Startup ecosystem: the experience of Israel

Israel is one of the most favorable countries for conducting entrepreneurial and innovative activities with the largest number of startups per capita. The article analyzes the culture of creating startups that has developed in Israel as a result of the state policy aimed at developing venture capital and attracting foreign TNCs to the country. Within the framework of this culture, startup projects are in most cases created with the aim of actively attracting funds and selling them to foreign companies as soon as possible to make a profit. However, this model poses a threat to the stability of the economy in the long term. There is a shortage of large stable companies in the country that are able to carry out domestic investments. Moreover, there is a leakage of the most popular and progressive technologies from the country, attention is paid more to the number of new startups and their capitalization, rather than rooting within the country. As a result, Israel is characterized by one of the lowest indicators of the level of technology development among developed countries. To ensure the long-term competitiveness of the country, reforms are needed aimed at retaining intellectual property within the country and its implementation in the branches of the national economy.

Examining the FDI–Growth Nexus in BRICS: Panel Data Evidence

The purpose of this article is to examine the relationship between foreign direct investment (FDI) and economic growth in Brazil, Russia, India, China and South Africa (BRICS) economies, which are considered to be the fastest-growing economies and dominant players in the global investment landscape. In order to assess the relationship between the dependent variable (economic growth) and explanatory variables (FDI inflows and other growth determinants), we analyse a 32-year panel data starting from 1987 to 2018 using feasible generalised least squares (FGLS) method. The article found a significant positive FDI impact on economic growth in BRICS. However, exports, human capital and inflation (macroeconomic instability) exert a negative impact on economic growth of BRICS, whereas domestic investments exert a positive impact on growth. JEL Codes: F21, F43, C23, O47

The Effects of FDI on Domestic Investments in Western Balkans

Research background: In order to contribute to economic growth, inward foreign direct investments (FDI) need to meet certain economic and social criteria. Besides the contribution to the level of education, technological level, financial development, tax system, trade and investment policies, and market size, FDI should also encourage domestic investments (crowding in-effect). Purpose of the article: This paper examines the importance and effects of the inward and outward direct investments, gross savings as well as real growth on domestic investments in the case of Western Balkan countries (North Macedonia, Serbia, Albania, Kosovo, Montenegro, and Bosnia & Herzegovina). Thus, the logic behind this research is to determine whether and in which direction are aimed effects of FDI. Methods: The relation between FDI and domestic investments has been analyzed by employing panel data approach with and without constrains on cross-sections. The study is based on a panel data of six countries for the period between 2007-2018, (i.e., in total, we have 66 observations). Findings & Value added: The general conclusion from this analysis confirm that inward foreign direct investments in the Western Balkans, as well as real economic growth both significantly and positively affect the domestic investments.

Enhancing Pension Adequacy While Reducing the Fiscal Budget and Creating Essential Capital for Domestic Investments and Growth: Analysing the Risks and Outcomes in the Case of Greece

Many countries around the world are resorting to mandatory funded components in their multi-pillar pension systems with the purpose of catering for the financial pressure from ageing. This paper aims at analysing the possible replacement rates for such a scheme, by choosing different assumptions and setting the best combined area for the expected result. Then, an approach for analysing the potential for the implementation of such a scheme in Greece is presented along with the actuarially projected expected benefit expenditure and respective accrued capital. A result of the introduction of such a component is expected to be the elevated replacement rate at retirement with a concurrent alleviation of the fiscal burden for the state. The projected scale of savings will also provide domestic financing for investments generating growth.

An empirical investigation on the effects of the fiscal and monetary policies on the domestic and foreign direct investment in Saudi Arabia for the period 2010–2018

oreign direct investment is currently one of the main pillars in achieving development and economic growth, due to its important position in the economies of the countries of the world. The aim of this research is to study the impact of Fiscal and monetary policy in Saudi Arabia on attracting foreign investment for the period 2010–2018. The researcher used the multiple linear regression to test the research hypothesis. Linear regression is used to investigate the impact values by each predictor variable. The study covered the period 2010–2018, the present study chose independent variables monetary policy tools in Saudi Arabia that include (Money supply (M2), Monetary cash reserve and Exchange rate), also the present study chose fiscal tools that include (taxation and government capital spending). The Dependent Variables includes (Direct Domestic Investment and Foreign Direct Investment). E-views (version 10) software package was utilized for this purpose. Multiple linear regression was performed to test models. The results show that Money supply, Monetary cash reserve, capital government spending and taxation positively affects the domestic investments, while Exchange rate negatively affects the domestic investments. It was also found that all independent variables positively affect the foreign direct investment.