Exploring the Trend of Czech FDIs and their Effect to Institutional Environment

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F26482789%3A_____%2F20%3AN0000056" target="_blank" >RIV/26482789:_____/20:N0000056 - isvavai.cz</a>

Výsledek na webu

<a href="https://www.ijeba.com/search" target="_blank" >https://www.ijeba.com/search</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.35808/ijeba/411" target="_blank" >10.35808/ijeba/411</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Exploring the Trend of Czech FDIs and their Effect to Institutional Environment

Popis výsledku v původním jazyce

The goal of this paper is to explore the trend of FDIs in the Czech Republic and its changes in recent years using the gravity model. Apart from traditional variables used in FDI models we also introduce IFRS in national accounting rules. Design/Methodology/Approach: We use open-source data from the World Bank and FDI data from the Czech national bank, to analyse a panel data of bilateral FDI for 19 EU countries over the period 2008-2017 by PPML specification. Findings: We have observed significant effect of positive impact on broader introduction of IFRS in 2010 in terms of country imports and exports. We observed lower significance of IFRS dummy in the gravity model, where dependent variable is the sum of FDI inflow and FDI outflow it is not significant in the models which dependent variables are FDI inward and FDI outward for FDIs. Practical Implications: In general, FDIs increased productivity in the Czech Republic, especially in 1990s. We assess the effect and possible contribution of traditional variables like size, GDP, border and distance to Czech FDIs. Originality/Value: We find that the positive effect of IFRS exists at 10 percent significance for FDIs. Nevertheless we claim that this effect is mixed with other institutional issues, namely institutional isomorphism. Further tests will be needed after the forthcoming change of the Czech accounting act, which is approaching after 2020. © 2020 International Strategic Management Association. All rights reserved.

Název v anglickém jazyce

Exploring the Trend of Czech FDIs and their Effect to Institutional Environment

Popis výsledku anglicky

The goal of this paper is to explore the trend of FDIs in the Czech Republic and its changes in recent years using the gravity model. Apart from traditional variables used in FDI models we also introduce IFRS in national accounting rules. Design/Methodology/Approach: We use open-source data from the World Bank and FDI data from the Czech national bank, to analyse a panel data of bilateral FDI for 19 EU countries over the period 2008-2017 by PPML specification. Findings: We have observed significant effect of positive impact on broader introduction of IFRS in 2010 in terms of country imports and exports. We observed lower significance of IFRS dummy in the gravity model, where dependent variable is the sum of FDI inflow and FDI outflow it is not significant in the models which dependent variables are FDI inward and FDI outward for FDIs. Practical Implications: In general, FDIs increased productivity in the Czech Republic, especially in 1990s. We assess the effect and possible contribution of traditional variables like size, GDP, border and distance to Czech FDIs. Originality/Value: We find that the positive effect of IFRS exists at 10 percent significance for FDIs. Nevertheless we claim that this effect is mixed with other institutional issues, namely institutional isomorphism. Further tests will be needed after the forthcoming change of the Czech accounting act, which is approaching after 2020. © 2020 International Strategic Management Association. All rights reserved.

Druh

J_SC - Článek v periodiku v databázi SCOPUS

CEP obor

—

OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

—

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2020

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

nternational Journal of Economics and Business Administration

ISSN

2241-4754

e-ISSN

—

Svazek periodika

VIII

Číslo periodika v rámci svazku

1

Stát vydavatele periodika

GR - Řecká republika

Počet stran výsledku

15

Strana od-do

94-108

Kód UT WoS článku

—

EID výsledku v databázi Scopus

2-s2.0-85080116588