scholarly journals Governance and civil and political rights as FDI determinants in transition countries

2021 ◽  
Vol 39 (1) ◽  
pp. 59-86
Author(s):  
Jelena Zvezdanović Lobanova ◽  
Mikhail Lobanov ◽  
Milan Zvezdanović
Keyword(s):  
Negative Impact ◽  
Civil Liberties ◽  
Institutional Quality ◽  
Transition Countries ◽  
Marginal Effect ◽  
Political Rights ◽  
Foreign Investors ◽  
Fdi Inflows ◽  
Fdi Determinants ◽  
Control Of Corruption

This paper aimed to investigate the FDI determinants in 27 transition countries within the 2002 – 2018 period by employing system GMM analysis. One of the results of our research is that an uncertain political situation and civil liberties violations have a significant negative impact on foreign investors’ confidence. Generally, the erosion of democratic institutions acts as a deterrent to FDI inflows. Transition countries which experienced prolonged periods of central planning also recorded lower levels of FDI inflows. The results show that creating conditions for stimulating foreign investors through the improvement of institutional quality embodied in the control of corruption and voice and accountability impacted positively on FDI inflows. The interplays between overall institutional quality, voice and accountability, regulatory quality, government effectiveness and GDP growth are positive and significant. Hence, macroeconomic development has an important impact on the marginal effect of institutional quality. Therefore, we concluded that the influence of governance on FDI inflows is conditional on the transition countries’ macroeconomic performance. Our findings also reveal that of the governance dimensions, control of corruption and voice and accountability have a significant influence on the decision of multinationals to undertake investment.

scholarly journals Interlinkage between Democracy and Sustainable Development

2017 ◽  
Vol 3 (2) ◽  
pp. 159-166
Author(s):  
Shahina Imran ◽  
Farwa Javaid
Keyword(s):  
Sustainable Development ◽  
Negative Impact ◽  
Civil Liberties ◽  
Unit Root Test ◽  
Political Stability ◽  
Least Square ◽  
Political Rights ◽  
Development Indicator ◽  
World Development Indicator ◽  
World Development

Purpose: This research project examines the directional relationship between democracy and sustainable development. Panel studies over 31 cross countries from 1990 to 2016 finds that improvements in sustainable development predict increase in democracy. Democracy has been measured by the subjective indicators such as civil liberties and political rights. The data has been collected from world development indicator and world governmental indicator. Unit root test has been performed to check for stationarity. Two stage least square methods have been used to explain the dependency of each variable. This study explains that tendency for rise in democracy urbanization tends to fall. The propensity for democracy rises with development, a smaller gap between female and male primary and secondary education accomplishment. The results suggest that gross domestic product have negative impact on democracy. It also attempts the effect of political stability and democracy on sustainable development.

The determinants of foreign direct investment inflows in the Central and Eastern European Countries: The importance of institutions

2013 ◽  
Vol 46 (2) ◽  
pp. 287-298 ◽  
Author(s):  
Cem Tintin
Keyword(s):  
Civil Liberties ◽  
Trade Openness ◽  
European Countries ◽  
Eastern European ◽  
Political Rights ◽  
Institutional Variables ◽  
Fdi Inflows ◽  
State Fragility ◽  
Determinant Factors ◽  
Eastern European Countries

This study investigates the determinants of FDI inflows in six Central and Eastern European countries (CEEC) by incorporating the traditional factors and institutional variables over the 1996–2009 period. The study identifies whether and how these determinant factors differ across four investor countries (EU-15, the US, China, and Japan). The results verify the positive and economically significant role of GDP size, trade openness, EU membership, and institutions (measured by economic freedoms, state fragility, political rights, and civil liberties indices) on FDI inflows. The results also reveal the existence of notable differences in the determinant factors across four investor countries.

scholarly journals Do institutions moderate globalization's effect on growth?

2017 ◽  
Vol 14 (1) ◽  
pp. 71-102 ◽  
Author(s):  
ROBERT MULLINGS
Keyword(s):  
Economic Growth ◽  
Civil Liberties ◽  
Institutional Quality ◽  
Economic Globalization ◽  
Interaction Effects ◽  
Empirical Literature ◽  
Political Rights ◽  
Reduction Techniques ◽  
Review Period ◽  
Dimensionality Reduction Techniques

AbstractThe hypothesis that institutional factors affect real economic growth has received support in both the theoretical and empirical literature. Globalization has also, though not unanimously, been found to affect growth outcomes. Bridging the gap between the two strands of the literature, this paper investigates the existence and strength of the interaction between institutional quality and globalization on real economic growth using a panel dataset covering 82 countries and spanning 25 years (1986–2010). Dimensionality reduction techniques are employed to identify key components of ‘institutional quality’: the rule of law, civil liberties and political rights. The empirical results reveal that while ‘institutional quality’ robustly and positively affects growth, the direct effect of economic globalization is not significant and the interaction effects, perhaps as a consequence, are muted over the review period. Direct and interaction effects of institutional quality and economic globalization on growth are, however, observed for the sub-sample of developing countries.

Crime Control Measures, Individual Liberties, and Crime Rates

2016 ◽  
Vol 27 (1) ◽  
pp. 5-18 ◽  
Author(s):  
Jay Albanese
Keyword(s):  
Crime Control ◽  
International Crime ◽  
Civil Liberties ◽  
Crime Rates ◽  
Control Measures ◽  
Political Rights ◽  
Crime Victimization ◽  
Information And Communications Technologies ◽  
Government Interventions ◽  
Available Information

The balance between crime control methods and individual liberties is always problematic, creating tension, because in order to investigate crime, and adjudicate and punish offenders, it is necessary to make reasonable intrusions into the liberty of citizens. This study uses data from 40 countries to examine the crime control measures (police per capita and conviction rates) that reflect government investments in criminal justice apparatus to control crime and criminals, as well as the use of these crime control measures through government intervention in the lives of its citizens (formal citizen contacts with police, prosecution rate, and detention rate), to examine their impact on crime victimization rates (homicide rates and crimes included in the international crime victim survey). The purpose is to examine whether these government interventions have any impact on crime rates across countries, controlling other independent variables that might help to explain any observed relationships among these variables (such as measures of civil liberties, democracy, human development, available information and communications technologies, political rights, corruption perceptions, education, economic freedom, freedom of the press, and prosperity).

Can foreign aid motivate institutional reform? An evaluation of the HIPC Initiative

2017 ◽  
Vol 6 (2) ◽  
pp. 242-258 ◽  
Author(s):  
Minh Tam Schlosky ◽  
Andrew Young
Keyword(s):  
Foreign Aid ◽  
Developing Economies ◽  
Poor Country ◽  
Civil Liberties ◽  
Institutional Reform ◽  
Institutional Quality ◽  
Entrepreneurial Activity ◽  
Content Type ◽  
Hipc Initiative

Purpose A number of political economy concerns are associated with the provision of foreign aid to developing economies. These concerns suggest that foreign aid is likely to have harmful effects on a recipient’s institutional quality, and that attempts to give aid conditional on policy and institutional reforms are unlikely to succeed. Established in 1996, the Heavily Indebted Poor Country (HIPC) Initiative is a comprehensive, structured attempt to provide multilateral foreign aid conditional on reforms in recipient countries. The purpose of this paper is to evaluate its effectiveness at affecting institutional reform in participating countries. Design/methodology/approach The authors document how participating countries fared in terms of the quality of their policies and institutions. The authors employ the Fraser Institute’s Economic Freedom of the World index as a measure of economic institutions, and the Freedom House political rights (PR) and civil liberties indices as measures of PR and protections. Based on these measures, the authors report unconditional statistics (e.g. average changes) and also regressions of changes in the measures on HIPC Initiative aid allocations and other controls. Findings The authors find that most participating countries experienced either meager increases or outright decreases in institutional quality. The regression results provide no evidence that the Initiative affects meaningful reforms. Originality/value The potential for foreign aid to have deleterious effects on the institutional quality of recipient countries has been of increasing concern to students of economic development. Such effects can have important implications for entrepreneurial activity in these countries. The HIPC Initiative is specifically designed to acknowledge and, indeed, overcome these concerns, leading to actual increases in institutional quality of recipient countries. To the authors’ knowledge, this work is the first to assess whether the promise of the HIPC Initiative is being fulfilled.

scholarly journals Governance, Regulations, Trade Openness and FDI Inflows: Empirical Study

2015 ◽  
Vol 7 (12) ◽  
pp. 44 ◽  
Author(s):  
Marwan Ahmad Alshammari ◽  
Mosab Amjad Hammoudeh ◽  
Milos Pavlovic
Keyword(s):  
Quality Control ◽  
Empirical Study ◽  
International Business ◽  
Trade Openness ◽  
Future Directions ◽  
Fdi Inflows ◽  
Governance Effectiveness ◽  
Potential Impact ◽  
Control Of Corruption

Governance effectiveness and regulation quality have been drawing the attention in the international business arena, yet, there has not been a consensus findings regarding its potential impact on the FDI inflows. In this paper, we examine the possible links between the governments’ effectiveness and their regulation quality and the amount of FDI inflows using the existing literature and theories in the economic and international business fields. We find that regulation quality, control of corruption, and trade openness have mixed results, suggesting that further exploration is needed in this field. Results are explained and future directions are suggested based upon the empirical findings.

scholarly journals Effects of Institutional Quality on FDI in Provinces of Vietnam: Empirical Evidence Based on Differenced Panel GMM

2015 ◽  
Vol 22 (03) ◽  
pp. 26-45
Author(s):  
Bon Nguyen Van
Keyword(s):  
World Economy ◽  
Institutional Quality ◽  
Total Sample ◽  
Developed Countries ◽  
Evidence Based ◽  
Fdi Inflows ◽  
Positive Effects ◽  
The Past ◽  
The Impact ◽  
Developing And Developed Countries

Foreign direct investment (FDI) has been strongly affecting the world economy during the past years and is a critical topic for both developing and developed countries. Most countries, particularly developing ones, always attempt to adjust and modify appropriate policies and institutions to attract FDI inflows. In the context of Vietnam, does the institutional quality have any effect on attracting FDI inflows in provinces? To answer clearly and exactly this question, the impact of institutional quality on attracting FDI inflows is empirically investigated in a sample of 43 provinces of Vietnam over the period of 2005–2012 via the estimation technique of difference panel GMM. Estimated results indicate that in the total sample of all provinces the institutional quality has significantly positive effects on the FDI flows. However, in the sub-sample of provinces the impact of the institutional quality on attracting FDI inflows in Northern and Southern regions are statistically significant while that in Central region is not.

scholarly journals International Real Estate Review

2013 ◽  
Vol 16 (3) ◽  
pp. 323-343
Author(s):  
Jian Chen ◽  
◽  
David H. Downs ◽  
Keyword(s):  
Tax Policy ◽  
Negative Impact ◽  
Supply And Demand ◽  
Property Tax ◽  
Reduced Form ◽  
Parameter Estimates ◽  
Marginal Effect ◽  
Tenure Choice ◽  
Real Property ◽  
Wide Range

This paper examines real property tax as a determinant of tenure choice. The analysis is conducted in two stages. First, parameter estimates for a reduced-form homeownership model are obtained through multivariate logistic regression on data drawn from the U.S. Survey of Income and Program Participation (SIPP). Second, data from the Chinese Household Income Project (CHIP) is used to obtain predicted homeownership for China by using the SIPP-based model. Actual and predicted values of homeownership in China are presented, and the marginal effect of property tax is computed. Overall, we find that tenure choice is significantly influenced by property tax, even after controlling for a wide range of supply and demand considerations. Furthermore, and in the case of China, we show that the negative impact of property tax on homeownership may be mitigated by corresponding ownership incentives (e.g., tax policy). To the best of our knowledge, this is the first paper to explicitly analyze property tax in this regard. Implications based on the empirical analysis are applicable to the evolution of property tax policy in China.

scholarly journals DETERMINANTS OF FOREIGN DIRECT INVESTMENT IN THE VISEGRAD GROUP COUNTRIES AFTER THE EU ENLARGEMENT

2018 ◽  
Vol 24 (5) ◽  
pp. 1955-1978 ◽  
Author(s):  
Weihua Su ◽  
Dongcai Zhang ◽  
Chonghui Zhang ◽  
Josef Abrhám ◽  
Mihaela Simionescu ◽  
...  
Keyword(s):  
Foreign Direct Investment ◽  
Czech Republic ◽  
Direct Investment ◽  
Labour Force ◽  
Eu Enlargement ◽  
The European Union ◽  
Macroeconomic Factors ◽  
Foreign Investors ◽  
Fdi Inflows ◽  
Visegrad Group

Considering the role of foreign direct investment (FDI) inflows in the sustainable development of a country, the main aim of this paper is to identify some macroeconomic factors that positively or negatively influence FDI in Visegrad group countries after the European Union (EU) enlargement in 2004. We employed two types of approaches in our analysis: i) time series and ii) panel data approach. According to the generalized ridge regressions estimated in Bayesian framework, the perceived corruption was a factor that influenced FDI in all the countries. In Poland, Czech Republic and Slovakia corruption came through as a serious obstacle for FDIs since 2005, but this was not the case for Hungary. Even if Hungary is perceived as a country with high influence, foreign investors seem no to care about this fact and are more interested in the quality of human resources and the possibility to increase exports. Our panel approach based on a panel ARDL model identified a significant relationship between FDI, corruption index and labour force with advanced education however this causality was only detected in the long run. According to the Granger causality in panel, the attraction of FDI inflows succeeded in generating changes in total tax rate, but the issues related to corruption were not reduced at an acceptable level for foreign investors in Poland, Slovakia, and the Czech Republic.

FDI determinants in an idiosyncratic country. A reappraisal over the Russian regions during transition years

2012 ◽  
Vol 45 (1-2) ◽  
pp. 1-10 ◽  
Author(s):  
Concetta Castiglione ◽  
Yulia Gorbunova ◽  
Davide Infante ◽  
Janna Smirnova
Keyword(s):  
Panel Data ◽  
Institutional Environment ◽  
Institutional Context ◽  
Russian Regions ◽  
Cross Sectional ◽  
Foreign Investors ◽  
Investment Pattern ◽  
Transition Experience ◽  
The Impact ◽  
Fdi Determinants

We investigate the factors attracting FDI into highly diversified Russian regions during the phase of transition, and verify the impact of transition experience on the current FDI inflow. Using cross-sectional and panel data, we demonstrate that the highly inhomogeneous investment pattern is explained, in addition to classical demand factors, by specific economic and socio-institutional regional characteristics. Russia appears as an idiosyncratic country where foreign investors seek a stable social and institutional context. Using recent FDI data we show that transition experiences influence current FDI inflow, particularly when the strength of the institutional environment and availability of infrastructures are taken into account.

Sign in / Sign up

Export Citation Format

Share Document