scholarly journals Does the Ease of Starting a New Business Affect Country’s Financial Vulnerability? Evidence from Eight European Economies

2020 ◽  
Vol 22 (2) ◽  
pp. 123-132
Author(s):  
Anggita Leviastuti
Keyword(s):  
Institutional Environment ◽  
Estimation Method ◽  
Political Stability ◽  
Easy Access ◽  
Financial Vulnerability ◽  
Doing Business ◽  
New Business ◽  
Ease Of Doing Business ◽  
European Economies ◽  
High Degree

This paper investigates whether indicators on the ease of doing business explain variation of financial system vulnerability amongst eight biggest European economics between 1999 and 2014. Using mixed-effects estimation method for sectoral observations nested within countries, the results suggest that easy access to get credit is associated with increased financial vulnerability, as measured by decreased excess return in equity market. The significance of political stability, regulatory quality, and rule of law also marks the role of institutional environment towards vulnerability by facilitating the openness towards new business. Finally, a high degree of openness is not always good especially if they are combined with better institutional environment. This confirms the importance of the level of openness, as well as its channels, in determining the extent of vulnerability.

Institutional environment and internationalization of franchise chains: a regional and global analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Andrea Lanfranchi ◽  
Pedro Lucas de Resende Melo ◽  
Felipe Mendes Borini ◽  
Renato Telles
Keyword(s):  
Institutional Environment ◽  
Global Analysis ◽  
The United States ◽  
International Investment ◽  
Content Type ◽  
Global Expansion ◽  
Doing Business ◽  
Ease Of Doing Business ◽  
Legal Processes

PurposeIn this study, the authors identify how formal institutional environments in destination countries matter to franchise chains as they internationalize. The institutional environment of the destination countries of franchise chains is characterized according to three institutional dimensions necessary to attract international investment – public governance, ease of doing business and legal processes – and analyzed in the context of regional and global franchise expansion.Design/methodology/approachThe descriptive quantitative study involved 625 franchise chains from Australia, Brazil, Germany, India, Russia, South Africa and the United States, with a total of 2,939 observations.FindingsResults suggest that franchise chains from emerging markets are guided by the institutional conditions of ease of doing business and the quality of legal processes in global expansion and guided by ease of doing business, quality of legal processes and governance in regional expansion. On the other hand, franchise chains from developed markets are guided by the ease of doing business, quality of legal processes and governance in global expansion and governance and ease of doing business in regional expansion.Research limitations/implicationsThe sample included only franchise chains associated with organizations that represent franchises in their countries of origin, and the study does not analyze the effect of institutional distance between countries of origin and destination.Originality/valueThis study identifies the formal institutional characteristics that explain selection and commitment in international markets by franchise chains from different countries. The contribution is in analyzing the phenomenon through the lens of institutional theory and showing, through a global sample, that institutions matter to franchise chains from different types of countries (developed and emerging) and with different strategies for internationalization (global and regional).

The Nexus between Governance Infrastructure and the Ease of Doing Business in Africa

2015 ◽  
pp. 110-131 ◽  
Author(s):  
Aye Mengistu Alemu
Keyword(s):  
Rule Of Law ◽  
Good Governance ◽  
Political Stability ◽  
Estimation Methods ◽  
African Countries ◽  
Government Effectiveness ◽  
Doing Business ◽  
Physical Infrastructure ◽  
Ease Of Doing Business ◽  
Governance Infrastructure

This chapter examines how each element of “good governance infrastructure” may influence the “ease of doing business” for a sample of 41 African countries from 2005 to 2012. The empirical results from GMM and other estimation methods reveal government effectiveness, political stability, rule of law, regulatory quality, and absence of corruption are robust determinants for creating conducive business atmosphere, taking into account other factors such as human capital, physical infrastructure, and the level of development of a country. Nevertheless, no evidence has been found for voice and accountability to significantly affect the ease of doing business. This implies that a government may enhance political stability, rule of law. Government effectiveness and low level of corruption is likely to create a more favorable business atmosphere despite offsetting deficiencies in voice and accountability.

scholarly journals Systems competing for mobile factors: decision making based on hard vs. soft locational factors

2017 ◽  
Vol 12 (4) ◽  
pp. 633-651 ◽  
Author(s):  
Roxana Clodnițchi
Keyword(s):  
Institutional Design ◽  
Business Environment ◽  
The European Union ◽  
Location Factors ◽  
Developed Economies ◽  
Doing Business ◽  
Scientific Papers ◽  
Ease Of Doing Business ◽  
High Degree

Abstract The paper explores the links between capital relocation and soft locational factors addressing the quality of the business environment and the quality of life within the European Union. System competition is viewed as a competition between countries for the mobile factors capital and labour. The issue of systems competition is topical and insufficiently explored by contemporary literature. The scarcity of scientific papers describing the links between system competition theories and contemporary corporate geography theories, especially of the ones including the analysis of soft location factors, is a challenging aspect, which motivates the choice of this subject. This paper’s primary aim is to deliver an overview of the basic corporate geography conceptions, stressing the importance of soft location factors in today’s competition between systems for the mobile factors capital and labour. The paper further contains an analysis of the correlations between indicators regarding the institutional design of countries as developed by the World Bank (Ease of Doing Business), the Happiness Scale and the latest available data of FDI Stocks for the EU countries (2016). The relevance of such a study is based on the evidence that the contemporary business education relies on an extensive knowledge of the business environment. In the circumstance of similar infrastructural conditions, the main difference between locations is made by soft location factors. Since developed economies are characterised by a high degree of ubiquity of soft factors, the paper concludes that developing and emerging economies should foster the development of their soft location factors.

scholarly journals FOREIGN DIRECT INVESTMENT IN THE KINGDOM OF SAUDI ARABIA: A DIAGNOSTIC ANALYSIS

2021 ◽  
Vol 9 (8) ◽  
pp. 355-367
Author(s):  
Luluwa Juma ◽  
Hannan Alkharoossi ◽  
Manuel Fernandez
Keyword(s):  
Saudi Arabia ◽  
Technology Adoption ◽  
Banking System ◽  
Political Stability ◽  
Market Size ◽  
Doing Business ◽  
The Status ◽  
Financial Infrastructure ◽  
Expropriation Risk ◽  
Ease Of Doing Business

This study aims to identify the status of Saudi Arabia as a destination for FDI, the factors that attract FDI into Saudi Arabia, and the factors that hinder the flow of FDI into Saudi Arabia. The study covers a period of five years from 2015 to 2019. The study analysis various determinants of FDI: market size, infrastructure, technology adoption, innovation friendliness, productive and diversified labor force, financial infrastructure, taxation, political risk, corruption, and ease of doing business.  The study finds that several factors like market size, well-developed infrastructure, a higher degree of technology adoption, innovation-friendliness, the banking system that is well-capitalized and liquid, low corporate taxes, political stability, low transfer risk, low expropriation risk, low levels of corruption, and a stable currency make Saudi Arabia an attractive destination for FDI. At the same time, the low labor market efficiency and the low ranking in ease of doing business makes it less attractive to FDI.

Ease of Doing Business and Its Impact on Inward FDI

2018 ◽  
Vol 1 (1) ◽  
pp. 52 ◽  
Author(s):  
Mohamed Tareq Hossain ◽  
Zubair Hassan ◽  
Sumaiya Shafiq ◽  
Abdul Basit
Keyword(s):  
Regression Model ◽  
Causal Relationship ◽  
World Bank ◽  
Least Square ◽  
Doing Business ◽  
Least Square Regression ◽  
Foreign Countries ◽  
Ease Of Doing Business ◽  
The Impact ◽  
Starting A Business

This study investigates the impact of Ease of Doing Business on Inward FDI over the period from 2011 to 2015 across the globe. This study measures ease of doing business using starting a business, getting credit, registering property, paying taxes and enforcing contracts. The research used a sample of 177 countries from 190 countries listed in World Bank. Least square regression model via E-views software used to examine causal relationship. The study found that ease of doing business indicators ‘Enforcing Contracts’ was found to have a positive significant impact on Inward FDI. Nevertheless, ‘Getting Credit’ and ‘Registering Property’ were found to have a negative significant impact on Inward FDI. However, ‘Starting a Business’ and ‘Paying Taxes’ have no significant impact on Inward FDI in the studied timeframe of this research. The findings of the study suggested the ease of doing business enables inward FDI through better contract enforcements, getting credit and registering property. The findings of the research will assist international managers and companies to know the importance of ease of doing business when investing in foreign countries through FDI.

"Investor Myopia" in Post Keynesian Theory and in the Russian Economy

2006 ◽  
pp. 71-82 ◽  
Author(s):  
I. Rozmainsky
Keyword(s):  
Endogenous Growth ◽  
Institutional Economics ◽  
Institutional Environment ◽  
Transitional Economy ◽  
Transition Economics ◽  
Keynesian Economics ◽  
Russian Economy ◽  
Fundamental Uncertainty ◽  
High Degree ◽  
Negative Growth

The article examines the issues concerning links between institutional economics, Post Keynesian economics, models of endogenous growth and transition economics. The author considers interrelations between ineffective institutional environment, too high degree of fundamental uncertainty, investor myopia and resulting decrease in investment and "negative" growth in Russia’s transitional economy.

A Study on Consumers’ Awareness on Goods and Services Tax

2018 ◽  
Vol 6 (11) ◽  
pp. 30
Author(s):  
A. Hilary Joseph ◽  
D. Kanakavalli
Keyword(s):  
Tax Reform ◽  
Subsequent Stage ◽  
State Governments ◽  
Value Addition ◽  
Goods And Services ◽  
Late Night ◽  
Single Tax ◽  
Doing Business ◽  
Ease Of Doing Business ◽  
The One

The Goods and Services Tax (GST) -- India's biggest tax reform since independence formally launched in Parliament by Prime Minister Narendra Modi and President Pranab Mukherjee came into force after 17 tumultuous years of debate, unifying more than a dozen central and state levies.  The new tax regime was ushered at the late night of 30th June and came into force on 1st July 2017.  The one national GST unifies the country's USD 2 trillion economy and 1.3 billion people into a common market.  As commented by Mr.Modi, GST is not just tax reform but its economic reform. GST is a way forward in the ease of doing business.  In the language of law, it is called the goods and services tax, but the benefit of GST is really a Good and Simple Tax. Good because multiple taxes will be removed. Simple because it requires just one form and is easy to use.  GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer.  Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.  It renders numerous benefits to different parties such as business and industry, central and state governments and the ultimate consumers.  An effort is made to understand the consumers’ awareness on Goods and Services Tax. Everything that is introduced will attract agitation and unrest among different group of people and they can easily be overcome by designing programmes to clarify the objections of renowned economists.  GST will sure to have success when the confidence of every individual Indian citizens have obtained.

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.

Passive Revolution in Japan: The Restoration of Hegemony under Abe?

2021 ◽  
pp. 089692052110138
Author(s):  
Myles Carroll
Keyword(s):  
Capital Accumulation ◽  
Political Stability ◽  
Economic Policies ◽  
Economic Problems ◽  
Liberal Democratic ◽  
Low Profile ◽  
Economic Stagnation ◽  
Japanese Prime Minister ◽  
Passive Revolution ◽  
High Degree

This article draws on Gramsci’s theory of passive revolution to explore the second tenure of Japanese Prime Minister Abe Shinzō from 2012 to 2020. It sees the high degree of political stability that Abe achieved as a contrast to the preceding two decades of Japanese politics and asks what accounts for Abe’s success in restoring Liberal Democratic Party’s (LDP) dominance in an era of enduring economic and social crisis. The article argues that Abe executed a strategy of passive revolution that incorporated two “faces”: an “outward” face oriented around consent and an “inward” face rooted in coercion. The former involved economic policies (in particular “Abenomics”) designed to appear capable of resolving chronic economic stagnation, growing inequality and other social and economic problems, restoring popular support for the LDP without undermining conditions for capital accumulation or empowering subaltern classes. In contrast, the latter involved various low-profile security and administrative policies that enabled the Abe government to dramatically increase its power while silencing or disarming potential rivals and critics. The article sees this two-sided strategy of passive revolution as effective in restoring LDP dominance but unlikely to prove the basis for a more expansive hegemony or a resolution to Japan’s organic crisis.

scholarly journals Greater fit and a greater gap

2019 ◽  
Vol 26 (4) ◽  
pp. 561-594
Author(s):  
Steven A. Brieger ◽  
Dirk De Clercq ◽  
Jolanda Hessels ◽  
Christian Pfeifer
Keyword(s):  
Life Satisfaction ◽  
Institutional Environment ◽  
Entrepreneurial Activity ◽  
Worker Rights ◽  
Content Type ◽  
Person Environment Fit ◽  
High Power Distance ◽  
High Degree ◽  
The Impact ◽  
Low Uncertainty

Purpose The purpose of this paper is to understand how national institutional environments contribute to differences in life satisfaction between entrepreneurs and employees. Design/methodology/approach Leveraging person–environment fit and institutional theories and using a sample of more than 70,000 entrepreneurs and employees from 43 countries, the study investigates how the impact of entrepreneurial activity on life satisfaction differs in various environmental contexts. An entrepreneur’s life satisfaction arguably should increase when a high degree of compatibility or fit exists between his or her choice to be an entrepreneur and the informal and formal institutional environment. Findings The study finds that differences in life satisfaction between entrepreneurs and employees are larger in countries with high power distance, low uncertainty avoidance, extant entrepreneurship policies, low commercial profit taxes and low worker rights. Originality/value This study sheds new light on how entrepreneurial activity affects life satisfaction, contingent on the informal and formal institutions in a country that support entrepreneurship by its residents.

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