scholarly journals Institutions, Culture and Foreign Direct Investment in Transition Economies: Does Culture Matter and Why?

2020 ◽  
Author(s):  
Sabina Silajdzic ◽  
Eldin Mehic

The aim of this research is to analyse the importance of cultural and institutional determinants in attracting FDI to transition countries. We rely on gravity econometric framework and examine the impact of cultural and institutional factors on FDI using bilateral FDI flows between home (i.e. major trading partners) and eight transition economies in the period 2000–2018. We study this relationship in an integrated framework considering principal gravity forces, traditional FDI determinants, policy and institutional factors. We provide strong and robust evidence that cultural factors, depicted in Hofmann cultural indices, influence MNCs’ locational decisions. Other things held constant, specific cultural features seem more important than formal institutions, which seems at odds with standard neoclassical propositions, and shed some new light on the way we understand international business transactions.

SAGE Open ◽  
2021 ◽  
Vol 11 (2) ◽  
pp. 215824402110060
Author(s):  
Nazima Ellahi ◽  
Adiqa Kausar Kiani ◽  
Muhammad Awais ◽  
Hina Affandi ◽  
Rabia Saghir ◽  
...  

A more regulated and better working financial sector contributes toward achieving monetary growth based on proficient resource allocation and reducing information asymmetries. Current trends in research highlight the significance of factors determining the financial sector’s development; therefore, this study explores the institutional drivers, which are indispensable for developing the financial industry in the South Asian Association of Regional Cooperation (SAARC) region. Specifically, it examines the impact of institutional factors, trade openness, real output, legal origin, and inflation on the financial sector’s development. By employing the panel data method of generalized method of moments (GMM), the study concluded that trade openness, institutional factors, legal origin, and real gross domestic product (GDP) have a positive and significant impact on financial depth. However, the inflation rate has been found to affect it negatively. Finally, the study presents policy recommendations based on empirical findings.


Author(s):  
Vera Heuer ◽  
Gabriela Rangel

For decades, women were actively excluded from the political arena. As suffrage expanded around the world, women’s rights activists celebrated a major step toward gender equality in the political arena. Yet the gender gap in political engagement still persists to this day. Although in some countries, women are now found to turn out to vote at rates similar to men (and in industrialized countries, women may even vote at higher rates), they are still less likely to participate in many other types of political activities. Scholars have long investigated the factors influencing women’s political engagement. Early research focused heavily on individual level factors—most often lack of access to resources or informal networks—as determinants of the gender gap. A burgeoning body of literature, however, has identified institutions as an important factor influencing women’s political engagement. Thus this bibliography focuses on those institutional determinants of women’s political engagement defined as any type of political activity that nonelite women take part in. This includes voting, participating in campaigns, and engaging in demonstrations or protests, but also more cognitive aspects of engagement, such as political interest and political knowledge. This bibliography does not focus on the impact of institutions on women’s access or election into political office, as there is extensive literature on institutional determinants and women’s representation, which falls outside of the scope of women’s engagement as nonstate actors. The research outlined here, however, does consider a variety of institutional factors that influence women’s engagement. The bibliography begins by reviewing the literature on how the structures of the political system—including Regime Type, electoral rules, and quotas—impact women’s engagement. It then discusses how institutions can indirectly influence women’s political attitudes and behavior, by reviewing the impact of the composition of institutions on women’s engagement. That section is followed by a set of research that shows how institutional outcomes—namely Policy Outcomes and Institutional Support—influence various forms of political participation, and concludes with examples of nonstate institutions and their impact on women’s engagement.


2020 ◽  
pp. 62-79
Author(s):  
P. N. Pavlov

The paper analyzes the impact of the federal regulatory burden on poverty dynamics in Russia. The paper provides regional level indices of the federal regulatory burden on the economy in 2008—2018 which take into account sectoral structure of regions’ output and the level of regulatory rigidity of federal regulations governing certain types of economic activity. Estimates of empirical specifications of poverty theoretical model with the inclusion of macroeconomic and institutional factors shows that limiting the scope of the rulemaking activity of government bodies and weakening of new regulations rigidity contributes to a statistically significant reduction in the level of poverty in Russian regions. Cancellation of 10% of accumulated federal level requirements through the “regulatory guillotine” administrative reform may take out of poverty about 1.1—1.4 million people.


2021 ◽  
Vol 5 (2) ◽  
pp. 22
Author(s):  
Chiara Binelli

Several important questions cannot be answered with the standard toolkit of causal inference since all subjects are treated for a given period and thus there is no control group. One example of this type of questions is the impact of carbon dioxide emissions on global warming. In this paper, we address this question using a machine learning method, which allows estimating causal impacts in settings when a randomized experiment is not feasible. We discuss the conditions under which this method can identify a causal impact, and we find that carbon dioxide emissions are responsible for an increase in average global temperature of about 0.3 degrees Celsius between 1961 and 2011. We offer two main contributions. First, we provide one additional application of Machine Learning to answer causal questions of policy relevance. Second, by applying a methodology that relies on few directly testable assumptions and is easy to replicate, we provide robust evidence of the man-made nature of global warming, which could reduce incentives to turn to biased sources of information that fuels climate change skepticism.


Author(s):  
Aleksandra Conevska

Abstract Environmental shocks in the form of natural disasters are well known for their impact on domestic economies. Less known, however, is their impact on the global economy. The scant existing literature suggests that macro-economic impacts manifest in observed empirical decreases in international trade. The literature, however, does not examine whether the impact of natural disasters on trade varies for trading partners with differing levels of market integration. This paper examines if preferential liberalization serves to protect or buffer against the negative economic consequences of natural disasters. I show that deep preferential liberalization can not only protect countries against the negative macro-economic impact of natural disasters but can actually allow countries to increase exports during natural disaster events that otherwise induce trade decline. These findings suggest that by allowing countries to expand the quantity and the range of exports, preferential trade agreements lead to enhanced resilience against exogenous shocks.


2020 ◽  
Vol 12 (4) ◽  
pp. 077-093
Author(s):  
Marina Yu. Malkina ◽  
◽  
Vyacheslav N. Ovchinnikov ◽  
Konstantin A. Kholodilin ◽  
◽  
...  

The aim of this study is to analyze and assess the impact of institutional factors on political trust in various levels of government (federal, regional and local) in modern Russia. Data and methods. The study is based on microdata from the European Bank for Reconstruction and Development (EBRD) “Life in Transition Survey” (LiTS). We examined such institutional factors of political trust as perceived government performance and level of corruption, as well as the level of interpersonal trust. The subjective decile of household wealth was an additional explanatory variable in our analysis. We estimated the model parameters using linear regressions with instrumental variables. Results and their application. First, we found that in 2016 the perceived effectiveness of the federal government was the main determinant of Russian trust in the president. At the same time, the perceived level of local corruption was a major factor of Russian citizens’ (mis)trust in local authorities. Second, we found that poor households turned out to be the most loyal groups of the population towards the Russian president, and we explained this phenomenon by the active redistributive policy of the federal authorities. Third, we revealed a significant positive relationship between political and interpersonal trust at the micro level. In conclusion, we made recommendations on the effective management of political trust in modern Russia.


2021 ◽  
Vol 11 (11) ◽  
pp. 923-937
Author(s):  
Ngatno ◽  
Apriatni Endang Prihatiningsih

The purpose of this study is to identify the impact of the Covid-19 pandemic on Indonesia's export and import activity in the Asian region. Data on exports and imports from February 2019 to March 2020 (before the pandemic) and from April 2020 to May 2021 (during the pandemic) was collected from the Indonesian Central Statistics Agency portal. The results show that the impact of the Covid-19 pandemic does not always decrease Indonesia's exports and imports in countries in the Asian region. For exports, out of 51 countries, only 18 decreased significantly, 14 countries decreased insignificantly, and 19 countries increased. On the import side, out of the same 51 countries, only 11 experienced a significant decline, 24 countries experienced an insignificant decrease, and 19 countries experienced an increase. The Indonesian government must implement various policies that can protect and encourage exports by providing fiscal stimulus, diversifying trading partners, deregulation, and industrial downstream, among others. Further research needs to be carried out on how the effects of the pandemic changed import and exports according to product type and how the severity of the pandemic affects within a country affected export and import activities.


2020 ◽  
Vol 2020 (1) ◽  
pp. 76-81
Author(s):  
S Rabkin

Using the main elements of the institutional analysis methodology, the author considers the impact of geopolitical factors on Russia's economic security. Based on historical and economic analysis, it is concluded that the decisions of the Crimean (Yalta) and Potsdam (1945) conferences that defined the contours of the multipolar model of the modern world should be followed. As a counteraction to the geopolitical challenges to the economic security of the Russian Federation in a multipolar world, it is proposed to consider the issues of spatial development as an institutional basis for the formation of a future model of global security.


2021 ◽  
Vol 3 (13 (111)) ◽  
pp. 18-30
Author(s):  
Tetiana Ostapenko ◽  
Oleksandr Onopriienko ◽  
Iryna Hrashchenko ◽  
Elvira Danilova

The problem under investigation is determined by the fact that enterprises consist of separate economic agents that play an increasingly important role in production processes and their management. The channels of such management provide the transfer of positive experience of the totality of economic agents to the global environment. Due to the permanent process of transformations in the world caused by this influence, the probability of being on the sidelines is a problem for most business entities. Their competitiveness and integration into the world economic networks depend on high-quality management and wide application of innovative technologies, including nanotechnologies. The conducted study revealed that: – nano-economy consists of baby economy, human economy, and the economy of nanotechnologies; – the human economy is the central link and the main leader of the impact of nano-economy on global markets. The main components of its management are self-management, self-marketing, and innovative management of the organization personnel; – nanotechnologies, the economics of nanotechnologies, and transfer of nano-knowledge are at the initial stage of their development; – the impact of nano-economy on the development of the global environment is carried out through the functions of nanomanagement; – the management channels of the nano-economy do not affect the entry of countries with transition economies into the global environment due to the fact that they lack the system of nano-economy. This is proved by multifactor analysis of the impact of nano-economy on exports. The obtained indicators, such as exports of USD 57 billion (by the exchange rate of 2021), 281 universities, 1,941,701 business entities, and 135 thousand scientific and technical institutions, do not correlate and determine low direct and inverse indicators of dependence. The results of the study can be used: – at separate enterprises – by using innovative personnel management, including motivating and training of personnel in self-management and self-marketing;  – at the state and regional levels – by creating favorable conditions for the development of baby economy in countries with transition economies and by promoting optimal solutions of separate economic agents


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