The Nexus Between Institutional Quality and Foreign Direct Investments (FDI) in South Asia

2017 ◽  
pp. 293-310 ◽  
Author(s):  
Mohammad Ashraful Ferdous Chowdhury
Keyword(s):  
South Asia ◽  
World Bank ◽  
Dynamic Models ◽  
Positive Impact ◽  
Institutional Quality ◽  
Political Stability ◽  
Foreign Direct Investments ◽  
Quality Factors ◽  
Developing Regions ◽  
Dynamic Heterogeneous Panel

South Asia is one of the world's fastest growing regions, averaging 6.7 percent annual increases in real GDP over the past decade. However, South Asia's FDI inflows as a share of GDP are the lowest of all developing regions, averaging less than 2 percent in 2000-11(World Bank, 2013). Institutional quality is one of the factors that determine the volume of FDI inflow in any country. This study covers the data of three sampled countries of South Asia provided by the World Bank for the period 2003-2014. By using both static and dynamic models, this study reveals that regulatory quality and the political stability have significantly positive impact on the FDI inflow into each of the three countries. For Robustness, this study also employs dynamic heterogeneous panel approaches like Pool Mean Group (PMG) and found that institutional quality factors are significantly relevant to the FDI. As a policy implication, the regression results indicate that during the process of reform, the relation between FDI and institutional quality warrants a certain amount of attention.

The Nexus Between Institutional Quality and Foreign Direct Investments (FDI) in South Asia

2020 ◽  
pp. 676-693
Author(s):  
Mohammad Ashraful Ferdous Chowdhury
Keyword(s):  
South Asia ◽  
World Bank ◽  
Dynamic Models ◽  
Positive Impact ◽  
Institutional Quality ◽  
Political Stability ◽  
Foreign Direct Investments ◽  
Quality Factors ◽  
Developing Regions ◽  
Dynamic Heterogeneous Panel

South Asia is one of the world's fastest growing regions, averaging 6.7 percent annual increases in real GDP over the past decade. However, South Asia's FDI inflows as a share of GDP are the lowest of all developing regions, averaging less than 2 percent in 2000-11(World Bank, 2013). Institutional quality is one of the factors that determine the volume of FDI inflow in any country. This study covers the data of three sampled countries of South Asia provided by the World Bank for the period 2003-2014. By using both static and dynamic models, this study reveals that regulatory quality and the political stability have significantly positive impact on the FDI inflow into each of the three countries. For Robustness, this study also employs dynamic heterogeneous panel approaches like Pool Mean Group (PMG) and found that institutional quality factors are significantly relevant to the FDI. As a policy implication, the regression results indicate that during the process of reform, the relation between FDI and institutional quality warrants a certain amount of attention.

Institutional Quality and Financial Development: Evidence from Developing and Emerging Economies

2020 ◽  
pp. 097215091989236 ◽  
Author(s):  
Hayat Khan ◽  
Sher Khan ◽  
Fan Zuojun
Keyword(s):  
Financial Development ◽  
Rule Of Law ◽  
Dynamic Models ◽  
Random Effect ◽  
Generalized Method Of Moments ◽  
Institutional Quality ◽  
Political Stability ◽  
Emerging Countries ◽  
Data Set ◽  
Control Of Corruption

Using a panel data set of 189 countries by employing dynamic models OLS, fixed effect, random effect and generalized method of moments (GMM) estimators. The study revisits the relationship between institutional quality and financial development in developing and emerging countries. This study is ever the first comprehensive and wide-ranging that categorizes the countries into developing and emerging countries using multiple dynamic approaches. Experimental findings of the study are based on GMM, which indicates that better institutions are important for financial development, specifically political stability, control of corruption and regulatory quality positively affect financial development in the global panel of the study. Rule of law negatively affects financial development, which reveals that in most of the global countries, the rule of law is very feeble. Control of corruption index is positively effecting financial development in emerging and global panel which indicates that most of the countries have reduced corruption to low level. The current study also found that emerging countries have reduced corruption, but other institutional indicators are found to be insignificant. The overall result concludes that good quality institutions are the main drivers of financial development and it stimulates financial development. The present study suggests that developing and emerging countries should focus to improve the institutional quality by re-examining the rules of law, government effectiveness and voice accountability institutional factors to make it better.

scholarly journals Evaluation of institutional grounding for Russian investments to basic industries of Nepal

2020 ◽  
Vol 12 (4) ◽  
pp. 455-465
Author(s):  
Sh. Mishra ◽  
A. M. Zobov ◽  
E. A. Fedorenko
Keyword(s):  
South Asia ◽  
Political Stability ◽  
Good Choice ◽  
Diplomatic Relation ◽  
The Political ◽  
Foreign Direct Investments ◽  
Economic Relation ◽  
Economic Relations

This article is developed to understand the Russian investment in Nepal. Since these days due to the western section it is necessary for Russia to expand its economic relations to others continent and Asia is a best part to expand its investment. As there are some countries already tie with Russia in economic connection from South Asia like India, Pakistan but with Nepal and Russia had more on diplomatic relation. Thus it is very good choice to look and increase for economic relation for Russia with Nepal. The author has highlighted institution determinant of Foreign Direct Investments (FDI) to attract investment in Nepal because these days the political stability has become better in Nepal. The author also found the industries to invest in Nepal for Russia however there are some investment existed already by Russia. The author has recommended to the investors to invest in some specific industries without any hesitation as Nepal is facilitation for investment attraction and also its institution condition is becoming better.

scholarly journals ENTREPRENEURSHIP AND ECONOMIC GROWTH NEXUS IN NIGERIA: MODERATING EFFECT OF INSTITUTIONAL QUALITY: ARDL COINTEGRATION APPROACH

2021 ◽  
pp. 5-19
Author(s):  
Yusuf Shamsuddeen Nadabo ◽  
Suleiman Maigari Salisu
Keyword(s):  
Economic Growth ◽  
Positive Impact ◽  
Interactive Effect ◽  
Institutional Quality ◽  
Political Stability ◽  
Entrepreneurial Activity ◽  
Distributed Lag ◽  
Moderator Model ◽  
The Impact

This paper explores the relationship between entrepreneurship and economic growth in Nigeria: the moderating role of institutional quality. To accomplish this, the study employs an Autoregressive distributed lag (ARDL) from (2002Q1–2019Q4) and uses a moderator model to examine the impact of entrepreneurship on economic growth via institutional quality. The resilts show that institutional quality in Nigeria has a positive impact on economic growth. The results also indicate that the interactive effect of institutional quality and entrepreneurship has positive effect on economic growth in Nigeria both in the short-run and long-run. The study illustrate that the productive entrepreneurship is a potent vehicle for promoting long term economic growth in Nigeria. In general, unless institutional quality is introduced to improve the influence of entrepreneurship on economic growth, entrepreneurial activity alone may not lead to desired growth. Furthermore, the study presents a perspective of the role of government in establishing an enabling environment that promotes entrepreneurial activity and, as a result, enhances economic growth in Nigeria. Based on this finding, the study recommends for the implimantation of measures and policies aims at encourageing productive entrepreneurial activities that contribute to economic growth. In addition Government and policymakers should improved the quality of institutions such as improving Government Effectiveness, Political Stability and Absence of Violence, Voice and Accountability, Regulatory Quality, Rule of Law and Control of Corruption. KEYWORDS: Economic growth, Entrepreneurship, Moderating, Institutional quality.

Probing Environmental Sustainability through Institutional Quality in South Asia

2018 ◽  
Author(s):  
Ghulam Rasool Madni
Keyword(s):  
Energy Consumption ◽  
South Asia ◽  
Co2 Emissions ◽  
Environmental Sustainability ◽  
Co2 Emission ◽  
Positive Impact ◽  
Institutional Quality ◽  
Kuznets Curve ◽  
Long Run ◽  
The Impact

The impact of institutional quality on environmental sustainability is hardly discussed in literature in spite of its crucial role for economies. This article explores the relationship of institutional quality, energy consumption and real GDP on carbon dioxide (CO2) emissions for selected countries of South Asia covering the period of 1996-2015 by applying unit root tests and the starter panel technique. The findings of study highlight that institutional quality in these countries matter for emission of environmental pollutants. The estimated results reveal the significant positive impact of energy consumption on CO2 emission in long run and economic growth has a quadratic relationship with CO2 emission. However, the EKC (Environmental Kuznets Curve) hypothesis is proved by estimation of long run coefficients of real per capita income and its square value. The findings of study propose that not all countries have to sacrifice growth to reduce CO2 emissions as it can be reduced through energy conservation and improved institutional quality.

Institutional Quality and Trade Flow: Empirical Evidence from Malaysia and Other OIC Member Countries in Africa

2021 ◽  
pp. 097508782098717
Author(s):  
Hammed Agboola Yusuf ◽  
Luqman Olanrewaju Afolabi ◽  
Waliu Olawale Shittu ◽  
Kafilah Lola Gold ◽  
Murtala Muhammad
Keyword(s):  
Economic Growth ◽  
Bilateral Trade ◽  
Trade Flow ◽  
Estimation Method ◽  
Institutional Quality ◽  
Likelihood Estimation ◽  
Political Stability ◽  
Bilateral Trade Flow ◽  
World Governance Indicators ◽  
The Impact

This article examines the impact of institutional quality on bilateral trade flow between Malaysia and selected 25 African Organisation of Islamic Cooperation (OIC) member countries. Four institutional qualities were selected from World Governance Indicators with other trade predictors from the period from 1985 to 2016. Using gravity model of trade and Poisson pseudo-maximum likelihood estimation method (PPML) technique, the results confirm that government effectiveness, regulatory quality and political stability have an adverse effect on bilateral trade flow among the OIC countries in Africa. On the other hand, these institutional quality variables were considered as a strength for Malaysian economic growth. Therefore, better institutional quality reforms are needed among OIC member countries in Africa in order to accelerate trade, economic growth and development in their region.

scholarly journals What Determines the Financial and Insurance Services Exports: The Case of the United Kingdom

2021 ◽  
Vol 3 (6) ◽  
pp. 1071-1081
Author(s):  
Emmanouil Karakostas
Keyword(s):  
United Kingdom ◽  
Financial Services ◽  
Positive Impact ◽  
Essential Element ◽  
Political Stability ◽  
Financial Sector ◽  
State Intervention ◽  
Ordinary Least Squares ◽  
The United Kingdom ◽  
Almost All

The financial sector is a very basic pillar of the international financial system. Almost all countries of the present international economic system participate in international financial services. Today's era, due to intense globalization, constant capital movements, continuous commercial integration and the ever-increasing financial interconnection, have made financial and insurance services an essential element of the present reality. The financial sector is an industry that is very 'sensitive' to the macroeconomic and political stability of countries. This means that countries that are considered unstable cannot have a positive impact on their financial activities. One country that has a strong position in the financial sector is the United Kingdom (UK). The question that can be asked is this: what are the factors that determine the optimal functioning of financial and insurance activities. One answer could be the strong financial institutions of a country. Another answer is the corruption indicator. Or even the existence of intervention by the state apparatus in the financial functions. Of course, these factors must have tangible proof of the functioning of the economy. State intervention, for example, does not entirely mean that it is dysfunctional. This study will seek to create a framework for the analysis of financial services factors. The methodology applied is The Multiple Linear Regression - Ordinary Least Squares (OLS).

scholarly journals The investigation of the state of Ukraine furniture industry development under current economic conditions

2021 ◽  
Vol 68 (1) ◽  
pp. 174-184
Author(s):  
N. Bondarenko ◽  
D. Udalykh
Keyword(s):  
Positive Impact ◽  
State Regulation ◽  
Economic Conditions ◽  
Foreign Direct Investments ◽  
Furniture Industry ◽  
Number Increase ◽  
Long Time ◽  
Business Entities ◽  
Design Diversity

Furniture for a long time has been an integral component of human activity, recreation and everyday life. Its design, diversity and versatility along with the development of human civilization is increasingly becoming the object of further improvement. At present furniture production in Ukraine is the developing industry, gradually entering the European market in terms of quality and design. European furniture market is extremely attractive to operators and, therefore, has dynamics towards the competitor number increase. One of the factors of increasing the industry attractiveness is the support of amendments to the Law of Ukraine «On peculiarities of state regulation of business entities related to the sale and export of timber» by the Verkhovna Rada of Ukraine in April 2015, which imposed temporary, gradual prohibition on the export of raw timber (forest logs) for 10 years. The corresponding partial prohibition entered into force on 11.01.2015, and complete prohibition (including pine wood) - from January 1, 2017. The consequences of this moratorium during the first five years of its operation, which is important in the context of politicization of this problem are analyzed in this paper. The dynamics and structure of the amount of enterprises in industry and the number of employees employed in them are investigated. The volume of furniture industry sales in general and the areas of their implementation (internal or external markets) are analyzed. The next stage is the analysis of the dynamics of the ratio of furniture products exports and imports in Ukraine and determination of the major exporters of such products. The final stage is the investigation of the dynamics of foreign direct investments in the enterprises capital share in this industry in order to identify its investment attractiveness. As a result, it is determined that the introduced moratorium has partial positive impact on the development of furniture industry in Ukraine. However, at present, the furniture industry is not attractive enough for new foreign investment. This is the consequence of significant amount of «shadow» production, which in its turn destabilizes the situation in the furniture market. Ukrainian manufacturers will be able to strengthen their position in domestic market and even abroad, if they solve the main problems in furniture production and eliminate all disincentives.

scholarly journals L’assurance vie : un atout pour lutter contre la pauvreté monétaire des travailleurs dans la CEMAC

2021 ◽  
Vol 87 (3-4) ◽  
pp. 267-290
Author(s):  
Jean Francky Landry Ngono
Keyword(s):  
Least Squares ◽  
World Bank ◽  
Life Insurance ◽  
Political Stability ◽  
Working Poor ◽  
The World Bank ◽  
Indicator Variables ◽  
Moments Method ◽  
Error Terms ◽  
Generalized Moments

The objective of this study is to determine the effect of life insurance on the monetary poverty of workers in the CEMAC. To do this, data from the World Bank (2019), the United Nations Program (UNDP, 2018) and the Global Financial Development Database (2019) justified a study period which goes from 2007 to 2017. The estimation of the model used in this work was done, using least squares with indicator variables then corrected for problems of heteroskedasticity and autocorrelation of error terms by panel corrected standard error (PCSE) and the least squares achievable (FGLS), then by the generalized moments method. As a result, it first appears that life insurance can significantly reduce the percentage of working poor in CEMAC. And secondly, it appears that education is an important lever to combat the precariousness of workers in this sub-region. Finally, the results show that political stability and an increase in the growth rate of the gross domestic product (GDP) per capita also reduce the percentage of working poor in the CEMAC.

A Step Towards Environmental Mitigation: How Do Economic Complexity And Natural Resources Matter? Focusing On Different Institutional Quality Level Countries

2021 ◽  
Author(s):  
Parisa Esmaeili ◽  
Meysam Rafei ◽  
Daniel Balsalobre- Lorente
Keyword(s):  
Natural Resources ◽  
Environmental Quality ◽  
Ecological Footprint ◽  
Positive Impact ◽  
Institutional Quality ◽  
Clean Energy ◽  
Quality Level ◽  
Renewable Energy Consumption ◽  
Vector Autoregressive ◽  
Economic Complexity

Abstract Changes in the economic structure and human lifestyle lead to environmental pollution, one of today's prime challenges. With this in mind, the main objectives of this study are to evaluate the impacts of economic complexity, natural resources, renewable energy consumption, and foreign direct investment on the ecological footprint in weak, medium, and high levels of institutional quality countries. This study is probably one of the first studies to examine the effect of the economic complexity on ecological footprint and classify countries based on their institutional quality levels. Furthermore, the interaction of economic complexity and natural resources is considered a new variable. For this purpose, the panel vector autoregressive model is used. The results revealed that economic complexity in all countries has a positive impact on ecological footprint, and also it has the greatest impact on ecological footprint among the considered variables. Conversely, the interaction of economic complexity and natural resources contributes to environmental quality. Notably, the impacts of study variables on ecological footprint are more robust in a medium level of institutional quality countries. According to the study's outcomes, the main recommendation is the R&D activities improvement to develop environmentally friendly technologies and clean energy infrastructure to improve environmental quality.

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