Asymmetric effect of institutional distance: MNE subsidiaries' bribery in transition economies

2016 ◽  
Vol 1 (1) ◽  
pp. 18
Author(s):  
Kyeungrae Oh
Keyword(s):  
Transition Economies ◽  
Institutional Distance ◽  
Asymmetric Effect ◽  
Mne Subsidiaries

scholarly journals Institutional Risk Preference and Asymmetric Role of Institutional Distance: An Examination on the OFDI of China

2021 ◽  
Vol 2021 ◽  
pp. 1-12
Author(s):  
Yawei Qi ◽  
Guangping Rao
Keyword(s):  
Multinational Enterprises ◽  
Negative Impact ◽  
Cultural Distance ◽  
Risk Preference ◽  
Institutional Distance ◽  
Asymmetric Effect ◽  
Institutional Risk ◽  
Belt And Road ◽  
The Impact ◽  
The Belt And Road

With the implementation of the “Going Out” policy and the “Belt and Road” initiative, Chinese outward foreign direct investment (OFDI) in the countries along the “Belt and Road” increased substantially in the past decade. This paper analyzes the impact of institutional distance on Chinese OFDI and whether Chinese OFDI exhibits institutional risk preferences, using data on Chinese OFDI in 41 countries along the “Belt and Road” for the period from 2003 to 2018. We find that political institutional distance and economic institutional distance are both positively related to China’s OFDI scale, while cultural distance has a negative impact on the investment scale. We also find that institutional distance has an asymmetric effect on China’s OFDI. In particular, the worse the host country’s political environment, the larger the Chinese OFDI, indicating that Chinese OFDI exhibits the political institutional risk preference. On the other hand, Chinese multinational enterprises are more willing to invest in host countries with high economic freedom. Culture institution environment of the host country has a positive but insignificant impact on the Chinese OFDI scale, indicating that Chinese OFDI shows the characteristics of cultural distance proximity.

scholarly journals The asymmetric effect of institutional distance on international location: Family versus nonfamily firms

2018 ◽  
Vol 8 (1) ◽  
pp. 22-45 ◽  
Author(s):  
Virginia Hernández ◽  
María Jesús Nieto ◽  
Andrea Boellis
Keyword(s):  
Institutional Distance ◽  
Asymmetric Effect ◽  
Family Versus ◽  
Location Family

The moderating role of subsidiary size on the association between institutional distance and subsidiary’s access to complementary local assets: evidence from Vietnam

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dut Van Vo ◽  
Yusaf H. Akbar ◽  
Loc Dong Truong
Keyword(s):  
Institutional Theory ◽  
Transition Economies ◽  
Transition Economy ◽  
Institutional Distance ◽  
Moderating Effects ◽  
Host Countries ◽  
Resource Based View ◽  
Content Type ◽  
Moderating Role

Purpose This study aims to investigate the moderating effects of subsidiary size on the association between institutional distance and subsidiary’s access to complementary local assets (ACLA) in a transition economy. Design/methodology/approach The data of 1,027 subsidiaries located in Vietnam were extracted from the survey of General Statistics Office of Vietnam. Hausman’s test shows that random effect model is appropriate to estimate the moderating effects of subsidiary size on the association between the institutional distance and subsidiary’s ACLA. Findings The findings revealed that the greater formal and informal institutional distances between home and host countries, the lower a subsidiary’s ACLA in a transition economy. In addition, larger subsidiaries’ ACLA in a more formal and informal institutional distant country are higher than smaller subsidiaries. Research limitations/implications Multinational enterprise (MNEs) have a continuous need to use their foreign subsidiaries operating in host countries, particularly those with transition economies, to overcome institutional differences to ACLA in a transition economy. In addition, subsidiaries should be invested with greater resources to collaborate with local partners to serve for accessing to complementary local assets in transition economy characterized by an uncertainty institutional environment. Originality/value By integrating the institutional theory and the resource-based view, the study developed a theoretical model about the moderating role of subsidiary size on the association between institutional distance and subsidiary’s ACLA in transition economy. The findings confirmed that simultaneously applying the institutional theory and the resource-based view to investigate location-specific advantages exploitation of subsidiaries is relevant not only in developed economies but also in a transition economies.

Hybridization of MNE Subsidiaries

2009 ◽  
Author(s):  
Florian A. A. Becker-Ritterspach
Keyword(s):  
Mne Subsidiaries

Fiscal Decentralization in Transition Economies

2004 ◽  
pp. 126-141
Author(s):  
A. Chernyavsky ◽  
K. Vartapetov
Keyword(s):  
Public Finance ◽  
Transition Economies ◽  
Local Governments ◽  
Fiscal Decentralization ◽  
Government Control ◽  
Finance Reform ◽  
Fiscal Transfers ◽  
Fiscal Autonomy ◽  
Subnational Government ◽  
Tax Autonomy

By employing the methodology developed by the OECD the paper assesses the degree of revenue decentralization in Russia in comparison with other post-communist European countries. The paper provides theoretical arguments underpinning fiscal decentralization, analyzes the composition of subnational government revenues, the level of regional and local tax autonomy and types of intergovernmental fiscal transfers. The analysis presents the composition of revenues depending on the degree of subnational and local government control. In comparison with other transition countries fiscal decentralization in Russia is relatively low. It is concluded that Russia's public finance reform has not progressed towards providing greater fiscal autonomy for regional and local governments.

Political Economy of Post-Soviet Marxism (Theses to Forming of Scientific School)

2005 ◽  
pp. 36-55 ◽  
Author(s):  
A. Buzgalin ◽  
A. Kolganov
Keyword(s):  
Economic Theory ◽  
Political Economy ◽  
Transition Economies ◽  
Alternative Schools ◽  
Scientific School ◽  
Theoretical Concepts ◽  
Limited Ability ◽  
Socialist System ◽  
Soviet Marxism ◽  
Modern Russian

The limited ability of neoclassical "mainstream" to explain deep fundamental shifts in economic structures of the present day world determines the renaissance of alternative schools of economic theory, including Marxism. The article is aimed to show theoretical concepts of modern Russian neomarxism, which has a potential to explain the contradictions of the capitalist globalization, the tendencies of forming new types of socioeconomic relations, of the specific forms of transition economies in the post-socialist countries and basic causes of the birth and collapse of the socialist system.

Principles of Evolutionary Modernization of Transition Economies

2009 ◽  
pp. 85-96 ◽  
Author(s):  
E. Rustamov
Keyword(s):  
National Culture ◽  
Transition Economies ◽  
Transition Economy ◽  
World Economic Forum ◽  
Governance Mechanisms ◽  
Beneficial Use ◽  
Strategic Issues ◽  
The World ◽  
Comparative Advantages ◽  
World Economic

The article considers strategic issues of modernization of the transition economy. The analysis is based on the methodology of the World Economic Forum where special attention is paid to the sequence of the transformation stages. The main conclusion is that modernization should combine implementation of the governance mechanisms with the beneficial use of comparative advantages of the national culture. In fact, modernization of the transition economy should be evolutionary. It is precisely this course of development that is relevant for Azerbaijan which has successfully upgraded its economy in the recent years.

Sign in / Sign up

Export Citation Format

Share Document