scholarly journals The Impact of the Investment Environment on Foreign Direct Investment (FDI) in the European Transition Economies

2020 ◽  
pp. 138-147
Keyword(s):  
Transition Economies ◽  
Political Stability ◽  
Transition Countries ◽  
Dynamic Panel ◽  
Investment Environment ◽  
Tax Rate ◽  
Doing Business ◽  
Distance To Frontier ◽  
The Impact ◽  
Control Of Corruption

The main objective of this paper is to investigate the impact of the investment environment on FDI in transition economies in Europe, through the usage of dynamic panel methodology, due to the persistence of the endogeneity issues. Further, three main factors have been determined affecting the FDI in 15 developing countries through the time span 2009–2016 as Control of Corruption, Political Stability and Absence of Violence/Terrorism and Distance to frontier score (Doing Business) having positive and significant effect on attracting FDI in these transition countries. Also as pull factors are used GDP per capita, profit tax rate showing positive and significant effect on FDI flows, while unemployment rate was positive but does not have a significant role in the attraction of FDI flows in European transition countries. In addition, to our best knowledge this paper is among the first that attempts to investigate this relationship in this set of countries by employing the dynamic panel methodology using differenced GMM model as well as employing Distance to frontier score (Doing Business) as one of investment environment factors that impact FDI flows for this set of 15 countries. Furthermore, such findings will contribute to the existing literature by using these instruments to measure their impact on FDI attractiveness on European transition economies.

scholarly journals The impact of the Ease Doing Business Indicators on Foreign Direct Investment in the European transition economies

Ekonomika ◽  
2020 ◽  
Vol 98 (2) ◽  
pp. 19-32
Author(s):  
Bersan Haliti ◽  
Safet Merovci ◽  
Sanjib SHERPA ◽  
Alban Hetemi
Keyword(s):  
Transition Economies ◽  
Negative Impact ◽  
Transition Countries ◽  
Least Square ◽  
Dynamic Panel ◽  
Ordinary Least Square ◽  
Doing Business ◽  
Ease Of Doing Business ◽  
Generalised Method Of Moments ◽  
The Impact

The objective (aim) of this paper is to explore the impact of the Ease of Doing Business Indicators on FDI on transition economies in Europe. Authors have used the dynamic panel methodology, by using three methods: Pooled Ordinary Least Square (POLS), Fixed Effect (FE), and Two Step-System Generalised Method of Moments (GMM) estimation techniques. By referring to the GMM technique, it can be seen that variables such as: Starting a Business, Registering property, Getting electricity and Resolving insolvency have a positive and significant impact in attracting FDI in 16 European transition countries, while variables as: Dealing with construction permits, Getting credit, Paying taxes, Protecting minority investors, have shown negative impact, whereas Trading Across Border and Enforcing contracts have not shown any impact on attracting FDIs in European transition countries. This paper contributes to the enrichment of existing literature in this field by using these three methods.

scholarly journals THE NEXUS BETWEEN INSTITUTIONAL FACTORS AND FOREIGN DIRECT INVESTMENTS IN DEVELOPING COUNTRIES IN EUROPE

2019 ◽  
Vol 31 (1) ◽  
pp. 23-26
Author(s):  
Liza Alili Sulejmani ◽  
Afrim Alili
Keyword(s):  
Developing Countries ◽  
Rule Of Law ◽  
Developing Economies ◽  
Political Stability ◽  
Institutional Factors ◽  
Foreign Direct Investments ◽  
Dynamic Panel ◽  
Doing Business ◽  
Time Period ◽  
Control Of Corruption

This paper tries to analyze the effects of institutional factors that affect FDI on developing economies in Europe by utilizing dynamic panel methodology, having into consideration the persistence of the endogeneity issues. Moreover, four institutional factors have been determined affecting the FDI in 15 developing European countries, analyzed for the time period 2004 – 2016.In addition, empirical results show that Control of Corruption; Political Stability, and Doing Business, have significant effect on attracting FDI on these transition countries, while Rule of Law has shown to be insignificant in attracting FDI flows in these countries.Further, such findings will contribute to the existing literature by using these institutional measures to value their impact on FDI attractiveness on European developing economies.

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

2014 ◽  
Vol 10 (2) ◽  
pp. 316-330 ◽  
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.

scholarly journals Tax Burden of Agricultural Enterprises in Ukraine

2021 ◽  
Vol 25 (1) ◽  
pp. 157-169
Author(s):  
Serhii Kostornoi ◽  
Olena Yatsukh ◽  
Volodymyr Tsap ◽  
Ivan Demchenko ◽  
Natalia Zakharova ◽  
...  
Keyword(s):  
Value Added ◽  
Political Stability ◽  
Optimal Level ◽  
Tax Burden ◽  
Tax Rate ◽  
Agricultural Enterprises ◽  
Is Implementation ◽  
Advantages And Disadvantages ◽  
Tax Legislation ◽  
The Impact

Abstract Agriculture is one of the leading sectors of the Ukrainian economy, and the state pays special attention to its development. One of directions of the state’s support for agriculture is implementation of tax preferences due to which agricultural enterprises have a lower tax burden. The optimal level of the tax burden is an important factor in ensuring the positive dynamics of business activity in agriculture, as well as socio-political stability. The objective of the article is to determine the impact of recent changes in the Ukrainian tax legislation on the tax burden of agricultural enterprises, as well as the possible impact of current draft laws. The article examines features of the tax legislation in Ukrainewith regard to agricultural producers and its changes in recent years - increasing a single tax rate, introduction of indexation of land regulatory, monetary valuation, abolition of the special regime of a value added tax. The advantages and disadvantages of using a simplified taxation system by agricultural enterprises are considered. the study’s outcome comprises recommendations for agricultural enterprises to choose a tax system with the lowest tax burden, as well as recommendations for improving the tax legislation of Ukraine using preferential VAT rates for agricultural enterprises and a tax on withdrawn capital.

scholarly journals A Tale of the Ticker; Stock Market Capacity Building Hegemony and Temporal Performance in the Emerging Economies

2020 ◽  
Vol 6 (1) ◽  
pp. 33-52
Author(s):  
Areeba Khan ◽  
Imran Sharif Chaudhry ◽  
Sohail Saeed ◽  
Muhammad Kamran Shahid
Keyword(s):  
Stock Market ◽  
Capacity Building ◽  
Stock Exchange ◽  
Political Stability ◽  
Series Data ◽  
Tax Rate ◽  
Market Capitalization ◽  
The Impact ◽  
Stock Market Capitalization

This paper aims to examine stock market with a capacity building perspective for economic growth, focusing on the factors that enhance stock market capitalization in the long term. This study evaluates cross country series data of 26 emerging countries listed at MSCI index, through a period of 2006 to 2019. The data were collected through World Bank, Pakistan Stock Exchange and SECP database. Vector Error correction model and Multiple Regression analysis were applied on data to analyze the impact of assorted factors on stock market capitalization to GDP as a measure of long term capacity. The findings suggest that political stability and corporate tax rate are two important factors that may have significant impact on stock market capitalization to GDP. This research is different from all past researches with respect to methodological, aeon and acclimatization perspective. Capacity building is a relatively new phenomenon adopted from complex adaptive ecosystems and most studies in this area are of theoretical nature. Moreover, the fact that this research has considered not only the long term but also short-term market capitalization perspective, adds to its overall value and originality.

Understanding the ease of doing agribusiness in emerging Asian economies: evidence from world enterprises survey

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Waseem Khan ◽  
Trilok Pratap Singh ◽  
Mohammed Jamshed
Keyword(s):  
Political Stability ◽  
Chi Square ◽  
Content Type ◽  
Tax Rate ◽  
Doing Business ◽  
Top Managers ◽  
Wide Range ◽  
Asian Economies ◽  
A Minor ◽  
India And China

Purpose The purpose of this paper is to analyze the characteristics of agribusiness firms in India, China and Pakistan, as well as the challenges they face in doing business. Design/methodology/approach This study is based on the World Bank’s Enterprises Survey (WBES) data. The survey was carried out through a questionnaire survey from the owner and top managers of 716, 247 and 174 agribusiness from India, Pakistan and China, respectively. This enterprises survey has comprised the information regarding the wide range of firms’ characteristics and 16 parameters of business obstacles. Simple statistical tools such as chi-square and analysis of variance have been used to analyze the data. Findings Chi-square test shows the statistically significance difference in firms’ characteristics across agribusiness firms of India, China and Pakistan. Chinese firms are better in terms of having an international quality certification, own websites and getting credit. In Pakistan, access to land for agribusiness is an obstacle while for India and China, it is easy to acquire land for agribusiness purposes. In Pakistan, tax rate and political stability is a moderate obstacle while in India and China, it is a minor obstacle in agribusiness. Labor regulation does not perceive any considerable obstacle in doing business in India and Pakistan. Practical implications This study provides an understanding of differences in the agribusiness environment in emerging economies such as India, Pakistan and China based on WBES data. This study can be helpful for agribusiness managers and government policymakers for promoting agriculture-based entrepreneurship. Originality/value It is the first attempt to compare the profile of agribusiness firms in growing Asian economies such as India, Pakistan and China, as well as perceived business hurdles, using a comprehensive enterprises survey data of World Bank.

scholarly journals Financial development, income inequality and governance institutions

2020 ◽  
pp. 4-4
Author(s):  
Cristiano Perugini ◽  
Ipek Tekin
Keyword(s):  
Financial Development ◽  
Political Stability ◽  
Dynamic Panel Data ◽  
Panel Data Models ◽  
Dynamic Panel ◽  
Mediating Role ◽  
Regulatory Quality ◽  
Governance Institutions ◽  
The Relationship ◽  
Control Of Corruption

The paper investigates empirically how governance institutions mediate the link between financial development and inequality. To this aim, we assemble a dataset of 48 middle- and high-income countries for the period 1996-2014. Results, obtained by means of instrumental variables dynamic panel data models, reveal that financial development is pro-inequality; however, the strength of the relationship is attenuated in contexts with stricter control of corruption, better regulatory quality, political stability and rule of law. Institutional domains less directly related to the market economy - political voice and accountability and government effectiveness - do not play any mediating role.

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

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.

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