Entrepreneurial Activity and Institutions. The Impact of Rule of Law and Control of Corruption.

In 2014, the most prominent anti-corruption investigation in Latin America called Lava Jato, exposed a Brazilian corruption scheme with reverberations in 61 countries, resulting in legal judgments for nearly 5 billion USD in reimbursements thus far. This article applies the synthetic control method on data from 135 countries (2002–2018) to test the hypothesis that Lava Jato impacts the Worldwide Governance Indicators in Brazil. The findings reveal that Lava Jato negatively affects control of corruption, the rule of law, and regulatory quality. There are signs of possible improvement in at least the corruption and the rule of law measures. This paper brings value to the criminological body of literature, notably lacking in the Global South.

Download Full-text

Investment marketing strategy for diversified enterprises

Economic Analysis ◽

10.35774/econa2019.04.146 ◽

2019 ◽

pp. 146-152

Author(s):

Oleksandr Kalinin

Keyword(s):

Business Models ◽

Growth Strategy ◽

Entrepreneurial Activity ◽

Global Trends ◽

Scientific Methods ◽

Goods And Services ◽

Analysis And Synthesis ◽

General Scientific ◽

And Control ◽

The Impact

Introduction The amount of capital that individual, corporate and institutional investors are willing to invest in certain assets is increasing every year. This leads to a revitalization of entrepreneurial activity and growth of the economy as a whole. It is also very active in creating certain disparities in the distribution of investment flows at the cross-sectoral level. There are industries that perceive investors more positively, and other industries perceive less positively. Among these industries, and even more types of businesses, are diversified companies or conglomerates that are perceived by investors as a chaotic set of assets that management is unable to manage effectively. Purpose The purpose of this article is to study the global trends in managing strategies for competitive advantage in the capital market by diversified enterprises. The purpose of the article is to study the theoretical aspects of management and planning the choice of growth strategy for diversified enterprises; to analyze the systems of strategic management of investment marketing for diversified companies; develop solutions to improve the marketing management system for various companies in the context of attracting investment. Method (methodology) In the course of the research, the following general scientific methods are used: analysis and synthesis, grouping and systematization of revealing the essence of investment marketing, its structure, principles of its formation, development of the concept of diagnostics of efficiency of investor attraction systems and control of this process; induction and deduction - to summarize the theoretical aspects of the peculiarities of the formation of the structure of investment marketing; statistical and economic - to evaluate the investment attractiveness of a diversified enterprise. Results It was suggested to the conglomerate companies to distance their company brand from its subsidiaries as much as possible so that there was no problem in identifying the main focus of the conglomerate's business activity. For the analysis of companies that should be considered for placement of their own and borrowed funds by conglomerates and to demonstrate this investment policy, investors can distinguish the following areas of analysis of potential companies: whether the leadership of a company in a particular segment can lead to the possibility of controlling the pricing of goods or / or company services; whether it is possible to create a competitive business through the attraction of additional investment opportunities. Thus, solving the problem of finances, and more precisely the ability to run a business for a certain time, can bring to positive indicators of profit and return on invested capital; the impact on the aggregate industry reserve of profits, which makes it possible to receive more profit from the industry of related fields from consumers than competitors can, thus ensuring long-term competitiveness. Also regarding the display of client base of goods and services that we can distinguish for investors is: demonstrating the presence of privileged clients; the existence of diversified profit strategies; availability of special copy - protected goods and business models; the presence of unique and difficult to copy distribution and communication channels; the presence of barriers to competitors (patents. Brand, licensing, large investments in market entry, etc.).

Download Full-text

Corruption, governance and economic growth in Sub-Saharan Africa: a need for the prioritisation of reform policies

Social Responsibility Journal ◽

10.1108/srj-06-2012-0067 ◽

2014 ◽

Vol 10 (2) ◽

pp. 316-330 ◽

Cited By ~ 7

Author(s):

Kamil Omoteso ◽

Hakeem Ishola Mobolaji

Keyword(s):

Economic Growth ◽

Rule Of Law ◽

Political Stability ◽

Content Type ◽

Governance Indicators ◽

Data Framework ◽

Regulatory Quality ◽

The Impact ◽

Control Of Corruption ◽

Ssa Countries

Purpose – This study aims to investigate the impact of governance indices (especially control of corruption) on economic growth in some selected Sub-Sahara African (SSA) countries with a view to making policy recommendations. Specifically, the study attempts to assess whether either governance reforms (especially those relating to control of corruption) or simultaneous policy reforms could have any impact on the growth of the sample SSA countries. Design/methodology/approach – The governance indicators used in this study were drawn from the PRS Group and the Worldwide Governance Indicators for 2002-2009, while the real gross domestic product (GDP) per capita growth data were obtained from the World Bank database. The study covered 47 SSA countries, and it adopted the panel data framework, the fixed effect, the random effect and the maximum likelihood estimation techniques for the analyses. Findings – The study found that political stability and regulatory quality indicators have growth-enhancing features, as they impact on economic growth in the region significantly, while government effectiveness impacts negatively on economic growth in the region. Despite, several anti-corruption policies in the region, the impact of corruption control on economic growth is not very obvious. The study also found that simultaneous implementation of the voice and accountability and the rule of law indicators has more positive impact on economic growth in the region. Both policies are complementary, and, hence, can be pursued simultaneously. Research limitations/implications – The results suggest that reform efforts that aim at enhancing accountability, regulatory quality, political stability and the rule of law have more growth-enhancing features and, thus, should be given more priority over reform efforts that singly address the issue of control of corruption due to the endemic, systemic and ubiquitous nature of corruption in the region. Practical implications – The study suggests that reform efforts that aim at enhancing accountability, regulatory quality and rule of law have more growth-enhancing features and, therefore, should be given more priority. Originality/value – Many previous studies attempted to examine the impact of corruption on economies, but this paper tries to assess the effect of corruption control and other governance indices on economic growth in the most vulnerable region of the world, the SSA. Besides, the study adopts the panel data framework which makes it possible to allow for differences in the form of unobservable individual country effects.

Download Full-text

Institutional Analysis of Shadow Economy (Study on ASEAN 7 Developing Countries)

Ekuilibrium Jurnal Ilmiah Bidang Ilmu Ekonomi ◽

10.24269/ekuilibrium.v15i1.2373 ◽

2020 ◽

Vol 15 (1) ◽

pp. 55

Author(s):

Ana Rahmawati Wibowo ◽

Wiwin Indrayanti

Keyword(s):

Developing Countries ◽

Rule Of Law ◽

Shadow Economy ◽

Secondary Data ◽

Political Stability ◽

Government Effectiveness ◽

Regulatory Quality ◽

Negative Effect ◽

And Control ◽

Control Of Corruption

This study aims to analyze the institutional variables of governance in ASEAN 7 developing countries. The independent variables consist of Voice and Accountability, Political Stability and Absence of Violence, Government Effectiveness, Regulatory Quality, Rule of Law and Control of Corruption, while shadow economy is dependent variable. The data used in this study are quantitative data and secondary data by using program Stata 14, the analysis technique used is multiple linear regression panel data. The results show that Voice and accountability has a negative and significant effect on the shadow economy as well as Political stability, Government effectiveness and Control of corruption on the other side. Regulatory quality has a positive and significant effect on the amount of shadow economy. Meanwhile, Rule of law no significant effect on the shadow economy. Underlying the results, the study arranges some policy to reduce negative effect of shadow economy.

Download Full-text

PENGARUH ELEMEN GOOD GOVERNANCE TERHADAP TINGKAT KORUPSI DI ASIA TENGGARA

Jurnal Akuntansi dan Keuangan ◽

10.23960/jak.v25i1.242 ◽

2020 ◽

Vol 25 (1) ◽

pp. 96-114

Author(s):

Dinda Ayu Dizrisa ◽

Sudrajat Sudrajat ◽

Niken Kusumawardani

Keyword(s):

Rule Of Law ◽

Good Governance ◽

Linear Regression Analysis ◽

Political Stability ◽

Multiple Linear Regression Analysis ◽

Economic Problem ◽

Regulatory Quality ◽

The Government ◽

And Control ◽

Control Of Corruption

Corruption is a complex social, political and economic problem and occurs in every country with different levels. Corruption will complicate democracy and governance of a country. To overcome the problem of corruption, the government must implement good governance. This study aims to provide empirical evidence regarding the effect of elements of good governance on the level of corruption in Southeast Asia. Good governance variables are presented by six variables: voice and accountability, political stability and absence of violence / terrorism, government effectiveness, regulatory quality, rule of law and control of corruption. Meanwhile, the level of corruption is measured using the Corruption Perceptions Index (CPI). The research sample was selected using the purposive sampling method and produced a sample of 8 countries and the observation period was carried out in 2009-2018 or as many as 10 years, so the number of samples in this study were 80 samples. Corruption level data used in this study uses the Corruption Perceptions Index (Transparency International), while the good governance data used in this study uses the Worldwide Governance Indicators (World Bank). The research methodology used in this study is multiple linear regression analysis with the IBM SPSS Statistics 24 program. The results showed that the variable voice and accountability, political stability and absence of violence / terrorism, and rule of law had no effect on the level of corruption, whereas the government variable effectiveness, regulatory quality, and control of corruption affect the level of corruption.

Download Full-text

Increasing Supply of Tradable Goods in the Common Market for Eastern and Southern Africa (COMESA)

Review of Economics and Development Studies ◽

10.26710/reads.v1i2.117 ◽

2015 ◽

Vol 1 (2) ◽

pp. 73-117

Author(s):

Macleans Mzumara

Keyword(s):

Foreign Direct Investment ◽

Rule Of Law ◽

Direct Investment ◽

Institutional Quality ◽

Political Stability ◽

Government Effectiveness ◽

Regulatory Quality ◽

Tradable Goods ◽

And Control ◽

Control Of Corruption

The author investigated the nature of institutional quality in the Common Market for Eastern and Southern Africa (COMESA) on the basis of voice and accountability political stability, government effectiveness, regulatory quality, rule of law and control of corruption. The author further investigated the existence of a link between institutional quality and factors of production. The results show that capital, entrepreneurship and foreign direct investment are the major determinants of production of tradable goods in COMESA. In exception of Mauritius and Namibia (currently no longer a member) the rest of COMESA member states have very poor institutional quality. This affects their ability to attract foreign direct investment hence production of tradable goods. Voice and accountability, government effectiveness, rule of law and political stability play a major role in increasing production of tradable goods in COMESA. Foreign direct investment is affected by voice and accountability, rule of law and political stability than any other factors. Availability of raw material is affected by government effectiveness, regulatory quality, political stability, voice and accountability and control of corruption. Capital is very sensitive to issues of voice and accountability and control of corruption and regulatory quality.

Download Full-text

A Comparative Study on Contribution of Governance on Economic Growth Countries in the East African Community

International Journal of Regional Development ◽

10.5296/ijrd.v3i2.9848 ◽

2016 ◽

Vol 3 (2) ◽

pp. 89 ◽

Cited By ~ 1

Author(s):

Joseph Abuga Orayo ◽

George Nyarigoti Mose

Keyword(s):

Economic Growth ◽

Growth Rate ◽

Rule Of Law ◽

Good Governance ◽

Political Stability ◽

Economic Growth Rate ◽

East African Community ◽

Governance Indicators ◽

And Control ◽

Control Of Corruption

<p>This study sought to explore the relationship between good governance and economic growth among the East Africa Community (EAC) countries. The study utilized panel data to analyse six major World Bank governance indicators namely: Voice and Accountability, Political Stability and Absence of Violence, Government Effectiveness, Regulatory Quality, Rule of Law and Control of Corruption effect on economic growth in the respective country and region for the period 1999-2013. The Random effect model (REM) and Ordinary Least Square (OLS) estimation techniques were employed for comparative analysis. The study showed that among the governance indicators, political stability, quality regulatory and control of corruption were significant. The first two indices were negatively related to economic growth rate while the latter was positively related to economic growth rate. From the OLS models, voice and accountability had a significant effect on economic growth rate in Kenya and Uganda. The quality of regulation had significant effect in Kenya and Tanzania while rule of law was found to be significant only in Kenya. The study suggests that in order to advance the economic performance in EAC countries, the EAC states need to invest in more effective regulation on both public and private institutions to enhance social, political and sustainable economic interactions. Similarly, the government needs to encourage national cohesion and peaceful co-existence that would foster political stability and reduce violence. By investing in good governance through establishment of key institutions of governance are likely to spur economic growth.</p>

Download Full-text

Assessing the impact of institutions on economic growth in the BRICS countries

BRICS Journal of Economics ◽

10.38050/2712-7508-2021-4-2 ◽

2021 ◽

Vol 2 (4) ◽

pp. 30-46

Author(s):

Ayushi Tiwari ◽

Tridisha Bharadwaj

Keyword(s):

Economic Growth ◽

Institutional Quality ◽

Political Stability ◽

Physical Capital ◽

Government Effectiveness ◽

Brics Countries ◽

Regulatory Quality ◽

And Control ◽

The Impact ◽

Control Of Corruption

This study examines the impact of institutional quality on economic performance in the BRICS countries for the period from 2002 to 2019. The panel data study was estimated using pooled OLS and a fixed effect model. The study employed six institutional quality indicators (Worldwide Governance Indicators) which included voice and accountability, political stability and absence of violence/terrorism, government effectiveness, regulatory quality, rule of law, and control of corruption. The study also controlled for conventional sources of growth, i.e. human capital, physical capital, government expenditure, and inflation. All of these factors were positive and significant in our study. The findings also reveal that government effectiveness, regulatory quality and control of corruption had a positive and significant impact on economic growth in the BRICS countries, whereas other institutional variables turned out to be insignificant.

Download Full-text

Political institutions and the control of corruption: a cross-country evidence

Journal of Financial Crime ◽

10.1108/jfc-05-2020-0094 ◽

2020 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Siew Pyng Christine Chong ◽

Chwee Ming Tee ◽

Seow Voon Cheng

Keyword(s):

Rule Of Law ◽

Political Institutions ◽

Positive Association ◽

Political Stability ◽

Democratic Institutions ◽

Content Type ◽

Highly Effective ◽

Government Bureaucracy ◽

And Control ◽

Control Of Corruption

Purpose The purpose of this paper is to examine the significant association between political institutions and the control of corruption. Design/methodology/approach This study uses ordinary least squares model to examine the following: quality of political institutions; the association between the strength of democratic institutions and control of corruption; the association between government effectiveness and control of corruption; and the association between legal institutions and control of corruption. Findings The result shows that there is positive association between democratic institutions, government bureaucracy and rule of law with the control of corruption. From the political perspective, stronger democratic institutions are found to be associated with higher ability to control corruption in a country. When viewed from country’s economic and social well-being perspective, highly effective government bureaucracy is positively associated with ability to control corruption. Finally, rule of law is also associated with the control of corruption. Originality/value This study points toward clear priorities for reform as stronger democratic institutions, efficient government bureaucracy and adherence to the rule of law improve the control of corruption. The results show that stronger democratic institutions, highly effective government bureaucracy and rule of law are associated with higher control of corruption. This supports the theory that quality political institutions reduce corruption in the long-run. In addition, this study shows that press freedom, regulatory quality and political stability further enhance the capacity of such institutions to combat corruption. Conversely, crony capitalism systems undermine this positive association.

Download Full-text

The Relation between Public Managers’ Compensation and Governance

Journal of Public Administration and Governance ◽

10.5296/jpag.v8i1.12469 ◽

2018 ◽

Vol 8 (1) ◽

pp. 279 ◽

Cited By ~ 1

Author(s):

Mario Coccia

Keyword(s):

Rule Of Law ◽

Central Government ◽

Public Institutions ◽

Senior Managers ◽

Government Effectiveness ◽

Public Managers ◽

Regulatory Quality ◽

Vast Literature ◽

And Control ◽

Control Of Corruption

A vast literature in the field of public organizations has analyzed several factors of the compensation of government senior managers. However, the institutional factors associated with high levels of compensation of public managers are hardly known. In particular, studies about the possible relation between factors of governance and compensation of public managers are scarce. The statistical evidence here reveals that in the OECD countries, high levels of compensation for central government senior manager (standardized with GDP per capita) seem to be associated with low government effectiveness, low regulatory quality, low freedom, low rule of law and control of corruption (in short, bad governance). These results suggest insights for general reforms of governance aimed to support equitably levels of compensation of public managers and efficiency of public institutions.

Download Full-text