INŠTITUCIONÁLNE A MAKROEKONOMICKÉ PROSTREDIE FIRIEM

Institutional and Macroeconomic Environment of Corporations

Zuzana Kittová and Dušan Steinhauser

Politická ekonomie, 2017, vol. 2017, issue 2, 234-248

Abstract: With respect to the occurrence of economic crises it may be observed that economic performance of countries is determined by the quality of its institutions. It is the corporate governance failure that is said, in line with the new institutional economic theory, to be among reasons for the recent international financial and economic crisis. This study has the goal of confirming, by empirical analysis, the existence of correlation between, on one hand, the quality of the institutional environment expressed by index of economic freedom and by its selected subindexes, and, on the other hand, the macroeconomic environment for corporates - as characterised by selected macroeconomic indicators. In result, countries with higher foreign direct investments influx and higher per capita GDP show higher levels of index of economic freedom. Countries with higher level of property rights protection and lower corruption level achieve higher GDP per capita. Countries with higher ratio of government expenditure on GDP reach lower levels of index of economic freedom, this being interpreted as a substitution of private business entities and entrepreneurial initiative by a government.

Keywords: new institutional economics; institutional environment; macroeconomic environment; index of economic freedom; corruption; property rights (search for similar items in EconPapers)
JEL-codes: B25 B52 D23 G34 (search for similar items in EconPapers)
Date: 2017
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