Domestic Capital Research Articles

Ocena kvaliteta korporativnog upravljanja u bankama u Srbiji

The significance attached to successful corporate management of banks primarily originates in the importance that banks play in the financial and economical system of a country. There has been a global spike in interest in the quality of corporate management of banks after the onset of the World Economic Crisis in 2007/2008, the consequences of which are still visible today. Paralel to the transformation of our country's economic system, we have also witnessed changes not only to the banking system, but also to the concept and quality of corporate management of banks in Serbia. Ownership transformation of an economic system involves strong penetration of foreign banks, by means of acquisition of domestic banks or founding of new ones. The introduction of foreign banks brought new sources of financing to the Serbian economy; in addition, the regulatory and legal frameworks for operation and functioning of the banking sector changes, as the country gradually integrates into the standards of the European Union. On the other hand, the arrival of foreign banks raised the quality of corporate management, resulting in greater earning power of those banks. The quality of corporate management in the domestic banks with private and state capital is adapting to new regulatory and market conditions. The quality and speed of those adaptations correlate closely to the market challenges imposed by the banks with foreign capital. Therefore the aim of the analysis of quality and particulars of corporate management in domestic banks with domestic capital is precisely to analyze and implement the standards of corporate management used in the banks with foreign capital. The goal is to raise and improve the quality of their corporate management, especially the policies for operation of Boards of Directors and audit commit-tees, the role of independent risk units, the operation of internal audit, as well as the application of market principles of operation and functioning.

The history of the production and application of veterinary medications and biological preparations in Poland from the nineteenth century to 1945

The year 1899 can be regarded as the beginning of the production of medications for animals in the Polish territories, for it was then that biological preparations made at the Department of Hygiene of the Jagiellonian University in Kraków were first mentioned by the press. The interwar period saw the development of not only the veterinary and bioveterinary industry, but also legislation that regulated its functioning. Although very advanced for those times, those laws were also susceptible to different interpretations and could easily be circumvented. In 1939, there were 33 Polish companies producing synthetic preparations and 6 producing serums and vaccines. One serious problem of the Polish pharmaceutical industry was the deficiency of domestic investment capital. The foreign ownership of the pharmaceutical industry amounted to 30%. Polish serums and vaccines for humans and animals fully covered the country’s needs and represented the strongest branch of the domestic pharmaceutical industry (in 1939, the Polish production of medicines met 3/4 of domestic demand). The development of industrial pharmacy in Poland was stopped by the outbreak of the Second World War. Many buildings were destroyed already at the beginning of the war in 1939. Post-war years showed that the foundations of the Polish pharmaceutical industry (including its veterinary branch) were solid. Polish pharmaceutical companies mostly recovered and sometimes even expanded their productive potential after the war.

Inadequate Use of Facebook as an Interactive Tool with the Dimensions of Participation, Feedback and Responsiveness for Corporate Communications: A Survey on Airline Companies with Domestic Capital in Turkey

Internet ve Web tabanli uygulamalarla hiz kazanan teknolojik gelismeler, iletisimin boyutunu degistirmis ve etkilesimli bir iletisim ortamini ortaya cikarmistir. Kuskusuz bu durum kurumlarla hedef kitleleri arasindaki iliskilerin gelistirilmesi icin de yeni olanaklar sunmaktadir. Bugun sosyal medyanin ozellikle de sosyal paylasim aglarinin, hayatin her alanina nufuz etmesiyle birlikte kurumla hedef kitleleri arasinda daha etkilesimli bir iletisimin gerceklesmesi mumkun hale gelmistir. Bu nedenle sosyal paylasim aglarinin basinda gelen Facebook’un kurumsal iletisim araci olarak etkilesimli bir sekilde nasil kullanilmasi gerektiginin belirlenmesi oldukca onem tasimaktadir. Bunun icin de oncelikle Facebook’un kullanim amacinin ve paylasilan iceriklerin belirlenmesi gerekmekte daha sonra ise etkilesim unsurunun arastirilmasi gerekmektedir. Bu nedenle Turkiye’de faaliyet gosteren yerli sermayeli havayolu sirketlerinin Facebook kullanimlarinin ortaya konulmasinin amaclandigi calisma iki asamadan olusmaktadir. Calismanin ilk asamasi olan, Facebook’un kurumlar tarafindan daha ziyade tanitim ve promosyon amacli olarak kullanildigina yonelik tespit, “Turkiye’deki havayolu sirketlerinin Facebook’u kurumsal amacli olarak kullanimi” basligi ile arastirmaci tarafindan yayimlanmistir (Turk, 2018). Bir takip calismasi niteliginde olan, calismanin ikinci kismini olusturan bu arastirmada ise Facebook’un etkilesimli bir mecra olarak kullanilmasindaki yeterliligin tespit edilmesi amaclanmaktadir. Alti hava yolu sirketinin kurumsal Facebook hesaplari; nitel arastirma yontemlerinden icerik analizi teknigi ile analize tabi tutulmus ve toplanan veriler betimsel istatistige basvurma yoluyla degerlendirilmistir. Buna gore; kurumlarin paylastiklari iceriklerle kullanicilari katilimciliga tesvik etmede, onlara sorular sorarak geri bildirim dongusunu saglamada ve onlardan gelen soru ve yorumlara cevap vermedeki yetersizliklerinden dolayi Facebook’u etkin ve yeterince etkilesimli bir mecra olarak kurumsal iletisimde kullanamadiklari sonucuna ulasilmistir.

The impact of monetization on the public functions of Weibo

Operating as a commercial business with public functions, Weibo’s pursuit of profits has to be balanced with the demands of citizen users. This article examines how the dynamics between increasing profits and preserving public interest manifests itself in Weibo’s monetization and how the dynamics impacts Weibo’s public functions. Drawn on evidence collected through participant observation and 19 in-depth interviews, this article first provides a description of the major practices of monetization. Next, it describes how the introduction of commercial elements, the cluttered product development, and the embrace with strong domestic capitals reshape Weibo’s public functions. Finally, it concludes with a discussion on the attitude of Weibo toward the dynamics between profits and public interest, and how Weibo’s pursuit of profits under the market influence has to be included when examining Weibo’s impact on the development of Chinese society.

Evidence on the Optimal Level of Research & Development (R&D) Expenses for KOSPI-listed Firms in the Domestic Capital Market

The study examines the existence of the optimal level of corporate R&D expenditure, which may be in active debate among the interested parties including government regulators and corporate managers in the Korean capital market. Given that most large domestic corporations have tended to gradually increase R&D investments in recent years, the study tested separate hypotheses in relation to the optimal level of the corporate R&D outlay and financial determinants for firms listed on the KOSPI stock exchange in the post-global financial turmoil period. Concerning the results, the sample firms overall seem not to maintain an optimal level of R&D expense at the intra-industry level, even if statistically significant differences were detected at the inter-industry level. Moreover, three explanatory variables such as R&D expenses of the prior fiscal year, profitability and Tobin’s Q showed statistically pronounced effects to account for the level of R&D spending. Further research may be warranted to apply the consequences of the study to the R&D activities of firms that belong to other financial markets, such as those advanced or emerging.

Induced Foreign Capital and Economical Impact Through China’s Pilot Free Trade Zones to Mainland

Based on panel data between 2012 and 2016, this article compares two groups of samples, which we call experimental group and controlling group, according to whether there are FTZs located. FTZ is natured by high institutional standards, facilitate trade and investment, financial innovation and open service. We empirically examine effect of FTZs on foreign direct investment. We find obvious and positive effect of consumption pull, element agglomeration and trade-driven. Regulatory innovation fosters market vitality with less reliance on government financing. However, phenomenon of “finance deviates from the real economy” and “net capital outflow” weaken pilot FTZ’s attraction to overseas capital. More domestic capitals flow into FTZ to avoid risks caused by institutional regulation. Imported electronic business should be limited by government because it heavily squeezes out local business. Financial innovation in FTZ should better support regional industrial development.

Globalisation, money, taxes – past and present

The article is devoted to changes that have taken place in the world economy and in the econo- mics, starting with the Great Depression of the 1930s to the contemporary Global Crisis. The author pays special attention to the phenomenon of free movement of capital across borders, which lead to weakening of the importance and role of the state.

Is There a Relationship between Foreign Direct Investment, Human Capital, Trade Openness and Economic Growth of Pakistani Economy?

Despite profuse literature on foreign direct investment, human capital and trade openness linkage with economic growth of developed economies, little profound literature is available in case of Pakistan. This paper specifically examines relationship of economic growth with foreign direct investment, human capital and trade openness for Pakistan over the time span 1980-2013. Applications of Johansen Co-integration test indicate the existence of long run relationship between the variables. In addition, VECM also confirms the long run relationship between variables. Also, diagnostic tests show normality and no auto correlation in the model. The CUSUMsq test signifies the specification of the model. The policy makers in Pakistan should employ policies to encourage FDI projects promoting domestic exports. Moreover, an increase in educational, health can result in efficient domestic human capital. The focus must also be on producing finished products in order to promote exports of Pakistan. Steps towards R&D activities should be encouraged to stimulate indigenous technological capability of Pakistan. This would upsurge the local production capability, capacity, promote exports, and improve terms of trade of Pakistan.

Remittances Impact on Economic Growth, Domestic Savings and Domestic Capital at the Presence of ODA and FDI in Selected MENA Countries

<p>This article investigates the impact of remittances on economic growth, investment and domestic savings in selected MENA labor exporting countries. The estimations have been done in the presence of other international capital inflow, which are foreign aid and foreign direct investment. A multiple equations model estimated simultaneously using different techniques. We found a positive impact of remittances on both growth and investment, meanwhile a negative impact on domestic savings. Aid impacts negatively on both growth and savings where it finance consumption instead of investment and enhance rent seeking behavior. Government expenditure and FDI are important source of growth. We recommended that policies for encouraging final use of productive investment of remittances. In addition, enhancing more project of migrant in home country that may facilitate their trade with host countries. Finally, more efficient allocation of aid is requires, and attracting more FDI.</p>

Remittances Impact on Economic Growth, Domestic Savings and Domestic Capital at the Presence of ODA and FDI in selected MENA Countries

This article investigates the impact of remittances on economic growth, investment and domestic savings in selected MENA labor exporting countries. The estimations have been done in the presence of other international capital inflow, which are foreign aid and foreign direct investment. A multiple equations model estimated simultaneously using different techniques. We found a positive impact of remittances on both growth and investment, meanwhile a negative impact on domestic savings. Aid impacts negatively on both growth and savings where it finance consumption instead of investment and enhance rent seeking behavior. Government expenditure and FDI are important source of growth. We recommended that policies for encouraging final use of productive investment of remittances. In addition, enhancing more project of migrant in home country that may facilitate their trade with host countries. Finally, more efficient allocation of aid is requires, and attracting more FDI.

Methods of risk analysis and management of domestic venture capital

Methods of risk analysis and management of domestic venture capital

Stabilizing Fundraising of Chinese Domestic Venture Capital: Law and Private Ordering

Inspired by the shiny American venture capital industry, China has been on the way to engineer its own vibrant venture capital market since the middle of the 1980s. The development of the Chinese venture capital market has been rapid but accompanied by the fact that Chinese domestic venture capital has been marginalized by their American competitors during the developmental process. The lack of Chinese pension funds in financially supporting Chinese domestic venture capital partially explains the imbalance and distance between American venture capital and Chinese domestic venture capital. In order for Chinese domestic venture capital to level the playground in the aspect of fundraising, a double-faceted approach including the revision of law and the delicate design of private ordering ought to be respectively relied on by the Chinese authorities and Chinese pension funds.

Bad Banks as a Response to Crises: When Do Governments Use Them, and Why Does Their Governance Differ?

Early working draft prepared for the 2013 International Political Economy Seminar. Comments welcome. 1 Many countries have used public asset management companies (AMCs, or “bad banks”) as part of strategies to restore their banking systems after crises. This includes the United States in the late 1980s, countries in East Asia and Latin America in the 1990s, and countries in Europe and Africa more recently. AMC structures, however, vary widely. Using a newly created global dataset of public bad banks, we begin to explore how domestic political institutions, international institutions, and international capital may be behind policymakers’ (a) decisions to create AMCs in response to crises as well as (b) design choices, particularly in terms of AMCs’ level of centralisation. We find evidence that countries with low levels of foreign ownership of the banking system and many highly polarised veto players are more likely to create AMCs. IMF conditionality is also associated with the creation of AMCs. We furthermore find evidence for a more nuanced relationship between democracy and AMC creation than what has been discussed in previous research. Our evidence suggests that countries with high levels of democracy, rather than being less likely to create AMCs at all are actually more likely to create decentralised AMCs.

Flows of FIIs and Indian Stock Market

Capital is considered to be very important growth in any economy. In case of developing country like India Domestic capital is not sufficient to fulfil the requirement of economy. In that case foreign capital plays a very important role. Foreign Capital comes in two forms- FDI and FII. FDI is considered as a more stable form of foreign capital as compared to FII. Such inflows and outflows directly create impact on stock market. Hence FDIs have emerged as important factor affecting Indian Stock Market. This paper examines the trend and pattern of FDI flow in India and also examines the relationship between FDI and Nifty.

Environmental Impact of Foreign vs. Domestic Capital Investment in China

AbstractWe compare environmental impacts associated with incoming foreign direct investment vs. domestic capital in China. We use aggregate data on Chinese provinces’ economic and pollution indicators to explore the effects of the financial origin of fixed capital. Our simultaneous models consider three prime channels through which these effects work: economic scale, sectoral composition and pollution intensity. Results show that emissions associated with foreign‐financed capital are lower than with domestically financed capital for some but not all of the considered types of pollution.

Does the Emerging Global Regime for International Investment Undermine Domestic Capital Formation in Developing Countries?

There is an emerging international investment law, mainly forged by International Investment Agreements (IIAs), which seems to afford foreign investors, and their investments, far more protections than are available to domestic investors. The goal of IIAs is to promote economic prosperity through the facilitation of international investment flows. The impetus stems from two main concerns of capital exporters, mainly from developed countries. First, a concern that the laws and political economy of many capital importing economies, mainly developing countries, do not ensure adequate protections for investments. The second is the failure, by the international community, to successfully formulate a globally agreed treaty on international investments. IIAs are aimed at assuaging these concerns so as to facilitate investment flows to developing economies, though, today, they are also used heavily between developing countries. The differential levels of protection that result from what IIAs accord foreign investments, on the one hand, and what is available to domestic investors under domestic law, on the other, translates to differential risk profiles for the two sets of investors. Arguably, with the higher protections, foreign investors are exposed to lower risks than their domestic counterparts. This then affects their respective costs of capital and transacting, competitiveness and, ultimately, profitability. Consequently, the emerging regime has the potential to undercut domestic investors and their investments. Worse, it is argued, the emerging regime often leads to the transfer of existing domestic capital stock to foreign ownership and control rather than increase the aggregate capital stock of developing economies. This paper examines the available data and literature to ascertain whether the emerging regime undermines domestic capital formation in developing countries. If yes, whether steps ought to be taken to ameliorate the situation, and how.

Factors Affecting Development of an Emerging Capital Market

The role of long-term capital in the economic development of a nation cannot be over emphasized. Most economic managers recognize that a well organized capital market is crucial for mobilizing both domestic and international capital. In many developing countries, however, capital has been a major constraint in economic development. Dailami and Atkin (1990) describe the provision of funds to finance domestic capital formation as a key factor in the prospects for long-term economic growth in developing countries. The authors observe that the reality of a much reduced supply of foreign funds from previous sources, such as commercial banks, compels governments in many developing countries to pay increased attention to capital market development as a way of improving domestic resource mobilization, enhancing the supply of long-term capital and encouraging the efficient use of existing assets. They contend that the ongoing debt crisis is serving to focus attention on the importance of equity rather than debt, particularly in the financing of risky projects with long gestation periods.

Fuzzy based trend mapping and forecasting for time series data

The study demonstrates the superiority of fuzzy based methods for non-stationary, non-linear time series. Study is based on unequal length fuzzy sets and uses IF-THEN based fuzzy rules to capture the trend prevailing in the series. The proposed model not only predicts the value but can also identify the transition points where the series may change its shape and is ready to include subject expert’s opinion to forecast. The series is tested on three different types of data: enrolment for Alabama university, sales volume of a chemical company and Gross domestic capital of India: the growth curve. The model is tested on both kind of series: with and without outliers. The proposed model provides an improved prediction with lesser MAPE (mean average percentage error) for all the series tested.

Technology Spillovers from FDI: The Case of ASEAN

The effect of technology spillovers is widely considered as one of the main channels through which domestic firms benefit from FDI (Foreign Direct Investments), and plays an important role in economic development of host countries. FDI is expected to generate technology spillovers to indigenous firms in transition economies. This paper will analyse and try to figure out the development patterns of ASEAN (Association of Southeast Asian Nations) by utilizing time-series data between 1990 and 2008 in ASEAN countries. The empirical results render a support to the existence of technology spillovers in ASEAN, which have a positive effect on the economic development of ASEAN. The regression results also suggest that it is necessary to combine FDI technology spillovers with domestic human capital, that is, in the process of promoting economic development, factors such as skilled labour force and sophisticated infrastructure are crucial. China’s FDI in ASEAN requires lower education threshold, also has positive effect on economy growth in six countries of ASEAN.

The Location of Foreign Human Capital in the United States

Among the millions of newcomers entering the United States every decade, those with extensive human capital are of particular importance for local economies. This study uses data from the American Community Surveys, 2004 to 2007 and compares the locational patterns of highly educated individuals coming from abroad with that of highly educated individuals migrating internally. The study finds that the locational choices of highly educated newcomers from abroad are similar to those of highly educated domestic migrants but that there are some important differences. Gateway states are substantially more successful in attracting human capital from abroad than domestic human capital; foreign human capital is more strongly attracted to existing human capital agglomerations than domestic human capital; and a manufacturing-based industry is a deterrent for the attraction of both foreign and domestic highly educated in-migrants, but the deterrent effect is stronger for domestic human capital than for human capital from abroad.