Country transparency and the global transmission of financial shocks

Brandão-Marques, Luis; Gelos, Gastón; Melgar, Natalia

doi:10.1016/j.jbankfin.2018.07.015

Cited by 14 publications

(4 citation statements)

References 66 publications

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“…The inverse causal link, starting from competitiveness (REER) to corruption, is manifested only for two countries (Bulgaria and Romania). Estimates in this direction were also made by Horobet et al (2017);Brandao-Marques et al (2018); Fatta et al (2018).…”

Section: Resultsmentioning

confidence: 99%

“…All these phenomena, manifested together, determine a negative impact of corruption on real ex-change, a fact demonstrated by the practical aspects, as well: countries with high corruption rates have low real exchanges. 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.…”

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: Resultsmentioning

confidence: 99%

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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“…His cross‐country research shows that countries with higher levels of fiscal transparency tend to have lower inflation rates and volatility, which has a stronger effect on developing countries. Likewise in the financial markets (bond and equity markets), Brandao‐Marques et al (2018) find that by increasing the availability of information about public policies, accounting standards, and disclosures by governments and companies can reduce the negative (peripheral) impact of global financial shocks. In addition, Alt and Lassen (2006) in the Organization for Economic Co‐operation and Development (OECD) countries found that transparency can reduce debt accumulation and deficits.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

The role of transparency and professional assistance in regional financial management in the Indonesian regional governments

Masdar

Furqan

Masruddin

et al. 2021

Journal of Public Affairs

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This study aims to analyze the extent of the role of transparency and professional assistance, particularly by the Financial and Development Supervisory Agency (BPKP) in the management of regional finances toward the implementation of follow‐up audit recommendations. Using data from provincial, city, and district governments in Indonesia in 2014–2016 in Indonesia, with a final sample of 1494 observations. The results of the study indicate that the level of transparency can play a role in increasing the level of suitability of the implementation of follow‐up audit recommendations that have been given by external auditors (the Supreme Audit Board/BPK) to the Regional Governments in Indonesia. However, although at the Provincial Government level, a positive influence was found on the existence of BPKP's assistance on the follow‐up of audit recommendations, this did not apply at the district and city level, because it was found that districts and cities that received BPKP assistance had lower audit recommendations compared to districts and cities that do not get BPKP assistance. The results of this study have implications for the strategies and policies (discretion) of Local Government officials in order to improve the suitability of the implementation of follow‐up audit recommendations. Therefore, the Central Government needs to encourage and facilitate increased transparency and implementation of follow‐up audit recommendations to the Regional Government, to optimize the achievement of governance reform goals in Indonesia, especially in order to realize accountability in regional financial management.

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“…Otro estudio relacionado es el efectuado sobre la transparencia y la transmisión global de las crisis financieras, en esta investigación se examinan datos de 46 países del mundo clasificados como emergentes, en una encuesta aplicada para medir las percepciones de más de 3000 ejecutivos en esos países para evaluar la transparencia en cuánto a información financiera y a través de la aplicación de regresiones (t=4) el resultado demuestra que la transparencia cumple un papel fundamental sobre el impacto de las crisis financieras globales en los mercados y sugiere la importancia de realizar otros estudios sobre la transparencia en las crisis financieras de los mercados periféricos (Brandao, Gelos, & Melgar, 2018).…”

Section: Relación Teórica E Investigaciones Aplicadas De La Variable:...unclassified

Factores de gestión que permiten una eficiente administración financiera en las universidades privadas, perspectiva teórica

Muñoz-Castro,

Villarreal-Villarreal,

Blanco-Jiménez

2020

VinculaTégica

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En el presente trabajo se analizan desde una perspectiva teórica los factores de gestión que permiten una eficiente administración financiera en las universidades privadas. El artículo establece el sustento teórico en donde varios autores publican información que fundamenta cada una de las variables tanto dependiente como independientes, por lo que se detallan las definiciones de cada uno de los constructos, las relaciones entre los mismos y el porqué de esas relaciones. Se concluye con la propuesta de un modelo teórico que fundamenta y la hipótesis propuesta.

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Country transparency and the global transmission of financial shocks

Cited by 14 publications

References 66 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

The role of transparency and professional assistance in regional financial management in the Indonesian regional governments

Factores de gestión que permiten una eficiente administración financiera en las universidades privadas, perspectiva teórica

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