scholarly journals Outward FDI and Institutional Factors: Malaysian Experience

2016 ◽  
Vol 4 (3) ◽  
pp. 37
Author(s):  
Jen-Eem Chen ◽  
Lee Chin ◽  
Siong-Hook Law ◽  
W. N. W. Azman- Saini
Keyword(s):  
Home Country ◽  
Model Specification ◽  
International Expansion ◽  
Outward Fdi ◽  
Bounds Testing ◽  
Corporate Tax ◽  
Tax Rate ◽  
Distributed Lag ◽  
Internationalization Strategy ◽  
Using Data

This paper aims to investigate the role of home country institution in affecting outward FDI from Malaysia using data spans from 1980 to 2012.  The model specification is examined in autoregressive distributed lag (ARDL) bounds testing framework.  The empirical evidence reveals that GDP, exchange rate, openness to trade, and corporate tax rate are the key drivers of outward FDI from Malaysia.  This portrays that internationalization strategy of firms is not only relied on home macroeconomic environment, but also home institution.  More importantly, corporate tax rate, as one of the institution factors, is positively related to outward FDI which signifies that high tax rate would prompt local firms to engage in investment abroad as a sign of escape response. This reflects that international expansion appears to be exit strategy from home country instead of entry strategy into foreign markets.  The findings have some important implications on internationalization strategy of firms. 

Outward FDI from India and its impact on the performance of firms in the home country

2019 ◽  
Vol 13 (1) ◽  
pp. 1-32 ◽  
Author(s):  
Indrajit Roy ◽  
Narayanan K.
Keyword(s):  
Home Country ◽  
Difference In Difference ◽  
Outward Fdi ◽  
Content Type ◽  
Leverage Ratio ◽  
Financial Centre ◽  
Operating Profit ◽  
Level Data ◽  
Using Data ◽  
Practical Implications

Purpose This paper aims to analyse the change in performance of parent Indian firms (home effects) who have invested in overseas locations in recent times. Design/methodology/approach Difference-in-difference (DiD) estimate of home effects using farm level data. Findings Home effects of Indian outward foreign direct investment (OFDI), in general, are insignificant. However, in the case of OFDI directed only to non-offshore financial centre (OFC), some firms did enjoy beneficial home effects with respect to turnover, current ratio and leverage ratio. In the case of OFDI directed purely to OFC locations, some of the parameters exhibited negative home effects. In the subsample of Indian OFDI directed to combination of OFC and non-OFC locations, the results show positive home effects with respect to export, operating profit margin and forex earnings; however, impact on turnover seems to be negative for all the quartiles. Research limitations/implications Estimation of home effects using data over longer horizon may yield robust outcome. Practical implications These results make a strong case to draw a distinction among OFDIs to OFC, non-OFC and combination of OFC and non-OFC locations in studying the beneficial home effects of OFDI. Originality/value To the authors’ knowledge, this is the first paper which estimates home effects of different groups of Indian firms (based on their investment locations and size class) using difference-in-difference estimate.

Tax revenue and economic growth in developing country: an autoregressive distribution lags approach

2020 ◽  
Vol 7 (54) ◽  
pp. 205-217
Author(s):  
Mnaku Honest Maganya
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Testing Procedure ◽  
Gdp Growth ◽  
Bounds Testing ◽  
Causality Test ◽  
Significance Level ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
The Government

AbstractTanzania, like most other developing countries, faces numerous economic challenges in striving to achieve sustainable economic growth and development through taxation. In the literature, the debate on how effective taxes are as a tool for promoting economic growth and economic development remains inconclusive, as various research have reported mixed effects of tax on economic growth. This article investigates the effect of taxation on economic growth in Tanzania using the recently developed technique of autoregressive distributed lag model (ARDL) bounds testing procedure for the period from 1996 to 2019. Various preliminary tests were conducted including stationary tests as well as the pair-wise Granger causality test. According to the results obtained, domestic goods and services (TGS) taxes are positively related to GDP growth and are statistically significant at 1% level. Income taxes, on the other hand, were found to be negatively related to GDP growth and to be statistically significant at 5% level. The pair-wise Granger causality results indicated that there is bidirectional Granger causality between TGS and GDP growth at 1 % significance level. The government should aim at growing, nurturing and sustaining tax base to positively drive economic growth even further.

The Giving Up of Weekly Rest-Days by Migrant Domestic Workers in Singapore: When Submission Is Both Resistance and Victimhood

Social Forces ◽  
2019 ◽  
Vol 98 (4) ◽  
pp. 1695-1718
Author(s):  
Margaret Fenerty Schumann ◽  
Anju Mary Paul
Keyword(s):  
Work Experience ◽  
Home Country ◽  
Domestic Workers ◽  
Sociology Of Law ◽  
Signaling Mechanism ◽  
Contract Renewal ◽  
Temporal And Spatial ◽  
Using Data ◽  
Do So ◽  
Migrant Domestic Workers

AbstractWhy do so few live-in migrant domestic workers (MDWs) in Singapore utilize their weekly rest-day entitlement? Using data drawn from 3,886 online profiles of prospective MDWs and 40 interview sessions with MDWs, employers, and manpower agencies, we demonstrate how the industry encourages a “logic of submission” around rest-days. Through processual analysis, we unearth multiple, repeated moments of capitulation at key moments in a MDW’s work-life: (1) their interactions with a recruitment agency while still in their home country; (2) their matching with an overseas employer; (3) the duration of their two-year contract; and (4) the time of contract renewal. Submission to less frequent rest-days can secure their employability and financial mobility but also further individuates the MDW within the employer’s household and may lead to the engraining of a habitus of submissiveness towards their employers that can open the door to workers’ exploitation. We demonstrate how nationality and work experience further inflect this logic of submission to motivate non-Filipina and inexperienced MDWs to request even fewer rest-days than their counterparts. By combining feminist migration scholarship on Asian MDWs, with a sociology of law analysis, we offer up an example of how the same act of submission can simultaneously embody both resistance and victimhood depending upon the temporal and spatial scale used, and varying interpretations of the rest-day benefit as a much-needed respite, a monetizable benefit, or a signaling mechanism.

ANALYSIS OF THE RELATIONSHIP BETWEEN ECONOMIC GROWTH, INFLATION AND UNEMPLOYMENT IN TURKEY WITH THE ARDL BOUNDS TESTING APPROACH

2021 ◽  
Vol 6 (15) ◽  
pp. 299-312
Author(s):  
Özlem KARADAĞ AK
Keyword(s):  
Economic Growth ◽  
Industrial Production ◽  
Consumer Price Index ◽  
Bounds Testing ◽  
Short Term ◽  
Production Index ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Industrial Production Index ◽  
Cointegration Relationship

The aim of this study is to examine the effects of economic growth and inflation on unemployment for the period 2005:1- 2020:9 in Turkey by using ARDL (Auto Regressive Distributed Lag) model. In the study, firstly unit root tests were carried out to determine whether economic growth (ind) and inflation (cpi) have long and short-term effects on unemployment (unemp). Then, the ARDL method was used to determine whether there is a long-term relationship between the series in the model where the unemployment rate is the dependent variable, the Industrial Production Index representing economic growth and the Consumer Price Index (CPI) representing inflation. Instead of GDP, the Industrial Production Index was preferred both to harmonize with the monthly data and to make a production-based analysis. As a result of the analysis, it was determined that there was a statistically significant cointegration relationship between the variables, and the short-term relationship was analyzed with the error correction model (ECM). As a result of the analysis, it has been determined that there is a cointegration relationship between unemployment, inflation rate and economic growth in Turkey. According to the results of the analysis, negative between unemployment and industrial production index; It is seen that there is a positive relationship between unemployment and inflation.

Ireland faces economic uncertainty with OECD reforms

2021 ◽  
Keyword(s):  
Tax Revenue ◽  
Economic Uncertainty ◽  
Corporate Tax ◽  
Content Type ◽  
Tax Rate ◽  
Sinn Fein ◽  
Fiscal Spending

Significance This framework laid out two pillars of reform. Pillar One would see large companies liable for tax in the end-market jurisdiction where their goods or services are used or consumed. Pillar Two would set a minimum tax rate of 15%. Impacts Ireland will probably support the reforms by October, and in return it may get some concessions over implementation or sectoral coverage. Reduced corporate tax revenue may result in tighter fiscal spending, which would play into the hands of the opposition Sinn Fein. The corporate tax proposals come at a particularly bad time for the Irish economy, which is already facing the consequences of Brexit.

scholarly journals The Impact of Austerity Measures on Government Borrowing in GIIPS

2016 ◽  
Vol 8 (12) ◽  
pp. 106 ◽  
Author(s):  
Imre Ersoy ◽  
Talha Yanmaz
Keyword(s):  
Empirical Analysis ◽  
Rate Increase ◽  
Panel Cointegration ◽  
Government Debt ◽  
Cointegration Test ◽  
Tax Rate ◽  
Economic Agents ◽  
Panel Cointegration Test ◽  
Using Data ◽  
The Impact

The article investigates the effects of austerity measures on government debt in Greece, Ireland, Italy, Portugal and Spain (GIIPS) by employing panel cointegration test and using data between 1998 and 2014. The result of empirical analysis shows that tax rate increase on personal income did not result with decrease in government debt. Interest rate and wage that are control variables are also positively related with government debt levels. The result of this empirical analysis suggests that the impact of austerity measures on government borrowing in GIIPS is positive, despite the expectations of certain economic agents.

Sign in / Sign up

Export Citation Format

Share Document