scholarly journals Investigating the Impact of Institutional Quality on FDI: Are There Promotional Effects in Economic Integration Regions?

2021 ◽  
Vol 13 (20) ◽  
pp. 11309
Author(s):  
Fuzhong Chen ◽  
Guohai Jiang
Keyword(s):  
Economic Integration ◽  
Statistical Tests ◽  
Estimation Method ◽  
Institutional Quality ◽  
Policy Implications ◽  
Robust Standard Error ◽  
Belt And Road ◽  
The Impact ◽  
Study Offer

The purpose of this study is to examine the impact of institutional quality on foreign direct investment (FDI) using panel data of 117 countries around the world from the period of 2001 to 2018. To enhance the accuracy of the estimation results, this study includes various statistical tests to select the estimation method that best fits the sampling data used in this study. Furthermore, while the robust standard error is applied to correct the problem of heteroscedasticity, this study addresses the potential endogeneity problem by system GMM estimation. The results indicate that the improvement in institutional quality significantly and positively contributes to FDI. More importantly, the results also reveal that economic integration has improved the role of institutional quality, indicating that the promotional effects of institutional quality on FDI are greater in economic integration areas. The results also suggest that the launch of China’s Belt and Road Initiative has greatly enhanced the promotional effects of institutional quality on FDI. The findings of this study offer policy implications for policymakers to take measures to improve institutional quality and thereby to enhance FDI and further accelerate the formation of economic integration in a more sustainable way.

scholarly journals Role of institutional quality in economic development: A case study of Asian countries

2021 ◽  
Vol 19 (2) ◽  
pp. 357-369
Author(s):  
Oanh Kim Thi Tran ◽  
Hac Dinh Le ◽  
Anh Hong Viet Nguyen
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Trade Openness ◽  
Institutional Quality ◽  
Policy Implications ◽  
Asian Countries ◽  
Regression Methods ◽  
Key Factor ◽  
The Impact

The paper investigates the impact of institutional quality on economic growth by taking 48 countries in Asia between 2005 and 2018. By using the quantile regression methods with panel data, institutional quality is found to be a key factor of economic development. However, in the lower-income Asian countries, the institution with better quality appears to promote the growth more effectively than in the higher-income ones. Moreover, the paper also finds out a nonlinear relationship between institutions and economic growth. The results show that there is an institutional threshold for economic growth to reach its highest level. If the institution indicator exceeds the threshold, it causes the reverse effect on the growth. Moreover, the economic growth of Asian countries is also affected by inflation (INF), labor force (LABO), trade openness (OPEN), and infrastructure (TELE). From that, the study suggests some policy implications for Asian countries and Vietnam, in particular, in order to improve institutions contributing to economic growth.

THE ROLE OF INSTITUTIONAL QUALITY IN THE RELATIONSHIP BETWEEN FDI AND ECONOMIC GROWTH IN VIETNAM: EMPIRICAL EVIDENCE FROM PROVINCIAL DATA

2019 ◽  
Vol 64 (03) ◽  
pp. 601-623 ◽  
Author(s):  
NGUYEN VAN BON
Keyword(s):  
Economic Growth ◽  
Positive Impact ◽  
Estimation Method ◽  
Institutional Quality ◽  
Economic Activities ◽  
Fdi Inflows ◽  
Important Message ◽  
The Impact ◽  
The Relationship

All investigations into the role of institutions in the relationship between foreign direct investment (FDI) and economic growth conclude the impact of interaction between FDI and institutional quality on economic growth is significantly positive. Contrary to the conclusion of these studies, this paper finds it is significantly negative for a panel data of 43 provinces in Vietnam over the period 2005–2012 via the estimation method of difference panel GMM Arellano–Bond. In addition, the estimated results also show: (1) FDI inflows significantly foster economic growth; (2) Good institutional quality has a significantly positive impact while bad institutional quality has a negative albeit insignificant effect on economic growth. From the policy perspective, these findings signal an important message to developing countries that governments should carefully adjust policies and institutions because aside from attracting more FDI inflows and promoting the economic activities, it can also be detrimental to economic growth.

scholarly journals Can Sports Promote Exports? The Role of Soccer Matches in International Trade

2016 ◽  
Vol 16 (1) ◽  
pp. 1-32 ◽  
Author(s):  
Andreas Hatzigeorgiou
Keyword(s):  
Economic Integration ◽  
Bilateral Trade ◽  
Foreign Market ◽  
Policy Implications ◽  
Model Framework ◽  
Cross Country ◽  
Sporting Activities ◽  
Sport Events ◽  
The Impact

Sports can help to increase foreign trade and promote global economic integration. Engaging in sports can provide visibility opportunities for countries and may spur the interest of firms as well as consumers in the respective foreign market. Sport could also help to infuse trust into cross-country business relationships. While previous studies have investigated the role of sport events on trade, this study analyzes whether countries can increase trade between them by engaging in sporting activities with each other. We use soccer, being the world’s most popular sport, as an example when investigating this potential bilateral sport-trade link. Our empirical strategy builds on the fact that many soccer matches between countries’ national teams are the result of a random drawing procedure. Thus, they are a possible source of exogenous variation. Using a gravity model framework, we test the proposed link for approximately 4,800 soccer matches that were played between 209 countries during the period 1995 through 2001. We also analyze the hypothesized underlying impact channel by estimating the impact on trade for goods that are likely to have different elasticity with respect to information and trust friction. The results are indicative of the hypothesis that countries that engage in sporting activities with each other enhance their bilateral trade. These results could have potentially interesting policy implications. Governments may want to consider actively promoting sporting activities together with countries with which they want to enhance their trade.

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.

scholarly journals The Effect of Using Social Media in the Modern Marketing Communication on the Shaping an External Employer’s Image

Energies ◽  
2021 ◽  
Vol 14 (14) ◽  
pp. 4177
Author(s):  
Agnieszka Izabela Baruk ◽  
Grzegorz Wesołowski
Keyword(s):  
World Literature ◽  
Statistical Tests ◽  
Empirical Studies ◽  
Communication Channels ◽  
Primary Data ◽  
Survey Method ◽  
Marketing Communication ◽  
Chi Square ◽  
The Impact

The aim of this article was to determine the significance of modern marketing communication channels used in the process of shaping the external image of an enterprise as an employer. An analysis of the world literature on marketing, management, marketing communication and human resource management was used to prepare the theoretical part. The results of the analysis indicate a cognitive and research gap regarding the use of modern communication channels for building the external image of an enterprise in the role of an employer. In order to reduce the gap, empirical studies were conducted among young Polish potential employees, in which the survey method was used to gather primary data. The collected data were subjected to statistical analysis, during which the following methods and statistical tests were applied: the analysis of average values, exploratory factor analysis, Kruskal–Wallis test (KW), Pearson chi-square independence test and V-Cramer coefficient analysis. The results of the analyses conducted indicate, inter alia, that statistically significant diversity was identified in the case of non-professional media in terms of respondents’ opinions on whether the employer’s image created by modern media is better than the employer’s image created on the basis of classical marketing communication channels. In the case of professional and non-professional media, the age of the respondents was not a differentiating feature. Moreover, neither for professional media nor for non-professional media were statistically significant dependencies identified between respondents’ opinions on the impact of actions undertaken by enterprises on shaping their positive external image as an employer and respondents’ opinions on whether the employer’s image created on the basis of modern marketing communication channels is more beneficial than the employer’s image created on the basis of classical marketing communication channels. The results obtained on the basis of the research have a cognitive and applicability value, characterized by originality. Until now, the importance of using modern marketing communication channels in shaping the employer’s external image has not been analysed. This also applies to enterprises operating on the energy market.

scholarly journals Entrepreneurial intention: An analysis of the role of Student-Led Entrepreneurial Organizations

2021 ◽  
Author(s):  
Giuliano Sansone ◽  
Elisa Ughetto ◽  
Paolo Landoni
Keyword(s):  
Entrepreneurial Intention ◽  
Policy Implications ◽  
Policy Makers ◽  
Student Entrepreneurship ◽  
Entrepreneurial Organizations ◽  
Entrepreneurial Activities ◽  
The University ◽  
The Impact ◽  
The Empirical Analysis

AbstractAlthough a great deal of attention has been paid to entrepreneurship education, only a few studies have analysed the impact of extra-curricular entrepreneurial activities on students’ entrepreneurial intention. The aim of this study is to fill this gap by exploring the role played by Student-Led Entrepreneurial Organizations (SLEOs) in shaping the entrepreneurial intention of their members. The analysis is based on a survey that was conducted in 2016 by one of the largest SLEOs in the world: the Junior Enterprises Europe (JEE). The main result of the empirical analysis is that the more time students spent on JEE and the higher the number of events students attended, the greater their entrepreneurial intention was. It has been found that other important drivers also increase students’ entrepreneurial intention, that is, the Science and Technology field of study and the knowledge of more than two foreign languages. These results confirm that SLEOs are able to foster students’ entrepreneurial intention. The findings provide several theoretical, practical and public policy implications. SLEOs are encouraged to enhance their visibility and lobbying potential in order to be recognized more as drivers of student entrepreneurship. In addition, it is advisable for universities and policy makers to support SLEOs by fostering their interactions with other actors operating in the entrepreneurial ecosystem, who promote entrepreneurship and technology transfer activities. Lastly, this paper advises policy makers to assist SLEOs’ activities inside and outside the university context.

scholarly journals Promoting Female Entrepreneurship: The Impact of Gender Gap Beliefs and Perceptions

SAGE Open ◽  
2021 ◽  
Vol 11 (2) ◽  
pp. 215824402110184
Author(s):  
Camelia Ilie ◽  
Abel Monfort ◽  
Gaston Fornes ◽  
Guillermo Cardoza
Keyword(s):  
Gender Gap ◽  
Multivariate Regression Analysis ◽  
Public Institutions ◽  
Policy Implications ◽  
Entrepreneurial Intentions ◽  
Cultural Barriers ◽  
Female Entrepreneurship ◽  
Spanish Women ◽  
The Impact

Perceptions and institutional frameworks can be barriers or facilitators to the development of female entrepreneurship policies. Institutions rely on factual data on the gender gap to evaluate their policies. However, the literature shows that the research and institutions should also analyze the impact of social beliefs on the success of these policies and initiatives. This study focuses on the impact of these perceptions in promoting female entrepreneurship. Data were collected from 287 responses to a questionnaire from Spanish women and men and were analyzed using multivariate regression analysis. The results show that the perception of lack of equality increases the gender gap even if there are specific and effective policies in a society that attempt to eliminate the gender gap in terms of the role of women in the home or positions of power. The main result is that these perceptions ultimately affect women’s entrepreneurial intentions. The results have policy implications for companies and public institutions willing to change the gender narrative about entrepreneurship and design policies and initiatives that help women overcome cultural barriers and effectively promote female entrepreneurship.

scholarly journals Credit composition and income inequality in Vietnam: an empirical analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Le Quoc Hoi ◽  
Hương Lan Trần
Keyword(s):  
Income Inequality ◽  
Educational Level ◽  
Generalized Method Of Moments ◽  
Institutional Quality ◽  
Primary Data ◽  
Data Set ◽  
Content Type ◽  
Private Credit ◽  
The Impact

PurposeThis paper aims to examine the credit composition and income inequality reduction in Vietnam. In particular, the authors focus on the distinction between policy and commercial credits and investigate whether these two types of credit had adverse effects on income inequality. The authors also examine whether the impact of policy credit on income inequality is conditioned by the educational level and institutional quality.Design/methodology/approachThe authors use the primary data set, which contains a panel of 60 provinces collected from the General Statistics Office of Vietnam from 2002 to 2016. The authors employ the generalized method of moments to solve the endogenous problem.FindingsThe authors show that while commercial credit increases income inequality, policy credit contributes to reducing income inequality in Vietnam. In addition, we provide evidence that the institutional quality and educational level condition the impact of policy credit on income inequality. Based on the findings, the paper implies that it was not the size of the private credit but its composition that mattered in reducing income inequality, due to the asymmetric effects of different types of credit.Originality/valueThis is the first study that examines the links between the two components of credit and income inequality as well as constraints of the links. The authors argue that analyzing the separate effects of commercial and policy credits is more important for explaining the role of credit in income inequality than the size of total credit.

scholarly journals Capital Structure-Firm Value Nexus: Moderating Role of Profitability

2020 ◽  
Vol 11 (2) ◽  
pp. 375-386
Author(s):  
Hamed Ahmad Almahadin ◽  
Yazan Salameh Oroud
Keyword(s):  
Capital Structure ◽  
Firm Value ◽  
Panel Data Analysis ◽  
Policy Implications ◽  
Ample Evidence ◽  
Functional Models ◽  
The Impact ◽  
The Relationship ◽  
Moderating Role

This study aims to investigate the moderating role of profitability in the relationship between capital structure and firm value in Jordan, as an example of an emerging economy. For this purpose, two functional models were formulated to capture the direct relationship as well as the interaction impact of capital structure on firm value. The robust empirical findings of panel data analysis provide strong evidence of an adverse relationship between capital structure and firm value. The findings confirm that the impact of capital structure appears to be complicated in nature and difficult to examine without controlling for the interaction of profitability as one of the major determinants. Therefore, studying the interaction effect provides ample evidence and enhances the understanding of the link between firm value and capital structure. The empirical results of the study may provide important insights and policy implications to decision-makers.

scholarly journals Impact of Transport Infrastructure on Gross Regional Products: Evidence from Chinese Provinces under the “Belt and Road Initiative”

2020 ◽  
Vol 2 (2) ◽  
pp. 23-45
Author(s):  
Jin-Hui Li ◽  
Chol-Ju An ◽  
Gwang-Nam Rim
Keyword(s):  
Economic Growth ◽  
Economic Benefits ◽  
Transport Infrastructure ◽  
Belt And Road Initiative ◽  
Regression Analyses ◽  
Belt And Road ◽  
Development Levels ◽  
The Impact ◽  
The Belt And Road

Purpose: This paper analyzes the impact of transport infrastructure on Gross Regional Products in Chinese provinces under the “Belt and Road Initiative”. Methods: The impact of the key elements of transport infrastructure on Gross Regional Products is analyzed based on the data related to development levels of transport infrastructure and economic development. Correlation and regression analyses were used for data analysis. Results: It is found that railways and highways, which are the key elements of transport infrastructure, have a strong correlation with Gross Regional Products, and their effects are diverse among provinces under study. Implications: The findings demonstrate the position and role of diverse infrastructural elements in enhancing the economic benefits of infrastructural investment and promoting economic growth. Thus, it is expected to facilitate decision-making related to infrastructural investment under the “Belt and Road Initiative”.

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