China Belt and Road Initiative Journal: Research Analysis and Perspectives
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ISSN 2515-9402
EISSN 2515-9410
The Use of International Indices - Measuring Legal Systems and Assessing Risk of Investment in Central and Eastern Europe
iktor Lorincz, Andras Jakab
Volume 2, Issue 1, January 2019
Special Issue “16+1” Cooperation and Chinese Investments in Central and Eastern European Countries
Abstract:
While credit ratings are essentially based on economic data, other statistics are not negligible. In
this paper, we present the role of legal indices in ratings and in decision on investment. First, we discuss methodological aspects while constructing legal indices, and then we present the main international indices on the example of the Visegrád 4 (V4) countries, a group of neighbour states in Central and Eastern Europe with comparable economic background, former socialist countries, now all members of the European Union. Beside Poland, Slovakia and the Czech Republic, the emphasis is put on Hungary, where, since 2006, we can observe interesting changes. Afterwards, we discuss several locally constructed indices.
We analyse the actual and future role of these indices in credit rating, and give an outlook on future
directions.
Content :
1. Introduction
2. Measuring Law: Methodological Issues
(1) Quantifying the law
(2) Conceptualisation and construction of indicators
(3) Data Processing
The main international indices and the scores of Central and Eastern Europe
Local indices
3. Law and Economics, and the Impact of the Financial Crisis on the Example of
Hungary
4. Credit Rating and Legal Indices
5. Further Issues and Directions
6. Conclusion