scholarly journals The Determinants of FDI in OIC Countries

2019 ◽  
Vol 10 (5) ◽  
pp. 466
Author(s):  
Sulaiman Sajilan ◽  
Muhammad Umar Islam ◽  
Mohsin Ali ◽  
Urooj Anwar
Keyword(s):  
Developing Countries ◽  
Fixed Effects ◽  
Trade Openness ◽  
Data Availability ◽  
Host Countries ◽  
Policy Makers ◽  
Poor Countries ◽  
Panel Fixed Effects ◽  
Developed World ◽  
The Impact

Foreign Direct investment (FDI) is considered to be an important source of capital especially in developing countries. FDI supplements local savings and brings a series of benefits in host countries. This research has focused OIC on countries since these countries are still far behind in attracting FDI compared to other developing countries. OIC member countries inhibit diversity in their resources from resource rich to resource poor countries. They lack behind the developed world in terms of economic development pertaining to weak economies. Since for these types of countries FDI can prove to be a vital source of capital, it becomes important to study the factors that affect it. This study exactly does the same by incorporating a series of determinants (inflation, size of the economy, trade openness, infrastructure, and institutional quality) to assess the impact they have in attracting FDI. We have used data for 42 countries spanning over 1996-2013. The choice of data selection has been dictated by data availability. For estimation we have used panel fixed effects and random effects estimators. Our results indicate that size of economy, infrastructure and trade openness are positively and significantly related in attracting FDI in those countries. Institutions on the other hand are negatively related. The effects of inflation are somewhat mixed according to our estimation and not robust. The implications of our findings are that policy makers should expend efforts in making more trade oriented policies, improve infrastructure and increase the size of economy.

Impact of trade facilitation reforms on tax revenue

2017 ◽  
Vol 44 (5) ◽  
pp. 765-780 ◽  
Author(s):  
Sena Kimm Gnangnon
Keyword(s):  
Developing Countries ◽  
Fixed Effects ◽  
Data Availability ◽  
Empirical Literature ◽  
Future Research ◽  
Tax Revenue ◽  
Trade Facilitation ◽  
Content Type ◽  
The World ◽  
The Impact

Purpose The purpose of this paper is to contribute to the empirical literature of the macroeconomic effect of trade facilitation reforms by examining the impact of the latter on tax revenue in both developed and developing countries. The relevance of the topic lies on the fact that at the Bali Ministerial Conference of the World Trade Organization (WTO) in 2013, Trade Ministers agreed for the first time since the creation of the WTO (in 1995) on an Agreement to facilitate trade around the world, dubbed Trade Facilitation Agreement (TFA). The study considers both at-the-border and behind-the border measures of Trade Facilitation. Design/methodology/approach To conduct this study, the authors rely on the literature related to the structural factors that explain tax revenue mobilization. The authors mainly use within fixed effects estimator. The analysis relies on 102 countries (of which 23 industrial countries) over the period 2004-2007 (based on data availability). A focus has also been made on African countries, within the sample of developing countries. Findings The empirical analysis suggests evidence of a positive and significant effect of trade facilitation reforms on non-resources tax revenue, irrespective of the sample of countries considered in the analysis. Research limitations/implications This finding should contribute to dampening the fear of policymakers in developing countries, including Africa that the implementation of the TFA would entail higher costs, without necessarily being associated with higher benefits. An avenue for future research would be to extend the period of the study when data would be available. Originality/value To the best of the authors knowledge, this study had not been performed in the literature of the determinants of tax revenue mobilization, although fact-based analysis was performed.

scholarly journals Cultural and Creative Cities and Regional Economic Efficiency: Context Conditions as Catalyzers of Cultural Vibrancy and Creative Economy

2021 ◽  
Vol 13 (13) ◽  
pp. 7150
Author(s):  
Silvia Cerisola ◽  
Elisa Panzera
Keyword(s):  
Fixed Effects ◽  
Local Context ◽  
Creative Economy ◽  
Fixed Effects Model ◽  
Creative Cities ◽  
Economic Output ◽  
Innovative Methodology ◽  
Holistic Conception ◽  
Panel Fixed Effects ◽  
The Impact

Following the hype that has been given to culture and creativity as triggers and enhancers of local economic performance in the last 20 years, this work originally contributes to the literature with the objective of assessing the impact of cultural and creative cities (CCCs) on the economic output of their regions. In this sense, the cultural and creative character of cities is considered a strategic strength and opportunity that can spillover, favoring the economic system of the entire regions in which the cities are located. Through an innovative methodology that exploits a regional production function estimated by a panel fixed effects model, the effect of cities’ cultural vibrancy and creative economy on the output of their regions is econometrically explored. The data source is the Cultural and Creative Cities Monitor (CCCM) provided by the JRC, which also allows the investigation of the possible role played by the enabling environment in catalyzing the action of cultural vibrancy and creative economy. The results are thoroughly examined: especially through cultural vibrancy, CCCs strategically support the output of their region. This is particularly the case when local context conditions—such as human capital and education, openness, tolerance and trust, and quality of governance—catalyze their effect. Overall, CCCs contribute to feeding a long-term self-supporting system, interpreted according to a holistic conception that includes economic, social, cultural, and environmental domains.

Understanding Affordability

2020 ◽  
Author(s):  
Geoffrey Meen ◽  
Christine Whitehead
Keyword(s):  
Low Income ◽  
Structural Changes ◽  
Home Ownership ◽  
House Prices ◽  
Household Formation ◽  
Policy Makers ◽  
Political Forces ◽  
The Uk ◽  
Developed World ◽  
The Impact

Affordability is, perhaps, the greatest housing problem facing households today, both in the UK and internationally. Even though most households are now well housed, hardship is disproportionately concentrated among low-income and younger households. Our failure to deal with their problems is what makes housing so frustrating. But, to improve outcomes, we have to understand the complex economic and political forces which underlie their continued prevalence. There are no costless solutions, but there are new policy directions that can be explored in addition to those that have dominated in recent years. The first, analytic, part of the book considers the factors that determine house prices and rents, household formation and tenure, housing construction and the roles played by housing finance and taxation. The second part turns to examine the impact of past policy and the possibilities for improvement - discussing supply and the impact of planning regulation, supply subsidies, subsidies to low-income tenants and attempts to increase home ownership. Rather than advocating a particular set of policies, the aim is to consider the balance of policies; the constraints under which housing policy operates; what can realistically be achieved; the structural changes that would need to occur; and the significant sacrifices that would have to be made by some groups if there are to be improvements for others. Our emphasis is on the UK but throughout the book we also draw on international experience and our conclusions have relevance to analysts and policy makers across the developed world.

Self-Reliance in Africa

1968 ◽  
Vol 6 (3) ◽  
pp. 361-372 ◽  
Author(s):  
A. F. Ewing
Keyword(s):  
Developing Countries ◽  
Foreign Aid ◽  
Developing World ◽  
Economic Situation ◽  
Poor Countries ◽  
Self Reliance ◽  
Developed World

The sombre picture of the economic situation in most developing countries, and not least in Africa, has become increasingly familiar in the last two or three years. Foreign aid is at best not increasing and the terms on which it is offered are hardening. There has been little or no relaxation of the obstacles to increased trade between the developed and the under-developed world. The growth of many poor countries has been limited; and, indeed, within the developing world, the gap between those at the top and those at the bottom is growing, as is that between the developed and the under-developed world as a whole.

Impact of corruption on Chinese investment in African countries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shilin Yuan ◽  
Haiyang Chen ◽  
Wei Zhang
Keyword(s):  
Developing Countries ◽  
Developing Country ◽  
Host Country ◽  
Practical Implication ◽  
Host Countries ◽  
African Countries ◽  
Control Variables ◽  
Content Type ◽  
The Impact ◽  
New Evidence

Purpose This paper aims to examine the impact of host country corruption on foreign direct investment (FDI) from China to developing countries in Africa. With the opposing arguments that corruption is detrimental to or instrumental in FDI and mixed empirical evidence, this paper contributes to the literature by providing new evidence on the issue. Additionally, little research has been done on the impact of corruption on FDI made by developing country multinationals to developing countries. This paper fills a void in this area. Design/methodology/approach Based on the published literature, as well as China and Africa contexts, the authors develop hypotheses that host countries with low corruption receive more FDI and resource-seeking investments weaken the relationship. The annual stock of Chinese FDI in 35 African countries, host country corruption data and other control variables from 2007 to 2015 are collected. Feasible generalized least squares models are used to test the hypotheses. Additional robustness tests are also conducted. Findings The findings support the hypotheses. Specifically, Chinese investors make more investments in host countries with low corruption except for resource-seeking investments in resource-rich host counties. The results are statistically significant accounting for various control variables. The results of the robustness tests show that the main findings are robust. Originality/value First, this study provides new evidence on the impact of corruption on FDI. Second, this study also fills a void by examining FDI from a developing country, China to other developing countries in Africa. Finally, this study also has a practical implication for Chinese multinationals investing in Africa.

ANALYSIS AND PROSPECTS FOR IMPLEMENTATION OF THE INVESTMENT LIBERALIZATION REGIME IN THE WORLD ECONOMY

2021 ◽  
pp. 99-109
Author(s):  
Shokhrukh B. Akhmedov ◽  
◽  
Vladimir M. Kutovoi ◽  
Keyword(s):  
Developing Countries ◽  
Economic Development ◽  
World Economy ◽  
Trade Openness ◽  
Economic Policies ◽  
Foreign Companies ◽  
The World ◽  
Local Sources ◽  
Political Conditions ◽  
The Impact

The article assesses a significance of the most important component of the agreement on accession to the WTO, namely the agreement on trade-related investment measures (TRIMs), in increasing the attractiveness of developing countries to investors from abroad. In addition, traditional determinants of FDI placement, such as the macroeconomic stability, trade openness, and economic development, are considered. The authors carry out an analysis in the field of regulation of TRIMs by the example of economic policies in developing countries. The study shows that the extent to which TRIMs contributed to achieving the goals varied significantly, reflecting the specific economic and political conditions of the country using them. In some cases, they played a role in encouraging foreign companies to make more use of local sources or increase their exports from the host country. In other cases, the impact seemingly was negligible.

Modelling the Open Economy, Devaluation, and the Exchange Rate in Developing Countries

2020 ◽  
pp. 277-306
Author(s):  
Giovanni Andrea Cornia
Keyword(s):  
Developing Countries ◽  
Exchange Rate ◽  
Open Economy ◽  
Exchange Rate Volatility ◽  
Empirical Literature ◽  
Economy Model ◽  
Poor Countries ◽  
Pros And Cons ◽  
External Sector ◽  
The Impact

The chapter first examines the limitations of conventional open-economy macro models, such as the Mundell–Fleming model, when they are applied to developing countries. It discusses the Swan–Salter model and the three-sector dependent-economy model that better capture the reality of the external sector in poor countries. It then discusses the impact of devaluation under conditions of closed and open capital accounts and shows the limitation of a devaluation unaccompanied by structural measures in little diversified poor economies and in economies with large dollar liabilities. In this regard, it examines the results of the empirical literature on the contractionary or expansionary effect of devaluation in developing countries. Finally, it reviews the pros and cons of alternative exchange rate regimes, the impossible trinity theorem, and measures to control exchange rate volatility through capital controls.

scholarly journals The Impact of Wood Fuel Energy on Economic Growth in Sub-Saharan Africa: Dynamic Macro-Panel Approach

2020 ◽  
Vol 12 (8) ◽  
pp. 3280 ◽  
Author(s):  
Chindo Sulaiman ◽  
A.S. Abdul-Rahim
Keyword(s):  
Economic Growth ◽  
Fuel Consumption ◽  
Fixed Effects ◽  
Sub Saharan Africa ◽  
Wood Fuel ◽  
Policy Makers ◽  
Interaction Term ◽  
Sub Saharan ◽  
Solar Powered ◽  
The Impact

This study estimates the impact of wood fuel consumption on economic growth in 19 sub-Saharan African countries over the 1979-2017 period. The study employs dynamic macro-panel estimators, which comprises pooled mean group (PMG), mean group (MG), and dynamic fixed effects (DFE). The estimated result reveals that PMG is the most efficient estimator among the three estimators based on the Hausman h-test. The results from PMG model reveal that wood fuel consumption has significant negative impact on economic growth. Also, when an interaction term between labor and wood fuel consumption was included in the model and estimated, the coefficient of wood fuel consumption yields negative and significant coefficient. This suggests that the interaction term has a negative and significant effect on economic growth. These results unveil that wood fuel consumption negatively and significantly affect economic growth, both directly and indirectly. The policy recommendations from this study are as follows: (1) Governments of these countries should provide adequate and affordable modern fuels to the populace; especially rural dwellers to decrease the use of wood fuel for cooking and heating (2) policy makers should intensify awareness campaign on the risk and danger wood fuel poses to economic growth so as to discourage its use and (3) policy makers should provide adequate solar powered stoves and solar-powered room heaters as cheap substitutes to the use of wood fuel for cooking and heating. These recommendations will assist in negating the negative effects of wood fuel consumption on economic growth of the region.

scholarly journals Impact of Trade Liberalization on Economic Growth of Nepal

2019 ◽  
Vol 8 ◽  
pp. 136-148
Author(s):  
Ramesh Bahadur Khadka
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Gross Domestic Product ◽  
Trade Liberalization ◽  
World Bank ◽  
Trade Balance ◽  
Trade Openness ◽  
Domestic Product ◽  
Total Trade ◽  
The Impact

Trade openness has been considered as an important determinant of economic growth. It has been witnessed during the past couple of decades that international trade openness has played a significant role in the growth process of both developed and developing countries. International organizations such as Word Trade Organization, International Monetary Fund and World Bank are constantly advising, especially developing countries, to speed up the process of trade liberalization to achieve high economic growth. In this context, this paper aims to analyze the impact of trade liberalization on economic growth of Nepal. For this purpose, all the data regarding gross domestic product, export, import, total trade, trade balance of Nepal from 1980 A.D. to 2013 A.D. published by World Bank (2014) were used. Both descriptive as well as inferential statistics were used to analyze the data. Correlation analysis was used to find the correlation between the selected variables. Multiple linear regression analysis was carried out to analyze the impact of the trade liberalization in economic growth of Nepal. Trade cost does not explain any influence in gross domestic product, export, import, total trade and trade balance. The impact of trade openness is positive for all variables except trade balance. Trade openness has influenced economy significantly; import increased with purchasing power, export also increased but service only. Therefore, there is gap in export and imports.

Compensation Consultants and the Level, Composition, and Complexity of CEO Pay

2019 ◽  
Vol 95 (1) ◽  
pp. 311-341 ◽  
Author(s):  
Kevin J. Murphy ◽  
Tatiana Sandino
Keyword(s):  
Fixed Effects ◽  
Conflicts Of Interest ◽  
Data Availability ◽  
The Public ◽  
Say On Pay ◽  
Suggestive Evidence ◽  
Ceo Pay ◽  
The Impact ◽  
Equity Incentive ◽  
Jel Classifications

ABSTRACT We provide fresh evidence regarding the relation between compensation consultants and CEO pay. First, firms that employ consultants have higher-paid CEOs—this result is robust to firm fixed effects and matching on economic and governance variables. Second, while this relation is partly due to consultant conflicts of interest, it is largely explained by the impact consultants have on the composition and complexity of CEO pay plans; notably, this impact fully mediates the consultant-CEO pay relation. Third, firms with higher-paid CEOs and more complex pay plans are more likely to hire a consultant. Last, Say-on-Pay voting patterns suggest shareholders view positively the advice consultants provide, but only when consultants provide no other services. We also find suggestive evidence of boards “layering” new equity incentive plans over existing ones, thereby increasing the impact of composition and complexity on CEO pay beyond the premium the CEO would demand for bearing additional compensation risk. JEL Classifications: J33; M12; M52; M48. Data Availability: Data are available from the public sources cited in the text.

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