Business environment and foreign direct investments: the case of selected European emerging economies

Abstract

The globalisation process of the world economy has led to increase of international capital mobility. In the last two decades, the level of foreign direct investments (F.D.I.) was significantly raised and in 2017 was US$1.8 trillion. The question occupying attention in economic literature is what the main motives and determinants of F.D.I. in certain countries are. This article aims to explore what are the linkages between business environment and inward F.D.I. The research was performed on the sample of five European emerging economies, located in Central and Eastern Europe (C.E.E.

Multinational Firm Growth and Sustainability Responses to Dynamics of Business Regulations in Host Market

“…Additionally [62], findings also presented the supportive view that economic informality hampers investment situations. For instance, if corruption is initiated in a single unit of business, it can contribute to half of the business loss (Model 1), [18,47,63]. The Model further indicated that the negative associations of inward FDI and landlocked at (β = −0.8911, p < 0.10).…”

“…Actually, some former researchers had used Multination's business expansions in the forms of net FDI as a dependent variable such as but not limited to references [13,21,22,26,34] by associating FDI-Ease of doing business nexus approach but brought inconsistent findings. With a similar manner, such as few former studies such as references [18,47,48] and others through embedding its innovative approach the independent variables for this research were ease of doing business indicators components such as starting a business, registrations multinational firms and dealing with multinational business establishment credentials as indicated in Table 1.…”

Do taxes affect number of foreign enterprises controlled abroad by Slovak companies in the age of globalization?

“…To capture the nature of the business environment, we chose the Doing business (DBI) indicators. In various researches, the authors have already used the DBI index and its individual indicators [1,2], but mainly in connection with the inflow and outflow of FDI [16]. On the contrary, this research is focused on the influence of indicators on the number of established foreign affiliates controlled by Slovak companies.…”

“…Previous research in the field of capital outflow have focused mainly on describing the determinants of the business environment that can be used by countries in the process of attracting FDI into the country [1,2]. Our research is based on the different point of view, which has not been examined much yet.…”

Do Audit and Accounting Practices Matter for Greenfield FDI Inflows?

“…The increasing amount of FDI flowing into transition and emerging countries has attracted high academic attention. The quality of the regulatory environment, institutions and application of law, can play an important role in affecting FDI location within these economies (Demirbag et al, 2010;Peres et al, 2018;Bhasin & Garg, 2019;Vučković et al, 2020). Foreign investors are likely to avoid countries with instable legal framework (Bénassy-Quéré et al, 2007) and high levels of corruption and bureaucracy (Wei, 2000).…”