scholarly journals Institutional Quality and Illicit Capital Outflow: A Comparative Analysis of the Eastern European Countries

2017 ◽  
Vol 3 (1) ◽  
pp. 66
Author(s):  
Luca Andriani ◽  
Anna Zajaczkowska
Keyword(s):  
Multinational Corporations ◽  
Global Economy ◽  
Institutional Quality ◽  
European Countries ◽  
Eastern European ◽  
Capital Outflow ◽  
Capital Outflows ◽  
Eastern European Countries ◽  
Strategic Allocation

It is estimated that $1 trillion flows out of the developing and emerging economies illegally on a yearly basis. This affects the ability of governments to raise the tax revenue and deprive the citizens of crucial services. Multinational Corporations (MNCs), as one of the big player in the global economy, are suspected to play a role in those capital outflows. For the multinational, the outflows enable strategic allocation pf taxes as a mean to enhance profits. This study tests whether institutional quality and tax level are significant predictors of the illicit capital outflow. The analysis uses panel data regressions on a group of Eastern European countries for the years 2004-2013. Empirical evidence suggests that illicit capital outflow reduces with institutional quality and increases with the tax level. We speculate on the importance of cross-country coordination actions to improve the quality of the institutions not only domestically but also at the supranational level.

scholarly journals Institutional quality as a determinant of FDI inflow: the case of Central and Eastern European countries

2019 ◽  
pp. 103-122
Author(s):  
Tomasz Dorożyński ◽  
Bogusława Dobrowolska ◽  
Anetta Kuna-Marszałek
Keyword(s):  
Central And Eastern Europe ◽  
Institutional Quality ◽  
European Countries ◽  
Eastern European ◽  
Synthetic Index ◽  
Last Stage ◽  
Eastern European Countries ◽  
Institutional Efficiency ◽  
The Relationship

In the article, we focus on the institutional aspects and their role in attracting foreign direct investment (FDI). Hence, the objective of the paper is to assess institutional quality in 17 countries of Central and Eastern Europe and to examine the relationship between the quality of institutions measured with the synthetic index of institutional quality and FDI inflow.This study is structured as follows. First, it explores the existing literature on factors of investment attractiveness, paying special attention to the importance of institutional efficiency. Then, we discuss FDI inflow into Central and Eastern European countries and select diagnostic variables that will later be used as the basis for the construction of a synthetic index of institutional quality (SIIQ). By composing a ranking of countries based on estimated values of the index, we could identify countries of similar institutional quality. In the last stage we analyse the correlation between SIIQ in individual countries and FDI inward stock as % of GDP. At the end we present conclusions.

scholarly journals Exploring Foreign Direct Investment–Economic Growth Nexus—Empirical Evidence from Central and Eastern European Countries

2019 ◽  
Vol 11 (19) ◽  
pp. 5421 ◽  
Author(s):  
Ștefan Cristian Gherghina ◽  
Liliana Nicoleta Simionescu ◽  
Oana Simona Hudea
Keyword(s):  
Economic Growth ◽  
Sustainable Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Institutional Quality ◽  
European Countries ◽  
Transport Infrastructure ◽  
Eastern European ◽  
Long Run ◽  
Eastern European Countries

This study aims to examine the link between foreign direct investment (FDI) inflows and economic growth, also considering several institutional quality variables, as well as sustainable development goals (SDGs) set in the 2030 Agenda for Sustainable Development. By estimating panel data regression models for a sample of 11 Central and Eastern European countries, from 2003 to 2016, the empirical outcomes provide support for a non-linear relationship between FDI and gross domestic product per capita. Regarding institutional quality, it is found that control of corruption, government effectiveness, regulatory quality, rule of law, and voice and accountability positively influence growth, while political stability and absence of violence/terrorism is not statistically significant. Moreover, SDGs such as poverty, income distribution, education, innovation, transport infrastructure, and information technology are noteworthy drivers of growth. The outcomes of panel fully modified and dynamic ordinary least squares partly confirm the findings. The panel vector error-correction model Granger causalities provide support for a short-run one-way causal association running from FDI to growth and a long-run two-way causal connection among FDI and growth. Furthermore, in the long run, unidirectional causal relationships running from each institutional quality indicator to economic growth and FDI are set out.

scholarly journals China’s Belt and Road Initiative Extension to Central and Eastern European Countries - Sixteen Nations, Five Summits, Many Challenges

2017 ◽  
Vol 23 (78) ◽  
pp. 57-76 ◽  
Author(s):  
Marsela Musabelliu
Keyword(s):  
Global Economy ◽  
European Countries ◽  
Chinese Government ◽  
Eastern European ◽  
Belt And Road Initiative ◽  
International Affairs ◽  
Cooperation Mechanism ◽  
Belt And Road ◽  
Eastern European Countries ◽  
The Belt And Road

Abstract The Belt and Road Initiative proclaimed by President Xi in 2013, a strategy developed by the Chinese government, is very important to China but is not confined to China. In order for the initiative to be successful it needs to be embraced by the countries on the terrestrial and maritime route indicated in the plan. In the late 1980s Deng Xiaoping proposed to integrate Socialism with Chinese Characteristics (Zhongguo Tese Shehui Zhuyi, ) into global capitalism and in the 1990s the Jiang Zemin leadership initiated the Going out policy (Zouchuqu Zhanlue, ) – the current Belt and Road Initiative is China’s continuation in implementing those policies into actual deeds. China’s accession to WTO in 2001 marked China’s full integration into the global economy and since then the People’s Republic of China (PRC) has become the largest trading partner for more than 180 countries. The Xi-Li administration has been extremely proactive since it was established in 2012; from that year on, Chinese behavior in international affairs has gained an ever-growing role as a forger of economic and diplomatic ties between countries. The primary example of this behavior is the Belt and Road Initiative (BRI). As every serious foreign policy plan, the BRI is an accumulation of various other initiatives. For example, the cooperation mechanism “16+1”, with which the PRC has approached Central and Eastern European Countries (CEEC), can be integrated under the BRI. This paper analizes the “16+1” China-CEEC cooperation mechanism in the context of the bigger BRI initiative, and tries to comprehend the economic and political factors intertwined with its implementation.

scholarly journals IMPACT OF POLITICAL AND FISCAL DECENTRALIZATION ON THE GOVERNMENT QUALITY IN CENTRAL AND EASTERN EUROPEAN COUNTRIES

2021 ◽  
Vol 30 (1) ◽  
pp. 285-302
Author(s):  
Josip Visković ◽  
◽  
Paško Burnać ◽  
Maja Herman
Keyword(s):  
Fiscal Decentralization ◽  
European Countries ◽  
Additional Contribution ◽  
Eastern European ◽  
Positive Effects ◽  
Political Decentralization ◽  
Government Quality ◽  
Eastern European Countries ◽  
The Impact

Since the 1970s, the process of decentralization has spread throughout the world, and today more than 95% of democratic countries are decentralized. Decentralization should lead to a well-organized and more efficient local government. Nevertheless, the empirical results are rather vague. The motivation for this paper is to examine the impact of political and fiscal decentralization on the quality of government in seventeen countries in Central and Eastern Europe for the period 1998 - 2012. The main objective of the paper is to explore whether fiscal decentralization positively influences the quality of government and whether political decentralization reduces its positive influence. An additional contribution of the paper comes from the introduction of a decentralization interaction variable. Our results have shown that fiscal decentralization has a positive impact on governance, while political decentralization was found to be statistically insignificant. Our results also showed that richer countries have higher government quality, that government size increases the level of corruption and decreases government quality, and that in more democratic countries politicians behave more responsibly and accountably, which decreases the level of corruption and increases government quality. We conclude that political decentralization cancels out the positive effects of fiscal decentralization on the quality of government, which can be explained by less developed institutions at the local level in Central and Eastern European countries.

scholarly journals Regional Products in the Central and Eastern European Countries that Acceded to the European Union in May 2004

2013 ◽  
Vol 16 (1) ◽  
pp. 21-38
Author(s):  
Marcin Feltynowski
Keyword(s):  
European Union ◽  
European Countries ◽  
Eastern European ◽  
The European Union ◽  
Central European ◽  
Regional Tourism ◽  
Protected Designation Of Origin ◽  
Eastern European Countries ◽  
The Eu

This article presents information about regional products registered by those Central European countries which joined the European Union structures in May 2004. Their membership facilitated the registration of regional products and their participation in the EU’s registration procedures. Regional and local products registered in the area of a country can become a base for the promotion of regional tourism in the regions of origin of these products. The brand recognition of these regional products also becomes a basis to improve the quality of the agricultural products and foodstuffs. This article presents the activities of the Central European countries which are members of the EU since 2004 in their registration of regional products. The presented data shows how many products were registered within each group of products, protected by the marks: Protected Designation of Origin, Protected Geographical Indication, and Traditional Speciality Guaranteed. Verification of the statistical data allows for analysis concerning the product class, as defined in the EU directives.

Factors influencing restaurant tipping behaviour – the case of Poland

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Iwona Kowalczuk ◽  
Jerzy Gębski
Keyword(s):  
European Countries ◽  
Computer Assisted ◽  
Eastern European ◽  
Food Services ◽  
Content Type ◽  
East European ◽  
Factors Influencing ◽  
Eastern European Countries ◽  
Average Size

Purpose This paper aims to contribute to the literature that discusses consumer tipping behaviour in eating establishments. Because there is no detailed research into this issue with regard to consumers in Central and East European countries, the authors conducted research aimed at learning about the tipping behaviour of the Poles. Design/methodology/approach This study was carried out in 2018, using the computer-assisted web interviewing method, for a sample of 1,000 people. Six research questions were asked: How often the Poles give tips in eating establishments? What is an average size of a tip? What determinants influence the frequency and magnitude of tips? Who is likely to give a tip every one to two visits? Who is likely to tip more than the standard 10%? What influences the reasons why Polish consumers tend to tip? Findings The findings show the strong relationships between both a consumers’ tipping frequency and magnitude and the frequency at which these consumers eat out. This study also implicates income and education as essential factors influencing tipping behaviour and the lack of gender effect on consumers’ decision to tip. It was also noticed that such reasons as the quality of service, a taste of the dishes and a belief that it is proper to tip have a significant impact on the frequency of giving the tips. A significant diversity of the reasons’ meaning for tipping among Polish consumers depending upon their age was also stated. Research limitations/implications It would be interesting to compare the results of the current study with studies concerning consumer tipping behaviours in other Central and Eastern European countries historically and culturally similar to Poland to investigate whether the specifics of tipping behaviour noticed in Poland apply elsewhere. Originality/value This study shows the specifics of Polish people’s tipping behaviour and partially fulfills the gap in the knowledge of this aspect of consumers’ from Central and Eastern Europe behaviour. The obtained results suggest that with the increasing incomes and the widespread use of food services, tipping is likely to become more common in Poland. Furthermore, the pragmatic reasons for tipping will become more important than social and psychological motivators.

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