Emerging Economies’ Institutional Quality and International Competitiveness: A PLS-SEM Approach

Buitrago, E R Ricardo; Camargo, María Inés Barbosa; Vitery, Favio Cala

doi:10.3390/math9090928

Cited by 14 publications

(10 citation statements)

References 99 publications

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“…The other two countries (the Czech Republic and Poland) are also the least corrupt countries in the current sample. Our results are on the same line with those of Bazo et al (2019); Rontos et al (2020); Mačkić et al (2019); Buitrago et al (2021).…”

Section: Resultssupporting

confidence: 93%

“…Unfortunately, research on the influence of corruption on the exchange rate is in its infancy, and there are very few specialized studies (Kuncoro, 2015;Brandao-Marques et al, 2018;Bierut & Dybka, 2021). Buitrago et al (2021) analyzed 48 emerging economies between 2007-2017 to observe if institutional quality influences competitiveness and they emphasized that deficient policies and the lack of systemic conditions have a significant and negative effect on the international competitiveness of the respective countries. Bazo et al (2019) addressed the competitiveness of Slovak companies under the impact of macroeconomic factors and especially institutional ones; they highlighted that a company's internal factors (liquidity or profitability level) quickly recover from an external shock, whereas institutional factors (corruption, law enforcement, equality in front of the law, functioning of the judicial system) affect companies for a longer time and, implicitly, long-term competitiveness.…”

Section: Literature Reviewmentioning

confidence: 99%

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Competitiveness, fiscal policy and corruption: evidence from Central and Eastern European countries

Ţigănaşu

Pascariu

Lupu

2022

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Research background: The transformations induced by global challenges call for new approaches towards competitiveness and thus require a consistent rethinking of strategies and mechanisms so that they could be better adapted to the constantly changing context. Prior to the European Union (EU) accession, the Central and Eastern European (CEE) states began a broad process of economic reforms, including trade liberalization, mass privatization, exchange rate liberalization, all of which led to a wider opening to new markets, the creation of new opportunities for production and to ensuring the competitiveness of companies on foreign markets. By far, the most important step in the post-communist period was joining the EU, achieved after 2004. Over time, these states have faced, on the one hand, issues related to addressing systemic vulnerabilities, and on the other hand, finding the most appropriate measures to induce competitiveness. The influence of public policies on competitiveness is still an issue that needs to be debated, our study proposing to examine the reaction of external competitiveness to the increase of government spending and corruption. Purpose of the article: The aim of this paper is to analyze the impact of fiscal policies and corruption on the external competitiveness of the eleven countries from Eastern Europe (Bulgaria, Croatia, Czechia, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia) for the period 1995?2020. The choice of this time interval is to better capture the trinomial relationship between competitiveness, fiscal policy and corruption before and after the process of integration of the CEE states into the EU. Methods: The methodology chosen is based on ARDL (Autoregressive Distributed Lag) with structural breaks, the period taken into account being 1995?2020. The Unit root test of augmented Dickey?Fuller ADF (2016) was used to assess the time series stationarity. The test developed by Bai and Perron (2003) is applied to detect structural breaks, by resorting to the LM test. The tests for the cointegration between the considered variables, using the ARDL model, proposed by Pesaran et al. (2001), were also part of the research. The causality test of Granger et al. (2000) was used to assess the conditionality between the indicators. By applying these methods, it was highlighted that, especially after 2007, in the states under analysis, expansionary fiscal policies have led to internal devaluations of the currency, which ultimately increased external competitiveness, measured as real effective exchange rate. Instead, corruption has a negative impact on competitiveness. Findings & value added: The obtained results point out the relationship between competitiveness, fiscal policy and corruption in CEE countries. In the case of those that have a high competitiveness, even if there are large government expenditures, there is also an economic environment conducive to the implementation of measures that generate added value on a large scale. Conversely, in countries where corruption is high, the impact of government fiscal policies on competitiveness is reduced due to the negative effects caused by this phenomenon. Our study brings at least two contributions to the literature. First of all, the research shows how a growth in public spending affects the competitiveness of CEE economies through the real exchange rate. Secondly, it takes into account the phenomenon of corruption applied to Eastern countries, emphasizing a decrease in the external competitiveness of these economies in response to the manifestation of corruption.

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Section: Resultssupporting

confidence: 93%

Section: Literature Reviewmentioning

confidence: 99%

Competitiveness, fiscal policy and corruption: evidence from Central and Eastern European countries

Ţigănaşu

Pascariu

Lupu

2022

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“…Table 4 and Figure 2 show the results of the PLS-SEM analysis; the indicators are all highly correlated with the constructs for which they were designed. In addition, the construct indicators all scored higher than the cut-off value of 0.708, indicating that they accurately represented the construct (Buitrago et al, 2021; Busu and Busu, 2021; Chung and Liang, 2020; Coltman et al, 2008; Monecke and Leisch, 2012; Palos-Sanchez et al, 2021).…”

Section: Methodsmentioning

confidence: 92%

Soft Power in emerging economies: A partial least squares – structural equation modeling exploratory analysis of the effects on outward foreign direct investment

Rajasekar

Alcaraz

2023

International Area Studies Review

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This article discusses the linkage between Soft Power institutional conditions and their effects on inward foreign direct investment (IFDI) as a mediator of outward foreign direct investment (OFDI). We measured Soft Power through the use of selected indicators between 2016 and 2019. To evaluate the proposed Soft Power constructs and their relationship with IFDI – OFDI, we applied partial least squares – structural equation modeling (PLS-SEM) analysis. The model outcomes suggest that Government, Business, Culture, and Diplomacy conditions have a significant and positive effect on IFDI and OFDI. The findings are context-moderated due to the heterogeneity of the emerging economies evaluated.

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“…In this way, mediating variables determine the nature of the relationship between the independent and dependent constructs. Consequently, as one of the main characteristics by adopting the PLS-SEM in order to guarantee the reliability, and convergent and discriminant validity, through the most recent statistics (HTMT), as well as to avoid multicollinearity and bias, the results obtained, applying this methodology, are robust [126,127].…”

Section: Discussionmentioning

confidence: 99%

A Multiple Full Mediating Effect in a PLS Hierarchical Component Model: Application to the Collaborative Public Management

2021

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The objective of this article was to determine the mediating effect of shared knowledge and organisational commitment in the relationship between organisational values and collaborative public management. Organisational values are also made up as a second-order construct consisting of other first order sub-dimensions such as authority, autonomy, conservatism, equality, harmony, and hierarchy. This research is based both on the Theory of Resources and Capacities and the theoretical perspective based on knowledge. The hypotheses proposed were supported with the use of structural equation models based on composites (PLS-SEM). The results show empirical evidence of a multiple fully mediating effect. The findings confirmed that organisational values do not have a significant direct positive impact on collaborative public management unless they are full mediated by shared knowledge and organisational commitment. In addition, this research framework is effective for improving public employees’ work efficiency and has practical implications for scholars, practitioners, and the authorities.

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Emerging Economies’ Institutional Quality and International Competitiveness: A PLS-SEM Approach

Cited by 14 publications

References 99 publications

Competitiveness, fiscal policy and corruption: evidence from Central and Eastern European countries

Competitiveness, fiscal policy and corruption: evidence from Central and Eastern European countries

Soft Power in emerging economies: A partial least squares – structural equation modeling exploratory analysis of the effects on outward foreign direct investment

A Multiple Full Mediating Effect in a PLS Hierarchical Component Model: Application to the Collaborative Public Management

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