H11 - Structure, Scope, and Performance of GovernmentReturn

This article investigates the relationship between institutional quality and the level of investment inflows into post-communist countries. We attempt to empirically verify the argument that institutional determinants are essential in explaining the variation in investment inflows into transition economies after the demise of socialism in the early 1990s. The role of institutions is assessed using Economic Freedom indices provided by the Heritage Foundation. Consequently, to investigate the progress of institutional quality in transition economies, we further employ indicators developed by the European Bank for Reconstruction and Development. Using a panel data set for 11 transition countries from 1993 to 2013, we conclude that the impact of institutional quality on investment inflows is not negligible, yet much weaker than suggested by the existing theoretical literature. Using a fixed-effects model framework in both regression benchmarks with metrics from the Heritage Foundation and the European Bank for Reconstruction and Development, respectively, we observe that the impact of institutional variables on the level of investment was less significant than expected. Moreover, macroeconomic fundamentals appear to always play a more substantial role than institutional factors.

Mechanisms for implementing community programs resulting from general principles of Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities and Commission Regulation (EC, Euratom) No 2342/2002 laying down detailed rules for the implementation of the Financial Regulation. Community programs may be implemented by centralized management or shared management. In the centralized management of community programs are funded directly from the EU budget.
The principle of shared management is the division of powers between the European Commission and EU Member States. One Community program, which is in the Czech Republic based on the principle of shared management for the programming period 2007 to 2013 common program "Solidarity and Management of Migration Flows". Even in this method of financial management, there are areas in which a Member State and European Commission joint responsibility (eg, compliance with the rules of publicity).

Federation is one type of state characterised by a contractual and constitutional structure, multilevel power redistribution, a written constitution, and duality of power. Federalism is a philosophy and a political instrument enabling a federation to function. The principle of federalism is an aggregation of cultural, social, economic, linguistic, and intellectual disparities within a federation. Federalism can become a mainstream integration theory: the present MLG can be defined as an umbrella theory based on the federalist principles. The EU can be defined as a specific type of evolving, decentralised federation. Finally, fiscal federalism can provide EU policy with a significant instrument.