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Article
Peer-Review Record

Coordination vs. Competitiveness of Effective Average Tax Rates in Relation to FDI: The Case of Emerging EU Economies

Sustainability 2023, 15(1), 227; https://doi.org/10.3390/su15010227
by Olgica Glavaški, Emilija Beker Pucar, Marina Beljić * and Stefan Stojkov
Reviewer 1:
Reviewer 2:
Sustainability 2023, 15(1), 227; https://doi.org/10.3390/su15010227
Submission received: 14 November 2022 / Revised: 17 December 2022 / Accepted: 19 December 2022 / Published: 23 December 2022
(This article belongs to the Special Issue Economic Sustainability of the Economy)

Round 1

Reviewer 1 Report

Author/s/ have chosen a correct approach, taking into account that "EART is not the only factor that determines investors", so an analysis in ceteris paribus setting is necessary. However, this task is a great challenge for empirical work, having in mind the distorted institutions (e.g. in transition CEECs) whose impact cannot be approximated even by a categorical variable. However, their impact on the allocation decisions of the foreign investors /FIs/ can be decisive! With equal EARTs, substantial differences in "hardly measurable"circumstances can induce substantial imbalance in the locational choice. Also, expanding FDI in a particular country can be observed if FIs follow a strategy for entering a special target country (e.g. Czech Rep. or Hungary) even if lower taxation can be found nearby. Anyway, the author/s/ have taken the challenge to empirically analyse FDI determinants in emerging EU economies, even in data shortages (i.e. N=13 / T=24 should not be considered as enough in order to rely on asymptotically valid estimation and hypotheses testing methods).

Author Response

Please see the attachment.

Author Response File: Author Response.docx

Reviewer 2 Report

The presented text is suitable for publishing. The authors used appropriate sophisticated methods to analyze the economically important question - does EATR influence FDI?

There are some minor comments.

Typing error:

EATR redaction (sic!) and effects on FDI inflow. Various authors dealt with this relationship 68

inflow in the period 2204 (sic!)-2008 (122.48; 339.78; 369.34; 449.08; 163.22 % of GDP, 403

Results of Pesaran CD test are presented in Table A1 (sic! should be 2) (Appendix, panel a), which 540

at 5% significance level (Table A1 (sic! should be 2), panel b), meaning that all variables are non-stationary. 543

Model specification:

Row 334 - please, check the brackets. Is it correct? Is Y-X meaningful? Are there the same units? 

Author Response

Please see the attachment.

Author Response File: Author Response.docx

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