Transfer pricing practices and specific anti-avoidance rules in Asian developing countries

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dahlia Sari ◽  
Sidharta Utama ◽  
Fitriany ◽  
Ning Rahayu
Keyword(s):  
Developing Countries ◽  
Design Methodology ◽  
Transfer Pricing ◽  
Developed Countries ◽  
Income Shifting ◽  
Management Service ◽  
Content Type ◽  
Purchase Management ◽  
Asian Developing Countries

PurposeThe purpose of this paper is to examine the existence of income shifting using the practice of transfer pricing (TP), not only in sales but also in purchase and management service transactions, in Asian developing countries. The paper also investigates the role of the specific anti-avoidance rules (SAAR) in preventing TP practices in various types of transaction.Design/methodology/approachThe research employs panel data from a sample of 200 subsidiaries in ten countries over the period 2010–2014.FindingsDifferent results were obtained from previous research on developed countries, which found that TP practice was proven in sales transactions. This study finds no evidence for TP practices in sales transactions, but that they do take place in purchase, management service fee and management services revenue transactions. The study also finds evidence that SAAR reduces the practice of TP in sales transactions.Originality/valueThe research investigates TP practices, not only those related to sales, but also to purchases, management service fees and management service revenue to related parties. The sample comprises multinational subsidiaries located in Asian developing countries that have rarely been investigated in previous studies. This research examines the effect of SAAR in preventing TP practices in various types of transaction and develops scoring based on an instrument that integrates each SAAR rule/requirement.

The difference in the FDI – private investment relationship between developed and developing countries: does it stem from governance environment?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Van Bon Nguyen
Keyword(s):  
Developing Countries ◽  
Design Methodology ◽  
Good Governance ◽  
Trade Openness ◽  
Private Investment ◽  
Developed Countries ◽  
Tax Revenue ◽  
Content Type ◽  
Governance Environment ◽  
The Difference

PurposeThe paper attempts to empirically examine the difference in the foreign direct investment (FDI) – private investment relationship between developed and developing countries over the period 2000–2013.Design/methodology/approachThe paper uses the two-step GMM Arellano-Bond estimators (both system and difference) for a group of 25 developed countries and a group of 72 developing ones. Then, the PMG estimator is employed to check the robustness of estimates.FindingsFirst, there is a clear difference in the FDI – private investment relationship between developed countries and developing ones. Second, governance environment, economic growth and trade openness stimulate private investment. Third, the effect of tax revenue on private investment in developed countries is completely opposite to that in developing ones.Originality/valueThe paper is the first to provide empirical evidence to confirm the dependence of FDI – private investment relationship on governance environment. In fact, contrary to the view (arguments) in Morrissey and Udomkerdmongkol (2012), the paper indicates that FDI crowds out private investment in developed countries (good governance environment), but crowds in developing countries (poor governance environment).

Complex network analysis for international talent mobility based on bibliometrics

2019 ◽  
Vol 11 (3) ◽  
pp. 419-435
Author(s):  
Yinqiu Wang ◽  
Hui Luo ◽  
Yunyan` Shi
Keyword(s):  
Developing Countries ◽  
Linear Regression ◽  
Multiple Linear Regression ◽  
Complex Network ◽  
Design Methodology ◽  
Developed Countries ◽  
Bibliometric Data ◽  
Content Type ◽  
Negative Factor ◽  
The World

Purpose This paper aims to explore international talent mobility and identify its negative/positive factors. Design/methodology/approach Bibliometric data from Scopus are explicated to model the mobility network and providing a more comprehensive posture. In addition, by using indicators of complex network, significant features of international talent mobility are described quantitatively. After that, by introducing a kind of improved gravity model with multiple linear regression, the authors identify factors to explain international talent mobility flows. Findings With the analysis of international talent mobility in complex network, the overall network is not balanced. A small part of developed countries and developing countries with good emergency attract and drain a lot of talents and talents usually moving between these countries, the amount of talents leaving or entering into other countries is very limited. Furthermore, according to multiple linear regression, it is found that the share of migrants in population is the major negative factor for international talent mobility, and the factors of destination countries is more significant than original countries. Originality/value The result of this paper may support further research studies and political suggestions for cultivating, attracting and retaining scientific and technological talents in the world.

scholarly journals Steps towards a CSR binding paradigm

2019 ◽  
Vol 15 (2) ◽  
pp. 119-124
Author(s):  
Léna Masson
Keyword(s):  
Developing Countries ◽  
Human Rights ◽  
Multinational Corporations ◽  
Design Methodology ◽  
Developed Countries ◽  
Labor Standards ◽  
Global Regulation ◽  
Content Type ◽  
Voluntary Regulation ◽  
Private Power

Purpose The purpose of this paper is to pursue the dialogue on the global firms’ regulation vis-à-vis human rights and labor standards in developing countries. Design/methodology/approach Locke’s book The Promise and Limits of Private Power is analyzed and discussed with respect to more recent global regulation literature and mechanisms. Findings Locke advocates that private voluntary regulation has to be combined with local laws in developing countries to fully enforce labor standards and workers’ rights. In light of recent changes, the interesting model proposed by Locke shows some weaknesses. Originality/value To enforce labor standards and workers’ rights in developing countries, the author argue that governments in developed countries need to be seen as major players in multinational corporations (MNCs) regulations. But above all, the economic model needs to be questioned.

The role of government in the tourism sector in developing countries: a perspective article

2020 ◽  
Vol 75 (1) ◽  
pp. 203-206
Author(s):  
Carson Lewis Jenkins
Keyword(s):  
Developing Countries ◽  
Regional Development ◽  
Foreign Exchange ◽  
Design Methodology ◽  
Role Of Government ◽  
Content Type ◽  
The Past ◽  
Tourism Sector ◽  
Employment Generation

Purpose The purpose of this paper is to provide a perspective on the role of government in the tourism sector in developing countries in the past 75 years. Design/methodology/approach A perspective article. Findings The main reasons that governments support development of tourism will remain: including foreign exchange earnings, contribution to government revenues, employment generation and regional development stimulus. Originality/value This paper provides a perspective from a senior academic who specialises in the field of tourism relating to the developing world.

Brazilian dry-beans and food security in developing countries

2014 ◽  
Vol 4 (2) ◽  
pp. 115-132 ◽  
Author(s):  
Eduardo Botti Abbade ◽  
Homero Dewes
Keyword(s):  
Developing Countries ◽  
Food Security ◽  
Emerging Economies ◽  
Design Methodology ◽  
Social Implications ◽  
Dry Beans ◽  
Dry Bean ◽  
Content Type ◽  
Future Studies

Purpose – Considering Brazil as a food producer with global prominence and the urgency for food security in some developing countries, the purpose of this paper is to investigate the exports of Brazilian dry-beans against food security of its buyers. Design/methodology/approach – The investigation was conducted through analysis of data from official databases as FAO and WHO. This study elaborated dispersion maps crossing characteristics of the international buyers of Brazilian dry-beans considering their food security situations. Findings – Brazil has a high domestic consumption of dry-beans, and exports are seen as a secondary activity. However, its production is superior to their domestic needs. Exports of Brazilian dry-beans are generally volatile and unstable. Evidence suggests that countries with serious problems of child and population’s malnutrition (e.g. India and Angola) buy more Brazilian dry-beans. However, their domestic consumptions are still low. Research limitations/implications – This research based only on exports of dry-bean is faced as a significant limitation. Future studies adding other staple foods commonly consumed by economically disadvantaged populations may contribute to the investigation of the role of Brazil against the need for food security in developing countries and emerging economies. Social implications – Social implications are focussed in the pursuit of malnutrition decrease in the populations of developing countries through the consumption of nutritionally rich and economically viable food, such as dry-beans. Originality/value – The original value is based on the analysis of Brazilian dry-beans production and trades and its potential to contribute to nutritional safety and food security in developing countries.

Liveability, sense of place and behavioural intentions

2018 ◽  
Vol 11 (1) ◽  
pp. 97-114 ◽  
Author(s):  
Laurent Tournois
Keyword(s):  
Developing Countries ◽  
United Arab Emirates ◽  
Sense Of Place ◽  
Urban Areas ◽  
Developed Countries ◽  
Future Research ◽  
Content Type ◽  
Behavioural Intentions ◽  
The Relationship

Purpose Cities from developing countries strive to compete on a global scale and hence try to attract and retain their residents in offering higher liveability. The purpose of this study is to examine the extent to which liveability influences resident’s sense of place and determines residents’ behavioural intentions. Design/methodology/approach A survey was carried out to test the hypotheses using a sample of 362 residents from the city of Dubai (United Arab Emirates). Structural equation modelling and the method suggested by Hayes and Preacher (2010) for mediation analysis were used. Findings Findings show that residents’ preferences for different types of liveability attributes (included in seven dimensions) influence their sense of place that in return shapes their behavioural intentions towards their place of residence. Results also reveal the importance of non-economic attributes of the urban environment. Moreover, residents’ sense of place mediates the relationship between liveability and residents’ behavioural intentions. Research limitations/implications Future research could more deeply investigate the social functioning of a place and particularly the role of place identity, as it is recognized to affect residents’ attitudes and behaviours. In addition, further developments may contribute to the ongoing debate on the relationship between liveability and growth. Practical implications From a public policy standpoint, this study suggests that local authorities need to identify a distinct set of economic and non-economic characteristics that will encourage residents to stay longer in the place they live. As such, enhancing liveability represents a critical strategic initiative for cities from developing countries to make them a great place to live. Originality/value Compared to developed countries’ cities, few attempts have been made to investigate the attitudes of residents towards a place and the role of liveability in the context of emerging countries fast-growing urban areas. In addition, findings revealed the importance of place-based meanings, i.e. sense of place, which played a pivotal role in the development of place-protective behaviours.

Remittance and poverty in developing countries

2018 ◽  
Vol 17 (3) ◽  
pp. 305-325 ◽  
Author(s):  
Tajul Ariffin Masron ◽  
Yogeeswari Subramaniam
Keyword(s):  
Developing Countries ◽  
Developed Countries ◽  
Dynamic Panel ◽  
Content Type ◽  
The Past ◽  
Productive Activities ◽  
The Government ◽  
Dynamic Panel Estimator ◽  
Household Incomes

Purpose Remittances to developing countries, especially less developed countries, have been growing tremendously as compared to the past few decades. Nevertheless, whether they can be a critical source of poverty alleviation in developing countries is yet to be conclusively studied. Therefore, this study investigates the implications of remittances on poverty in 44 developing countries from 2006 to 2014. Design/methodology/approach A dynamic panel estimator is applied to examine remittances – poverty nexus. Findings The results provide strong evidence that the level of poverty tends to be lower in countries with a higher flow of remittances. This may be because of the increase in the household incomes of the poor by virtue of the remittance, and/or the money remitted might be channeled to more productive activities, indicating the powerful role of remittances to maintain a sustainable reduction in poverty. Originality/value Although there is no direct policy applicable to remittances, several areas might be good to be assisted and improved by the government.

Bribery – an obstacle to international development

2019 ◽  
Vol 26 (3) ◽  
pp. 746-752 ◽  
Author(s):  
Fabian Maximilian Johannes Teichmann
Keyword(s):  
Developing Countries ◽  
International Development ◽  
Multinational Corporations ◽  
Design Methodology ◽  
Potential Role ◽  
Qualitative Content Analysis ◽  
Incentive Systems ◽  
Public Officials ◽  
Content Type

Purpose Bribery continues to significantly inhibit international development. Despite massive efforts to fight corruption, public officials in many developing countries continue to demand bribes. However, multinational corporations face severe sanctions for engaging in bribery. Hence, this paper aims to investigate whether anti-bribery incentives could help to eliminate corruption. Design/methodology/approach This study takes an innovative approach toward eliminating corruption: it investigates the potential role of anti-bribery incentives through qualitative content analysis of 35 semi-standardized interviews with anti-bribery experts from Austria, Germany, Liechtenstein and Switzerland. Findings Concrete recommendations for adjustments to incentive systems are provided in an effort to help multinational corporations fight bribery, and thereby, eliminate obstacles to international development. Originality/value Although the empirical findings are based on conditions Austria, Germany, Liechtenstein and Switzerland, the results have potential global application.

Three years after their first social justice index: how well did LDCs perform?

2017 ◽  
Vol 16 (1) ◽  
pp. 107-128 ◽  
Author(s):  
Heba E. Helmy
Keyword(s):  
Qualitative Research ◽  
Developing Countries ◽  
Social Justice ◽  
Design Methodology ◽  
Developed Countries ◽  
Content Type ◽  
The Social ◽  
Quantitative Results ◽  
Cross Country ◽  
Better Than

Purpose The purpose of this paper is to utilize a newly constructed index for social justice, with its two versions SJI-1 and SJI-2, to measure new values for the indexes in 35 countries in two periods, 2005-2010 and 2011-2015, in an attempt to assess quantitatively how less developed countries developed through time in terms of social justice. Design/methodology/approach The paper obtained data for 35 developing countries in the six subindicators used to quantify the six dimensions of the social justice index. The values of the subindicators were then normalized and aggregated to form SJI-1 and SJI-2, each of which assigns different weights for its subindicators, for the 35 countries in the two periods 2005-2010 and 2011-2015. Findings Results of the new values of the index in its two versions were close in showing how 31 countries (according to SJI-1) and 29 countries (according to SJI-2) managed to improve their levels of social justice, while the indexes of only three countries (according to SJI-1) and six countries (according to SJI-2) worsened. Nevertheless, the index depicted that some countries performed better than others by improving their ranks at the expense of others. Comparison of the study’s quantitative results with qualitative research seems to provide some support for SJI-2 in echoing social justice compared to SJI-1. Originality/value The study is a vital tool for policymakers for appraising the levels of social justice in their respective countries, both in absolute terms by highlighting the scores of their countries with respect to social justice, and in relative terms by clarifying where their countries stand through cross-country comparisons, in addition to identifying dimensions of social justice which are in need of intervention for further enhancement.

scholarly journals Measuring financial inclusion: a composite FI index for the developing countries

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thi Truc Huong Nguyen
Keyword(s):  
Developing Countries ◽  
Design Methodology ◽  
Principal Component ◽  
Financial Inclusion ◽  
Analysis Method ◽  
Content Type ◽  
Secondary Sources ◽  
Sustainable Economic Growth ◽  
Practical Implications

PurposeThe purpose of this paper is to focus on measuring financial inclusion (FI) level for the developing countries.Design/methodology/approachBy using a two-stage principal component analysis method, we construct a composite FI index to measure the degree of FI. Data are collected through secondary sources including World Bank and IMF reports for the period 2012–2018.FindingsWe have built an overall FI index which is considered as a comprehensive measure of FI, a useful tool for policymaking and policy evaluation. Comparison with other studies shows that our FI index corroborates with them.Practical implicationsBuilding a good FI measurement method is important for developing countries. It helps to assess and compare the level of FI of each country and between countries together, made easily and accurately.Originality/valueThis study emphasizes the important role of FI in the economy. From there, an FI solution is integrated into the construction and calculation of its impact on other factors. This will help policymakers to take effective measures to increase FI levels to achieve sustainable economic growth.

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