hypotheses concerned with the broader consequences of political, cultural, and market entrepreneurship and tests them by making use of the time structure of the observations found in the WVS.

Inter-country inequality as a dynamic process and the problem of post-industrial development

2018 ◽  
pp. 5-29 ◽  
Author(s):  
L. M. Grigoryev ◽  
V. A. Pavlyushina
Keyword(s):  
Economic Growth ◽  
Political Institutions ◽  
Industrial Development ◽  
Modern World ◽  
New Approach ◽  
Development Level ◽  
The World ◽  
Long Time ◽  
The Difference ◽  
Post Industrial

The phenomenon of economic growth is studied by economists and statisticians in various aspects for a long time. Economic theory is devoted to assessing factors of growth in the tradition of R. Solow, R. Barrow, W. Easterly and others. During the last quarter of the century, however, the institutionalists, namely D. North, D. Wallis, B. Weingast as well as D. Acemoglu and J. Robinson, have shown the complexity of the problem of development on the part of socioeconomic and political institutions. As a result, solving the problem of how economic growth affects inequality between countries has proved extremely difficult. The modern world is very diverse in terms of development level, and the article offers a new approach to the formation of the idea of stylized facts using cluster analysis. The existing statistics allows to estimate on a unified basis the level of GDP production by 174 countries of the world for 1992—2016. The article presents a structured picture of the world: the distribution of countries in seven clusters, different in levels of development. During the period under review, there was a strong per capita GDP growth in PPP in the middle of the distribution, poverty in various countries declined markedly. At the same time, in 1992—2016, the difference increased not only between rich and poor groups of countries, but also between clusters.

Optimum Structure of the Banking Market: How Many Banks Are Necessary for Russia?

2006 ◽  
pp. 75-92 ◽  
Author(s):  
S. Moiseev
Keyword(s):  
Banking Sector ◽  
Optimum Structure ◽  
Population Number ◽  
The Third ◽  
Banking Market ◽  
The World ◽  
The Usa ◽  
Per Capita ◽  
The Empirical Analysis ◽  
Equilibrium Number

The number of classical banks in the world has reduced. In the majority of countries the number of banks does not exceed 200. The uniqueness of the Russian banking sector is that in this respect it takes the third place in the world after the USA and Germany. The paper reviews the conclusions of the economic theory about the optimum structure of the banking market. The empirical analysis shows that the number of banks in a country is influenced by the size of its territory, population number and GDP per capita. Our econometric estimate is that the equilibrium number of banks in Russia should be in a range of 180-220 units.

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