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  • Author: Vogiatzoglou Klimis x
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Abstract

This paper examines the characteristics that relate to a country’s entrepreneurial attitudes, perceptions, intentions, and aspirations for 17 developing and emerging economies during the 2002-2016 period. Many of those countries have recorded high economic growth rates and have increasingly become more outward-oriented in terms of both, exporting activities as well as direct investments abroad. The empirical analysis is based on survey data from the Adult Population Survey of the Global Entrepreneurship Monitor (GEM) project. We create an overall entrepreneurial attitude index (taking values between 0 and 100) from 6 underlying GEM entrepreneurial attitude indicators. In addition to examining relevant cross-country patterns and trends, a statistical analysis is conducted to test whether a more positive entrepreneurial attitude in a country is associated with a higher international business orientation. The findings indicate that there has been an increase in the overall entrepreneurial attitude index on average, but there are different trends among countries. Most importantly, the results show that improved entrepreneurial attitudes do not explain the increasing international business orientation that has been observed during the sample period. This suggests that in the developing and emerging economies under study other factors were strongly driving the expansion of international business activities.

Abstract

This paper examines long-term developments in the quality and efficiency of free market institutional systems across thirteen emerging economies from South, South-east, and East Asia over the 1995–2014 period. The paper also empirically assesses the impact of free market institutions on a country’s inward foreign direct investment (FDI) performance. We find that the free market institutional framework in most economies is still relatively inefficient, restrictive, and underdeveloped but has, nevertheless, substantially improved during the last twenty-year period. Our empirical results also indicate that a free market institutional system in a host-country is a factor that attracts inward FDI to emerging Asian economies by multinational companies. Consequently, policy makers should focus on further improving the quality of free market institutions.

Abstract

The aim of this paper is to examine the factors that explain the observed differences in inward foreign direct investment (FDI) performance between the peripheral southern eurozone countries (namely Greece and Portugal) and the eight Eastern EU members (Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia, and Slovenia) that joined in 2004. The empirical analysis, which is based on the estimation of a panel-econometric model during the 2004-2016 period, provides for Greece and Portugal policy relevant insights with respect to improving the international competitiveness and attracting more FDI inflows vis-a-vis Eastern EU countries, which have outperformed the two southern eurozone members. The results indicate that, among other factors, positive differences in labour costs and corporate tax rates between southern eurozone members and Eastern EU member states largely explain the observed differences in inward FDI performance among those two country groups. The higher labour costs and corporate taxation in Greece and Portugal exhibit a strong negative impact on their relative inward FDI performance vis-avis Eastern EU members. Furthermore, differences in economic openness and integration into vertical production networks also have a significant effect on inward FDI performance.

Abstract

Particularly in an emerging or developing economy context, generating sufficient tax revenues is essential for the provision and upkeep of well-needed public infrastructure/public capital that supports the development process. However, tax policy can also cause distortionary and negative effects to economic activity and growth, especially if excessive taxation is imposed. The aim of this paper is to examine the role of tax revenues and estimate its overall net impact on economic growth in emerging economies in Asia. The dataset covers emerging economies from South, Southeast, and East Asia during 1998-2015. The results show that tax revenues have an overall positive net impact on the growth rate of real GDP per capita, suggesting the positive effects associated with taxation outweigh the negative and distortionary effects of taxation. Thus, evidence is found that the collection of adequate amounts of tax revenues (with which public investments were financed) contributed significantly to economic development.