scholarly journals Effects of Special Economic Zones on FDI in Emerging Economies: Does Institutional Quality Matter?

2020 ◽  
Vol 12 (20) ◽  
pp. 8409 ◽  
Author(s):  
Yijia Song ◽  
Ruichen Deng ◽  
Ruoxi Liu ◽  
Qian Peng
Keyword(s):  
Emerging Economies ◽  
Foreign Investment ◽  
Institutional Environment ◽  
Institutional Quality ◽  
Specific Area ◽  
Local Economy ◽  
Special Economic Zones ◽  
The Government ◽  
Economic Zones ◽  
The Impact

This study attempts to prove that emerging markets could partially improve institutional quality in a specific area and benefit the local economy despite the rest of the area having poor institutions. Interestingly, we observed that despite the presence of institutions of comparative disadvantage, emerging economies continue to constantly attract significant foreign direct investment. Hence, this study focuses on a type of place-based policy in China that provides a standard favorable institutional environment in a specific area. Using data from China’s Annual Survey of Industrial Firms and combining official lists of Chinese special economic zones (SEZs), we obtained a dataset of 2660 SEZs from 1998 to 2018, and a sample of 37,251 from 1998 to 2013. Then, we empirically examined the impact and mechanism of SEZs on foreign investment by using time-varying difference-in-difference specification. After a sequence of validity and robustness checks, we found that the establishment of SEZs significantly enhances foreign entry. We also found that partial institutional quality improvement of SEZs is a key mechanism in the location of foreign investment. We conclude that it is beneficial for the government to impose place-based policies such as SEZs that improve partial institutional quality efficiently and promote the local economy.

Wining and Dining Government Officials: What Drives Political Networking in Chinese Private Ventures?

2020 ◽  
Vol 16 (5) ◽  
pp. 1084-1113
Author(s):  
Jianjun Zhang ◽  
Pei Sun ◽  
Kunyuan Qiao
Keyword(s):  
Emerging Economies ◽  
Resource Dependence ◽  
Institutional Environment ◽  
Resource Dependence Theory ◽  
Political Activity ◽  
Corporate Political Activity ◽  
Dyadic Relationship ◽  
Political Actors ◽  
Government Relations ◽  
The Government

ABSTRACTManagerial networking with political actors has long been recognized as a crucial co-option strategy to navigate the challenging institutional environment in emerging economies. However, we know much less about what drives the variation of political networking investment by private ventures. Drawing on resource dependence theory, we unpack the dyadic business-government relations and identify the key organizational and environmental factors that shape the power dependence relationships between private ventures and the government. By examining power imbalance and mutual dependence in this dyadic relationship and considering both the necessity and the capability of political networking, we develop hypotheses regarding the ways in which size-, connection-, and location-based dependencies affect firms’ political networking intensity. These hypotheses are tested through a unique survey of Chinese private ventures. Our study finds that political networking intensity (1) has an inverted U-shaped relationship with firm size, (2) is negatively associated with the presence of embedded political ties while positively associated with that of achieved political connections, and (3) is smaller when the focal firm is located in business development zones. This research bears rich implications for our understanding of corporate political activity in emerging economies from a resource dependence lens.

Customs regulation of activities on the territory of special economic zones

2021 ◽  
Author(s):  
Veronika Grigoryevna Iordanova ◽  
Andrei Romanovich Bojko
Keyword(s):  
Economic Development ◽  
Russian Federation ◽  
Foreign Investment ◽  
Economic Activity ◽  
Global Value Chains ◽  
Value Chains ◽  
Special Economic Zones ◽  
Socio Economic Development ◽  
The Russian Federation ◽  
Economic Zones

In the article, the authors analyze the functioning of special economic zones in the Russian Federation. Currently, based on the established world practice, special economic zones can act as a catalyst for attracting foreign investment and ensuring effective regional socio-economic development. Therefore, according to the authors, the issues of improving the functioning of the SEZ are of particular importance. The analysis of the results of the functioning of special economic zones in the Russian Federation shows that there is a significant potential for their development. Due to the fact that the functioning of special economic zones is inextricably linked with the conduct of foreign economic activity, and the SEZs themselves are a tool for integrating the country into global value chains, the issues of customs regulation of activities on their territory become important, which acts as an effective way for the state to influence foreign economic activity and have significant opportunities in stimulating the development of special economic zones in the Russia. In this regard, the study of the application of customs regulation measures as important factors in the development of special economic zones in the Russian Federation is very relevant. Special attention was paid to the study of the regulatory framework for the application of customs procedures in respect of goods imported into the territory of special economic zones and exported from such territories. According to the results of the study, it was found that there are significant gaps in the current legislative regulation of this range of legal relations. The article formulates specific measures that can contribute to improving the efficiency of the functioning of special economic zones in the Russian Federation.

scholarly journals Institutional Quality and Sustainable Development of Industries’ Exports: Evidence from China

2018 ◽  
Vol 10 (11) ◽  
pp. 4173 ◽  
Author(s):  
Feifei Wu ◽  
Xinyu Yan
Keyword(s):  
Sustainable Development ◽  
Institutional Environment ◽  
Institutional Quality ◽  
Emerging Countries ◽  
The Sustainable Development ◽  
Continuous Release ◽  
Comparative Advantages ◽  
Underlying Mechanisms ◽  
The Impact ◽  
New Evidence

The knowledge about the relations between domestic institutional quality and the sustainable development of exports in emerging markets remains limited, since most research into the relations between the institutional environment and the sustainable development of exports has been conducted in developed market economies, especially in those of North America and Europe. With dynamic changes in the institutional environment of emerging countries over the years, this paper provides a novel perspective for investigating the relations above. This is the first paper to investigate the impact of institutional quality on the sustainable development of industries’ exports in emerging countries from a comprehensive perspective of multiple institutional environments and multi-dimensional industries’ heterogeneity. On the basis of defining institutional quality and industry heterogeneity, this paper explores the underlying mechanisms of institutional quality affecting sustainable development of industries’ exports and conducts empirical analyses by using the data from China’s 20 industries’ exports to 117 countries for the period of 1996–2011. The results show that: (a) Industries with higher degrees of financial dependence or higher product technical complexities have export comparative advantages in better financial environments; (b) Industries with higher research and development (R&D) intensity or a higher concentration of intermediate inputs have export comparative advantages in better legal environments; (c) The differences in the level of financial development or in the efficiency of legal system would influence the effects of interactions between institutional quality and industry heterogeneity on the sustainable development of industries’ exports. The present paper provides new evidence that institutional quality does promote the sustainable development of industries’ exports in emerging countries. These results indicate that exports of heterogeneous industries in emerging economies are an adaptive response to the specific institutional environment, as well as a continuous release of institutional dividends with the improvement of the institutional environment.

scholarly journals HALAL TOURS AS THE FORM OF ISLAMIC CIVILIZATION PROGRESS (SPECIAL ECONOMIC ZONE MANDALIKA) LOMBOK

2018 ◽  
Vol 15 (2) ◽  
pp. 62-70
Author(s):  
Mohammad Jeffry Maulidi
Keyword(s):  
Cultural Values ◽  
Field Research ◽  
Special Economic Zone ◽  
Special Economic Zones ◽  
Business Policy ◽  
Sociological Approach ◽  
Economic Zone ◽  
The Government ◽  
Islamic Civilization ◽  
Economic Zones

This research found that implementation of da’wah in Halal tourism in Special Economic Zones (KEK) in multicultural on the application of Islamic cultural values through social construction and approach of education Sunnah can improve progress and contribution to society and quality of facilitation of educational development to increase understanding source of human power. This research is a field research with qualitative method used with history and sociological approach. Data collection techniques are done by interviews, observations, and documents. A source of data in this study is the community of tourism actors in the Special Economic Zone of Lombok. This research produces and enhances the application of Islamic cultural values to the improvement of Human Resources and preservation of existing local wisdom, in the Special Economic Zones (KEK) is a pro-business policy from the government in order to accelerate the achievement of national economic development, which aims to accelerate regional development.

scholarly journals PENGEMBANGAN WATERFRONT RESORT DI TRANQUIL TANJUNG AAN DI K.E.K MANDALIKA

2020 ◽  
Vol 1 (2) ◽  
pp. 2229
Author(s):  
Gatot Yoda Kusumah ◽  
Liong Ju Tjung ◽  
Priyendiswara A.B. Priyendiswara
Keyword(s):  
Regional Development ◽  
Foreign Exchange ◽  
Special Economic Zone ◽  
Special Economic Zones ◽  
Unitary State ◽  
Tourism Sector ◽  
Economic Zone ◽  
The Republic ◽  
The Government ◽  
Economic Zones

Indonesian tourism is an important sector in increasing state revenues. The tourism sector ranks third in terms of foreign exchange earnings. in 2014 The government established tourism as the leading sector in improving the economy to encourage regional development and employment. With the law of the Republic of Indonesia number 39 of 2009 concerning Special Economic Zones, hereinafter referred to as K.E.K is a region with a certain boundary with the jurisdiction of the Unitary State of the Republic of Indonesia which is determined to carry out economic functions and obtain certain facilities. Kab. Central Lombok is one of the places where there is a K.E, namely K.E.K Mandalika. In order to increase the income of the Lombok region where the development of K.E.K Mandalika is 1,175 ha and the author takes 21 ha of land at K.E.K Mandalika to develop a Resort with a waterfront concept in order to increase Lombok tourism. Based on background problems, the main underlyinh problem is the lack of supporting facilities to support activities in the Mandalika Special Economic Zone, therefore the need for accommodation in the Mandalika Special Economic Zone.Abstrak Pariwisata Indonesia menjadi sektor yang penting dalam peningkatan pendapatan Negara. Sektor pariwisata menempati urutan ketiga dalam hal penerimaan devisa. Pemerintah pada tahun 2014 menetapkan pariwisata sebagai leading sektor dalam peningkatan perekonomian untuk mendorong pembangunan daerah dan lapangan pekerjaan. Dengan adanya undang-undang Republik Indonesia nomor 39 tahun 2009 tentang Kawasan Ekonomi Khusus, yang selanjutnya disebut K.E.K (kawasan ekonomi khusus), adalah Kawasan dengan batas tertentu dengan wilayah hukum Negara Kesatuan Republik Indonesia yang ditetapkan untuk menyelenggarakan fungsi perekonomian dan memperoleh fasilitas tertentu. Kab. Lombok Tengah merupakan salah satu tempat dimana terdapat K.E.K yakni adalah K.E.K Mandalika. Guna dapat meningkatkan pendapatan daerah lombok dimana Pengembangan K.E.K Mandalika seluas 1.175 ha dan Penulis mengambil 21 ha lahan di K.E.K Mandalika untuk dikembangkan Resort dengan konsep waterfront guna dapat meningkatkan pariwisata lombok. Berdasarkan permasalahan latar belakang, permasalahan utama yang mendasar adalah belum adanya fasilitas pendukung untuk menunjang aktivitas di Kawasan Ekonomi Khusus Mandalika.

scholarly journals Impact of Corporate Environmental Responsibility on Investment Efficiency: The Moderating Roles of the Institutional Environment and Consumer Environmental Awareness

2019 ◽  
Vol 11 (17) ◽  
pp. 4512 ◽  
Author(s):  
Shihong Zeng ◽  
Yujia Qin ◽  
Guowang Zeng
Keyword(s):  
Institutional Environment ◽  
Environmental Awareness ◽  
Environmental Responsibility ◽  
Investment Efficiency ◽  
Human Beings ◽  
Corporate Environmental Responsibility ◽  
The Sustainable Development ◽  
Chinese Listed Companies ◽  
The Government ◽  
The Impact

The increasingly serious destruction of the natural environment represents a great threat to the sustainable development of human beings and the earth. Under pressure from the government and public opinion, companies must assume environmental responsibility; however, there is no conclusion on whether corporate environmental responsibility is beneficial to companies. From the perspective of investment efficiency, this paper collects panel data from Chinese listed companies from 2011 to 2016 to discuss the impact of corporate environmental responsibility on investment efficiency and the moderating role of the institutional environment and consumer environmental awareness. The results show that corporate environmental responsibility can significantly positively affect investment efficiency, but this effect is not a short-term effect; it needs time to play a role. Second, in regions with a good institutional environment, corporate environmental responsibility has a more significant impact on improving investment efficiency. Finally, with the improvement of consumer environmental awareness, companies that assume environmental responsibility can address underinvestment. The research in this paper supports stakeholder theory, indicating that corporate environmental responsibility is not “selfless dedication”. In addition, the research results of this paper are robust and not subject to endogenous influences.

Fiscal Implications of Special Economic Zones (SEZs) Expansion in India: A Resource Cost Approach

2015 ◽  
Vol 06 (01) ◽  
pp. 1550006 ◽  
Author(s):  
Malini L. Tantri
Keyword(s):  
Capital Expenditure ◽  
Reference Period ◽  
Special Economic Zones ◽  
Fiscal Health ◽  
Cost Approach ◽  
Resource Cost ◽  
The Government ◽  
Economic Zones ◽  
Fiscal Implications

This paper analyzes the fiscal implications of special economic zones (SEZs) on the government exchequer. The analysis is based on aggregating data collected from seven conventional SEZs and taking 1990–1991 to 2007–2008 as the reference period. The exercise reveals that the government has spent huge sums of money to play the role of a trade facilitator and has, in the process, lost considerable revenue as a fiscal manager. This, in turn, has affected both revenue and capital expenditure of the government's budget. Given the magnitude of these costs, one cannot but raise questions about the actual contributions of these enclaves to the national fiscal health and the feasibility of relentlessly adopting measures that seeks to promote these zones across the nation.

Refugee special economic zones

2018 ◽  
Vol 7 (3) ◽  
pp. 290-303
Author(s):  
Lotta Moberg ◽  
Sebastian Reil
Keyword(s):  
Political Economy ◽  
Refugee Camps ◽  
Special Economic Zones ◽  
Content Type ◽  
Tax Rate ◽  
Social Challenges ◽  
Institutional Entrepreneurs ◽  
Host Government ◽  
The Government ◽  
Economic Zones

Purpose The purpose of this paper is to show how special economic zones (SEZs) can be applied to refugee camps. Zones are powerful tools for investors to act like institutional entrepreneurs, who promote institutional reform by pursuing exemptions from government constraints and taxes or by advocating for reform. Refugee SEZs (R-SEZs) would similarly allow for institutional entrepreneurs to promote broader immigration reform. Design/methodology/approach The authors apply a political economy framework to R-SEZs that explores the factors that make them feasible. A mathematical model is applied to explicitly define the conditions under which the zones could succeed in benefiting refugees, investors and the host economy alike. Findings Under certain conditions, appropriate tax rates can be applied to R-SEZs that make them feasible. Feasibility is determined by being beneficial for the host country while also attracting investors. The zones are feasible if they attract enough foreign investors as opposed to domestic investors. Other factors contributing to zone success are higher wages outside the zone, lower wages inside it, higher cost to the government of non-employed refugees, lower relocation cost for businesses and a higher tax rate outside the zone. Practical implications This policy would aim to provide job opportunities to refugees, profit opportunities to investors and lower net costs for the host government. R-SEZs should be considered by policy makers in countries hosting refugee camps. Just like the old model of SEZs, they can benefit workers while also enhancing the government’s budget. Social implications R-SEZs have the potential to alleviate the refugee crisis the world is facing, which is arguably one of the largest social challenges of our time. Originality/value This paper is the first to outline the political economy conditions for SEZs applied to refugee camps.

scholarly journals Can it be too close? The impact of the proximity of the Polish-German border on local development in Poland in the process of European integration

2020 ◽  
pp. 9-25
Author(s):  
Wirginia Aksztejn ◽  
Paweł Swianiewicz ◽  
Katarzyna Szmigiel-Rawska
Keyword(s):  
Labour Market ◽  
European Integration ◽  
Foreign Investment ◽  
Local Development ◽  
Local Economy ◽  
Common Market ◽  
Time Dimension ◽  
Linear Character ◽  
The Impact ◽  
Legal Barriers

The aim of this study was to investigate the dynamics of local development in the Polish-German borderland in the process of European integration. Taking the perspective of the economically weaker partner (Poland) and its inner market, fiscal and socio-economic indicators were used to depict both spatial and time dimension of the phenomenon. The analysis showed that the dynamics of local economy, foreign investment and labour market have been changing with the advancement of debordering process and had a non-linear character. Furthermore, the legal barriers earlier imposed by the state border were replaced by other limitations for the new common market – more socio-economic in nature. As a result the immediate neighbourhood of the border was the first beneficiary of the European integration initiated in the nineties and the first to experience its drawbacks.

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