Transnational Corporations Review最新文献

This paper investigates the role of institutional quality in terms of governance on the impact of Chinese foreign direct investments and human capital development on the macroeconomic performance of the CEMAC zone between 2003 and 2020. The data were analyzed using descriptive statistics and the Correlated Panels Corrected Standard Errors (PCSEs) Approach. The findings indicated that poor governance performance in the CEMAC zone deteriorates the effects of Chinese foreign direct investments and human capital development on the macroeconomic performance of the CEMAC zone. At the same time, poor governance performance also deteriorates the impact of foreign aid and personal remittances received on the macroeconomic performance of the CEMAC zone. This study strongly recommends measures to improve institutional quality such as increased training on ethical thinking in all forms of education, meritocratic recruitment to the civil service, and auditing of public finances and services.

In the last few decades, the majority of least-developed countries have failed to achieve the structural transformation theme. The concern of achieving structural transformation is further aggravated by the lack of technology, low level of literacy, poor institutional qualities, and low development level of the manufacturing sub-sector in these countries. To examine the role of FDI augmented with governance and human capital on structural transformation, the study used panel data for four Sub-Saharan African (SSA) and three East Asian and Pacific (EAP) countries across 31 years. The auto-regressive Distributed Lag with Pooled Mean Group technique was employed for analysis after checking the possible assumptions. The model for the full panels suggests that FDI inflows, especially when supplemented with good governance and better literacy, promote structural transformation. Moreover, across regions, in the short run, the interactive effect of FDI with governance and literacy had a positive effect for EAP and a negative effect for SSA countries. Finally, the government of the least developed countries that endeavors to achieve structural transformation should focus on improving the quality of governance and literacy rate and then engage in attracting massive inflows of FDI, among others.

This paper aims to identify determinants and channels of tax avoidance through passive flows to tax havens using harmful tax competition, considering the effect of changes in withholding tax regulations. For the empirical analysis, we exploit the data of 110 ​907 nonresidents from 134 countries that gain passive flows paid by Polish taxpayers. We utilise data from IFT-2R returns on withholding tax (WHT) for 2012–2019. We use a two-stage Arellano-Bond estimator of the Generalised Method of Moments (GMM) with instrumental variables for dynamic panel data and the difference-in-differences method. We show that the amendment to the withholding tax legislation, preceded by a no-avoidance clause in 2017, reduced passive flows overall and separately from the manufacturing and service sectors, primarily profit-shifting through interest, royalties and intangible services payments. Moreover, our results confirm that the tax system tightening against aggressive tax competition has reduced passive income transfers from service companies, not manufacturing companies. Instead, the latter make higher transfers to tax havens included in both Polish and the E.U. list of countries applying harmful tax competition.

With the continuing trend for a firm to acquire knowledge from different locations, many multinational firms realize the urgency of tapping knowledge from their subsidiaries worldwide. The study of reverse knowledge transfer plays an essential role in gaining a global competitive advantage. Based on a case study and comparative analysis of research from two Japanese MNCs in Indonesia, we observe a unique mechanism of reverse knowledge transfer in highly centralized societies. We identify that the pattern of reverse knowledge transfer from subsidiaries to headquarters is evolving along the different phases of the internationalization process. Our study concludes that several variables influence different reverse knowledge transfer mechanisms at different internationalization stages. Those variables are product localization, degree of autonomy, external embeddedness, and knowledge specificity.