scholarly journals Arab-German Trade and Institutions: The Effect of Good Governance on Arab Exports to Germany

2021 ◽  
Author(s):  
Mohamed Ismail Sabry
Keyword(s):  
Textile Industry ◽  
Good Governance ◽  
Research Question ◽  
German Economy ◽  
Poor Performance ◽  
Developed Countries ◽  
Arab Countries ◽  
German Trade ◽  
Governance Indicators ◽  
Pseudo Maximum Likelihood

AbstractDoes good governance matter for exporting to the highly competitive markets of developed countries, especially those committed to a developmental mission centered on promoting good governance? This paper is investigating this research question. The focus of the analysis is the case study of Arab exports to the German economy, where a comparatively poor performance in comparison to that of other regions of the world is witnessed, despite geographical proximity and preferential trade agreements. Using statistical data and the literature on the subject, the paper engages in a discussion on German trade flows from Arab countries and whether governance indicators provide a good explanatory framework. The research question is then investigated empirically by running several regressions using the two-stage least-squares and Poisson pseudo maximum likelihood models. Different indicators of German exports are used as dependent variables while the independent variables are various governance indicators together with the control variables suggested by the gravity model. The obtained empirical results suggest that good governance generally boosts Arab exports to Germany and relatively more than it does for non-Arab exporters to Germany. This is especially true for governance indicators that directly affect exporting activities, such as regulatory quality and government effectiveness. For some indicators that indirectly affect exporting, however, the results are mixed for both Arab and non-Arab countries, especially for the textile industry. This sheds doubts on Germany’s developmental commitment to fostering good governance principles.

Cronyism as an outcome of institutional settings: the case of pre-2011 Egypt

2019 ◽  
Vol 40 (1/2) ◽  
pp. 58-78 ◽  
Author(s):  
Mohamed Ismail Sabry
Keyword(s):  
Theoretical Model ◽  
Empirical Data ◽  
Research Question ◽  
Poor Performance ◽  
Institutional Factors ◽  
Mena Region ◽  
Content Type ◽  
Institutional Settings ◽  
Governance Indicators ◽  
Public Banks

Purpose Why are state business relations in Egypt characterized by widely acknowledged high levels of cronyism? The purpose of this paper is to investigate the institutional factors explaining this research question with a focus on pre-2011 Egypt. Design/methodology/approach Based on a general theoretical discussion, certain institutions were proposed as being responsible. A game theoretical model is then introduced. It explains why cronyism was the best strategy for various business players in contrast to aggregating and lobbying their efforts to obtain government available resources, whether these resources are energy subsidies, public banks’ credit or regulations. Then pre-2011 Egypt is discussed as a case study. This discussion is enriched by the available literature and empirical data. Findings Choosing cronyism was attributed to the presence of a weak and dependent private sector, where businesspeople are unable to aggregate their power; a relatively stronger government; poor governance performance; higher levels of regime legitimization practices, such as providing generous consumer subsidies; and economic growth caused by an increase in resources rather than by governance institutional improvement. A discussion of the available literature and empirical data on pre-2011 Egypt, going over the various proposed institutional factors, helped to support these arguments. Research limitations/implications Further empirical evidence is needed to support and modify the suggestions of this paper. More detailed indicators would have further helped this research. Moreover, more case studies, other than the case of pre-2011 Egypt, are also needed. It is hoped that this paper would encourage further research endeavors that would cover these limitations. Practical implications Governance institutional reform is needed to minimize cronyism, especially institutions such as voice and accountability, rule of law, regulatory quality and control of corruption. Social implications This paper can explain why high levels of cronyism are witnessed in many countries of the world, including the countries of the Middle East and North Africa (MENA). The region shares many institutional factors with Egypt. Governments in the MENA region have various sources of power with regard to their dependent private sectors added to the general poor performance in various governance indicators in the region. Originality/value The deep analysis conducted in this paper for the causes of Cronyism in Egypt has not been done elsewhere. This is also true for the whole MENA region. The introduced theoretical model is the first trial of this sort and should be important for future works on this topic in the MENA region and developing countries.

Governance and Capital Accumulation under Globalization

2015 ◽  
pp. 135-154
Author(s):  
Kamal Ray ◽  
Ramesh Chandra Das ◽  
Utpal Das
Keyword(s):  
Developing Countries ◽  
Capital Accumulation ◽  
Global Financial Crisis ◽  
Good Governance ◽  
Developed Countries ◽  
Capital Formation ◽  
Causality Test ◽  
Governance Indicators ◽  
The Usa ◽  
The Developed Countries

Sustaining good governance is necessarily required for all countries in the world after the phase of globalization, especially when almost the entire world is struck by the global financial crisis originated from the USA. The present study tries to concentrate upon establishing an interlinkage among capital accumulation of a sample of countries with principal components of governance for the time period 1996-2012. Correlation analysis along with the Granger Causality test is applied to identify directions of causalities among capital formation and all the governance indicators. The study observes an inverse relation between governance indicators and capital accumulation for majority of the developing countries and in some cases positive relations for developed countries. Besides, it is observed that there are causal relations from capital formation to governance in most of the developed countries whereas in most of the developing countries there are causalities from governance to capital formation.

scholarly journals The Non-Linear Relation between Governance and Efficiency: Evidence from Agriculture

2017 ◽  
Vol 5 (11) ◽  
pp. 1334
Author(s):  
Nizamettin Bayyurt ◽  
Zehra Vildan Serin
Keyword(s):  
Good Governance ◽  
Political Stability ◽  
Developed Countries ◽  
Data Envelopment ◽  
Governance Indicators ◽  
Agricultural Performance ◽  
Regulatory Quality ◽  
Panel Data Regression ◽  
Data Regression ◽  
Highly Correlated

This study aims to explore the relations between governance and agricultural performance of countries. Data Envelopment Analysis was used to find out agricultural performance of 81 countries at first stage. Panel data regression was employed in the second stage to assess the relations between performance levels of countries and their governance. Six governance indicators namely; voice and accountability, control of corruption, government effectiveness, regulatory quality, rule of law and political stability and violence were analyzed in this stage. Findings show that firstly, governance indicators are highly correlated with each other. Secondly, developed countries are more efficient and have better governance than developing and undeveloped countries. Finally, a quadratic form of regression was the fitting model that is the marginal effects of good governance on performance are increasing in high values of governance.

Australia—The Hidden Jewel

2018 ◽  
Author(s):  
Mahesh K. Joshi ◽  
J.R. Klein
Keyword(s):  
Natural Resources ◽  
Value Chain ◽  
Global Economy ◽  
Good Governance ◽  
Developing Economies ◽  
Raw Materials ◽  
Manufacturing Sector ◽  
Developed Countries ◽  
The United States ◽  
Dutch Disease

The twenty-first century is being touted as the Asian century. With its stable economy, good governance, education system, and above all the abundant natural resources, will Australia to take its place in the global economy by becoming more entrepreneurial and accelerating its rate of growth, or will it get infected with the so-called Dutch disease? It has been successful in managing trade ties with fast-developing economies like China and India as well as developed countries like the United States. It has participated in the growth of China by providing iron ore and coal. Because it is a low-risk country, it has enabled inflow of large foreign capital investments. A lot will depend on its capability and willingness to invest the capital available in entrepreneurial ventures, its ability to capture the full value chain of natural resources, and to export the finished products instead of raw materials, while building a robust manufacturing sector.

Modelling investment in the tourism industry using the World Bank's good governance indicators

2011 ◽  
Vol 6 (3) ◽  
pp. 279-296 ◽  
Author(s):  
Ruth Rios‐Morales ◽  
Dragan Gamberger ◽  
Ian Jenkins ◽  
Tom Smuc
Keyword(s):  
Good Governance ◽  
Tourism Industry ◽  
Governance Indicators ◽  
The World

What Should We Know About the Origins of International Investment Law?

2020 ◽  
Vol 48 (3) ◽  
pp. 122-131
Author(s):  
Sarah M. Alshahrani
Keyword(s):  
Ottoman Empire ◽  
Historical Context ◽  
Developed Countries ◽  
International Investment ◽  
Arab Countries ◽  
International Investment Law ◽  
The Usa ◽  
Investment Law ◽  
Investment Treaties ◽  
The Impact

AbstractInternational investment law, particularly the global backlash against investment treaties, has evolved recently. This article aims to clarify how international investment law evolved over history, from the early Arab traders in the 7th century to the Ottoman Empire, to understand its hidden aims. It investigates the practice of signing investment treaties, which appear first during the Fatimid Caliphate2 and Mamluk Sultanate3 periods. It then explains when control over foreign investment started to diminish during the Ottoman Empire period.4 Further, it explains the links between the USA Friendship, Commerce and Navigation treaties (FCNs), and current investment treaties, explaining the impact of colonization and imperialism on drafting treaty provisions. Within this historical context, this article illustrates the need to understand the roots of international investment law in order to urge Arab countries to terminate or renegotiate current bilateral investment treaties (BITs) as a number of developing and developed countries have done.

Good Governance, State Capacity, and the Millennium Development Goals

2011 ◽  
Vol 10 (2) ◽  
pp. 339-360 ◽  
Author(s):  
Devin Joshi
Keyword(s):  
International Development ◽  
Millennium Development Goals ◽  
Good Governance ◽  
State Capacity ◽  
Statistical Correlations ◽  
Governance Indicators ◽  
Alternative Approach ◽  
The World ◽  
Development Goals ◽  
Per Capita

AbstractInternational development agencies argue that “good governance” is crucial to attaining the Millennium Development Goals (MDGs), but there are many ways to define and measure good governance. The paper begins by examining the World Bank’s minimal state conception of governance and then proposes an alternative approach based on strengthening state capacity. The paper tests this framework by developing a provisional Millennium Governance Index (MGI) for 126 countries. In comparative empirical analysis, the MGI has noticeably higher statistical correlations than the World Bank’s governance indicators on six out of seven MDGs even after controlling for per capita income levels.

The impact of applying good governance standards in reducing corruption and achieving sustainable development in Yemen

2021 ◽  
Vol 26 ◽  
pp. 769-791
Keyword(s):  
Sustainable Development ◽  
Development Process ◽  
Good Governance ◽  
Arab Countries ◽  
Significant Decline ◽  
The Core ◽  
Efficiency And Effectiveness ◽  
Political Economic ◽  
The Impact

This paper aims to highlight the role of applying good governance standards in reducing corruption and achieving sustainable development in Yemen, since good governance represents the core of the development process of countries and societies. Good governance is based on the principle of transparency, accountability, efficiency and effectiveness in order to raise the capacity and efficiency of the state and make it more capable and effective to achieve sustainable development. Corruption in all its forms is one of the biggest obstacles to sustainable development in Yemen, and a major reason for wasting state resources and limiting foreign investment, and thus the expansion of poverty, the poor, and other effects related to the failure to achieve sustainable development. Yemen is one of the most Arab countries facing major challenges in the field of implementing good governance and combating corruption in order to achieve sustainable development and achieve its goals at all political, economic, social and environment. This paper concluded that Yemen suffers from a lack of implementation and enforcement of good governance standards, as well as a rampant corruption, which has led to an expansion of poverty and a significant decline in development rates. Key words: Good Governance, Corruption, Sustainable development.

scholarly journals Illicit financial flows and foreign direct investment in developing countries

2016 ◽  
Vol 6 (4) ◽  
pp. 442-447
Author(s):  
Emmanuel Innocents Edoun ◽  
Alexandre Essome Dipita ◽  
Dikgang Motsepe
Keyword(s):  
Foreign Direct Investment ◽  
Interest Rates ◽  
Tax Evasion ◽  
Local Governments ◽  
Direct Investment ◽  
Good Governance ◽  
Transfer Pricing ◽  
Developed Countries ◽  
Financial Flows ◽  
Illicit Financial Flows

Africa is facing a number of challenges that are negatively affecting socio-economic development at all levels of governments and local governments are expected to play a leading role for Africa’s development. One of these challenges are illicit financial flows that are perceived by many as a crime against Africa’s transformation. The continent is losing billions of dollars every year because of tax evasion, corruption and inappropriate transfer pricing and maladministration. With tax being one of Africa’s main sources of revenue, current and past researches revealed that, illicit financial flows (IFFs) cripple African Governments tax base as a results of capital outflows and lack of good governance. This situation obviously is a challenge for Africa’s development as governments struggle to finance structuring projects and this in turn compels these governments to seek funds from international organisations at very high interest rates. It is also important to reveal that Foreign Direct Investment (FDI) rapidly grew after the Second World War with the intention to maximize profit on investment in less developed countries and specifically in the African continent. In competing in Africa, most multinationals main objective is to pay less tax, make extensive profits and transfer the proceeds to their country of origin. This subsequently gave rise to illicit financial flows in Africa where the continent is losing billions of dollars. Past studies equally revealed that, Africa’s revenue could increase between 55 and 65%, if appropriate mechanisms of monitoring the flows were in place. This study therefore is based on the premise that, tax evasion, illicit financial flows, corruption and abusive transfers pricing are all factors that affect Africa’s development. Using appropriate method of inquiry, this study wants to demonstrate the presence of FDI’s in Africa as a modus operandi behind tax evasion. It also using the “Appropriability Theory” to explain the rationale for FDI in Africa.

scholarly journals Measuring institutional respect and State capacities in South America. A relational analysis on four dimensions of the Worldwide Governance Indicators (2017-2018)

AWARI ◽  
2020 ◽  
Vol 1 (1) ◽  
Author(s):  
Nicolás Vladimir Chuchco
Keyword(s):  
South America ◽  
Good Governance ◽  
Private Companies ◽  
International Investments ◽  
Four Dimensions ◽  
Developed Economies ◽  
Governance Indicators ◽  
The World Bank ◽  
Relationship Network ◽  
The Relationship

The measurement of “good governance” has become an object of (e) valuation by international actors. In this regard, it has occupied the attention of investors, donors, private companies, development agencies, academics, journalists, governments, and credit organizations in the last 30 years, accompanied by a greater flow of international investments to under developed economies. Among these indicators, the Worldwide Governance Indicators (WGI) produced by the World Bank stand out. Although these numbers are not used directly by the Bank to condition resources, they are used by organizations such as the Millennium Challenge Corporation (MCC) to decide in which countries allocate financial aid based on the results of some of the dimensions of these indicators. For this reason, this work seeks to investigate the relationships networks that exist between the indicators and the organizations that participate in providing data, asking about what type of organizations produce inputs of certain dimensions, what relationships they have with each other and with others, in terms of participation, and where the central houses that produce these inputs are located geographically. For this, we have analyzed and characterized the relationship network of production about four dimensions of the WGI indicators, according to the organizations that provided data for South America during the period 2017-2018. The main results obtained indicate that a small number of international organizations in the Northern hemisphere have greater participation in the supply of inputs, highlighting private companies or organizations linked to them.

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