scholarly journals Value-added tax and economic efficiency: Role of country governance

2020 ◽  
pp. 20-20 ◽  
Author(s):  
Sok-Gee Chan ◽  
Zulkufly Ramly ◽  
Mustapha Zulkhairi
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Economic Efficiency ◽  
Value Added ◽  
Corporate Tax ◽  
Institutional Factor ◽  
Using Data ◽  
The Impact ◽  
Moderating Role

This paper examines the impact of VAT on economic efficiency, which while regarded as distortionary remains inevitable for economic development. Using data from 115 countries from 1984 to 2014, this research further investigates the moderating role of country governance on the link between VAT and economic efficiency. The results suggest that the extent to which country governance mitigates the effect of VAT on economic efficiency is contingent upon the way the country groups prioritize the development of each institutional factor. We find that high corporate tax countries benefit more from higher quality country governance. These findings confirm the role of country governance in better enforcement of tax policy to create less detrimental effects for economic growth. Therefore, better country governance makes taxation more affordable in high corporate tax countries.

Financial Access of Latin America and Caribbean Firms: What Are the Roles of Institutional, Financial, and Economic Development?

2021 ◽  
pp. 097265272110153
Author(s):  
Lan Khanh Chu
Keyword(s):  
Economic Development ◽  
Latin America ◽  
Jel Classification ◽  
Caribbean Region ◽  
Country Level ◽  
Level Data ◽  
Latin America And Caribbean ◽  
The Impact ◽  
Moderating Role

This article examines the impact of institutional, financial, and economic development on firms’ access to finance in Latin America and Caribbean region. Based on firm- and country-level data from the World Bank databases, we employ an ordered logit model to understand the direct and moderating role of institutional, financial, and economic development in determining firms’ financial obstacles. The results show that older, larger, facing less competition and regulation burden, foreign owned, and affiliated firms report lower obstacles to finance. Second, better macro-fundamentals help to lessen the level of obstacles substantially. Third, the role of institutions in promoting firms’ inclusive finance is quite different to the role of financial development and economic growth. JEL classification: E02; G10; O16; P48

Toward a dynamic capability theory of economic growth

2019 ◽  
Vol 29 (4) ◽  
pp. 1047-1065 ◽  
Author(s):  
David Sainsbury
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Value Added ◽  
The United States ◽  
Dynamic Capability ◽  
Alexander Hamilton ◽  
Role Of Government ◽  
Windows Of Opportunity ◽  
The Uk

Abstract New theories of economic growth that are policy-relevant and connect with the histories of success and failure in economic development are urgently needed. This article compares the neoclassical (or market efficiency) school of thought with the production-capability school of thought which included Alexander Hamilton, Friedrich List, and Joseph Schumpeter. Many affirmative, industrial policy steps by governments to promote economic development have been historically recorded—including in the UK and the United States. Meanwhile the neoclassical school has ignored the role of government in helping to create competitive advantage. It has also chosen to ignore how firms are formed, how technologies are acquired, and how industries emerge. The dynamic capability theory of economic growth developed here assigns the central role in economic growth to firms but also an important role to governments. The rate at which a country’s economy grows depends critically on whether its firms can build the capabilities to generate and take advantage of “windows of opportunity” that exist for innovation and new markets, and whether over time they are able to enhance their capabilities to move into higher value-added activities.1

scholarly journals Financial strategy in the conditions of economic transformations

2021 ◽  
pp. 190-196
Author(s):  
Iryna Adamenko
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Financial System ◽  
Well Being ◽  
Economic Transformation ◽  
Financial Strategy ◽  
Economic Transformations ◽  
Social And Economic Development ◽  
The Impact

Relevance of the research topic. In the conditions of economic transformations the financial strategy acts as the important economic lever of influence of public administration bodies on social and economic development of the country. The assessment of the mechanism of financial regulation in Ukraine indicates the need to develop the components of the financial system in conjunction with the transformational economic processes and the development of a sound financial strategy in accordance with the goals and objectives of social development. Formulation of the problem. The importance of developing a financial strategy in the context of economic transformation is due to the need to take into account the impact of internal and external challenges in the financial and economic environment, economic fluctuations due to the spread of the coronavirus pandemic. At the same time, the choice of financial strategy tools should be made taking into account the level of economic development of the country. Analysis of recent research and publications. The issue of developing a financial strategy is quite common in research. These are the works of famous domestic and foreign scientists: J. Keynes, P. Samuelson, J. Stiglitz, W. Tanzi, S. Kucherenko, L. Lysyak, L. Levaeva, I. Lukyanenko, V. Makohon, M. Pasichny, I. Chugunov and others. Selection of unexplored parts of the general problem. The above issues are relevant in connection with the deepening of economic transformation, the adverse impact of the Crown virus pandemic on the financial sector, which requires a number of specific tasks related to the development of financial strategy. Problem statement, research goals. The objectives of the study are: to reveal the role of financial strategy in the regulation of socio-economic processes, to substantiate the peculiarities of the development of the components of the financial system. The purpose of the study is to reveal the directions of financial strategy in the context of economic transformation. Method or methodology of the study. The article uses a set of research methods: a systematic approach, statistical analysis, structuring, analysis, synthesis, etc. Presentation of the main material (results of work). The role of financial strategy in the regulation of socio-economic processes is revealed, the peculiarities of formation and implementation of financial strategy are substantiated. The directions of financial strategy in the conditions of economic transformations are substantiated. Field of application of results. The results of the study can be used in the process of formation and implementation of financial policy of Ukraine, reforming the domestic financial system and its components. Conclusions in accordance with the article. The qualitative level of formation and implementation of financial strategy is determined by the system of financial institutions, the state of their development in a particular country aimed at ensuring economic growth and welfare of citizens. The functional purpose of financial strategy is the result of the evolution of the role and importance of state functions in socio-economic development. Depending on the dynamics of socio-economic processes, the tasks of the financial strategy and the tools for its implementation should be adjusted. The financial strategy in the conditions of economic transformations should be directed on formation of long-term potential of economic growth and increase of well-being of the population taking into account demographic tendencies and indicators of the macroeconomic forecast of social and economic development of the country.

scholarly journals Modeling the impact assessment of agricultural sector on economic development as a basis for the country’s investment potential

2019 ◽  
Vol 16 (3) ◽  
pp. 229-240
Author(s):  
Alina Bukhtiarova ◽  
Arsen Hayriyan ◽  
Victor Chentsov ◽  
Sergii Sokol
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Agricultural Sector ◽  
Negative Impact ◽  
Manufacturing Sector ◽  
Value Added ◽  
The Cost ◽  
The Impact

In the context of countries integration into the world economic space, agricultural sector is one of the priorities and strategically important sectors of the national economy. Development of instruments aimed to increase investment potential of this sector is therefore an important component of the country’s economy growth. The article proposes a science-based model of the impact of the agricultural sector on the economic development level of countries trying to move towards European integration.It was found that the employment rate (+58.4) has the largest influence on the rate of GDP change in the studied group of countries (Ukraine, Moldova, Georgia, Armenia). The impact of the gross value added of the manufacturing sector on its economic growth is positive (+44.6). The negative foreign direct investment ratio in the model (–40.3) may be due to the fact that the indicator in the studied countries is still largely influenced by the intervention of the state mechanism, significant uncertainty and risk, which is a deterrent to the overall economic development. An important result of the study was that foreign direct investment had a negative impact on economic growth in developing countries. Further development of the investment potential of a country’s agricultural sector provides for a radical acceleration of scientific and technological progress and, on this basis, a reduction in the cost of a unit of agricultural products and food and an increase in their competitiveness in the domestic and world markets.

scholarly journals THE ESSENCE OF THE CATEGORY OF SMALL AND PRIVATE ENTREPRENEURSHIP AND ITS SPECIFICITY

2020 ◽  
Vol 01 (01) ◽  
pp. 85-94
Author(s):  
Akmal Yorievich Ostanov ◽  
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Market Competition ◽  
Economic Life ◽  
Private Enterprises ◽  
Private Entrepreneurship ◽  
The Republic ◽  
Employment Needs ◽  
The Impact

Small and private entrepreneurship is becoming increasingly important in the world economy. International experience shows that the impact of small and private entrepreneurship on economic growth through the creation of new jobs is very important. The role of these enterprises is growing, especially as economic development progresses towards services and information technology. Small and private enterprises are becoming economic entities where new techniques and technologies are rapidly introduced, advanced management methods are rapidly applied and effective in the short term. Indeed, the role of employment in economic growth through the development of small and private entrepreneurship is immeasurable.In particular, entrepreneurship plays an important role not only in the socio-economic life of the republic, but also in the regions. Entrepreneurship is a source of endless opportunities for the development of market relations, ensuring the stability of the economy, attracting investment from domestic and foreign sources, as well as meeting the growing employment needs of the population. Indeed, the origin of small and private enterprises is a reflection of a complex set of needs of different composition, primarily due to the need to increase the number of enterprises that can influence and withstand market competition in the country's economy; second, it is characterized by the fact that small and private businesses are the cheapest, preferred, and preferred method of recruiting the population. The article summarizes the laws of emergence and formation of entrepreneurship. In particular, it was found that the emergence of criteria based on the number of employees as well as production indicators has made small and private entrepreneurship an important phenomenon of economic development. Accordingly, it is proposed to improve the characteristics of small and private entrepreneurship using both criteria, and a new, improved definition of the concept of "entrepreneurship" and "entrepreneur" applied to employment. The article consists of an introduction, goals and objectives, methods, results and comments, and a conclusion.

scholarly journals THE ROLE OF BANKS AND SECURITIES MARKETS IN THE POST-TRANSITION ECONOMIES OF EASTERN EUROPE

2020 ◽  
Author(s):  
Sasho Arsov
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Eastern Europe ◽  
Banking Sector ◽  
Positive Impact ◽  
Financial Sector ◽  
Securities Markets ◽  
Positive Role ◽  
The Impact

Economic theory predicts that the development of the financial sector should have a positive impact on the overall economic development. Research has predominantly confirmed this expectation, with the remark that at earlier stages of economic development this impact should be higher, while a disproportionate banking sector has detrimental effect on growth through its impact on attracting highly skilled workforce, increased presence of moral hazard and the associated banking crises. This issue has been studied only occasionally in the case of the former socialist economies of Central and Eastern Europe and the former USSR. This paper represents an attempt to analyze the impact of the banking sector and securities markets development on the economic growth of these countries. A sample of 22 countries is assembled, using data from 1995 to 2018 and a panel regression and a GMM technique are used to derive conclusions on the researched topic. The analysis has shown that the banking sector has played a positive role in the economic growth throughout the analyzed period, while the role of the stock market is not significant. This is in line with the previous studies which have confirmed that the positive role of the securities markets should be expected only at higher levels of economic development. Also, the impact of the overall financial sector is deemed to be positive.

scholarly journals KAWASAN EKONOMI KHUSUS DAN PEMBANGUNAN EKONOMI REGIONAL: SEBUAH STUDI LITERATUR

2020 ◽  
Vol 1 (2) ◽  
pp. 40-54
Author(s):  
Nurafni Irma Suryani ◽  
Ratu Eva Febriani
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Regional Economy ◽  
Positive Impact ◽  
Special Economic Zones ◽  
Literature Study ◽  
Economic Growth Rate ◽  
Economic Zones ◽  
The Impact

Special Economic Zones are very important for the progress of an area. SEZ is able to contribute to the regional economy and increase economic development by providing direct and indirect effects. The purpose of this study is to determine the impact of special economic zones on regional economic development. The object of this study is to explore the establish SEZ in Indonesia just only refer to two SEZs namely SEI Mangke and Tanjung Lesung. This research used literature study as a method. The results show that SEZ make the regional economy is starting to move towards a better direction. The role of two SEZs observed have different impact on regional economy, SEI Mangke has a positive impact on macroeconomy indicator such as reduced unemployment, reduced poverty and an increased economic growth rate in Simalungun Regency. Otherwise, Tanjung Lesung just has a positive impact on MSMEsKeywords: Unemployment, Poverty, Economic Growth, Pengembangan UMKM, SEZ Sei Mangke, SEZ Tanjung Lesung

scholarly journals The Impact of ICT and FDI as Drivers to Economic Growth In ASEAN-8 Countries: A Panel Regression Analysis

2021 ◽  
Vol 9 ◽  
pp. 91-98
Author(s):  
Noraina Mazuin Sapuan ◽  
Mohammad Rahmdzey Roly
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Regression Analysis ◽  
Panel Regression ◽  
Information And Communication ◽  
Asean Countries ◽  
Using Data ◽  
The Impact ◽  
The Relationship ◽  
Positive Effect

Over the last few years, information and communication technology (ICT) has become a key catalyst for economic growth. The durability of this technology is demonstrated by the rapid proliferation of the Internet, mobile phones and cellular networks across the globe. However, among economic scholars, the question of exactly how the spread of ICT affects economic development and FDI, especially in ASEAN countries with differences in levels of income, remains unanswered. The aim of this study was essentially to explore the relationship between ICT dissemination, FDI and economic growth in ASEAN-8 countries. By using data from 2003 to 2017, the panel regression analysis was used to evaluate these relationships. The results showed that the dissemination of ICT and FDI are important and they have a positive effect on the ASEAN-8 countries’ economic development.

scholarly journals The Impact of Islamic Banking on the Jordanian Economy Compared with Commercial Banks

2016 ◽  
Vol 8 (3) ◽  
pp. 244
Author(s):  
Taha Barakat Al-shawawreh
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Commercial Banks ◽  
Annual Reports ◽  
Islamic Banking ◽  
Islamic Banks ◽  
The Impact

<p>This research aims to evaluate the role of Islamic Banking in supporting the economic growth in Jordan, compared y commercial banks. Data was collected from the literature and the annual reports of two Jordanian banks representing Islamic and commercial banks. By analyzing the figures of the two banks, the results showed that Islamic banks have more ability to support the economic development in the Kingdom.</p>

scholarly journals Role of institutional quality in economic development: A case study of Asian countries

2021 ◽  
Vol 19 (2) ◽  
pp. 357-369
Author(s):  
Oanh Kim Thi Tran ◽  
Hac Dinh Le ◽  
Anh Hong Viet Nguyen
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Trade Openness ◽  
Institutional Quality ◽  
Policy Implications ◽  
Asian Countries ◽  
Regression Methods ◽  
Key Factor ◽  
The Impact

The paper investigates the impact of institutional quality on economic growth by taking 48 countries in Asia between 2005 and 2018. By using the quantile regression methods with panel data, institutional quality is found to be a key factor of economic development. However, in the lower-income Asian countries, the institution with better quality appears to promote the growth more effectively than in the higher-income ones. Moreover, the paper also finds out a nonlinear relationship between institutions and economic growth. The results show that there is an institutional threshold for economic growth to reach its highest level. If the institution indicator exceeds the threshold, it causes the reverse effect on the growth. Moreover, the economic growth of Asian countries is also affected by inflation (INF), labor force (LABO), trade openness (OPEN), and infrastructure (TELE). From that, the study suggests some policy implications for Asian countries and Vietnam, in particular, in order to improve institutions contributing to economic growth.

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