P16 - Capitalist Systems: Political EconomyReturn

J. C. L. S. Sismondi was a Swiss historian, economist and writer. He is often cited as the last representative of the French branch of classical economics and a key author of the small producers type of theories. He left the classical liberal school and switched to economic romanticism. He has been indicated as the first author of systematic reflection on crises in opposition to contemporary conceptions of balance.

The main objective of the paper is to identify and quantify the influence of institutional environment on inflows of foreign direct investment in European post-socialist countries and countries of Latin America. The reference period is the period 1996-2012 due to data availability. The World Bank Governance Matters concept is used as the basic indicator of institutional environment. Panel data regression analysis is used for the identification and quantification purposes. According to the results, the influence of institutional environment on FDI is not entirely unequivocal in the European transition economies, but it is statistically significant in the Latin American countries. Furthermore, there are statistically significant areas - quality of democracy and government effectiveness - in the post-socialist countries, and all the institutional areas except the level of democracy in Latin America, mainly regulatory quality and rule of law.

The article deals with problems of state capitalism. It can be defined as maximisation of political control over economy and society and it is used as the characteristics of systems which exist in China, Russia, Brazil, United Arab Emirates, etc. State capitalism used to be effective in early periods of development when resources had to be concentrated. Corporations under state ownership are also able to compete on global markets and take advantage of their size and political support. Singapore represents an original connection of economic freedom and authoritarian capitalism. It is based on a free-market foreign-oriented economy which stresses financial market development, infrastructure, education, macroeconomic surroundings and fiscal management. The state as an owner and creator of the institutional framework plays an important role.