Good Investment Climate Research Articles

Problems of professional ethics standards of auditors in Ukraine

This study is dedicated to the many problems arising from incompliance by auditors of principles of professional ethics that cause problems not only in the reliability of the published findings, but also cause problems of global mistrust of users of financial statements to the audit profession. This generally creates obstacles to transparency mechanisms for disclosure and verification of information enterprises in Ukraine, not encouraging the formation of good investment climate. The study proved system of organizational support to create an environment to observe the principles of professional ethics in the performance of audit tasks based on measures of specifying and eliminating threats to the independence of the auditor. In this regard, was proposed the structure and substance of the relevant organizational and administrative documentation, which is part of the internal quality control system of audit services.

Investment climate and firm productivity: an application to Vietnamese manufacturing firms

ABSTRACTThe fundamental aspect of a national competitive advantage is a good investment climate. Understanding the role of the investment climate in generating firm productivity has received extensive attention by policymakers and economists in many countries. The article studies the effect of different dimensions of the investment climate on firm productivity. Using a large dataset of Vietnamese manufacturing firms, the article finds that deficiencies in the investment climate are prejudicial to firm productivity and competition. Furthermore, in examining the effect of corruption in association with the quality of the business environment, the study also investigates the possibility that corruption may compensate firms for a bad investment climate or at least may neutralize the negative impact of inefficient government regulations. In other words, corruption acts as ‘speed money’ to improve the efficacy of the provision of public services or provides leeway for entrepreneurs to bypass the inefficient regulations. This situation, however, is extremely harmful to the economy in the long run because it distorts the market and erodes the incentives for productive investments. Developing countries therefore need to put much more effort into institutional reforms, especially fighting corruption and efficiency in the provision of public goods and services.

Building anti-corruption compliance through national integrity system in Indonesia

Purpose The significant role of anti-corruption compliance should be encouraged to create good business and investment climate. Especially, in the circumstances of higher number of bribery and corruption cases, whilst preparing for Asian Economic Community, the necessary actions to reduce the financial crime and economic crime should be fostered into all aspects of business activities. To reduce bribery and corruption cases in Indonesia, National Integrity System as part of National Strategy on Corruption Prevention and Eradication is urged to be conducted. With the implementation of National Integrity System among all public or governmental institutions and private institutions, the institutions itself will be strengthened. National Integrity System should be implemented through all the people, process and technology in the organizations. So, at the end, the purpose of this paper is to prevent any financial crime, particularly in the Indonesian anti-corruption regime. Design/methodology/approach This paper explores and analyzes anti-bribery regulations and the important role of National Integrity System as the prevention approach to build anti-corruption compliance in Indonesia. Findings The National Integrity System and Anti-Corruption Compliance can be viewed as important elements for preventing any financial crime. The new perspective is needed for all of the public institutions and private institutions to build and implement National Integrity System in all business activities. Furthermore, all of business society has a significant role of developing the sustainable good business environment in Indonesia. Encouraging National Integrity System in every business sector is also a way to achieve the last purpose, which is to strengthen economic competitiveness. Practical implications The paper can be a source to explore about the National Integrity System and Anti-Corruption Compliance based on Indonesia perspectives. Originality/value This paper gives contributions by encouraging the public and private institutions to build anti-corruption compliance by implementing National Integrity System within their organizational culture to prevent financial crime and lead to sustainable economic growth.

PENINJAUAN UPAH HUKUM POSITIF PERSPEKTIF DOKTRIN EKONOMI ISLAM MENGENAI UPAH SYARIAH

The realization of a good investment climate, one of them with a conducive industrial relations. The current wage system is still not completely answer the problems of wages is complex, given the rise of workers’ demands related to wages in each year which impact on the weakness of the economy in Indonesia. That requires an alternative solution to the problem of wages complex answer through the fulfllment of the principle of remuneration in accordance with the conditions and needs of workers / laborers Indonesia. Answering the above problems can put the knowledge to be a solution. One applicative knowledge that can address the problems of wages through sharia. Through normative juridical research method with a prophetic approach based on legal materials normative-prescriptive, this study aims to analyze the wage review of the positive law doctrine of Islamic economics perspective on wages sharia. It is intended that knowledge can also contribute solutions to the economic problems in Indonesia, especially in the realm of industrial relations. Keywords: review of wages, positive law, the doctrine of Islamic economics

Solid Minerals Development in Parts of Southwest Nigeria – in the Light of Recent Reforms

Aims : It is the intention of the authors to through this paper; evaluate the current situations in Nigeria by highlighting the recent reforms in the solid minerals sector and how these reforms can help sustainviable mineral exploration and mining activities. This study aim at informing the investor in the solid mineral sector how these reforms promote good investment climate and ensure good Return on Investment. Methodology :We included results frominternational literature related to mining and investment (including World Bank and Fraser Institute publications), recent studies specific to the Nigerian context (including studies and activities carried out by the Nigerian Geological Survey Agency), interview dat

The determinants of support levels for wind energy in the European Union. An econometric study

The aim of this paper is to identify the factors that drive support levels for wind on-shore electricity in the Member States of the European Union (EU) with the help of econometric techniques. The econometric analysis is based on cross-section linear regressions with ordinary least squares. Four alternative specifications of the model have been estimated. The estimates comply with the basic hypotheses of the lineal model, i.e., absence of multicollinearity, accurate functional form, homokedasticity and normality in the distribution of errors. Thus, the estimations are unbiased, efficient and consistent. The results show that countries with higher wind energy generation costs have higher support levels. The higher support levels in countries with higher carbon intensities suggest that wind energy deployment is regarded as effective to mitigate carbon emissions. The type of support scheme also influences support levels, with feed-in tariffs leading to lower levels of support than other instruments. In addition, a general good investment climate in the country makes higher support levels less necessary, stressing the importance of lowering risks in order to reduce support levels and, thus, financial transfers from consumers to producers. Thus, providing stable regulatory frameworks should be a priority of policy-makers. The rest of variables (renewable energy resource potentials, administrative barriers, energy import dependency, interest rates, share of wind energy in total electricity generation as a proxy of lobbying pressures and electricity demand) are not statistically significant in most specifications and some of them do not have the expected sign.

Good Governance and International Investment Law: The Challenges of Lack of Transparency and Corruption

This paper examines the role of International Investment Law in national and international governance. It addresses the questions: How can IIL promote good governance at the global and national levels? Does it need to? How can it do it more effectively? It focuses on issues of transparency and corruption. Protecting investors and promoting good governance are not contradictory. International Investment law can more effectively protect investors if it also promotes good governance. This requires regulating home governments and investors, and not just host governments and entails recognizing international duties. It also requires consistency in international law, whereby national good governance standards of transparency, accountability, rule of law and participation need to be paired with similar good governance standards for international institutions. Because the international and national dimensions are both relevant, I refer to Colombia for examples and concrete situations and to examine some of the national instruments in light of the contributions international investment law can make to support or complement them. Finally, corruption and other governance problems are too complex; this paper doesn’t aim at one-go solutions but to make the legal and policy contributions that can help illustrate ways forward.Part I defines governance and good governance; examining the challenges of lack of transparency, and corruption in regard to foreign investment; describing the connection between good governance and investment climate and delineating the elements of the role International Investment Law has in regard to global and national good governance. Part II analyzes how international legal instruments have reacted to these challenges and analyses trends using the framework established in Part I. Finally, the conclusions address the initial question on the basis of the analysis undertaken: how can international investment law best perform its role of providing adequate protection to foreign investors by contributing to global and national good governance?Presented at the SIEL 2010 Conference in Barcelona.

Why Tax Incentives May be an Ineffective Tool to Encouraging Investment? – The Role of Investment Climate

In this paper we first analyze theoretically how the investment climate affects the impact of the corporate tax rate on investment. We do so in a model where the tax revenues are used to improve the investment climate. We find that if the investment climate is very effective at enhancing the productivity of capital, capital can react positively to a rise of the tax rate. However, this result is only true if a higher tax rate yields extra tax revenues. We also determine the conditions under which an improvement of the investment climate increases the opposition of capital to a rise in the tax rate. This is only the case if the investment climate is very complementary to capital or if the complementarity of the investment climate is much higher at low levels of the investment climate than at high levels of the investment climate. In the end, whether an improved investment climate increases or decreases the opposition of capital to a rise in the tax rate is an empirical question. We test the model using a cross section of 80 countries ranging from very bad to very good investment climate countries. With FDI as a percentage of GDP as the dependent variable, a unique series of Marginal Effective Tax Rates as the tax variable and several investment climate variables are used to find two important results. First, an improvement of the investment climate increases the opposition of capital to a rise in the tax rate. Second, in the worst investment climate countries capital reacts not negatively to a rise in the tax rate. These results lead to the important policy implication that for bad investment climate countries it is ineffective to lower the tax rate to compensate for the bad investment climate. Instead, they should focus on improving the basic investment climate.

Interregional Inequality, Decentralization, and Corruption in Indonesia

Decentralization has been implemented for eight years. However, corruption has not been lessened yet within the decentralization era. Bad regulations and investment climate are suspected to be a cause of the situations. Good regulation and investment climate appear if the interjurisdictional competitions exist. The incentive for competition is the equality of economic endowment among regions, or each region has their own tradeable ”technology” that comparable to others. Inequality in ”technology“ implies that the region with rich ”technology” is more attractive eventhough there are bad regulation and the investment climate. In contrary, in region with less "technology", corruption will appear because of weak control of the society to the bureaucracy. The strong assumption of this paper is short memories of voters. This paper attempts to estimate and to model the relation between economic variable and corruption. The estimation uses the cross section data among kabupaten/kota in Indonesia in 2004. The estimation shows that economic endowment variable positively and significant correlated to the investment level. On the other hand, the effect of corruption is statistically insignificant in explaining the investment level. The subsequent part of this paper attempts to estimate and to model how the heterogeneity or inequality in ”technology” affects the existence of corruption in Indonesia. The OLS regression of heterogeneity of domestic product (PDRB) against corruption index shows that the heterogeneity positively correlated with corruption level.

The Legal Climate for Foreign Investment in China after its WTO Accession

A good investment climate is essential for business development and growth and therefore the legal rules which govern investment are crucial. The legal regime regulating foreign investment in China is still developing after its WTO accession. This paper discusses China’s achievements in creating a positive climate for foreign investment, seeking to elucidate the challenges ahead and to explore some possible options.

Improving the mechanisms of global governance? the ideational impact of the World Bank on the national reform agenda in Mexico

Improving the mechanisms of global governance? the ideational impact of the World Bank on the national reform agenda in Mexico

The impact of rail transit on land use: Evidence and a change of perspective

On the basis of available evidence we cannot clearly establish a causal relationship between rail transit and changes in land use and development patterns. At best, such changes would seem to occur only in the presence of other favorable factors, such as supportive local land use policies and development incentives, availability of developable land and a good investment climate. In any event, however, determining the precise extent of rail investment's effect on urban structure is less important than assessing the role it could play in an overall strategy for reaching larger urban goals.