Investment Dynamics Research Articles

РОЛЬ ГОСУДАРСТВЕННЫХ КОРПОРАЦИЙ В ИНВЕСТИЦИОННОЙ ПОЛИТИКЕ

The development of the public sector of the economy, as a guarantor of stability, involves determining the significant role of state corporations in ensuring the country’s economic growth and sustainable development. Investment activity creates conditions for the formation of economically justified proportions of social reproduction. The article analyzes the dynamics of investment in fixed assets in Russia for the period 2014–2023. Based on the study of the structure of investments by sources of financing and by type of ownership, new trends and patterns of their implementation have been identified. The special role of state corporations in investment policy is shown.

ВЛИЯНИЕ ИНВЕСТИЦИЙ НА РОСТ ЭКОНОМИКИ

This article analyzes the dynamics of investments in the national economy, examines their structure, which made it possible to determine the importance of investments in fixed assets in their composition. In relation to this type of investment, an analysis of the dynamics was also carried out and the role of each of these types of investments on the economy of the Russian Federation and its impact on the development of the national economy were determined.

Устойчивые инвестиции и дивестиции институциональных инвесторов глобального уровня

The article analyzes the investment activity of sustainable institutional investors after the global financial and economic crisis of 2008. The relevance of the study is conditioned, firstly, by the leading positions of institutional investors in the global financial market and in the system of international finance; secondly, by the special role of mutual funds and ETFs in the global market of sustainable finance; thirdly, by the noticeable dynamics of investments by these market participants in recent years, which increasingly turns into divestments. The purpose of the study is to identify current trends in sustainable investment by global institutional investors and formulate their further actions in the short term. To do this, it is necessary to solve the following tasks: to clarify, taking into account the latest statistical data, the impact of the COVID-19 pandemic and other force majeure factors on the size and dynamics of the flow of funds of sustainable institutional investors in the leading countries of the world, and to assess the impact on investment prospects of current political and financial factors. In the course of the study, a significant amount of scientific research was analyzed, which served as a basis for identifying the institutional investors’ approaches to sustainable finance. It is concluded that the prospects for global sustainable investing are favorable due to the continued stimulation of environmental change at the supranational level, both in developed and leading developing countries. The financial success of sustainable investment will also contribute to this.

Rational and irrational influences on investing decisions

This study analyzes rational and irrational influences on individual investors’ investing decisions in the Nepalese stock market. By utilizing a sample size of 300 individuals, our research employs a dual-pronged approach involving exploratory and confirmatory factor analyses (EFA and CFA). One-dimensionality evaluation involves frequency and descriptive analyses, followed by the EFA and structural equation modeling (SEM). Principal component analysis (PCA), coupled with Varimax rotation, identifies five crucial factors (behavioral, accounting, firm image, attitude towards risk, and investing decisions) from the initial 32 variables. SEM revealed the significant influence of rational and irrational factors (Shefrin, 2016). The study has found some common behavioral aspects in most respondents; for example, most of them sell shares that have experienced an increase in value and avoid selling shares that have exhibited a decline in value. Likewise, most of them are heavily influenced by the opinions and actions of others. Accounting information and a firm’s image have a considerable favorable influence on investing decisions (Sachdeva et al., 2023). The implications of this research extend to investors, practitioners, and regulators, encouraging informed decision-making and market stability. This research enhances our understanding of investment dynamics by integrating logical and irrational elements.

Reserve Accumulation and Sudden Stops: Evidence from Foreign Direct Investment Dynamics in Selected Emerging Economies

Reserve Accumulation and Sudden Stops: Evidence from Foreign Direct Investment Dynamics in Selected Emerging Economies

Time-varying Investment Dynamics in the USA

Time-varying Investment Dynamics in the USA

Dynamics of Financial Development and Foreign Direct Investment on Nepal's Economic Growth: A NARDL Analysis

This study explores the asymmetric effects of financial development and foreign direct investment (FDI) on economic growth in Nepal, employing the nonlinear autoregressive distributed lag (NARDL) model. The analysis reveals significant asymmetries in the effects of FDI and financial broadening in the economy by distinguishing between positive and negative shocks, the outcome indicates that positive shocks in financial sector growth significantly boost the economy, while negative shocks have a less pronounced and statistically insignificant effect. Similarly, positive shocks in FDI positively influence GDP per capita growth, whereas negative shocks are statistically insignificant. The robustness of these findings shows stable model parameters. The study underscores the importance of proactive policy measures to harness the positive impacts of financial development and FDI, thereby fostering sustained economic growth in Nepal. These insights contribute to the broader literature by highlighting the need for asymmetric analysis in understanding the complex dynamics of financial development, FDI, and economic growth in developing economies.

Assessing the Influence of Financial Literacy and Economic Independence on Investment Decisions

This study examines the variables influencing individual investors' decisions to make investments in the fast-paced financial landscape of Nepal. Two main goals were investigated: first, the relationship between financial literacy, investment decisions, and economic independence was explored; second, the effects of these aspects were examined in detail. The results show a robust positive association between financial literacy and wise decision-making, as well as between investment decisions and economic independence. Its importance was highlighted when it was found that economic independence strongly predicted investment decisions. Furthermore, financial literacy was shown to be an essential aspect impacting investing preferences. These findings underscore the significance of financial education and empowerment for individual investors in Nepal. Prospective avenues for investigation comprise delving into cultural impacts, evaluating the effectiveness of financial literacy initiatives, and examining the effects of nascent FinTech platforms on investing choices. This research adds to our understanding of the dynamics of investments in Nepal's changing financial system and provides valuable information for policymakers and investors.

DEVELOPMENT TRENDS OF THE GLOBAL HOTEL MARKET AND THE PLACE OF UKRAINE IN IT

Objective. The objective of the present article is to study trends in the development of the hotel services market in the world and Ukraine. Methods. The following methods were used: analogy, analysis, synthesis, deduction, logical generalization; statistical method (for the systematization of statistical materials regarding the number of hotels, their size, number of beds, determination of the number of overnight stays and average room occupancy, assessment of the impact of tourist flow on the dynamics of the development of the hotel industry); multidimensional factor analysis (to identify external and internal factors affecting the development trends of the hotel market in Ukraine and the world). Results. A comparative analysis of the dynamics of the development of regional hotel markets in the world was carried out and the fate of the Ukrainian market in the world was determined. The following indicators were analyzed: the total number of hotels and rooms; level of distribution of hotel chains; share of coverage of the world hotel market by hotel chains; value of hotel brands; dynamics of investment in the hotel market by continent. As a result of the analysis, it was established that the main players in the market of hotel services in the world are the USA, the EU, and China. These countries formed centers around themselves that extended their influence to other regions. Hotel chains were the main tool of competitive confrontation. Their share in the total share of the world hotel market increased. They covered more than 50% of the market, and in some countries it reached 90%. US hotel chains covered 40% of the world market of hotel services, were represented on all continents of the world and actively competed with Chinese ones. At the same time, the impact of the COVID-19 pandemic did not lead to a reduction in the number of hotels among the chains. Fixing a decrease in the total number of accommodation facilities in the world (independent and chain), the number of chain hotels increased from 119,000 to 157,000 during the studied period, and the number of rooms from 12 million units to 13 million, respectively. The impact of the pandemic on the overall dynamics of the development of the global hotel market showed a decrease in the number of hotels and rooms in the Americas, Asia and Oceania. On the contrary, the share of EU countries has increased. The growth of Ukraine's share in the European market is also recorded. However, these increases were not due to an increase in the number of hotels, but to a lower rate of their reduction due to the COVID-19 pandemic. It was established that the dynamics of investment activity is gradually reaching pre-pandemic financing volumes. The leading position continues to be retained by the USA with a level of 60% of the global volume of investments in the industry. The countries of Europe, Asia and Oceania keep this indicator at the level of 30%. It has been proven that in the conditions of competition between the USA, China, and the EU, Ukrainian hotel chains could expand only towards the post-Soviet space (the countries of Central Asia and the Caucasus) - as a free territory.

Dynamics and structure of foreign direct investment in CIS countries

Object: The purpose of the study is to assess the impact of investments on the development of economic cooperation between the CIS countries and, based on this, to develop recommendations aimed at attracting foreign investment for the development of mutual cooperation between the economies of the participating countries.Methods: The following methods were also used in the course of the work: scientific abstraction, system and structural analysis, logical generalization, as well as economic and statistical analysis. The study also used grouping and classification, expert assessment and detailed methods.Findings: Thus, to date, the institution determining trade and economic relations between the CIS countries is the EAEU, which, according to Bella Balassa's theory, is at the fourth stage (economic union), which is characterized by the fact that member states must agree to coordinate macroeconomic policy across the entire zone, which is not always easy to implement, as experience has shown The European Union.Conclusions: Thus, the investment market has two levels, both within the EAEU and with foreign countries, especially with China and other countries of the Middle East at the present stage. To increase the attractiveness of foreign direct investment, the authors recommend that the EAEU countries take the following measures. Develop an investment policy for non-resource sectors of the economy; take measures aimed at training qualified labor; increase public investment, in particular in socio-economic infrastructure, etc.

The role of management in fostering startup development with venture investments

Purpose. This article delves into the intricate interplay of startup development and venture investments, aiming to identify the critical role of effective management in managing startups to success. The purpose is to provide a comprehensive exploration of the startup ecosystem, venture investment dynamics, and the strategic responsibilities of management in fostering sustainable growth. Results. Our research unfolds across distinct sections, starting with an overview of the startup ecosystem and the definition of venture investments. Real case studies show successful startups, emphasizing the symbiotic relationship between strategic funding and adept management. The strategic role of management is dissected, encompassing leadership, decision-making, and the creation of high-performance teams. Investor-management collaboration is scrutinized through detailed case analyses and an advanced table outlining key elements. Scientific novelty. Scientific novelty lies in the the detailed study of the evolution of the role of management in the changing landscape of venture investments. New trends in startup development, combined with strategic recommendations, provide a forward-looking perspective. The article contributes to the scientific discourse by uncovering the intricate connections between investor relations, management strategies, and the success trajectory of startups. Practical value. The practical value of this research extends to startups, management teams, and investors. The recommendations offer actionable insights, to direct startups to the development of adaptive thinking, prioritization of sustainable development and the use of technological innovations. The advanced table on investor-management collaboration serves as a practical tool for fostering transparent communication and balancing stakeholder interests. Furthermore, the outlined future research avenues beckon scholars and industry stakeholders to explore novel dimensions, ensuring continuous adaptation to the evolving landscape of venture investments and startup development.

Decoding financial choices: Investigating factors influencing the investment dynamics of the working women

The landscape of earnings has become commonplace with evolving social, cultural, personal, psychological, and environmental variables empowering women to earn on par with men. In response to the increasing economic factors, it has become imperative for women to invest, safeguarding against present and future uncertainties. This study aims to scrutinize, identify, and evaluate the investment behavior and decision-making processes of women investors. Traditionally, future investment decisions were exclusive to men, but in today’s world, women are gradually assuming this role. Recognizing the distinct financial habits of men and women, this study endeavors to explore the factors influencing the investment behavior of working women from their perspective. Data were gathered from 385 working women in Chennai City using the snowball sampling technique. The data were analyzed through exploratory factor analysis, and the investment behavior of working women was examined across five major dimensions: investment awareness, investment attributes, investment preference, investment decision, and investment satisfaction. The study findings indicate that sub-factors within each dimension significantly influence the investment behavior of working women.

ОЦІНКА ІНВЕСТИЦІЙНОГО ПОТЕНЦІАЛУ УКРАЇНИ В СУЧАСНИХ РЕАЛІЯХ

The article addresses the issues related to the essential interpretation of the term "investment potential," its assessment in the current realities of Ukraine, and understanding of its role in crisis management of the national economy in modern conditions. The aim of the article is to identify investment potential as an economic category in the context of crisis management of the country's economy and determine its current state in Ukraine. An analysis of theoretical approaches to defining the concept of investment potential has been conducted, and they have been categorized into resource, probabilistic, market, capacity, structural, and performance directions. The definition of crisis management of the national economy is characterized, attempting to determine the role of the country's investment potential in such management. An analysis and assessment of the dynamics of foreign direct investments in Ukraine from 2002 to 2022 have been carried out, revealing that their total volume during the war year decreased by almost five times, negatively impacting the country's economy. The research emphasizes the necessity for Ukraine to enhance its investment potential to finance the needs of recovery and stabilization of the economic situation, both in the post-war period and the current stage, considering the challenges of digitization. The article argues that due to russia's military aggression and the prolonged war, Ukraine needs to explore new solutions to bring the national economy out of a crisis state and overcome the destructive consequences of warfare through digital solutions. This is achievable by boosting the country's investment potential, especially considering the insufficient domestic resources.

An Econometric Study on Volatility Clusters, Dynamic Risk Return Relationship, and Asymmetry in Bitcoin Returns

The most sought-after cryptocurrency sector is facing dicey environment in India due to stringent ideology of its government that put Indian investors in dilemma in envisaging this sector as a virtuous investment avenue. The investors are very curious for this sector and their curiosity aroused the need for its evaluation in terms of risk-return dynamics in contemporary scenario. The present study is an endeavor to econometrically explore volatility clusters, dynamic risk return relationship, and asymmetry in Bitcoin return series covering the period from August 2010 to February 2022. The results of Augmented Dickey–Fuller test, Ng–Perron tests, Ljung Box Q test, Engle’s ARCH, and White test asserted that the Bitcoin return series is stationary and has apparent volatility clusters in it. The estimates from GARCH-M model confirmed the absence of risk return relationship and the estimates from ARMA-EGARCH model confirmed the presence of asymmetry (leverage effect) in Bitcoin return series. However, the results of ARMA-TARCH model confirmed the absence of asymmetry in the series and further diagnostic checking asserted that ARMA- TARCH model is the best fitted model. These estimations may help the investors in comprehending risk-return dynamics of investment in Bitcoins for framing better hedging strategy in contemporary scenario.

TÜRK İŞGÜCÜ PİYASASINDA OKUL SONRASI YATIRIM, EĞİTİM VE ÜCRET DİNAMİKLERİ: BETİMSEL BİR ÇALIŞMA

Although Human Capital Theory asserts post-school investment as an important mechanism in the wage differentials, it is not adequately scrutinized by the literature. Post-school investment is linked to demographic factors like gender, age, education, marital status, etc., and has a dual effect in the wage differentials of individuals (Blaug, 1976; Mincer J. A., 1974a; Polachek, 1975; Rodríguez, Saltiel, & Urzua, 2018). Moreover, PSI can mediate the effect of education on wages which has been widely discussed in the literature. In light of these, this study aims to understand the dynamics of post-school investment, education, and wages in relation with other demographics ignoring the causal relationship between these variables using Adult Education Survey (TURKSTAT, 2007). Results indicate that PSI is high for observations who are young, non-married, women, high wage earner, non-routine job holder, and vocational collage school graduate. Interestingly, results indicate that low wage earners have to invest on their human capital to compete in the labor market against job losses most probably as they are low skilled workers, and their abilities are prone to depreciation easily. Moreover, men can earn more than women, even if they have a lower education level.

Long-term relationship between investment and economic growth: a cointegration analysis of OECD countries

This article investigates the impact of domestic investments on economic growth in OECD countries from 2000 to 2020. It identifies factors affecting economic growth and analyzes the relationship between domestic investments and economic growth using econometric models. Empirical data from the World Bank, IMF, and OECD reports supports the positive impact of domestic investments on economic growth in OECD countries. The study also finds a long-term causality between GDP and Gross Fixed Capital Formation (GFCF). These findings offer valuable insights into investment dynamics and their effects on economic growth, informing governments and policymakers in OECD countries.

Analysing the impact of FDI and Institutional Quality on Economic growth in South Asian: Panel ARDL APPROACH

This study investigates the impact of institutional quality and foreign direct investment (FDI) on the economic growth of South Asia from 1996 to 2021. The analysis employs various statistical techniques, including panel unit root testing, panel cointegration testing, and Panel Autoregressive Distributive Lag (PARDL) models, to gain insights into the region's economic development. For finding the association between institutional quality, FDI, domestic investment and economic growth in South Asia, first tried to check the unit root problem in the selected series by employing the panel unit testing and results of these tests conclude that some variables are integrated at level while some other variables are integrated at the first difference, so for testing the cointegration or long-run relations among these variable the panel cointegration tests are employed and these tests conclude the long-run association among the variables. For checking the long and short-run impact of institutional quality, FDI, domestic investment and economic growth the panel ARDL test is employed. The results demonstrate the significant positive long and short-run impact of institutional quality, FDI, domestic investment on economic growth in the region of South Asia. These relationships demonstrate the persistent nature of interactions among these variables, emphasizing the importance of policies that promote strong institutions, attract foreign investments, and stimulate domestic capital formation to sustain regional economic growth. The study offers critical recommendations for South Asian countries to enhance their economic growth by focusing on the strengthening institutional quality, encouraging FDI, developing the special economic zones, promoting domestic investment, investing in the infrastructure and promoting regional economic integration. These recommendations offer a clear path for South Asian countries to achieve sustained economic growth by addressing the interplay between institutional quality, FDI and domestic investment dynamics. By implementing these measures, South Asia can secure lasting prosperity and enhance the well-being of its people in a rapidly evolving global economic landscape.

Strategic Evolution: The Changing Face of US Development Finance in World Trade

This article presents a comprehensive analysis of the strategic transformation in US development finance, particularly highlighting the shift from the Overseas Private Investment Corporation (OPIC) to the Development Finance Corporation (DFC). It delves into the geopolitical and economic objectives driving this transition, reflecting the broader US strategy to counter China’s Belt and Road Initiative (BRI). The article employs a neo-realistic theoretical framework, supplemented by elements of development and legal theory, to provide a multifaceted understanding of these global trade and investment dynamics. It evaluates the DFC’s operational strategy and commitment to facilitating private investment in developing nations while averting potential debt traps and sovereignty risks. The study further examines the role of International Investment Agreements (IIAs) in safeguarding DFC-backed projects and reviews their substantive rules and dispute resolution methods. The article concludes by positing the DFC as a more sustainable and transparent alternative to the BRI, offering potential benefits for both developing nations and US geopolitical interests. Political risk insurance, financial development, investment financing, Investment Incentive Agreements, International Development Finance Corporation, Belt and Road Initiative, trade policy programs

Impact of Real-Time Data, Market Sentiment, and Economic Factors on Investment Profitability in Indonesia

The study investigates the complex interplay of real-time data, market sentiment, and economic factors in shaping investment profitability in the context of Indonesia. Real-time data, including stock prices and trading volumes, market sentiment derived from sentiment analysis and expert interviews, and economic factors such as GDP growth, inflation rates, and interest rates are examined for their impact on investment outcomes. Quantitative methods, including correlation analysis, regression analysis, and time series analysis, are employed to analyze a comprehensive dataset spanning an extended period. The findings reveal that real-time data has a significant positive influence on investment profitability, underlining the importance of timely access to financial information. Market sentiment also exerts a notable impact, as more positive sentiment correlates with higher profitability. However, the relationship between economic factors and profitability is nuanced, with GDP growth exhibiting a positive influence and inflation rates and interest rates demonstrating weak negative effects. These results offer practical insights for investors and financial analysts, emphasizing the need to consider a holistic approach that incorporates real-time data, sentiment analysis, and macroeconomic indicators in investment decision-making. The study contributes to a deeper understanding of investment dynamics in the emerging market of Indonesia.

Re-estimation of the savings retention coefficient in OECD countries: a new measure of home country bias

The recent home bias is primarily related to the equity bias as measured by the international capital asset pricing model (CAPM); this measure has declined over the past two decades amid financial globalization, but remains high in most developed countries. The key to understanding this puzzling phenomenon lies in how accurately this indicator can be predicted. In this paper, we propose to use the savings retention coefficient estimated by the Feldstein–Horioka (F–H) regression as a cross-country measure of home bias. We re-estimate the savings retention coefficient based on an estimation model in which the FH regression is embedded in the model derived from Tobin's q-theory of saddle-road dynamics of investment under convex adjustment costs. We then use dynamic panel estimation to estimate the new measure in OECD countries. The main empirical results are as follows. The new measure of home country bias, such as the equity bias measure, declined steadily until 2008, but recovered to the level of the 60 s and 70 s after the 2008 financial crisis. Interestingly, people expected home country bias to be very high after the financial crisis, but in fact it simply returned to its previous level.