The Impact of Institutional Environment on Slovak Enterprises and the Institutional Hysteresis Effect
In recent years, a decline in competitiveness and in the quality of the business environment measurements has been reflected in the Slovak Republic, as noted, for example, in the assessments of the World Bank and the World Economic Forum, as well as in the business environment index (BEI from Busine...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Tomas Bata University in Zlín
2019-09-01
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| Series: | Journal of Competitiveness |
| Subjects: | |
| Online Access: | https://www.cjournal.cz/files/334.pdf |
| _version_ | 1819035409540186112 |
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| author | Ladislav Bazo Miroslava Cukanova Laura Markovicova Dusan Steinhauser |
| author_facet | Ladislav Bazo Miroslava Cukanova Laura Markovicova Dusan Steinhauser |
| author_sort | Ladislav Bazo |
| collection | DOAJ |
| description | In recent years, a decline in competitiveness and in the quality of the business environment measurements has been reflected in the Slovak Republic, as noted, for example, in the assessments of the World Bank and the World Economic Forum, as well as in the business environment index (BEI from Business Alliance of Slovakia PAS), data from which we have used in our research. A multiple regression analysis along with the correlation analysis confirmed our assumption that in the Slovak Republic a state of institutional hysteresis exists. The hysteresis effect indicates rigidity despite the economic recovery, not restoring the original balance after a certain failure in the economic process. In our case, many external environment subindeces tend to decline while macroeconomic variables (employment, value added, R&D expenditures, revenues from corporate taxes) grow. On the other hand, the internal factors of a company, through which it itself affects the environment, such as the level of liquidity or innovation, is growing. We conclude that the companies we examined have adapted. The process of improving the assessment of the country (corruption, law enforcement, equality before the law, functioning of the judiciary) will become much more expensive over time. The result of this change should be an entrepreneurial environment in which the entrepreneur does not have to deal with the ongoing optimization of taxes and levies, a condition which in the long run would lead to the economic recovery in the Slovak Republic and to improvements in competitiveness. |
| first_indexed | 2024-12-21T07:49:10Z |
| format | Article |
| id | doaj.art-d42ff97f283e413d92aee7c454b377dc |
| institution | Directory Open Access Journal |
| issn | 1804-171X 1804-1728 |
| language | English |
| last_indexed | 2024-12-21T07:49:10Z |
| publishDate | 2019-09-01 |
| publisher | Tomas Bata University in Zlín |
| record_format | Article |
| series | Journal of Competitiveness |
| spelling | doaj.art-d42ff97f283e413d92aee7c454b377dc2022-12-21T19:11:07ZengTomas Bata University in ZlínJournal of Competitiveness1804-171X1804-17282019-09-01113355210.7441/joc.2019.03.03The Impact of Institutional Environment on Slovak Enterprises and the Institutional Hysteresis EffectLadislav Bazo0Miroslava Cukanova1Laura Markovicova2Dusan Steinhauser3University of Economics in Bratislava University of Economics in Bratislava University of Economics in Bratislava University of Economics in Bratislava In recent years, a decline in competitiveness and in the quality of the business environment measurements has been reflected in the Slovak Republic, as noted, for example, in the assessments of the World Bank and the World Economic Forum, as well as in the business environment index (BEI from Business Alliance of Slovakia PAS), data from which we have used in our research. A multiple regression analysis along with the correlation analysis confirmed our assumption that in the Slovak Republic a state of institutional hysteresis exists. The hysteresis effect indicates rigidity despite the economic recovery, not restoring the original balance after a certain failure in the economic process. In our case, many external environment subindeces tend to decline while macroeconomic variables (employment, value added, R&D expenditures, revenues from corporate taxes) grow. On the other hand, the internal factors of a company, through which it itself affects the environment, such as the level of liquidity or innovation, is growing. We conclude that the companies we examined have adapted. The process of improving the assessment of the country (corruption, law enforcement, equality before the law, functioning of the judiciary) will become much more expensive over time. The result of this change should be an entrepreneurial environment in which the entrepreneur does not have to deal with the ongoing optimization of taxes and levies, a condition which in the long run would lead to the economic recovery in the Slovak Republic and to improvements in competitiveness.https://www.cjournal.cz/files/334.pdfhysteresis effectinstitutional environmentSlovak republicbusiness environment indexperception of institutional quality |
| spellingShingle | Ladislav Bazo Miroslava Cukanova Laura Markovicova Dusan Steinhauser The Impact of Institutional Environment on Slovak Enterprises and the Institutional Hysteresis Effect Journal of Competitiveness hysteresis effect institutional environment Slovak republic business environment index perception of institutional quality |
| title | The Impact of Institutional Environment on Slovak Enterprises and the Institutional Hysteresis Effect |
| title_full | The Impact of Institutional Environment on Slovak Enterprises and the Institutional Hysteresis Effect |
| title_fullStr | The Impact of Institutional Environment on Slovak Enterprises and the Institutional Hysteresis Effect |
| title_full_unstemmed | The Impact of Institutional Environment on Slovak Enterprises and the Institutional Hysteresis Effect |
| title_short | The Impact of Institutional Environment on Slovak Enterprises and the Institutional Hysteresis Effect |
| title_sort | impact of institutional environment on slovak enterprises and the institutional hysteresis effect |
| topic | hysteresis effect institutional environment Slovak republic business environment index perception of institutional quality |
| url | https://www.cjournal.cz/files/334.pdf |
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