Improvement Of Business Environment Research Articles

The Role of Export Credit Guarantees in the Improvement of Business Environment in the European Union

The role of export credit guarantees in the improvement of business environment of the European Union (EU) is an important topic, since in recent years export to a number of the EU member states has become unpredictable. The aims of the research are to study the existing export credit guarantee system in the EU, to identify its advantages and drawbacks, as well as elaborate a solution to its improvement. Quantitative and qualitative data analysis methods, as well as analytical and graphical methods have been used in the research. Based on the analysis, it is concluded that the resuming of the availability of export credit guarantees is highly desirable in order to help the EU crisis-affected member states to recover from the financial and economic problems and to promote the development of the entire EU.

Studying of the Effects of Improving Doing Business on Inward Foreign Direct Investment (Case Study of Southwest Asia Countries)

In this article, the impact of improvement in business environment of a country on its Foreign Direct Investment (FDI) is assessed. Our statistical population includes twenty three of southwest Asia countries in the period 2008 to 2012. Considering the nature of data, panel data method is used for the data analysis. The results show that improving business environment could affect the more attraction of foreign direct investments, but its effect is insignificant in comparison to other parameters considered in the model. In addition, according to other results, in consonance with theoretical expectations, the Gross Domestic Production (GDP) parameter has a positive, and inflation and financial corruption have negative influences on FDI inflow.

Improving the business environment in cities and municipalities in Serbia

One of the ways to determine the benefits of a particular municipality and indicate its readiness to cooperate with potential investors is to promote standards of effective and transparent local administration. This task can be realized through the certification of cities and municipalities with a favorable business environment. Certification is a process that, among other things, allows the assessment of quality of services and information that municipalities provide for investors and businessmen. It is a process aiming at improvement of business environment in Serbia through institutional reforms with the active participation and cooperation of industry, municipalities and citizens. One of the key questions is to determine the importance of the criteria relevant for evaluating the attractiveness of municipality in terms of potential investors. Analysis of criteria importance for certification of cities and municipalities with a favorable business environment, shown in this paper, aims to identify those who have played a key role in the efficiency of municipalities and cities in attracting foreign direct investment. This paper presents three alternative ways of determining the importance of the criteria. The results of this analysis should indicate to the authorities of cities and municipalities possible ways of improving their position at the list of those with a favorable business environment.

Public Private Partnership (PPP) and Social Service Reform in Nigeria: 1999-2007

Public Private Partnership is a policy strategy of Yar’adua/Jonathan’s administration to provide, rehabilitate and manage infrastructures in Nigeria. The correlation between infrastructures and economic development is acknowledged, and the problem of slow development in Nigeria is the consequence of its underdeveloped infrastructure. The capacity of Nigeria on exclusive funding of infrastructures was seriously challenged in the early 80s, but when the economy hit the crisis culminating on the adoption of International Monetary Fund (IMF) and Structural Adjustment Program (SAP) requirements were disengaged from social service delivery and infrastructural provision. The global economic recession declined revenue base of Nigeria and sources of revenue as an alternative means of funding infrastructure. Public Private Partnership overcome the challenges posed by the global financial crises, the premise in Nigeria contends that the initiative has prospects in attaining the availability of revenue, improved business environment and regulatory framework management. The paper links the imperative for sustaining the initiative of infrastructural management in Nigeria. The economic downturn remains worst since the depression of 1929, and this constitutes a serious threat to the state as its revenue base adversely affect oil price. Conclusively, the priority of Public Private Partnership cushions harsh effects of revenue shortfall on infrastructural provisions in Nigeria. DOI: 10.5901/jesr.2013.v3n10p101

Myanmar: Opening Up to Its Trade and Foreign Direct Investment Potential

Myanmar, which is one of the 13 least developed countries (LDCs) in Asia and the Pacific, is relatively rich in natural resources, has young workforce, and is close to the world’s most dynamic trading economies, including China and India. With an appropriate policy mix, improved business environment and a stable, but reformed political system, the country is expected to fulfill its considerable potential and move ahead with delivering on economic development. As Myanmar starts to rebuild its trade and investment links with the region and the global economy, policymakers and business leaders will need various data, information and advice from analysts and researchers to be able to make proper decisions. Unfortunately this will not be a straightforward process as macroeconomic, trade and investment data for the country are incomplete, and available data are not always reliable. Furthermore, because of the years of isolation imposed on Myanmar, the trade and investment flows recorded during those years do not necessarily reflect the flows that actually occurred, or the patterns of specialization and competitiveness that would have occurred without such isolation. This paper presents a picture of the country’s trade and foreign direct investment (FDI) patterns in the past two decades and an introductory survey of selected policies that affect Myanmar’s trade and FDI potential within its new political and macroeconomic framework. To provide more complete guidance on the integration of Myanmar’s producers into the regional and world economies, a traditional trade competitiveness diagnostics study is necessary. Such an analysis will only be possible once more complete datasets have been compiled after some time of normal trade and investment relations.

Resolution of commercial disputes through arbitration as a contributor to improvement of business environment in Serbia

The paper presents a brief overview of selected arbitration-related issues (legal framework for arbitration, different types of arbitration, arbitration agreement, arbitrators, seat of arbitration, law applicable to the arbitration proceedings and merits, arbitration award, costs), in light of contemporary arbitration trends and practices and with special emphasis on Serbian legislation and existing arbitral practice in Serbia. Furthermore, it provides readers with drafting considerations when agreeing to arbitration, and comparative analyses of advantages and disadvantages of arbitration, as dispute resolution mechanism which can, in authors' view, significantly contribute to reduction of transaction costs and overall improvement of business environment in Serbia.

Urgency and Development Priorities of Lifelong Learning in Latvia

Abstract Based on the indicator of GDP per capita and the plan of business environment improvement measures, the urgency of developing lifelong learning in Latvia is analysed. Changes in the educational level of residents and in the education of employed individuals and job seekers in the period 2006-2010 are researched. The experts’ evaluation of the lifelong learning development alternative in Latvia was carried out using Analytic Hierarchy Process. The conclusions indicate that primarily the establishment of the lifelong education system in companies (priority assessment vector 0.322) should be developed.

China's Regional Trade and Domestic Market Integrations

AbstractThe global economic crisis in 2007 forced China to move from export‐led growth to promoting domestic demand. The move is significant, but the success of this new growth strategy depends critically on the level of domestic market integrations. In this paper, we use the methodology proposed by Anderson and Wincoop to examine China's domestic market integrations. We find evidence of border effects at both national and regional levels with significant regional differences, but they are smaller than some earlier studies suggest. Income growth, lower transportation costs, and higher intra‐industry trade all have positive effects on China's regional trade. Among the factors affecting regional trade, a better business environment has the largest positive impact on lifting China's domestic trade between regions, especially in intermediate goods, suggesting that improving business environment should be the priority of government at all levels in China.

Influence without Organizations: State-Business Relations and their Impact on Business Environments in Contemporary Africa

Formal institutions such as business chambers have been assumed to be a key indicator of the health of state-business relations (SBR). Yet in Africa these organizations have seldom risen to the level of access and influence enjoyed by some of their counterparts elsewhere in the developing world. A number of recent studies of SBR in Africa continue to overstate the importance of business associations (BAs). Yet despite the widespread marginality of BAs in Africa, the receptiveness of African states to leading firms and business interests has increased markedly. While this poses certain risks of increased corruption, collusion and monopoly, the institutional and political environment for doing business has also improved, thereby fostering new opportunities for further business-related growth and business sector development among bona fide firms. Drawing on evidence from Zambia and elsewhere, this paper finds that the benefits provided to individual firms who enjoy state access can, paradoxically, contribute to an improved environment for other private sector actors whose interests are directly represented only in moribund formal associations. Even without strong BAs, when aided by the state, individual firms, and/or international actors, Africa's improved business environment has a salutary impact on growth.

Export Performance and Trade Facilitation Reform: Hard and Soft Infrastructure

Summary We estimate the impact of aggregate indicators of “soft” and “hard” infrastructure on the export performance of developing countries. We derive four new indicators for more than 100 countries over the period 2004–07. Estimates show that trade facilitation reforms do improve the export performance of developing countries. This is particularly true with investment in physical infrastructure and regulatory reform to improve the business environment. The findings provide evidence that the marginal effect of the transport efficiency and business environment improvement on exports appears to be decreasing in per capita income. In contrast, the impact of physical infrastructure and information and communications technology on exports appears increasingly important the richer a country becomes. We also find statistical evidence on the complementarity between hard infrastructure and soft infrastructure, as captured by our indicators. Finally, drawing on estimates, we compute illustrative ad-valorem equivalents of improving each indicator halfway to the level of the top performer in the region.

Corporate dynamism in new growth paradigm

In Serbia, like in most of countries in the region, after the hit of the global economic crisis, the awareness of the necessity to change the economic growth model has arisen. In other words, in order to provide a sustainable growth path, there is almost a consensus to re-orientate the economy from the growth based on borrowing, consumption and imports growth to the one based on the growth of investments in the production of tradable goods and services and exports growth. Furthermore, relevant international institutions especially point to, as the key prerequisite and the segment where reforms in the whole region of transition countries should be concentrated in order to support the shift to the sustainable growth track, the increase of the competitiveness of the economy and improvements in business environment. This paper is aimed at looking over from the aggregate level - macroeconomic standpoint onto the micro level in an attempt to clarify the Serbian economy structure - its performances, and try to find if they are related to the precrisis borrowing. To that end, we have analyzed financial data of around 5,000 largest companies operating in Serbia from 2007 to 2009. The main results imply the Serbian economy being highly-concentrated, nevertheless, with the substantial dispersion with regards to company performances, as well as their indebtedness. The main conclusion which may be drawn from the empirical results is the necessity of intensifying the dynamism of business activities in Serbia. In other words, one of the key prerequisites for the so-called structural reforms would be to enhance the institutional business frame, implying the intensification of the mobility of key production factors - capital and labour.

Private - Public Dialogue to Improve Business Environment

Larisa Bugaian, Ph.D. - Academy of Economic Studies (The Republic of Moldova), Eugenia Busmachiu, Ph.D. - Academy of Economic Studies (The Republic of Moldova)

Entry, reforms, complementarity and performance: A tale of two Indian manufacturing sectors

In this paper, we use plant-level data from two Indian industries, namely, electrical machinery and textiles, to examine the empirical relationship between structural reforms like abandonment of entry restrictions to the product market, competition and firm-level productivity and efficiency. These industries have faced different sets of policies since Independence but both were restricted in the adoption of technology and in the development of optimal scales of production. They also belonged to the first set of industries that benefited from the liberalization process started in the 1980s. Our results suggest that both the industries have improved their efficiency and scales of operation by the turn of the century. However, the process of adjustment seems to have been worked out more fully for electrical machinery. We also find evidence of spatial fragmentation of the market as late as 2000–2001. Gains in labour productivity were much more evident in states that either have a strong history of industrial activity or those that have experienced significant improvements in business environment since 1991.

Indian Auto-Component Supply Chain at the Crossroads

We trace the evolution of the auto-component supply chain in India beginning with the opening of the economy in 1990 by using a combination of data on firm and sector performance, customer-satisfaction surveys, and interviews with experts. During the past decade, the industry has made remarkable progress on multiple fronts. This is particularly true with regard to quality—10 firms in this industry have won the coveted Deming prize during the past six years. Surprisingly, we first observe that the financial performance of the firms that won the Deming prize (i.e., Deming firms) shows no definitive differences from the performance in the rest of the industry. We then analyze the productivity growth at the firm level across two five-year intervals using a total-factor productivity model. Our results suggest that productivity improved much more during the second period, which is the interval in which most of the firms won the Deming prize. We also analyze the impact of winning the award on profitability and suggest that new firms were able to grow faster in the improving business environment. To “externally” validate our findings, we compare the auto sector in India with that in China. Despite a 10-year disadvantage because of costs that are beyond the control of the firm, the auto sector in India seems to be competitive with that sector in China on all firm-specific factors. In summary, we suggest that firms in this sector have taken the first step by becoming competitive in the areas of cost and quality. We suggest that they are now at a crossroads and must make several choices to leverage these quality gains into a profitable, global supply chain strategy.

Correlation between Business Environment and Entrepreneurial Development: A Study of Entrepreneurship in Emergin Capitalistic Market of Balochistan

This paper studies the correlationsa between business environment and entrepreneurial orientation in an emerging capitalistic market. The city of Quetta in Pakistan was chosen for the study, which as an emerging individualistic market and is in its transition from traditional tribal and deudalistic socio-economic relations. Interview with the owners of 62 micro-firms of the district on predetermined questionnaire has been used as medium of collecting survey data. Five factors/ characteristics with entrepreneurial orientation/development were identified which are Risk-taking, Pro-activeness, Innovativeness, Autonomy, and Aggressive economy of Quetta. These are Hostility, Dynamism, and Uncertainty. Three hypotheses were developed and tested by using canonixcal correlation model. It is considered that entrepreneurial orientation is shaped by the environmental factors and this is true particularly in an emerging transition economy. Thus, it is emphasized that interrelationship exist between business environmental forces and the entrepreneurial development of micro-entrepreneurs. The study finds that the factor of uncertainty which is induced by external factors as well as perceived by the entrepreneurs themselves as a main characteristic, is focus of entreneurial research and policy-making. Thus, all SME institutions and donors, including Non Government Organizations, should formulate policies that target improvement of business environment and creation of stimulating and predictable condition for the small business during the transition.

Correlation between Business Environment and Entrepreneurial Development: A Study of Entrepreneurship in Emergin Capitalistic Market of Balochistan

This paper studies the correlationsa between business environment and entrepreneurial orientation in an emerging capitalistic market. The city of Quetta in Pakistan was chosen for the study, which as an emerging individualistic market and is in its transition from traditional tribal and deudalistic socio-economic relations. Interview with the owners of 62 micro-firms of the district on predetermined questionnaire has been used as medium of collecting survey data. Five factors/ characteristics with entrepreneurial orientation/development were identified which are Risk-taking, Pro-activeness, Innovativeness, Autonomy, and Aggressive economy of Quetta. These are Hostility, Dynamism, and Uncertainty. Three hypotheses were developed and tested by using canonixcal correlation model. It is considered that entrepreneurial orientation is shaped by the environmental factors and this is true particularly in an emerging transition economy. Thus, it is emphasized that interrelationship exist between business environmental forces and the entrepreneurial development of micro-entrepreneurs. The study finds that the factor of uncertainty which is induced by external factors as well as perceived by the entrepreneurs themselves as a main characteristic, is focus of entreneurial research and policy-making. Thus, all SME institutions and donors, including Non Government Organizations, should formulate policies that target improvement of business environment and creation of stimulating and predictable condition for the small business during the transition.