Foreign investment location and institutional development in transition economies

Trade Liberalisation and Economic Growth in Macedonia

“…Some academics have mentioned weak institutions as an important factor that has influenced transitional growth (Efendic and Pugh 2015;Manolova, Eunni and Gyoshev 2008). Despite these economies being open and growing, academics have pointed out that investment is relatively low compared to the rest of the CEE transition economies (Bevan and Estrin 2004). Fiscal pressures are another issue, which due to weak revenue performance, weighty debt service and high input costs put a strain on government spending, while the political turbulences in the region serve as a disincentive for investors to invest in the private sector (Bocchi 2008).…”

“…As argued by the literature, the weak institutions in transition economies are a relevant factor that influences the further development of these economies and their growth (Bocchi 2008;Giannetti and Ongena 2009;Hoskisson, Wright, Filatotchev and Peng 2013). There are a large number of studies that have focused on investigating the relationship between institutional development and growth in transition economies, but these studies use cross-country analysis (Beck and Leaven 2006;Bevan et al 2004). These studies either use the institutional development index based on data from 18 different institutions and follow the theoretical construction of the index by Kaufman, Kray andMastruzzi in 2004 (Beck andLeaven 2006) or use an institutional development index constructed by the European Bank for Reconstruction and Development, to which they have access (Bevan et al 2004).…”

Abordagem Conceitual às Estratégias de Internacionalização sob Pressões Institucionais Duais para Legitimidade e Conformidade

“…Em países com um sistema institucional bem-desenvolvido, os custos de transação de realizar negócios são baixos (Bevan, Estrin, & Meyer, 2004;D. Li & Ferreira, 2011;K.…”

“…Essa abertura é possível porque a própria regulamentação e formalismos se tornam mais simples, mais claros e transparentes, requerendo menos licenças, alvarás e burocracia. Ou seja, a melhoria institucional que reduz as barreiras ao investimento estrangeiro também reduz a necessidade de ter um parceiro local para servir de interface com os agentes políticos e econômicos (Bevan et al, 2004;D. Li & Ferreira, 2011;K.…”

Institutions and Efficiency in Transition Economies

“…Good institutions can encourage accumulation of physical capital, human capital and technological knowledge and these factors in turn help improve efficiency. Bevan et al (2004) finds that development of legal institutions has positive effect on FDI inflows to transition countries in Europe, which is supposed to bring in more advanced technologies to local economies and help enhance their efficiency. In addition, economic freedom is found by Dawson (1998), among others, to affect growth directly via total factor productivity and indirectly through investment.…”