A multi-criteria decision-making model for evaluating priorities for foreign direct investment

The objective of this study is to evaluate the relative priority of nine developed countries as a home country for foreign direct investment (FDI) from the vantage point of the United States during three time periods: pre-crisis (2004-2006), crisis (2007-2009), and post-crisis (2010-2012). Our study suggests a methodology based on a combination of the analytic hierarchy process (AHP), the technique for order preference by similarity to ideal solution (TOPSIS), and the multi-period multi-attribute decision-making (MP-MADM) technique. To investigate our research question, we selected fifteen robust FDI determinants from recent studies. The results for all three time periods show that productivity, market potential, market size, GDP growth and development have the highest priority in the decision-making process. On the other hand, we found that the 2007 global financial crisis significantly affected each variable in the decision-making process. During the crisis, two variables in particular - corruption and GDP growth - significantly increased in importance. These findings have far-reaching policy implications and can assist policymakers and investors in their strategic decision-making process

Analyzing the Role of Government Efficiency on Financial Development for OECD Countries

This paper fulfills a gap in the existing literature by analyzing the impact of government efficiency and corruption on the financial development of 31 OECD countries for the period 2002 to 2015 inclusively. To ensure robustness in our estimations, we employed several econometrics techniques, included control variables in our models, used several proxies for the variables under investigation, split the data into subgroups based on the degree of democracy, and repeated the analysis for these groups. Obtained findings provide strong evidence that government efficiency has a significant effect on financial development, and the sign of all the control variables are compatible with the a-priory theoretical expectations. The results of this study propose several policy recommendations to enhance financial development such as enhancing social cohesion through education on the use of tax contributions, revising budget procedures to ensure efficient spending of resources and to improve institutional quality, and reducing corruptive pursuits by targeting the informal economy activities and modifying the rule of law

Military expenditure, financial development and environmental degradation in Turkey: A comparison of CO2 emissions and ecological footprint

This study investigates the long run equilibrium relationship among military expenditure, financial development, energy use, economic growth and environmental degradation in Turkey for the period of 1960–2014. Ecological footprint and carbon dioxide emissions are used as separate proxies for environmental degradation. Fully modified ordinary least squares (FMOLS) estimator results suggest that military expenditure, energy use and economic growth increase the environmental degradation while financial development improves the environmental quality in Turkey. Toda Yamamoto (1995) causality test results reveal that there is a unidirectional causality running from military expenditure to CO2 emissions and ecological footprint; and a bidirectional causality between military expenditure and economic growth. The findings of the study confirm the existence of destruction theory for the case of Turkey