The paper examines how flows of foreign aid have reacted to events of democratisation in developing countries. Using a panel dataset of 136 aid-receiving countries between 1980 and 2009, aid allocation regressions reveal that Western donors in general have tended to react to visible, major democratic transitions by increasing aid to the partner country, but no significant increases can be identified in the case of countries introducing smaller democratic reforms. The increases in aid flows are not sustained over time, implying that donors do not provide long-term support to nascent democracies. Also, democratisations in Sub-Saharan Africa do not seem to have been rewarded with higher levels of aid.
Ukraine belongs among those young countries where the beginnings of democratisation and nation-building approximately coincided. While the development of nation states in Central Europe was usually preceded by the development of nations, the biggest dilemma in the Ukraine is whether a nation-state programme — parallel to the aim of state-building — is able to bring unfinished nation-building to completion. Ukraine sways between the EU and Russia with enormous amplitude. The alternating orientation between the West and the East can be ascribed to superpower ambitions reaching beyond Ukraine. Eventually, internal and external determinants are intertwined and mutually interact with one another. The aim of the paper is to explain the dilemmas arising from identity problems behind the Ukraine’s internal and external orientation.
Authors:Tomislav Galović, Heri Bezić, and Petar Mišević
The main aim of this paper is to measure the consequences of terrorist activities on capital flows of the developed countries. Capital flows are interpreted as FDI inflows and outflows. The methodology is based on the dynamic panel data models (System-2 step-GMM estimator) using a sample of 36 developed countries all over the world from 2000 to 2016. The key results indicate that the terrorist incidents have different impact on capital flows of the developed countries compared to impacts of economic and institutional variables. All the variables used in the paper show the level of their impact on capital flows. The results indicate that terrorist activities weaken economic activity of a country, while minimising capital flows in certain situations. The recommendations and proposals are given based on the results of research.
The Justice and Development Party (AKP) government between 2002 and 2007 managed to accomplish unprecedented economic reforms, maintaining 8% growth and passed legislation to change Turkey into a more democratic country in line with the Copenhagen political conditions. After being rewarded with the start of accession negotiations in 2005 and an electoral landslide in 2007, AKP’s second term in office is in stark contrast with its earlier days of glory. AKP disengaged itself from the IMF agreement, and took EU reforms off the top of its agenda, bringing half a decade of political and economic reforms to a halt. The paper argues that AKP utilized the credibility of IMF and EU support to defeat its domestic rivals, but once the external incentives lessened, AKP turned inwards to consolidate its power and cared for little else. The first part of the paper explores how AKP managed to construct such a broad reform consensus and assesses the role of the external influence. The second part explores why and how this reform consensus fell apart.
China is the second biggest trading nation in the world — number one as trade exporter and number two as trade importer. Behind the USA, China has the second strongest economy with a gross domestic product of almost 5 trillion USD in 2009. Despite the global financial crisis the Chinese economy was and is still drastically growing with three main focus areas: increase in labor costs; increasing demand for qualified labor; and a high grade of technology. Linked to the future 12th five-year-plan, China is going to spend 1.5 billion dollars in key-technologies like nuclear power, high speed railway systems, aerospace, energy efficiency, environmental friendly technologies, biotechnologies and information technology. China is trying to change its status from distributor to a leading high-tech provider with high potential. This implicitly means a higher consumption of natural resources and more highly qualified employees. However, the shortage of natural resources poses a great question. Prognoses say that we will need two Earths to cover our steadily rising resource consumption in 2030. To provide this, the economy has to work much more efficiently and regarding climate and resource protection even a total change is necessary. Due to this, Europe’s and China’s future will need a common economic and ecologic strategy to fulfill international requirements of sustainable growth within balanced natural circumstances.
The article agues that the much heralded Tatra Tiger phenomenon in Slovakia is much less of a miraculous growth and catch up story akin to the Asian Tigers or Ireland, and much more of a late economic recovery based on a radical opening to FDI and the reduction of the Slovak welfare state. It attempts to demonstrate how the low rate flat tax system had much less influence on this success story, and how the average Slovak citizen benefited less from it than it is usually assumed. It also aims to raise concerns about the sustainability of this model, as well as its applicability in other economies of the region.
Working Papers No. 643 . Arnold , J. – Brys , B. – Heady , C. – Johansson , A. – Schwellnus , C. – Vartia , L. ( 2011 ): Tax Policy for Economic Recovery and Growth . The Economic Journal 121 ( 550 ): F59 – F80 . 10.1111/j.1468
Journal 121 ( 550 ): F59 – F80 . 10.1111/j.1468-0297.2010.02415.x Atkinson , A. B. – Stiglitz , J. E . ( 1976 ): The Design of Tax Structure: Direct Versus Indirect Taxation . Journal of Public Economics 6 ( 1–2 ): 55 – 75 . 10