Institutions and Efficiency in Transition Economies

Dang, Vinh Quang

doi:10.2139/ssrn.2025327

Cited by 3 publications

(4 citation statements)

References 37 publications

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“…The two extracted components, which by construction are independent of each other, were then fed into the regression analysis to test the hypothesized relationships, an approach similar to that used in prior studies in extant literature on institutions and international economics (Dang, 2009).…”

Section: Methodsmentioning

confidence: 99%

Subnational institutions and EMNE acquisitions in advanced economies: institutional escapism or fostering?

Nayyar

Prashantham

2020

cpoib

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Purpose The purpose of this paper is to examine whether subnational market-supporting institutions in Indian states affect the likelihood of Indian multinational enterprises (MNEs) to undertake acquisitions in advanced economies (AEs) rather than emerging economies (EEs) and, if so, which mechanism – institutional fostering or escapism – underlies the phenomenon. Design/methodology/approach The paper uses a logistic regression model on a dataset of 647 firm-level cross-border acquisitions (CBAs) undertaken by Indian MNEs during the period 2010–2016. Findings The paper finds support for the institutional escapism mechanism, as opposed to the institutional fostering mechanism, underlying Indian MNEs’ acquisitions in AEs (rather than EEs). That is, firms headquartered in Indian states where market-supporting institutions (such as economic liberalization and efficiency of legal systems) are weak are more likely to undertake CBAs in AEs than in EEs as an escapist response to weak subnational institutions at home. Originality/value The paper highlights the relevance of the mainstream international business (IB) concept of emerging market multinational enterprises (EMNEs) internationalization to critical IB scholarship by examining subnational institutional influences on EMNEs’ foreign market choice between AEs and EEs. In particular, by providing evidence for the institutional escapism mechanism which has potential negative socioeconomic consequences in the region of the investing firm, the paper adds to critical IB research which places great emphasis on the examination of inequalities and draws attention to the EMNE context as a suitable setting for further research on internationalization from a critical perspective.

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Section: Methodsmentioning

confidence: 99%

Subnational institutions and EMNE acquisitions in advanced economies: institutional escapism or fostering?

Nayyar

Prashantham

2020

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“…Finally regional-based institutions (COMIFAC) are those built to promote cooperation between the Central African countries. Assessing the efficiency of institutional structures requires, first, an identification of their responsibilities and means of action [24] [25]. In Cameroon, the responsibilities of the state-based institutions are 1) to design and provide a follow-up in implementation of forest policy; 2) to ensure the control of actors involved in the sector and 3) to provide financial and technical assistance to the different parties involved in forest management [18].…”

Section: Assessing Institutional Performance In Managing Forest Resoumentioning

confidence: 99%

“…We understand by "institutional efficiency" the definition provided in[25]. The authors assume that institutional efficiency reflects a situation in which there is no feasible alternative for the state to create and enforce property and contract rights that everyone finds at least as good and which at least one of the economic actors strictly prefers.…”

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confidence: 99%

Property Rights, Institutions and Forest Resources Management in Developing Countries

Thiam¹

2014

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The objective of this paper is to propose a conceptual framework stimulating the sustainable management of natural resources in Central Africa. Based on the forest resources, we show how good identification and allocation of property rights strengthen the joint management of forest resources. Cameroon is selected as an example, since the country represents one of the most forest-intense areas in Africa. In doing so, we first evaluate the performance of institutions in fostering sustainable forest management. Second we show how good elaboration and allocation of property rights may contribute to improving efficiency in forest management. Using the New Institutional Economic (NIE) theory we provide an outline of the potential relationships between forest management and property rights allocated to stakeholders involved in forest exploitation. Finally we provide two forms of institutional structures that could improve forest management efficiency: public-private partnership and multi-stakeholder management approaches. Public-private partnerships are joint project management processes operated by both private businesses and public entities in order to combine public prescriptive mechanisms with private operational roles. Multi-stakeholder management approach is also a co-management initiative combining public entities, private actors and local population to increase the involvement of local dwellers living in forest areas in the decision process.

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“…For example, (Hall and Jones, 1999;Olson et al, 1998;Bjørnskov and Foss, 2010;Chanda and Dalgaard, 2008) explained institution's influence in TFP growth through growth accounting approach. Weill, 2005, 2006;Adkins et al, 2002;Klein and Luu, 2003;Doucouliagos and Ulubasoglu, 2005;Dang, 2009) used SFA to measure the impact of institutions on technical efficiency level, whereas Lambsdorff (2003) used the similar approach to measure institutional impact on productivity. Institution productivity relationship was also being tested using DEA based nonparametric Malmquist productivity index approach (Baris Yoruk, 2007;Krüger, 2003;and M del Mar and Javier, 2007), while (M del Mar and Javier, 2011;Lall et al, 2002;Cherchye and Moesen, 2003) tested institutional impact on efficiency estimates calculated through DEA.…”

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confidence: 99%

Are Institutions a crucial Determinant of Cross Country Economic Efficiency? A Two-Stage Double Bootstrap Data Envelopment Analysis

Siddiqui

Ahmed

2018

SSRN Journal

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This paper analyses the role of institutions in enhancing the economic efficiencies across countries in a two stage Double Bootstrap DEA framework based on nonparametric frontier analysis as proposed by Simar and Wilson (2007). In the first stage, cross country workers' efficiency is estimated using a bootstrapped DEA approach over the period of 1990-2000 for 78 countries. In the second stage, the impact of institutions on these efficiency estimates is analyzed in a truncated bootstrapped regression. Twenty-nine institutional indicators from the same period have been utilized to extract three orthogonal factors based on principal component analysis. These factors namely institutional and policy rents, political rents and risk reducing technologies, along with their aggregated index are used as institutional variables. Findings suggest that inefficiencies in the economy are less where institutions are stronger. This study also shows that institutions that curb corruption, bureaucratic inefficiencies, lax regulations and unfriendly business policies, tend to have a larger effect on workers efficiency than other two indices that curb political rents and those that reduce transactional risks. Furthermore, when they are aggregated, the combined impact is more than the individual impact.

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Institutions and Efficiency in Transition Economies

Cited by 3 publications

References 37 publications

Subnational institutions and EMNE acquisitions in advanced economies: institutional escapism or fostering?

Subnational institutions and EMNE acquisitions in advanced economies: institutional escapism or fostering?

Property Rights, Institutions and Forest Resources Management in Developing Countries

Are Institutions a crucial Determinant of Cross Country Economic Efficiency? A Two-Stage Double Bootstrap Data Envelopment Analysis

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