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Abstract

Though tax amnesties (TAs) are considered as a policy tool to increase revenue for governments, they have generated some puzzles. To solve the puzzles of TA we should not ignore the behavioural aspects of delinquent taxpayers. In this paper, we focus on a relatively neglected but important area of the TA literature. Considering that people who participate in tax amnesty policy (TAP) may not honestly report the whole amounts of evaded tax, thus they commit a secondary tax evasion. We indicate that even considering the risk of abstaining from TA and incurring possible uncertainty of tax evasion penalties, participating in a TA provides a higher level of utility for the delinquent taxpayers. Also, due to a secondary tax evasion usually accompanying with TA, we show that during the initial assessment period of a TAP the tax revenue drastically increases and when the assessment period is approaching the tax revenue stably declines and ultimately converges to a fixed value. Furthermore, we show that if delinquent taxpayers participate in the TAP and the penalties are larger than the expected tax revenue of the government, it increases the tax revenue without reducing the welfare of other taxpayers, so as to achieving Pareto improvement.

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Abstract

The high rate of increase of ruling politicians' wealth has been empirically proven many times. However, in the literature it is almost always assumed that politicians grew rich faster due to political rent-seeking or corruption. The aim of this article is to discuss the assumption whether corruption and rent-seeking is indeed the only possible cause, and to present empirical findings undermining the assumption. The results of the analysis of levels and rate of growth of Polish politicians' wealth clearly show that the other explanation is the selection of people exercising authority. Based on statistical analysis of 2024 asset declarations of 689 councillors from Polish voivodeship assemblies from two terms in the period of 2010–2018, the paper demonstrates that the different rates of changes of the value of assets of coalition and opposition councillors are at least partly the effect of the selection bias.

Open access

The paper applies a variant of the gravity model to test whether there is a positive link between the size of trade flows and the extent to which they follow the pattern of comparative advantage. Using UNCTAD's 2016 trade data for every country in the world, and 255 merchandise items, we show that countries trading more with each other tend to follow the patterns of comparative advantages more than countries with smaller mutual trade flows. While smaller trade flows can be easily influenced by business decisions of individual companies or one-off trade contracts going against trade pattern predictions, this is not the case with larger flows. We also find signs that holding trade volume constant, more distant countries trade less than geographically proximate countries, in line with predictions from comparative advantage. The results are valid for the whole database of all country pairs in world trade, but the goodness of fit increases with the number of items these country pairs trade in. The paper is the first insight into the topic and can be expanded to a higher level of disaggregation and more variables in future research.

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Chinese infrastructural projects like the “Belt & Road Initiative” or the “Chinese 16 + 1 Initiative” are trapped in geopolitical narratives. Geopolitical concepts dressed in scientific robes make the logic of warfare begin to prevail over the logic of cooperation. As a consequence, something that was to be an opportunity for less developed countries, becomes the axis of conflict between the great powers. In this paper, I identify the logic of warfare as an underlining characteristic of geopolitical reasoning and show why it is incompatible with economic approach. I also argue that geopolitical concepts are not scientific theories, but rather self-fulfilling prophecies. This theoretical background allows to detect the biggest obstacles related to many Chinese initiatives, and also indicates some necessary means to neutralize geopolitical narratives.

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This paper investigates whether multinational companies possess superior manufacturing knowledge relative to domestic companies operating in emerging market countries. Manufacturing knowledge is operationalized as knowledge in use through the implementation and performance impact of manufacturing practices. Using survey data of 216 manufacturing plants located in five emerging countries, we apply analysis of variance (ANOVA) and structural equation modelling (SEM) to identify the potential knowledge surplus of multinational subsidiaries over local companies. Results of our analysis show that, generally, multinational subsidiaries invest significantly more effort in implementing manufacturing practices. Nevertheless, their knowledge superiority concerning the effective use of these practices is only materialized in terms of practices related to human resource development and advanced manufacturing technologies.

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The operations of the cooperative organization are an actively debated issue. The efficiency and viability of this organizational form still pose many unanswered questions. The literature is not unequivocal in evaluating the merits and drawbacks of this organization. This article provides empirical evidence from research about cooperatives covering three countries (Canada, France and Hungary) and tests theoretical hypotheses in the framework of organizational economics and cooperative theory. The findings point towards the positive influence of the social environment and cooperative values on organizational choice. The results prove the continued relevance of this type of organization in the 21st century in agriculture in all three researched countries.

Open access

Croatia is faced with a low response to cancer-screening programs, especially the national cervical cancer screening program, which ultimately resulted in its suspension. If judged solely on the basis of revealed preferences, such a poor response would imply that the population assigns a low social value to preventive screening programs. However, the question arises as to whether revealed preferences (the population's response), in the case of the absence of response to a preventive program, provide insight into its value (utility). Therefore, the objective of this paper is to determine the value that respondents assign to different attributes of cervical screening and, in a broader sense, to decide whether the best-worst scaling (BWS) approach is appropriate for determining the marginal willingness to pay (MWTP) for public health programs. The MWTP for certain attributes of cervical cancer screening is derived from the results of a BWS study conducted in Primorje-Gorski Kotar County, Croatia. The cost function was estimated by regressing the conditional logit coefficients (level of utility) of three levels of the cost attribute on its corresponding values, that is, the hypothetical price. Because the sum of the MWTP corresponds with the market price of a gynecological examination in private practice, we conclude that the results obtained by the BWS confirm the revealed preferences (the market value of the service).

Open access

The paper presents a qualitative study of rapidly and gradually internationalising Polish firms. It compares these two types of firms with a special attention to their competitive strategies. The results show that there are more similarities than differences between the two groups of firms from emerging markets. These findings, based on case studies and interviews must be interpreted with a lot of caution, because the similar strategic behaviour of gradually internationalising firms to rapidly internationalising firms may stem from the fact that the former want to quickly reduce the distance to their counterparts in highly developed countries and thus take some strategic actions similar to rapidly internationalising firms.

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The paper analyses the impact of the simultaneous occurrence of external debt and capital flight on economic policy effectiveness in Heavily Indebted Poor Countries (HIPCs) in sub-Saharan Africa, employing the Panel-Corrected Standard Error regression model for the period 1990 to 2015. The empirical results reveal that both monetary and fiscal policies in the region had been undermined in achieving their intended purposes because of increasing capital flight and external debt. Also, the concurrent occurrence of capital flight and external debt has been a hindrance to progress on the continent, particularly by undermining domestic investment. These results call for more practical measures in addressing the issues of foreign debt and capital flight, given the critical importance of domestic private investment for both short- and long-run growth.

Open access

The focus of our research is the internationalisation of the small-medium size family firms in Hungary, with particular attention to the effect of generational change on internationalisation. Our examination is based on interviews with the current management of six family firms from different industries. We had two research propositions: First, we analysed if and how successors in the family businesses were more open to the internationalisation of the company. Our results provide insights reflecting that the predecessors are usually quite open, and successors are not always as open when they assume control over the company, unlike the existing internationalisation patterns of family firms would suggest. Potential explanations reveal related characteristics of the Central-Eastern European (CEE) region. Secondly, in terms of how and why the leadership style and approach of the predecessors affect the internationalisation of family firms, our findings from different cases vary. The historical and cultural background of the family firms' founders and early-generation successors exert notable influence on the internationalisation process, while the role of predecessors' personal characteristics may not be as strong a driver of internationalisation as previously suggested. The management implications of our findings suggest that the Hungarian family firms show regional patterns in terms of their internationalisation, and generic approaches to generational change and succession may not explain the process as much as extant literature on international family business suggests.

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