To verify the quality of institutional environment and its role in attracting foreign direct investment (FDI). The article attempts to provide a quantitative description of the impact of institutional quality (IQ) on FDI inflow to 17 countries of Central and Eastern Europe (CEECs) in 2007-2017. Research Design & Methods: Firstly, we reviewed studies dedicated to the relationship between institutional operations and investment attractiveness. Then, we selected 17 CEECs and ranked them for the value of FDI in absolute terms and as a share of GDP. The third stage focused on building an original set of indicators. We used selected categories of Global Competitiveness Index (GCI). Based on rankings, in the fifth stage, we divided 17 CEECs into groups representing similar IQ using hierarchical cluster analysis. The final stage consisted in examining the impact of IQ on the inflow of FDI within a selected group of countries by estimating dynamic panel data models.
Findings:The study demonstrated that CEECs differ with respect to IQ; an aspect that exerts a statistically significant impact on FDI inward stock as % of GDP.
Implications & Recommendations:The study has implications for research and practice. The results may be interesting for policymakers and may have an application value for institutions. An efficient and effective institutional system may importantly contribute to the boosting of investment attractiveness of countries and impact FDI flows. Contribution & Value Added: The article sheds more light on the discussion about the relevance of IQ as a factor determining FDI inflow. The added value of this article consists in grouping 17 CEECs based on their similarity with respect to IQ and demonstrating that it impacts the size of FDI inflow. We proposed an original set of indicators for these countries that help in identifying their IQ.
Article type:research article
The aim of the article is to assess institutional quality in 28 EU Member States and to examine the relationship between the quality of institutions and FDI inward stock as % of GDP. This study is structured as follows. Firstly, we reviewed studies dedicated to the relationship between institutional quality and investment attractiveness. Then, we discussed FDI inflow into the EU countries and selected diagnostic variables that later served as the basis for our research in which we used categories of the Global Competitiveness Index. Based on rankings and using statistical methods, in the next stage, we divided the EU Member States into groups representing similar institutional quality. Then we investigated the relationships between groups of countries similar to one another when it comes to institutional quality and groups of countries ranked in ascending order by the value of foreign direct investment inflow measured as FDI inward stock as % of GDP.
The study demonstrated that the EU Member States differ with respect to institutional quality. The results of the statistical analysis have provided grounds to positively verify the hypothesis about a positive relationship between the level of institutional quality and investment attractiveness.
Problem sprawiedliwości w ramach systemu podatkowego jest jedną z najbardziej kontrowersyjnych kwestii, jaką można poruszać przy analizie podatków. Trudno zdefiniować sprawiedliwość podatkową, ponieważ pojęcie to nie jest przypisane obiektywnemu układowi odniesienia. Nie istnieje tzw. wspólna miara, która umożliwia sformułowanie definicji sprawiedliwości w ujęciu ogólnym i sprawiedliwości podatkowej w jej szczeg ólnym znaczeniu.
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