Institutions and Investment in the South and East Asia and Pacific Region: Evidence from Meta-Analysis

Yerrabati, Sridevi; Hawkes, Denise

doi:10.5018/economics-ejournal.ja.2016-11

Cited by 12 publications

(9 citation statements)

References 62 publications

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“…They also concluded that the institutional reforms should be given more consideration. Yerrabati and Hawkes (2016) performed a meta-analysis on the governance and FDI inflows relationship and reported that countries that have a low corruption level and good quality regulation get more FDI than other countries. Nguyen et al (2018) studied the institutional quality and economic growth nexus in 29 emerging economies and reported that positive association exist between the variables.…”

Section: Fdi-economic Growthmentioning

confidence: 99%

Relationship Between FDI and Economic Growth in the Presence of Good Governance System: Evidence from OECD Countries

Raza

Shah

Arif

2019

Global Business Review

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This study analyses the relationship between foreign direct investment (FDI) and economic growth in the presence of good governance system in the Organization for Economic Co-operation and Development (OECD) countries. The dataset comprised of the years 1996-2013. Fixed effect model and the Generalized method of moments (GMM) estimator are used in this study. The result of the study unveils that all the variables have a significant positive association with economic growth. Moreover, the study establishes the interaction terms which also depict a positive effect on economic growth. Further, the Granger causality test shows that the bidirectional causal relationship exists between the FDI and regulatory quality (REQ) on economic growth, whereas the unidirectional causal relationship is found among the corruption control, political stability (POS), voice and accountability (VAC), government effectiveness (GOE) and economic growth. Finally, it can be concluded from the above results that the more the countries maintain their institutional quality the better will be the economic growth and the FDI inflows. This result gives valuable policy implications, which the government should use to improve the economic growth. Further, the result obtained from this study is beneficial for policymakers who can draft effective government policies which will foster the economic growth rate of the country. Last but not least, there is a need to improve the REQ which can only be improved subject to changes in the laws of corruption.

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Section: Fdi-economic Growthmentioning

confidence: 99%

Relationship Between FDI and Economic Growth in the Presence of Good Governance System: Evidence from OECD Countries

Raza

Shah

Arif

2019

Global Business Review

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“…Hence, Bhutan must implement balanced regulation for maintaining the supply chain. The countries with good-quality regulation and low levels of corruption can attract more investment (Yerrabati and Hawkes, 2016). The imports are likely to stimulate the investment and can significantly decrease the current account deficit to 10.4% of GDP.…”

Section: Literature Reviewmentioning

confidence: 99%

FDI, disinvestment and growth: an appraisal of Bhutanese economy

Ansari

Khan

2023

JCEFTS

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Purpose The purpose of this paper is to appraise the influence and challenges of direct disinvestment or through foreign direct investment (FDI) in the Kingdom of Bhutan, particularly to identify the inflow of disinterment post pandemic and how it can be improved. Design/methodology/approach The authors investigated the influence of FDI on Bhutan’s economy by analyzing secondary published data by Asian Development Bank and government agencies of Bhutan. To find out the role FDI has played in the growth of the Bhutanese Economy. Findings The FDI is not playing a major role in the nation’s economy so far. However, its potential cannot be ignored as there is a need for foreign currency and expertise in the country. Furthermore, government policies are directly influencing the inflow of foreign exchange that affects the Bhutan’s economy. FDI has not increased considerably because of self-imposed restrictions blocking government policies. Research limitations/implications This research is based on the data collected from secondary sources, which could be considered as the main limitation of this study. The Himalayan kingdom is not much open to the outside world in terms of the publication and availability of the data. Researchers put their best effort in retrieving secondary data from authentic sources. Practical implications This research has direct implications from an institutional perspective on the government policies and procedures. This study throws light on the elements that might help in improving Bhutan’s economy, employment and productivity for an overall development of economy. Social implications Bhutan and similar countries need to understand the pros and cons of having FDIs. This study might help the government and the civil society to understand the trends FDI has triggered in the nation over last 30 years, and will help them to make appropriate policies and regulations dealing with foreign investments. Originality/value This paper underwrites the influence of disinvestment on Bhutan’s economy, which can revolutionize business, entrepreneurship and institutions. This research was conducted by analyzing secondary data released by authorized agencies, which indicated the lower inflow of foreign exchange and how to improve further.

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“…Despite overwhelming evidence that political institutions play a key role in minimizing or exacerbating the influence of corruption (Yerrabati and Hawkes, 2016, Ferraz and Finan, 2011, Torsten et al, 1997, Myerson 1993 Ferraz and Finan (2011) opined that the predominant cross-country analysis of the role of political institutions on corruption has focused on macro-level analysis. As a result, this has impeded the unraveling of the full complement of political institutional architecture that promotes or inhibits corruption at country -industry or organizational levels.…”

Section: Theoretical Foundations: Institutions Corruption and Governancementioning

confidence: 99%

Small sums, big impact: Corruption and microfinance institutions

Afrifa¹,

Amankwah‐Amoah

Acquaye

et al. 2022

Economic and Industrial Democracy

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Microfinance institutions (MFIs) have been promoted worldwide as developmental platforms that can help eliminate some of the major global challenges such as poverty and economic development. The effectiveness of using MFIs to fulfil such expectations depends on their performance, which can be affected by a range of institutional factors such as corruption, rule of law and financial sector development. However, there is a lack of clarity on whether these factors are performance inhibitors or promoters. Using gender as a mediating factor, this study develops and tests these relationships on MFI performance, with the aim of contributing to research on institutions and corruption in the Global South. Drawing on the MFI performance model, the study uses data on MFIs operating in 33 African countries. The results reveal that the control of corruption reduces MFIs’ operating expenditure, while it increases MFIs’ operating income. Drawing from the essentialist perspective of the theory of social construction of gender, it is argued that female borrowers from MFIs are shown to have a mediating impact on the relationship between the variables tested (such as control of corruption) and MFI performance. The study also has public policy relevance for nations seeking to use MFIs as means of fostering entrepreneurship and economic development.

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Institutions and Investment in the South and East Asia and Pacific Region: Evidence from Meta-Analysis

Cited by 12 publications

References 62 publications

Relationship Between FDI and Economic Growth in the Presence of Good Governance System: Evidence from OECD Countries

Relationship Between FDI and Economic Growth in the Presence of Good Governance System: Evidence from OECD Countries

FDI, disinvestment and growth: an appraisal of Bhutanese economy

Small sums, big impact: Corruption and microfinance institutions

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