Development Finance Research Articles

Determinants of Climate-Related Development Finance: Policy Implications for South Korea's CRDF in Comparison with CRDF Trends of Japan, Germany, and France

As climate change is a global agenda that requires combined and collective global efforts, each country, developed or developing, needs to mainstream climate change policies, both domestic and external, to achieve its' Nationally Determined Contribution (NDC) targets and ultimately the goals of the Paris Agreement (PA). For this end, climate finance, domestic or international, public or private, plays crucial role in the much-needed transitioning of carbon-intensive industries as well as adapting to the effects of climate change. This study, within the context of Climate-Related Development Finance (CRDF) for developing countries as part of bilateral Official Development Assistance (ODA), aims to derive policy implications for South Korea's CRDF by means of empirical analyses of CRDF determinants for Japan, Germany, and France, which are one of the largest donor countries of CRDF among member countries of the Development Assistance Committee for the Organization for Economic Co-operation and Development (OECD DAC). South Korea should scale up CRDF to recipient countries to which export volume is comparatively higher, reflecting its economic interest, as largest donor countries do consider export volume in their CRDF allocations.

The Implications of the Russia–Ukraine War on Sustainable Development Goals in Africa

AbstractThe existing discourses on the Russia–Ukraine war mainly focus on the humanitarian crisis in Ukraine and the implications for the global economy. There is a lack of policy and scholarly attention to how the war threatens the prospects for realising Sustainable Development Goals (SDGs). Underpinned by a critical document analysis of secondary sources available in academic and grey literature and focusing on Africa, the article explores various global challenges ensuing from the crisis. It demonstrates how such challenges impact prospects for achieving SDGs in Africa. Using the first two SDGs as an example, the study found that with the disruption of the global supply chain by the war and the international sanctions imposed on Russia, Africa now experiences food commodity and energy shortages, soaring inflation, and commodity price hikes which now threatens to worsen poverty and hunger. The article recommends that Africa prioritise structural change and regional cooperation, reconsidering the global financial system and how development finance is structured and maintaining a steady commitment to building resilience. Future research could be focused on the effectiveness of non-sanctions-based conflict resolutions.

Chinese Development Aid and Finance: Effective Soft Power Tool or Public Diplomacy Liability? A Spatial Study of Project Influence

China has risen to become a significant donor of foreign aid and assistance in recent years. As with other major donors, such economic flows in the provenance of China are tied to the latterʼs strategic aims. Specifically, the use of economic outlays as a tool of soft power and public diplomacy has been identified as a key motivation in Chinese disbursement decisions. However, studies examining the empirical success of Chinese foreign aid and assistance in acting as such have, so far, come to diverging conclusions. This study offers an investigation of the spatially diffused effects of infrastructure project sites tied to Chinese funding sources on local public opinion in Ecuador, a country that offers an interesting case showcasing the effects of the unfolding great power competition on local public opinion. We find, that controlling for socio-economic and ideological individual characteristics holding the potential to affect survey respondentsʼ views on China, project influence is significantly and negatively correlated with levels of trust in the Chinese government. These results suggest that the frequently mediatized negative local spillover effects of Chinese-funded or financed infrastructure projects make it unlikely for Chinaʼs foreign aid and assistance to achieve its envisioned purpose of furthering the countryʼs soft power and positive image beyond its borders.

China’s Economic Initiatives and their Impact on Environmental Governance of Global Infrastructure Projects

The Belt and Road Initiative (BRI) and the Asian Infrastructure Investment Bank (AIIB) have raised concerns among critics about their potential negative impact on global environmental governance. These China-led initiatives may lower the environmental and social safeguard standards of their infrastructure investments abroad to outcompete other international financial institutions (IFIs) like the Asian Development Bank (ADB) and the World Bank. This could trigger a race to the bottom in the global infrastructure investment market. The study found that while the BRI may have a significant influence on the norms and standards of development finance, the AIIB has only had limited impact. The market has become more concentrated rather than intensified competition. The ADB's standards have not been affected, but the World Bank may have been negatively impacted and reduced its project-level environmental safeguards. The negative impact extends beyond BRI countries to other countries. The most concerning finding relates to the substantial global investments in coal power projects under the BRI. To improve global sustainability, China and developed countries must collaborate to provide cleaner and more affordable infrastructure investment to developing countries.

Greenhouse Gas Emissions and the Rising Effects of Renewable Energy Consumption and Climate Risk Development Finance: Evidence from BRICS Countries

In recent decades, the surge in greenhouse gas emissions has given rise to an increase in climate risk-related development finance. This research delves into the effect of renewable energy and climate risk-related development finance on greenhouse gas emissions in the BRICS region. Panel regression estimates were employed to uncover several noteworthy findings. Firstly, a slight yet significant surge in greenhouse gas emissions resulted from increased climate risk-related development finance. Secondly, augmented climate risk-related mitigation finance corresponded with a noteworthy upsurge in renewable energy usage. Thirdly, greater renewable energy consumption resulted in a considerable reduction in greenhouse gas emissions. Lastly, amplified renewable energy consumption alleviated the impact of climate risk-related mitigation finance on greenhouse gas emissions. These findings emphasize the necessity of efficiently utilizing climate finance in generating renewable energies like wind, biomass, geothermal, hydroelectric and solar energies. Additionally, it is recommended that benefactor nations and officials ensure a regular and uninterrupted flow of climate risk-related development mitigation finance to emerging nations.

Financial development, legal systems and SME finance: Cross-country evidence

This paper provides a comprehensive investigation into the selection of different sources of finance for both short-term and long-term projects by SMEs, utilizing cross-country data from the World Bank. The results highlight the crucial roles played by financial development and legal system in the countries where SMEs operate. Specifically, with better developed financial systems, SMEs are more likely to use formal sources of external finance from formal sources (e.g., bank and non-bank institutions) to meet their short term and long term financing needs, highlighting the importance of financial development in accessing external finance for SMEs. Furthermore, this paper provides evidence on the moderating effects of legal systems on the favourable impacts of financial development on SME finance. In particular, the effects of financial development on SMEs’ access to external finance are more pronounced in countries with stronger investor protection, such as common law countries, than in those civil law countries, highlighting the importance of legal syystems in facilitating SME financing and suggests that policymarkers should consider strengthening investor protection on promote SME growth and development.

Local Recruits in Development Finance Institutions: Relocating Global North-South Divides in the International Aid Industry

This text explores locally recruited staff within a growing category of organisations in the international aid industry: Development Finance Institutions (DFIs). DFIs are banks that offer risk capital to development projects in the global South, increasingly using tax-funded aid money. Based on interviews with 13 DFI investment managers, I show how Kenyan DFI staff challenge three of the signature attributes commonly assigned to local development professionals: their ‘local’ expertise does not contrast with or preclude international expertise, but rather overlaps with it; their formal authority and career ladders are not restricted to technical or support positions – many field offices are headed by local employees; and they rarely face job insecurity given their competitive qualifications and permanent employment contracts. Meanwhile, decisions on investments are rarely taken by these field office staff but by their colleagues at headquarters, and unlike the latter, even those local recruits who head their field offices usually lack a secure place in the global organisation of their DFIs. This suggests that structural inequalities between donor and recipient country staff – integral to the development industry – have not disappeared in DFIs but rather relocated: from within the walls of field offices to the relationship between these offices and headquarters.

“Fixing” finance? The dialectical publics of resilient disaster governance in Mexico city

ABSTRACT Urban disaster governance in global Southern cities is shaped by relationships with development finance institutions. As state capacity wanes, development finance is seen as an agenda-setting driver of “resilience” and “innovation” but needs an accommodating state to function at the urban scale. This study complicates claims that development finance can “fix” overaccumulated capital in global Southern cities through resilience efforts. In Mexico City, “anti-neoliberalism” rhetoric and an austerity campaign make it difficult for the World Bank to carry out an established resilience agenda, revealing limits to institutional reach in politically uncertain spaces. I theorize this as a variegated relationship between fixity and uncertainty that is modulated by a public and counterpublic dialectic. By investigating (1) attempts to expand a municipal contingency fund and (2) ideological organizational activism, this study interrogates discourses that produce institutional arrangements and sites of opposition, where they frustrate the fix and constrain possibilities for radical action.

The Financing Principles of High Carbon Enterprises Green Development Based on Double Carbon Target in China—Take MYSE as an Example

The “double carbon target” puts forward new requirements for China’s energy structure adjustment. As a leader in offshore wind power equipment, MYSE is an active practitioner of the concept of “carbon neutrality”. The company has established a green growth path and is actively experimenting with various green financial instruments to meet its rapidly growing capital needs. This paper describes in detail the “double carbon goal” to promote the intelligent green development of MYSE, as well as the diversified financing strategy based on green development. Taking the company’s experience of issuing green notes, green bonds, listing on London Stock Exchange and obtaining the “Green economy mark” as examples, this paper analyzes the conditions and strategies of green financing for high-carbon enterprises, and deeply understands the mutual support and promotion relationship between green development and green finance of companies. Deeply understand the positive significance of innovative financing channels and the use of green financing tools for the company’s green development, and provide reference and inspiration for local high-carbon enterprises to actively use green financing tools.

The Effect of Liquidity, Solvency, Profitability, and Operational Costs on Corporate Income Tax in Various Industrial Sector Companies Listed on the Indonesia Stock Exchange for the 2017-2021 Period

Taxes are a source of state revenue for long-term development financing activities and regulates economic growth. One of the biggest sources of tax revenue is income tax. This study aims to examine and analyze the effect of liquidity, solvency, profitability and operating costs on corporate income tax. This study uses secondary data in the form of annual reports of various industrial sector companies listed on the Indonesia Stock Exchange for the 2017-2021 period. The number of samples used were 6 companies obtained through purposive sampling method. The results showed that partially liquidity, solvency and operational costs have an effect on corporate income tax while profitability has no effect on corporate income tax. The results of the study simultaneously show that liquidity, solvency, profitability and operational costs have an effect on corporate income tax.

Do the asymmetric effects of natural resource dependence and financial development amidst green policies make or mar sustainability agenda in E7 countries?

It an undeniable fact that society that is blessed by abundance of natural resources coupled with adequate development financing has the opportunity of growing faster and steadily. However, the ecological impacts of these strides have constituted the centerpiece of environmental concern especially in the recent times of global warming. The present study presents the maiden empirical verification of asymmetric impacts of natural resource dependence and financial development on environmental sustainability with amidst the intervening role of green policies comprising green energy, green technology, and green finance in Emerging Seven (E7) countries from 1995 to 2019. The study verifies and examines the hypothesis by adopting Pooled Mean Group (PMG), Mean Group (MG), Dynamic Fixed Effects (DFE), Quantile Regression (QR), and panel causality tests. Findings show that positive and negative shocks from natural resource dependence escalate the emission surge in E7 economies. Regarding financial development, positive shocks moderate CO2 emissions whereas the negative shock compound the emissions. The results imply that natural resources remain a curse to the economies than good blessing. Whereas financial development stands between promoting and hindering the sustainability agenda, the components of green policies substantially drive the agenda. The distributional effects of the exogenous variables estimated based on quantile regression corroborate the main findings. Besides, the panel causality uncovers the existence of bidirectional and unidirectional causality in the estimated model. Policy insights that support the pathways towards sustainability in E7 economies are suggested based on the findings.

Petty Trading and Household Livelihood among Women in Akwanga Local Government Area of Nasarawa State

The main objective of the study was the determination of the impact of petty trading on household livelihood among women petty traders in Akwanga Local Government Area (LGA) of Nasarawa state. This was achieved through two specific objectives – to determine the contributions of women petty trading on household income, and its role in attaining household living standard. The study relied on the use of primary data, obtained from a random sample of 343 women owners of petty businesses in Akwanga. Data was collected through a questionnaire survey involving the administration of copies of a structured questionnaire with closed-ended items forming each variable scale. The collected data was used to estimate a structural model using the PLS-SEM statistical technique, to test the pertinent formulated hypothesis and evaluate variable relationships. The result obtained showed that women petty trading businesses had positive and significant effect on household income and living standard. in Akwanga. It was therefore, recommended that due to the importance of petty trading into our growing economy, government and non-governmental organization should encourage more women to go into trading by supporting them with adequate finances for development and women petty traders need to analyzed the kind of business they want to engage onto so as to reduce the magnitude of certain uncertainty in the future.

Corona’s Impact on the Pharmacy Sector

An additional twenty thousand cases were founded in the Indonesian pharmacy sector. The Coronavirus caused an explosion in stock prices in the pharmaceutical sector, which concerns diseases easily transmitted between humans. The health sector has been severely affected and must reset its common goal of ending the COVID-19 pandemic. The growth of the National pharmaceutical industry in Indonesia was highly expected to support the acceleration of national economic recovery, as stated in the G-20 presidency, namely the vision of supporting sustainability finance and sustainability trust in sustainable development (Mulyani, 2022). With economic sustainability development globally, investor confidence will be more significant in the company's sustainability reporting, so investors are willing to pour some of their funds (Shauki, 2022). Non-financial reporting (NFR) aspects focus on the environment, society and governance and reflect significant positive and negative impacts on humans, the environment and economic aspects (Shauki, 2022). The Indonesian Company's Sustainability Report demonstrates the commitment of companies in Indonesia. Researchers are trying to find empirical evidence of the impact of company performance with sustainability reporting as a moderating variable on the company's value. The results showed that the capital structure affects the company value; earnings and size do not affect the company value. Sustainability reporting as a moderation variable can strengthen the relationship between variable capital structure, company size and earnings.

An integrated CoCoSo-CRITIC-based decision-making framework for sustainable competitiveness evaluation of regional financial centers with interval-valued intuitionistic fuzzy information

Due to the increasingly strengthened role of finance in modern economic development, theoretical research on regional financial competitiveness in the study of regional economic competitiveness becomes very important. For China at this stage, finance is in a period of rapid development, and its role has penetrated into all aspects of social and economic life. Especially after China’s entry into the WTO, the pace of opening up the financial market has been further accelerated, and comprehensive evaluation and analysis of financial competitiveness is of great significance for comprehensively understanding and accurately grasping China’s national conditions, national strength, and international competitiveness, promoting the long-term growth of China’s financial competitiveness, and the sustainable development of the financial industry. The competitiveness evaluation of regional financial centers is looked as the multiple attribute decision-making (MADM) problem. This paper intends to propose a MADM methodology based on CoCoSo (Combined Compromise Solution) method under interval-valued intuitionistic fuzzy sets (IVIFSs) for sustainable competitiveness evaluation of regional financial centers. At the end of this study, we noticed to a comparison between the proposed IVIF-CoCoSo approach with other existing methods to verify the effectiveness of the algorithm.

Venture Capital and Strategic Development of Innovative Business

One of the most important sources for improving the financial support of innovative activity is venture capital. The development of venture financing in developed countries is one of the defining areas of support for medium and small innovative businesses. The purpose of the article is to identify the key features of venture capital, the selection of structural characteristics of venture capital, and the functional features of venture financing for the strategic development of innovative businesses. The survey is based on the following methods: analysis, systematization, and generalization to identify the key features of venture capital, as well as to select structural characteristics of venture capital, and the functional features of venture financing; tabular representation for the visual display of the results of research and analytical data. The article analyzes the interpretations of venture capital. A significant expansion of the key features of venture capital was noted. The structural characteristics of venture capital for the strategic development of innovative businesses are highlighted, which are systematized according to the following signs: elements of the classic form of venture capital, functions of venture capital, characteristics of the venture capital market, phases of the venture capital investment process, reasons for the refusal to receive venture capital, results from the implementation of venture capital at the macroeconomic level. Functional features of venture financing for the strategic development of innovative businesses must be considered in the context of such features forms of venture financing, types of venture financing, features that are characteristic of venture financing, steps of the venture financing process, stages of venture financing, the most common exit strategy for venture capital investors, principles of venture financing, advantages of venture financing, disadvantages of venture financing. The obtained results are the basis for further scientific research in the part of venture financing of the strategic development of innovative businesses in Ukraine and attracting investments for the development of innovative activity.

CHALLENGES DETERMINING THE SUCCESS AND FAILURE OF A STARTUP IN THE OPINION OF REPRESENTATIVES OF GENERATION Z IN POLAND

The aim of this article is to identify the challenges faced by startups and determine their impact on the possibility of success or failure. It achieves its goal by reviewing the literature on the subject, conducting a survey, and employing statistical methods. The paper presents research conducted among Generation Z. From the results, it can be concluded that key factors in the success of a startup include the ability to take risks, obtain financing for development, gain a competitive advantage, find a scalable and repeatable business model, and implement effective marketing and promotion activities. According to the respondents, the biggest factor in the failure of a startup is lack of knowledge about the market and customer needs, as well as legal, accounting, and tax issues.

Transparency trade-offs in the operation of national Public Private Partnership units: The case of Ireland’s National Development Finance Agency

Since 2002, the Irish National Development Finance Agency [NDFA] has played a leading role in the procurement of Public Private Partnership [PPP] projects in Ireland (UNECE, 2008). It has procured 9 PPP projects bundles, which are currently listed on its website, between 2002 and 2022 11ndfa.ie/projects in addition to Primary Care, Justice, OPW and Education bundles not currently listed on its website. Ireland follows a global pattern where national or provincial PPP units, frequently organised as arm’s-length bodies, play a central role in managing the partnership-based procurement of infrastructure projects (Burger, 2009). This paper examines how the NDFA, acting as Ireland’s PPP unit, has affected the transparency and accountability of Irish PPP procurement. Our analysis indicates that the expanding role played by the NDFA has been depoliticisation and agencification. Our analysis deviates from some previous critical studies of PPP agency governance (Sześciło, 2020) in that we argue that agencification can adversely affect some aspects of PPP transparency while strengthening others, such as selection process transparency. Nonetheless, we suggest the approach to PPP procurement could harm the long-term sustainability of Irish PPP. Using the example of Ireland, our paper contributes to an understanding of the impact of such institutional arrangements on transparency and accountability of PPP procurement.

Factors Influencing the Implementation of Forest Development Financing in Tebing Siring Village, Tanah Laut Regency, South Kalimantan

Tebing Siring Village which is located in Tanah Laut Regency set as forest area Community (HKm) through SK.134/ MenLHK / Setjen /PSKL.0/2/2016 Concerning Work Area Determination Forest societal with area of ± 8,860 hectares in Forest Areas Protected and Forest Areas Production Stay in Tanah Laut Regency South Kalimantan Province. Study purpose analyze the influencing factors implementation of financing development forest in the Tebing Siring village, Tanah Laut Regency. This research was conducted in Tanah Laut Regency, South Kalimantan Province. Object in study For reach objectives 1, 2 and 3 i.e., member group recipient revolving fund facility (FDB) in the village Tebing Siring, Tanah Laut Regency, which consists of from two groups that is group farmer want to advanced , amounting to 23 people and groups farmer Like forward, totaling 17 people. factors which influences the implementation of financing for forest development in Tebing Siring Village, Tanah Laut Regency, namely the timeliness factor of financing distribution. Appropriate use of the budget has a significant effect on success in financing community forestry businesses in villages Tebing Siring. The budget received shows that the community receiving this revolving fund facility, in terms of budget use and budget revenue, 100% of it is used according to the main function of the original purpose for the maintenance and care of rubber plants. Community action on the results of the Community Forest business financing program in the village Tebing Siring shows that all distribution activities and programs have been carried out properly and smoothly.

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Introduction. Conducting business activities aimed at obtaining profit without taking into account the negative impact on the social and environmental environment has led to the accumulation of problems in the specified areas. Awareness of the current situation led to the development of the concept of sustainable development and the formulation of 17 Sustainable Development Goals, the implementation of which will contribute to ensuring both economic, social and ecological dimensions of human progress. Problem Statement. Among the newest instruments aimed at financing with a positive impact on the economic, social and environmental dimensions of sustainable development, special purpose bonds (green, social, sustainable bonds, etc.) should be singled out. The purpose of the article is to determine the composition of the newest instruments of sustainable development financing, to improve their classification, and to generalize trends in their use in the world. Methods. The principles and guidelines of the International Capital Market Association for the issuance of special purpose bonds are analyzed, the methods of generalization and analysis of dynamic series are used based on the data of the International organization “Climate Bonds Initiative” about special purpose bonds. Results. The classification of special-purpose bonds was improved, in particular, the widespread features of their classification were supplemented with features based on the level of achievement of the set goals and the readiness of legislation of the issuance of special purpose bonds. The global trends as for the development of special purpose bonds were clarified, namely: the largest volume of issuance and growth rate for 2014-2021 is precisely for green bonds, which is explained by the beginning of the practice of issuing bonds with a positive impact by supranational organizations in the world precisely from the issue of green bonds; the largest volume of issuance of special purpose bonds is inherent for developed markets and, in recent years, for emerging markets; the leader of issuing of all types of these bonds during 2016-2021 is Europe; the largest specific weight of the issued special purpose bonds in the world is inherent for hard currencies: the euro and the U.S. dollar; key issuers of these bonds are financial and non-financial corporations, as well as institutions supported by the government. Conclusions The classification of special-purpose bonds has been improved, in particular, the common features of their classification have been supplemented with features based on the level of achievement of the set goals and regularity of the issue. Accordingly, it is advisable to continue to support the initiative of financial corporations regarding the issue of special purpose bonds as powerful institutional investors. This will make it possible to maintain the growing trend and strengthen financing and achievement of the Sustainable Development Goals. It is expedient to carry out the further research in this field in the direction of developing mechanisms for activating the use of the newest instruments of sustainable development financing.

Digital inclusive finance and rural revitalization

In the era of the emerging digital economy, how digital inclusive finance contributes to rural revitalization is a hot topic. Based on panel data of 31 Chinese provinces from 2011 to 2020, this paper investigates the relationship between digital inclusive finance and rural revitalization using a panel model and an instrumental variable model and analyzes the moderating effect of the level of traditional financial development on this relationship, the results show that: digital inclusive finance has a positive effect on rural revitalization; there is a complementary effect between the level of traditional financial development and digital inclusive finance.