Business Indicators Research Articles

Impact of investment climate on foreign direct investment in Nigeria, Ghana, Kenya and South Africa,

The study examined the Impact of Investment Climate on Foreign Direct Investment in Nigeria, Ghana, Kenya and South Africa, for the period of 2000 to 2021. The focus of this study is on how the business environment in Nigeria, Ghana, Kenya and South Africa influences foreign direct investment. Specific goals are as follows: (i). Evaluate critically the effect of the economic investment climate in Nigeria, Ghana, Kenya and South Africa on the inflow of FDI The variable scope include economic investment climate (ease of doing business index, gross domestic product, inflation rate), political investment climate (political stability index, corruption perception index, quality of institutions), environmental investment climate (nitrous-oxide emission, population density, land/air pollution rate) as the independent variable. The dependent variable was foreign direct investment inflows. Time series analysis, and more specifically the multiple panel regression analysis method, was used in analyzing the data adopting the Cobb Douglass model for its theoretical framework and data was sourced from the Statistical Bulletin of the countries studied and the World Bank Statistics.\The results show that, Economic investment climate variable (GDP) had significant positive effect on the inflow of foreign direct investment into Nigeria, Ghana, Kenya and South Africa. While inflation have positive insignificant relationship with FDI; It was recommended that; Efforts should be made by the governments of Nigeria, Ghana, Kenya and South Africa to enhance their economic fortunes by strengthening their economy through engaging in massive production for exports which will boost economic growth and as well attract more foreign direct investment

FOBICS: Assessing project security level through a metrics framework that evaluates DevSecOps performance

Context:In today’s software development landscape, the DevSecOps approach has gained traction due to its focus on the software development process and bolstering security measures in projects, a task in light of the ever-evolving cybersecurity threats. Objective:This study aims to address the lack of metrics for quantitatively assessing its efficacy from both security and business logic perspectives. Methods:To tackle this issue, the research introduces the Framework of Business Index Concerning Security (FOBICS), a set of metrics designed to enable transparent evaluations of project security. FOBICS considers various perspectives relevant to DevSecOps practices. It includes factors such as project duration and financial outcomes, making it appealing for implementation in business settings. Results:The effectiveness of FOBICS is validated theoretically and empirically via its application in two real-world projects: the results from these implementations show a correlation between FOBICS metrics and the security strategies employed as the development methodologies adopted by diverse teams throughout the projects. Conclusion:Hence, FOBICS emerges as a tool for assessing and continuously monitoring project security, offering insights into areas of strength and areas that may require enhancement. FOBICS is shown to be effective in assessing the level of DevSecOps implementation. The ease of calculating FOBICS metrics makes them easily interpretable and continuously verifiable. Moreover, FOBICS summarizes most of the other quantitative and qualitative metrics in the literature.

Fostering innovation through governance systems: empirical insights from South Asian countries

Purpose Innovation is necessary to ensure consistent economic growth and to meet the global competition. In view of this, the purpose of this study to check the effect of governance quality as a tool for fostering innovation performance. Design/methodology/approach The empirical analysis was arranged on 20 year’s (2000–2019) data from South Asian economies. Subject to the existence of cointegration, the authors use the fully modified ordinary least square model for regression analysis and check the robustness through robust least square model. Findings The empirical findings infer that all dimensions of governance have a positive significant impact on both research and development expenditures and trademark applications jointly known as innovation performance. In addition, the empirical analysis discloses the positive effect of all control variables, including FDI inflow, banking sector development, economic growth, ease of doing business index and government subsidies on innovation activities. The analysis confirms the “grease the wheel” role of governance in fostering innovation. Practical implications It is apparently recommended to strengthen the exercise of better governance to harvest better innovation scores. Originality/value This study advocates the positive role of individual dimensions of governance recommended by existing literature and complements the literature by jointly exploring the impact of all governance dimensions on overall innovation performance.

Challenges and opportunities in the development of micro, small, and medium-sized enterprises (MSMEs) in Central and West Asia

The study aims to analyze the impact of challenges and opportunities related to corruption, regulatory barriers to doing business, innovativeness of the business environment, and development of institutions and policies that ensure economic prosperity on the development of MSMEs in Central-Western Asia countries. The paper chooses seven Central-West Asian countries using Asian Development Bank statistics for 2010–2021. Based on eleven indicators of the Asian Development Bank (the absolute values and dynamics of the number of MSMEs, their employees, their contribution to GDP, financing by banks and non-banking financial institutions) and factor analysis, the composite indicator of MSMEs’ development was calculated. The highest levels of the composite indicator in 2021 were observed for Kazakhstan (1.248), Uzbekistan (1.120), and Azerbaijan (1.043), and the lowest values for the Kyrgyz Republic (0.676). Employing a panel regression analysis with time-fixed effects (for all countries), connections between composite indicators of MSMEs’ development and the Corruption Perceptions Index, Ease of Doing Business Index, Global Competitiveness Index, and Global Innovation Index were explored. The greatest impact was in 2019 – with an increase in the Corruption Perceptions Index by one unit (the higher it is, the less corruption is considered by experts), the MSME development indicator increased by 0.26 units. With an increase in the Ease of Doing Business, Global Competitiveness, and Global Innovation Indices by one unit (growth indicates deterioration of the country’s rating position), the composite indicator of MSMEs’ development decreases by 0.68, 0.69, and 0.67 units, respectively.

The quality of licensing services: an analysis of the impact of leadership and communication on the effectiveness of licensing services in Indonesia

The establishment of the Public Service Mall in XYZ Regency is designed to facilitate business transactions and is anticipated to enhance the Ease of Doing Business Index (EoDB) in XYZ Regency. The Investment Coordinating Board (BKPM) has delegated authority to the XYZ Regency Investment and One-Stop Integrated Services Office or it called DPMPTSP to organize licensing in the XYZ region through the Public Service Mall. The government utilizes an integrated online system, namely Online Single Submission (OSS), in its implementation, as mandated by Government Regulation Number 24 of 2018 concerning Electronically Integrated Business Licensing Services. This is done by the government to accelerate and facilitate business actors in obtaining business licenses. XYZ Regency has implemented the OSS system since July 2018. In this study, the authors are interested in discussing how communication management and communication processes related to services carried out by the XYZ Regency Investment and One-Stop Integrated Services Office (DPMPTSP) are conducted. The methodology employed in this study is descriptive qualitative. In accordance with the POAC theory, the implementation of the OSS system at the XYZ Regency One-Stop Integrated Investment and Service Office has not achieved the desired outcomes. There remain numerous deficiencies in the system, starting with the readiness of human resources (HR) to provide optimal services and the strategy of the XYZ Regency local government to disseminate information on the OSS system to the wider community. In accordance with the explanation provided by G. R. Terry, the foundation of management activities is organization. This implies that organization is an activity aimed at achieving goals in an effective and efficient manner. Therefore, the objective of the OSS system should be genuinely perceived by the community, rather than becoming an impediment to business activities.

Entrepreneurial Decisions of the Location Choice for Mergers and Acquisitions in the EU-27

ABSTRACT Locations that offer a positive business climate with strong environmental performance and sustainable practices are more likely to attract companies seeking to integrate carbon dioxide reduction strategies through mergers and acquisitions (M&A). The aim of this study is to analyze the extent to which the business climate in European countries influences the M&A market. We considered the conditions of institutional, economic or sustainability regulations to determine if the ease of doing business (EDB) index, the World Governance Indicators, and carbon dioxide emissions can influence the evolution of M&A. After applying the Ordinary Least Squares regression and panel analysis, the conclusion was that sustainability criteria are important factors for investors when choosing the companies to invest in.

Determinants of digital technology development in sub-Saharan African countries: evidence from panel data analysis

The primary objective of this research is to explore the elements that shape the progression of digital technology in Sub-Saharan African nations. The study employs data obtained from 16 countries, covering the period between 2000 and 2020. Employing fixed effect panel regression analysis, our research indicates that various non-technological factors significantly impact digital technology development in the region. The results highlight that variables including general government final consumption expenditure, inflation rate, employment growth rate, financial development, ease of doing business index, logistics performance index, international migration, access to electricity, and access to safe drinking water have a positive impact on the development of digital technology. Conversely, international trade is identified as a negative influence, primarily due to insufficient infrastructural development. These findings underscore the significance of non-technological elements, encompassing aspects like globalization, economic conditions, favorable digital ecosystems, and the fulfillment of basic human needs, in shaping the landscape of digital technology in the region. The study, while acknowledging limitations in terms of selected indicators, years, and countries, emphasizes the need for broader investigations in future research. Practically, the study suggests that governments in the region should prioritize addressing these non-technological factors to fully leverage the potential of digital technology development. The originality and value of this research lies in its exploration of non-technological determinants, shedding light on their pivotal role in shaping the digital technology landscape in sub-Saharan Africa.

TRAJECTORY OF SME DEVELOPMENT: A CRITICAL ANALYSIS AND PROSPECTIVE INSIGHT INTO DIVERSIFICATION PROGRESS IN NIGERIA

The pivotal role of small and medium enterprises (SMEs) in fostering economic diversification has been widely acknowledged as crucial for achieving inclusive growth and development. Recognising this, the Nigerian government has outlined the Strategic Roadmap and Action Plan (SRAP 2021–2024), aligning with the National Digital Economy Policy and Strategy (NDEPS) and the National Development Plan (NDP), 2021–2025. This initiative seeks to establish an ecosystem for innovation-driven enterprises (IDE) and empower SMEs to embrace emerging technologies, a crucial aspect of technological catching-up in developing economies. This paper utilised qualitative research approach to critically analysed the perspective of SMEs development and its role in advancing economic diversification in Nigeria, an emerging economy within Sub-Saharan Africa (SSA), particularly in the context of technological catching-up. However, the introduction of policies such as SRAP has shown promise in encouraging SMEs to leverage technology for enhanced innovation, providing a pathway for these enterprises to catch up technologically in the broader context of developing economies. Additionally, our paper identifies infrastructure deficits as a critical factor impeding SME development, contributing significantly to the country's low ranking on the global Ease of Doing Business (EoDB) index. In light of these findings, we recommend a comprehensive and effective implementation of policies to boost SME performance, generate employment opportunities, and alleviate poverty, thereby contributing to technological catching-up and broader national development in the context of developing economies.

Assessment of the level of investment attractiveness of Ukrainian economy using multidimensional average method

In the article it has been estimated the level of investment attractiveness of the Ukrainian economy using multidimensional average method. For this purpose, the structure of national investment attractiveness was identified and five main components that are political, economic, social, scientific, technical, natural and geographical. The political component of national investment attractiveness is characterized by the following indicators: world press freedom index, economic freedom index, political freedom index, and ease of doing business index. The economic component of national investment attractiveness is characterized by the following indicators: GDP per capita, unemployment rate and government debt in GDP. The social component of national investment attractiveness is characterized by the following indicators: literacy rate, Gini coefficient, happiness index. The scientific and technical component of national investment attractiveness is characterized by the following indicators: number of scientists and engineers per million people, number of technological parks in the country, the research and development (R&D) effectiveness index. The natural and geographical components of national investment attractiveness are characterized by the following indicators: size of electricity production, share of renewable resources in region electricity generation, percent of agricultural land in the country. The listed indicators were distributed on stimulants and disincentives and normalized. Results of calculations show that the level of investment attractiveness of the Ukrainian economy is quite low (ICIA = 0.393) and even lower than that in most analyzed countries (by 0.012 compared with Poland, by 0.023 compared with Hungary, by 0.049 compared with Romania, by 0.06 compared with Bulgaria), but it is higher than the level of investment attractiveness of Moldavian economies. The integral coefficient of investment attractiveness in Ukraine is characterized by the highest value of the general coefficient of natural resource component (GCN&G = 0.368). For comparison, in Poland, the value of that indicator equals 0.284, in Slovakia it equals 0.231, in the Czech Republic it equals 0.264. Instead, in accordance with the general coefficients of scientific and technical components, Ukraine is an outsider of Eastern Europe: GCR&D = 0.162 in Ukraine, GCR&D = 0.363 in Moldova, GCR&D = 0.401 in Slovakia, GCR&D = 0.442 in Romania. In addition, general coefficients of economic and social components are quite low (GCE = 0.435 and GСС = 0.412 accordingly) due to several institutional and financial factors, namely imperfect legal framework, low level of trust of major market participants in government, low financial literacy of population, high probability of non-repayment of loans. To raise the investment attractiveness of the Ukrainian economy, it is necessary to create new industries and markets, reform the taxation system, stabilize the banking system, improve the work of insurance companies, create institutions that would be involved in mobilizing investment resources for specific investment projects and programs.

Individual Corporations in Indonesia: Fostering Economic Growth and Fairness through Simplified Business Formation

In the pursuit of an organized and conducive business environment, the Indonesian government has ratified the Job Creation Law, introducing a legal concept of Individual Corporations for small and medium-sized entrepreneurs (UMK). This normative study employs a conceptual approach through Economic Analysis of Law, using primary, secondary, and non-legal materials to analyze the implications and orientation of this policy. The research findings suggest that the implementation of Individual Corporations, requiring only one founder or shareholder for establishment, leads to ease in creation and expansion of micro-small businesses, potentially impacting the ease of doing business index positively. This policy also fosters a proportionately growing, fair national economic structure, and is expected to enhance employment opportunities. The introduction of Individual Corporations represents a significant change in Indonesia's corporate law, aligning with national goals to improve investment conditions.Highlights:
 
 Introduction of Individual Corporations requiring only one founder simplifies business formation.
 Positive impact on the ease of doing business index and alignment with national investment goals.
 Fosterment of a proportionate, growing, and fair economic structure, enhancing employment opportunities.
 
 Keywords: Individual Corporations, Economic Growth, Small Entrepreneurs, Business Formation

From Borrowing to Growth: Ghana’s Public Debt Strategy within its Financial Development Trajectory

Purpose: The study examined the implications of Ghana’s soaring public debt on its financial development, specifically its banking behaviour. Given Ghana’s alarming public debt of 78.3% of GDP by 2022 and previous periods of high public debt correlating to global economic downturns, understanding this relationship is vital for both local and international policymakers.
 Methodology: The research employs annual growth rates of various financial development indicators (e.g, Ease of Doing Business Index and Digital Transaction Index) and measures public debt using the Public Debt-to-GDP Ratio. Advanced econometric methods were used to ensure data accuracy, including cointegration, error correction models, and tests like Dickey-Fuller, Augmented Dickey-Fuller, and Sargan-Rhargava Durbin-Watson.
 Findings: The ADF test confirmed the stationarity of all study variables. Cointegration tests show a long-term equilibrium relationship among the variables. In the short run, a positive and significant relationship exists between variables such as Domestic Bank Intermediation, Financial Development, and Public Debt. Regression outcomes indicate that as Public Debt escalates, there’s an associated increase in Financial Development in Ghana.
 Implications: These findings reveal that despite the potential pitfalls of high public debt, a complex dynamic exists where increasing public debt positively correlates with financial development in Ghana’s short run. This insight can be valuable for policymakers in balancing infrastructural investments, social programs, fiscal sustainability, and financial growth, especially for developing nations facing similar debt scenarios.
 Originality: This study offers a unique, in-depth three-decade analysis (1992-2022) on the relationship between Ghana’s public debt and banking behaviour. It is an empirical precedent for other nations to understand the intricate relationships between public debt and financial growth.

The Coupling and Coordination Degree of Digital Business and Digital Governance in the Context of Sustainable Development

The inexorable march of technological advancement, particularly within the digital domain, continues to exert a profound influence on global economies, societies, and governance frameworks. This paper delves into the intricate coordination between digital business and digital governance against the backdrop of sustainable development. By introducing an index system to gauge the levels of digital business and governance, this study assesses their coupling coordination using a coupling coordination model. Through this level of coordination, this paper assesses their respective contributions to the sustainable development objectives of EU countries through panel-corrected standard error (PCSE) estimates. The paper’s findings underscore several key conclusions: (1) Notable upswings are evident in the composite indices for digital business and digital governance growth. Among these, the index of digital business has demonstrated the most pronounced surge. Furthermore, digital business has experienced a distinct upward trajectory in recent years. (2) Although observable, the rise of the coupling degree is restrained, with an overall coupling degree that remains relatively low. The coupling progression has transitioned from a stage of low-degree coupling to that of primary coupling, with EU countries demonstrating fluctuating rising trends in their coupling degrees, marked by conspicuous regional disparities. (3) Over the examined period, the extent of coordination between digital business and digital governance substantially impacts the Sustainable Development Goals (SDG) index. Focusing on the interplay and harmonization between digital business and governance offers a novel pathway toward attaining the objectives of the Sustainable Development Goals.

Influence of Make in India on Indian Economy

Make in India is a very important and new concept of the Government of India designed to facilitate investment, foster innovation, enhance skill development, protect intellectual property and build best in class manufacturing infrastructure in the country. The primary objective of this initiative is to attract investments from across the globe and strengthen India’s manufacturing sector. It is being led by the Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, Government of India. The Make in India programme is very important for the development of India as it aims at utilizing the existing Indian talent base, creating additional employment opportunities and empowering secondary and tertiary sector. The programme also aims at improving India’s rank on the Ease of Doing Business index by eliminating the unnecessary laws and regulations, making bureaucratic processes easier, making the government more transparent, responsive and accountable. Present paper divided in to six sections. Introduction is first section, second section consists objectives of the programme, third section devotes scope of the scheme, fourth section deals with impact of the scheme on Indian Economy, fifth section reveals advantages and disadvantages of the scheme and sixth section concludes the paper.

Construction of Mathematical Start-Up Business Index Formulation for Swiftlet Ranching Industry in Malaysia

An important agricultural product exported by Malaysia is swiftlet nests. Due to its high demand many entrepreneurs venture in this industry. Hence with the bioactive ingredients and dietary values are significant in support the manufacture of medicines in EBN. However, there are a lot of entrepreneurs who unable to fulfill the request of EBN production and failed in this industry. To prevent failure in the birds' nest swiftlet ranching industry, a mathematical modelling formulation should be developed. Thus, the purpose of the research is to construct a general formulation of the start-up business index equation for the swiftlet ranching industry in Malaysia. Experts interviewed found that there were eight factors of starting a business that mattered. Based on the findings, the weightage of the start-up business factors has been used in constructing the general formulation of start-up business index function of the swiftlet ranching industry in Malaysia. Hence, we will develop the system of start-up business factors in the swiftlet birds nest ranching industry using the general formulation of the start-up business index equation.

The Impact of Accounting on the Business Climate in the EU Countries

Accounting is a business language that evolves and adapts at all levels, from the global economy to the enterprise or personal finance level. Modern accountants perform various roles and functions, creating conditions conducive to the formation of a favourable business climate. This study aims to establish the influence of both the number and educational level of accountants on the formation of the business climate in countries within the European Union. Correlation-regression analysis was the predominant research method employed to investigate the correlation between the proportion of accountants in the workforce, education levels of accountants, and the Ease of Doing Business Index in EU countries acknowledged. The obtained results demonstrate that the number of accountants does not have a direct impact on the Ease of Doing Business Index in EU countries. However, the education level of accountants has a positive effect.
 
 Received: 6 June 2023 / Accepted: 21 October 2023 / Published: 5 November 2023

Multiple time scales investor sentiment impact the stock market index fluctuation: From margin trading business perspective

The stock market is viewed as a complex dynamic system, and investor sentiment has an important impact on index fluctuation. This study constructs investor sentiment from margin trading business perspective and investigates its impact on the Chinese stock market index fluctuation in multiple time scales. First, we utilize 12 indicators and two-stage PCA to construct a composite investor sentiment index of the margin trading business(ISMT). Second, based on TEI@I complex system theory, we use the VMD algorithm to decompose and reconstruct the ISMT, Shanghai Securities Composite Index(SSEC), and Shenzhen Securities Component Index(SZI), and obtain multiple time scale measurement sequences that reflect short-term, medium-term, and long-term fluctuation of each index, respectively. We provide evidence that the ISMT has an asymmetric impact on stock market index fluctuations. Specifically, for long-term trend, the ISMT has a significant positive impact on the SSEC, and a significant negative impact on the SZI. For medium and short-term trends, the ISMT has a significant positive impact on both the fluctuations of SSEC and SZI, and the impact degree on SSEC is greater than SZI. We also find that the impact degree of ISMT on SSEC and SZI decreases from short to long-term trend. In addition, we measure the fluctuation periodicity of ISMT in multiple time scales based on Fast Fourier Transformation, investigate the impact result during the COVID-19 pandemic, discuss the impact of ISMT on the other nine indexes commonly used in the Chinese stock market, and evaluate the predictive power of ISMT for 11 stock market index returns. This paper takes a new perspective and technology to investor sentiment research, and the results enrich relevant financial theories. The findings are crucial for investor decision-making and financial department regulation.

UKRAINE'S POSITION IN INTERNATIONAL RANKINGS ASSESSING THE LEVEL OF DIGITAL DEVELOPMENT OF COUNTRIES

In recent years, the utilization of digital technologies and the promotion of a country's digital development have emerged not only as a strategic necessity but also as a key determinant of its competitiveness on the international stage. The article extensively scrutinized the Digital Competitiveness Index, assessing Ukraine's position within the overall index. Additionally, it evaluated the significance of its components, such as knowledge, technology, and future readiness. The subfactors were also analyzed, allowing the identification of strengths and weaknesses in Ukraine's digitization process. Furthermore, the Digital Economy and Society Index and the Ease of Doing Digital Business Index were examined, both of which do not evaluate Ukraine's developmental level according to the specified indicators. Additionally, the ICT Development Index, which has not been evaluated since 2018, was explored. The obtained results could be utilized in constructing a business process transformation strategy, identifying priority areas, opportunities, and obstacles for the integration of digital technologies into enterprise operations.

The Role of Digital Technology in the Future of Insurance and Economic Development

Purpose: The objective of this study is to examine the influence of the Digital Adoption Index (DAI), Insurance and Financial Services' percentage contribution to GDP, ICT Expenditure as a percentage of GDP, the Ease of Doing Business Index, and Gross National Income per capita on economic development in developing countries.
 
 Theoretical Framework: Drawing from the endogenous growth theory, the study hypothesizes that improvements in digital technology, insurance and financial services, and the business environment, alongside the level of national income, contribute positively to economic growth.
 
 Methodology: A panel regression analysis was applied using the Fixed Effects model to analyze data collected from various developing countries. The study utilized both unit root and cointegration tests, with the Hausman test used for model selection.
 
 Findings: The results demonstrated that all variables significantly influence GDP per capita. The most substantial impacts were found to come from the Insurance and Financial Services' percentage of GDP and the GNI per capita.
 
 Research, Practical & Social implications: The findings underline the crucial role of digital technology, insurance and financial services, ICT expenditure, ease of doing business, and GNI per capita in enhancing economic growth. They provide insights for policy-makers in developing countries on the areas to prioritize for substantial economic development.
 
 Originality/Value: This study fills a research gap in exploring the interplay of digital technology, insurance, and economic growth, particularly in the context of developing countries. It provides a unique contribution by integrating various factors into a comprehensive model.

Nowcasting National GDP Growth Using Small Business Sales Growth

AbstractThis study shows that the Xero Small Business Index (XSBI) sales growth data can be used to predict the same period's national nominal GDP growth, with high accuracy, in the United Kingdom, Australia and New Zealand. Findings show that XSBI sales growth can predict the same month's GDP growth around two weeks earlier than the official release in the United Kingdom. On the other hand, the three‐month average of the XSBI sales growth can predict the same quarter's GDP growth, six weeks earlier than the official release in New Zealand and five weeks earlier than the official release in Australia.

Evaluation of the high-quality development of China's media industry

Accelerating the in-depth integration of media to achieve high-quality development in the media industry has become important for China's cultural media. We built a high-quality development index system for China's media sector and used financial data from A-share media industry listed companies from 2017 to 2020 to measure the high-quality development index of China's media business using the Global Malmquist-Luenberger production function method with the framework of the SBM model degree. We used the generalised method of moments model and the single-threshold model to estimate the threshold value of the media convergence degree and its factor distortions. Deep media integration can promote high-quality development in the media sector. However, insufficient and unbalanced development of media integration is the main hindrance to China's high-quality development of its media.