Director of the Journal: Ioan Talpo, Rector of the West University of Timi oara

Transcription

1

2 Direcor of he Journal: Ioan Talpo, Recor of he Wes Universiy of Timioara OrioGiarini PhilippeRolle NigelHealey MauriceChenevoy GuySolle NadineTournois RoberW.Ackrill FrançoisFulconis AurelIancu, VasileIan DinuMarin IonSancu DumiruMai VasileCocri MihaiRoman Edior-in-chief: Marilen Pirea, Dean of he Faculy of Economics and Business Adminisraion Technical Ediorial Collegium: Doina Dnia Vasile Dogaru Adina Popovici Camelia Margea Web Page Coordinaor: Romeo Margea Language Advisors: Monica Boldea, Anca Magheiu, Iulia Para Ediorial Managers: Alexandru Jivan, Carmen Bbi The auhors are liable for he conen of he exs. All righs reserved. No par of his publicaion may be reproduced, sored in a rerieval sysem or ransmied, in any form or by any means, elecronic, mechanical, phoocopying, recording or oherwise, wihou he prior permission of he publisher.

3 109, 196, 240 Conen The Paradoxes of Growh: oward a Sysemic Approach o Economic Theory Performance des universiés e évoluion des menaliés : de la prise de conscience à l'acion Perspecives in Food e-tailing is Logisical Performance Always Essenial o Develop a Susainable Compeiive Advanage? Informal Economic Esimaion Models a Macroeconomic Level. Some Theoreical and Mehodologial Consideraions Fair Value Accouning for Financial Insrumens Concepual Approach and Implicaions The Foreign Direc Invesmens and Economic and Poliic Freedoms or Could We Trus he Words of he Local Landlord?

4 THE FOREIGN DIRECT INVESTMENTS AND ECONOMIC AND POLITIC FREEDOMS OR COULD WE TRUST THE WORDS OF THE LOCAL LANDLORD? Marilen PIRTEA Bogdan DIMA 1. INTRODUCTION,Professors Ph.D., Wes Universiy of Timioara, Faculy of Economics and Business Adminisraion,DeparmenofFinancialSudies 1

5 MARILEN PIRTEA, BOGDAN DIMA 2. THEORETICAL BACKGROUND Y C IN G EN (1) C P N i1 1 i1 co i P P i i IN INA ia if ;w ; G Gi A if EN EN(e ;PE ) Y INFO ISD (2) (3) (4) (5) (6) Y IN G EN C N coi P k INA ia i F w ISD greenfield in vesmen e PE INFO informaionalin dex he financing argumen he resources efficiency argumen

6 THE FOREIGN DIRECT INVESTMENTS AND ECONOMIC AND POLITIC FREEDOMS OR COULD WE TRUST THE WORDS OF THE LOCAL LANDLORD? bounded raionally Y l 0 l I Y Y Y u (7) l l u Y Y The key poin for he proposed analysis is he connecion beween Y parameer,he economicfreedom and poliicalandsocialenvironmen : Y Y EF ; PS 8 EF PS EF ineralia Thefreedomodobusiness The proecion of he propery righs Theindividualcomponensofeco nomic freedom

7 MARILEN PIRTEA, BOGDAN DIMA PS Freedom in he World /Mehodology,hp:// org/emplae.cfm?page=351&ana_page=3 41&year=2008 PS Thelawarchiecure The social sabiliy Thepermissivelynaureofhefor eign microinsiuion, norms, rules and culural paradigms ac cepance The inernaional poliical image of he hosing counry Thecorporaesocialresponsibiliy normsandpracicesinhehosing counry r Eu l ci Lu ciu 9 l L F1: In caeeris paribus condiions, he ne foreign direc invesmens will de pend on he marginal propensiy o consumpion of he residens, he pas informaion abou he inflaion proc esses and he curren viable ones, he global economic background, he bor rowedfinancialresourcescoss differen ial,herealwagesandhe ne facors produciviy, he real exchanges raes.

8 THE FOREIGN DIRECT INVESTMENTS AND ECONOMIC AND POLITIC FREEDOMS OR COULD WE TRUST THE WORDS OF THE LOCAL LANDLORD? ISD 1 INA i N i1 1 i1 l Y Y I c I l Lu ci ru EF; PS 1 l0 i ; w ; Gi i ENe ; PE A co i F P i INFO and he condiions of he inernaional markes for he auochhonous expor able goods F2:Incaeeris paribus condiions, he ne foreign direc invesmens will de pendonheeconomicandpoliicalfree domssaus. 3. EMPIRICAL TESTS F 2 proxies IndexofEconomic Freedom Freedom in he World Index Index of Economic Freedom A F 10 Business Free dom; Trade Freedom Moneary Free dom Freedom from Governmen Fiscal Freedom Propery Righs Invesmen Freedom; Financial Freedom Freedom fromcorrupionlabourfreedom Labour freedom FreedominheWorld

9 MARILEN PIRTEA, BOGDAN DIMA Freedominhe World Yi X i i i i (11) Yi X i k Freedom inheworld IndexofEconomicFreedom LabourFree dom Business Freedom, Propery Righs Inves menfreed i i 1, 2, M N N K 1 i 1, 2, T i i Y (12) i X i i i i Y (13) i X i i Crosssecion SUR (PCSE) mehod ' ' ˆ ' X X X M X X X N K 1 i i 14 M

10 THE FOREIGN DIRECT INVESTMENTS AND ECONOMIC AND POLITIC FREEDOMS OR COULD WE TRUST THE WORDS OF THE LOCAL LANDLORD? businessinvesmen freedoms poliicalrighscivilliberies properyrighsbusiness invesmenfreedoms 4. (SELF) CRITICISM, CONCLUSIONS AND FURTHER RESEARCH ex ane heeconomicandpoliical freedoms maers for he relaive desir abiliy of he poenial hosing counry. And he confidence of he non residens could hardly be gained and easily los

11 MARILEN PIRTEA, BOGDAN DIMA APPENDIX Table1:Thefirsregressionmodel SAMPLE: INCLUDEDOBSERVATIONS:7 CROSSSECTIONSINCLUDED:28 TOTALPOOL(BALANCED)OBSERVATIONS:196 CrosssecionSUR(PCSE)sandarderrors&covariance(degreeoffreedomcorreced) Variable Coefficien Sd.Error Saisic Prob. Poliicalrighs C Civilliberies C Businessfreedom C Invesmenfreedom C Properyrighs C

12 THE FOREIGN DIRECT INVESTMENTS AND ECONOMIC AND POLITIC FREEDOMS OR COULD WE TRUST THE WORDS OF THE LOCAL LANDLORD? Table2:Thesecondregressionmodel SAMPLE: INCLUDEDOBSERVATIONS:7 CROSSSECTIONSINCLUDED:28 TOTALPOOL(BALANCED)OBSERVATIONS:196 CrosssecionSUR(PCSE)sandarderrors&covariance(degreeoffreedomcorreced) Variable Coefficien Sd.Error Saisic Prob. Poliicalrighs C ALBANIA ALGERIA ARGENTINA BRAZIL CHILE CZECHREPUBLIC EGYPT HUNGARY INDIA IRAN ISRAEL MALTA MEXICO MOLDOVA PAKISTAN POLAND ROMANIA RUSSIA SLOVAKREPUBLIC SLOVENIA SOUTHAFRICA TUNISIA TURKEY UGANDA UNITEDARABEMIRATES URUGUAY VENEZUELA ZIMBABWE Civilliberies C ALBANIA ALGERIA ARGENTINA BRAZIL CHILE CZECHREPUBLIC EGYPT HUNGARY INDIA IRAN ISRAEL MALTA MEXICO MOLDOVA PAKISTAN POLAND ROMANIA RUSSIA SLOVAKREPUBLIC SLOVENIA SOUTHAFRICA

13 MARILEN PIRTEA, BOGDAN DIMA SAMPLE: INCLUDEDOBSERVATIONS:7 CROSSSECTIONSINCLUDED:28 TOTALPOOL(BALANCED)OBSERVATIONS:196 CrosssecionSUR(PCSE)sandarderrors&covariance(degreeoffreedomcorreced) Variable Coefficien Sd.Error Saisic Prob. TUNISIA TURKEY UGANDA UNITEDARABEMIRATES URUGUAY VENEZUELA ZIMBABWE Businessfreedom C ALBANIA ALGERIA ARGENTINA BRAZIL CHILE CZECHREPUBLIC EGYPT HUNGARY INDIA IRAN ISRAEL MALTA MEXICO MOLDOVA PAKISTAN POLAND ROMANIA RUSSIA SLOVAKREPUBLIC SLOVENIA SOUTHAFRICA TUNISIA TURKEY UGANDA UNITEDARABEMIRATES URUGUAY VENEZUELA ZIMBABWE VENEZUELA ZIMBABWE Invesmenfreedom C ALBANIA ALGERIA ARGENTINA BRAZIL CHILE CZECHREPUBLIC EGYPT HUNGARY INDIA IRAN ISRAEL MALTA MEXICO

14 THE FOREIGN DIRECT INVESTMENTS AND ECONOMIC AND POLITIC FREEDOMS OR COULD WE TRUST THE WORDS OF THE LOCAL LANDLORD? SAMPLE: INCLUDEDOBSERVATIONS:7 CROSSSECTIONSINCLUDED:28 TOTALPOOL(BALANCED)OBSERVATIONS:196 CrosssecionSUR(PCSE)sandarderrors&covariance(degreeoffreedomcorreced) Variable Coefficien Sd.Error Saisic Prob. MOLDOVA PAKISTAN POLAND ROMANIA RUSSIA SLOVAKREPUBLIC SLOVENIA SOUTHAFRICA TUNISIA TURKEY UGANDA UNITEDARABEMIRATES URUGUAY VENEZUELA ZIMBABWE Properyrighs C ALBANIA ALGERIA ARGENTINA BRAZIL CHILE CZECHREPUBLIC EGYPT HUNGARY INDIA IRAN ISRAEL MALTA MEXICO MOLDOVA PAKISTAN POLAND ROMANIA RUSSIA SLOVAKREPUBLIC SLOVENIA SOUTHAFRICA TUNISIA TURKEY UGANDA UNITEDARABEMIRATES URUGUAY VENEZUELA ZIMBABWE UGANDA UNITEDARABEMIRATES URUGUAY VENEZUELA ZIMBABWE

15 MARILEN PIRTEA, BOGDAN DIMA REFERENCES