State Capture in Ben Ali’s Tunisia

2019 ◽  
pp. 173-204
Author(s):  
Hassen Arouri ◽  
Leila Baghdadi ◽  
Bob Rijkers
Keyword(s):  
Foreign Direct Investment ◽  
Market Share ◽  
Tax Evasion ◽  
Direct Investment ◽  
State Capture ◽  
Privatized Firms

This chapter assesses state capture by former Tunisian president Ben Ali’s family. It documents evidence consistent with abuse of investment regulation and privatization as well as tax evasion by politically connected firms. Market share and profit premia on being Ben Ali owned are especially large and significant among firms at the top end of the market share and profits distributions in sectors subject to authorization and foreign direct investment (FDI) restrictions, where the potential for regulatory abuse is greatest. Firms privatized into the Ben Ali family were among the largest privatized firms, and exhibited supranormal profits growth post privatization. In addition, Ben Ali-owned firms were more likely to evade tariffs and other taxes.

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.

Foreign Direct Investment by Korean Firms: Profile, Theory, and Implementation

2002 ◽  
Vol 3 (1) ◽  
pp. 47-68
Author(s):  
Sang Hoon Nam ◽  
Tim Craig
Keyword(s):  
Foreign Direct Investment ◽  
South Korea ◽  
Market Share ◽  
Direct Investment ◽  
Large Firms ◽  
Implementation Challenges ◽  
Cheap Labor ◽  
Current State ◽  
Develop Technology

This research investigates the current state of foreign direct investment by firms from South Korea. Korean FDI is found to be increasingly diverse in location and purpose; small and medium sized firms are investing primarily in Asia in search of cheap labor, while large firms are investing in major markets worldwide to secure market share and to acquire and develop technology. The applicability of Dunning’s eclectic theory to Korean FDI is discussed, and theoretical refinements concerning ownership advantages are suggested. Implementation challenges involve HRM, and vary according to whether the labor an investment requires is commodity-like or skilled.

scholarly journals The Dynamics of Foreign Direct Investment and Privatization: An Empirical Analysis

2009 ◽  
Vol 13 (2) ◽  
pp. 81-92
Author(s):  
Narjess Boubakri ◽  
Jean-Claude Cosset ◽  
Nassima Debab ◽  
Pascale Valéry
Keyword(s):  
Foreign Direct Investment ◽  
Private Sector ◽  
Empirical Analysis ◽  
Direct Investment ◽  
Capital Inflows ◽  
Foreign Investors ◽  
Managerial Skills ◽  
Private Sector Participation ◽  
Privatized Firms ◽  
Good Environment

Abstract This article examines the link between foreign direct investment (FDI) and privatization of state-owned enterprises. We hypothesize that privatization has an effect on FDI as the process of fostering private sector participation is often accompanied by liberalization measures, and by allocating the shares of newly privatized firms to foreign investors. Similarly, we expect FDI to foster privatization efforts as capital inflows, technology and managerial skills that accompany FDI make the environment more prone to competition, and provide governments with a good environment to privatize inefficient firms. Our results provide support for our conjectures.

scholarly journals THE IMPACT OF FOREIGN DIRECT INVESTMENT ON EMPLOYMENT IN TOURISM IN BOSNIA AND HERZEGOVINA

2019 ◽  
Vol 17 (31) ◽  
Author(s):  
Orok Bassey Ekpenyong ◽  
Patrick Nwaeze Nnamocha
Keyword(s):  
Foreign Direct Investment ◽  
Market Share ◽  
Bosnia And Herzegovina ◽  
Direct Investment ◽  
Positive Impact ◽  
Arab Countries ◽  
Economic Effects ◽  
Asia Pacific ◽  
Food And Beverage ◽  
The Impact

The global tourism market is accompanied by the constant changes in the market share of individual countries, the preferences of tourists and ways to satisfy their needs. In 2017, Europe, for example, dominated the tourism market with 51% of market share. However, the increase in Asia-Pacific participation compared to 2016 is as high as 24%, which indicates that the share of transnational companies in the region is increasing, not only in revenues, but also in tourism investments. Part of the investment is also directed to Bosnia and Herzegovina, which emphasizes inflows from Arab countries. Regardless of the type, investments in tourism are of particular importance to developing countries, because in addition to economic effects, they contribute to technology transfer, management experience and they also strengthen the cooperation between the state and the investor. The subject of this paper is foreign direct investment (FDI) in tourism in Bosnia and Herzegovina. The aim of this paper is to examine the impact of foreign direct investment on employment in the tourism sector. Using the correlation regression analysis, the impact of foreign direct investments on the number of jobs in the accommodation and food and beverage industries was examined. The paper shows that there is a weak positive impact of FDI on the increase in the number of employees in the accommodation and food and beverage industries.

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