Investment Dynamics Research Articles

Understanding sustainable investments: an empirical study of best-in-class mutual funds

PurposeThis research aims to examine mutual funds investment behavior to further understand the dynamics of sustainable investments in the global marketplace and their evolution. Sustainable investing is increasing in the market due to (1) its performance, (2) the investors' criteria and (3) the companies' interest in contributing to sustainable development.Design/methodology/approachTo explore this area, we evaluated Morningstar's best-in-class funds, that is, five-star rated in profitability and five globes in sustainability, while adding rankings such as Sustainalytics to further test the performance against ESG criteria. To test the hypotheses, we used regression statistics to find correlations between quantitative and qualitative factors such as diversification of the investments per sector and region or fund category.FindingsThe results show that funds invested in different sectors, such as technology and healthcare, contributed to an increase in the overall profitability of the fund, while investments in other industries were less profitable. The contribution of this study is based on empirical data that shows why and how ESG investments are growing based on their market evolution.Originality/valueThis study aims to advance knowledge of SRI investment, profitability and market growth, particularly by showing sustainable investment dynamics per industry (e.g. Technology) and regions (e.g. Europe) which not only favor future investments but also sustainable economic growth.

Generative artificial intelligence, present and perspectives in public administration

Artificial Intelligence (AI) is playing an increasingly important role in public administration, offering innovative solutions for efficiency and better public services. The application of AI in public administration aims to modernise and streamline the services offered to citizens. AI contains advanced algorithms, neural networks, and machine learning techniques to improve performance and efficiency over time. Smart algorithms, responsibly implemented, could help governments enhance service delivery and strengthen citizen engagement in local, city, regional, and national administrations around the world. Governments in some states have discreetly launched pilot programs to test developing AI applications, demonstrating an enthusiasm for technology at least as great as that in the private sector. By utilising AI, public administrations can automate repetitive processes, optimize resource usage, and improve interaction with the public. The purpose of the research is to show the extent and scope that AI tools integrated into organisations have in almost all areas of the public and private sectors in general, and state administrations in particular. The research objectives were: to analyse the dynamics of investments in AI tools; to discover the main services in state administrations that can be better performed using AI; to analyse the risks; and to highlight the perspective of development and integration of AI in public administrations of a few European states. The research is based on a comparative analysis of the implementation of AI tools across fields, components, and regions at the European level mainly, but also for Romania. The analysis period is 2021-2030. The results show a continuously increasing trend and an ever-faster rate of assimilation of AI tools in the field of public administration in an increasing number of states from most developed regions worldwide.

The Dynamics of Trade and Investment on the Expansion of BRICS Economies

Purpose: The dynamics of trade and investment in the context of BRICS economies, provide crucial insights into how emerging economies influence economic growth and development and unlock the potential for cooperation among member states. BRICS has become a major global key player due to the advantage in demographic, geographic and economic attributes peculiar to the economies. Deeper ties and cooperation among BRICS have fostered growth and development from trade openness, capital inflow, acquiring technological know-how and administrative abilities to growing economies. Hence, the study assessed the dynamics of trade and investment in the expansion of BRICS economies Methodology: The study employed cross-sectional models via the panel-corrected standard error, Discrol and Kraay and Augmented Mean Group in the context of BRICS and BRICS+ countries between 1990 and 2022. Thus, contributes to a deeper understanding of the economic integration and performance of emerging markets. Furthermore, the study evaluates the Dumitrescu–Hurlin panel causality to answer the question of potential causation among the variables. Results: Findings reveal that trade and FDI have a dynamic impact on the expansion of BRICS economies. An increase in BRICS membership situates an increase in market coverage, the spread of the spillover effect, and deeper ties and cooperation among BRICS. Trade openness has a positive and significant impact on the BRICS+ economies. Meanwhile, FDI has a negative and significant impact on the BRICS+ economies. There is a bidirectional relationship between trade openness, foreign direct investment and economic growth in the expansion of BRICS economies. Conclusion: This study concludes that trade openness and foreign direct investment should be used to foster more of deeper ties and cooperation than economic profit among BRICS.

Climate-Driven Sustainable Energy Investments: Key Decision Factors for a Low-Carbon Transition Using a Multi-Criteria Approach

Currently, the need for a clean transition has made the upscaling of sustainable energy investment projects imperative. This paper addresses the increasing importance of sustainable energy investment projects in the context of climate change and the urgent need for a global energy transition. Given the complexity of decision-making in this field, a multi-criteria decision-making (MCDM) approach is employed to assess the main criteria considered by project developers and financial institutions. Using the Analytic Hierarchy Process (AHP) method, eight criteria are identified and evaluated. Results highlight differing priorities between project developers and investors, emphasizing the need for adaptable approaches to accelerate sustainable energy investments. The study underscores the importance of understanding diverse stakeholder preferences and priorities in formulating effective strategies and managing associated risks to effectively promote sustainable energy projects. Future research should focus on real-life case studies and policy assessments to further enhance the understanding of sustainable energy investment dynamics.

Determinants of Foreign Investment in Indonesia Post-Pandemic

Research Originality: The Covid-19 pandemic brought out the phenomenon of a rapid increase in investment after it has ended in Indonesia. This study gives a significant contribution in analyze the impact of pandemic on foreign direct investment.Research Objectives: The aim of this research is to predict whether there is a relationship of interest rates, inflation, labor force, GDP, and exchange rate with investment.Research Methods: This research is also to examine the asymmetric relationship among variables using the NARDL (Nonlinear Autoregressive Distributed Lag) method to identify the long-run effects of these variables on the investment after the Covid-19 pandemic in Indonesia. It uses the secondary data from 1980-2022.Empirical Results: The results of research show that there is a long-run asymmetric effect of the variables of interest rates, GDP, and exchange rates on the foreign direct investment. It means that changes in these variable factors do not only affect the size of investment, but also the speed of its increase after the pandemic. Meanwhile, there is no asymmetric effect of the variables of labor force and inflation on the investment.Implications: This research provides a picture and new insights related to the foreign direct investment dynamics in Indonesia after the Covid-19 pandemic. This study implies that require a different policy approach in an effort to increase the investment in Indonesia.JEL Classification: F21, O40

How Is AI Enhancing Investment Behavior in Today's Financial Markets

The present investigation delves intricately into AI's pivotal function in shaping contemporary financial market investment dynamics. Amidst surging data volumes and computational leaps, AI has emerged as a cornerstone in finance, particularly in enhancing investment efficacy, risk assessment, and tailored services. By scrutinizing AI's present adoption across domains like data analysis, algorithmic trading, risk mitigation, and advisory services through concrete case studies, we illustrate their tangible impact. Our study subsequently unfolds how AI bolsters investment activities by expediting decision-making, refining strategic investments, reinforcing risk controls, and enriching user experiences. Furthermore, we delve into the technological hurdles, ethical dilemmas, and regulatory challenges encountered in AI's financial sector integration. Lastly, we propose recommendations for financial institutions and regulators to foster AI's sustainable growth within the market. This research not only contributes to a profound comprehension of AI's role in financial applications but also furnishes valuable insights and future research directions.

Fragmentation of international trade: interim results, challenges and policy issues

The article analyzes key issues related to the fragmentation of international trade at the current stage of global economic development. The impact of economic globalization on disruptions in modern international exchange is discussed, including in the chronological context of the formation of the modern structure of international trade. The main channels of trade fragmentation are identified, including the ambiguous dynamics of cross-border direct investment, the aggressiveness of export control measures taken by key countries, as well as stresses observed in the global payment system. A separate aspect of the study was the analysis of national security considerations dictating the use of various subsidies, which is an additional determinant of the fragmentation of international trade. It is proven that fragmentation has led to uncertainty and increased volatility in global raw materials markets, and has strengthened the speculative and "financialized" nature of their development. In general, international trade under the influence of fragmentation should become more adaptive, and it is necessary to continue developing multilateral cooperation, but it should take place in a fundamentally different format and with the help of alternative instruments aimed at developing new trade models.

Macroeconomic Factors and Policy Dynamics Influencing FDI Flows from Arab Countries to Malaysia: A Qualitative Analysis (2018-2023)

This study examines the macroeconomic factors and policy dynamics influencing Foreign Direct Investment (FDI) flows from Arab countries to Malaysia during the period 2018-2023. Employing a qualitative research design, the study utilizes semi-structured interviews with key stakeholders, analysis of policy documents, and examination of economic data to provide a comprehensive understanding of this evolving economic relationship. The research reveals that Malaysia's economic resilience, robust GDP growth, and effective fiscal policies have been instrumental in attracting Arab FDI, despite global challenges such as the COVID-19 pandemic. Strategic policy initiatives, including targeted FDI incentives and bilateral trade agreements, have played a crucial role in facilitating investment flows. The study identifies key sectors attracting Arab investment, including real estate, Islamic banking and finance, oil and gas, and tourism. Malaysia's position as a global hub for Islamic financial services and halal industries emerges as a significant factor in its appeal to Arab investors. However, the research also highlights persistent challenges, such as regulatory hurdles, cultural and language barriers, and increasing regional competition. The study concludes that while Malaysia has successfully positioned itself as an attractive destination for Arab FDI, continued policy refinement and focus on high-value, knowledge-intensive sectors are necessary to maintain this position. The findings contribute to the growing body of literature on South-South economic cooperation and provide valuable insights for policymakers, investors, and researchers. Future research directions, including the need for quantitative analysis and comparative studies with other Southeast Asian countries, are suggested to further enhance understanding of these complex investment dynamics.

ECM Insights into Domestic Savings, Investment and Economic Growth Dynamics in Nigeria

It is impossible to overstate the importance of investments and savings for the overall growth of an economy. The study examined Nigeria's dynamics of domestic savings, investment and economic growth through the Error correction mechanism (ECM). With the use of time series data from 1990 to 2021, the study seeks to discover the interplay between foreign direct investment, interest rates, capital formation, and domestic savings within the Nigerian economy. The study found that foreign direct investment coupled with a relatively stable interest rate played a critical role in enhancing domestic savings and fostering economic growth. Additionally, the analysis showed that capital formation and foreign direct investment positively and significantly impacted domestic savings. The error correction model shows that any short-term deviations from long-term equilibriums between savings, investment and growth are corrected over time, reinforcing the importance of policy consistency. A key recommendation is that the government implement policies that encourage saving and maintaining macroeconomic stability, creating a stable environment with investment opportunities and attractive interest rates that will strengthen savings, foster capital formation, and drive long-term economic growth. The paper shows the need for a strategic approach to managing both domestic and foreign investments to ensure sustainable economic development in Nigeria.

���Ͳ��� �� ϲ����� �� ���������� �������ֲ��ί �����������Ҳ ����������� ϲ���Ȫ����

The essence of the investment attractiveness of industrial enterprises is determined by their ability to attract investment through a comprehensive assessment of economic, financial and market characteristics. The current study is aimed at defining the essence of understanding the investment attractiveness of an enterprise and forming its own definition on this basis. In the process of writing the study, various methods of scientific cognition were used, such as analysis, synthesis, generalization, comparison and a systematic approach to study and identify existing approaches and definitions to the interpretation of the investment attractiveness of an enterprise. In the course of the study, the author has found that in the modern economic world there continues to be a growing interest in investment, which was confirmed by the growing dynamics of investment portfolios around the world. It is determined that this trend is evidence of the growing potential of investment markets and creates new prospects for the development of industrial enterprises.

Advanced Predictive Models for the Startup Ecosystem Using Machine Learning Algorithms

The startup ecosystem, characterized by its dynamism, presents significant challenges in predicting its future trajectory. Traditional analytical methods often fall short in comprehensively addressing the myriad factors that shape this ecosystem. This research aims to enhance the predictability of trends within the startup landscape by integrating the Technology Acceptance Model (TAM) with the advanced Random Forest algorithm. While existing literature has extensively explored the challenges startups face and the nuances of stakeholder interactions, the integration of TAM's constructs with key empirical attributes, specifically Investment Dynamics, Startup Metrics, Stakeholder Interactions, Entrepreneurial Challenges, and Technological Infrastructure, is a pioneering approach. Drawing from a comprehensive dataset that spans a diverse array of startups, this study operationalizes TAM's constructs in conjunction with the specified attributes. The subsequent application of the Random Forest algorithm offers a novel predictive methodology. Initial results highlight the superior predictive capabilities of this integrated model compared to traditional approaches. The findings provide insights into the intricate relationship between technological perceptions, as framed by TAM, and the tangible realities of the startup domain. The fusion of TAM with state-of-the-art machine learning signifies a groundbreaking direction in startup ecosystem research. This innovative approach offers stakeholders an enhanced analytical tool, ensuring more informed decision-making and a deeper grasp of the multifaceted nature of startup ecosystems.

Modeling the influence of investment dynamics on economic growth in the Russian Federation utilizing hidden Markov chain models

Modeling the influence of investment dynamics on economic growth in the Russian Federation utilizing hidden Markov chain models

Assessing Decarbonization Approaches across Major Economies

The global energy transition is an uneven process, fundamentally related to the level of economic development of countries and their access to energy resources (renewable and non-renewable) to a large extent. The global climate is interconnected, and all nations impact it through their products and services. The six countries discussed—China, Brazil, Germany, Japan, Russia, and India—account for 44.8% of global primary energy consumption and 49% of global CO2 emissions. Each of them has its own strategy for achieving carbon neutrality, based on different decarbonization scenarios, which, according to the authors, depend on geopolitical factors, national economy characteristics, and the established pragmatic goals and objectives. However, the “green agenda” itself may not always be among the top priorities when formulating energy strategies. The study objective is to analyze the feasibility of the stated goals in these countries using a combined logistic curve-based forecasting tool for predicting solar and wind production as well as investment volumes. It aims to justify the relation between solar and wind energy production and investment policies using a calculated technological coefficient. Results show similar, but time-shifted fluctuating investment dynamics in solar and wind energy trends in Japan, Germany and China, with Germany and Japan outperforming investment forecasts when considering the technology efficiency coefficient. Furthermore, the findings highlight the overwhelming appreciation of the unevenness of the green transition process, which will consequently make it impossible to meet the goals of the Paris Agreement until 2050. Taking these factors into consideration, exploratory decarbonization scenarios for these six major world economies alongside two dimensions, namely, the pace of green transition versus green technology and versus resources, are presented.

Revealing the influence of systemic risks in the development of enterprises on updating their investment position under entropy conditions

This study identifies the impact of systemic risks on the company's strategic development prospects through attracting investments and ensuring their insurance protection. The company's strategic development model predetermines the level of its investment activity at various stages of the life cycle. This is important because there is an urgent need for the Ukrainian economy to attract foreign investment for the post-war reconstruction of the country. But there are objective difficulties associated with the complication of actualizing the investment position of enterprises in the leading sectors of the economy, taking into account the challenges and threats caused by the military aggression of the Russian Federation. Conditions of entropy, which indicate unpredictability and variability in the business environment, expose enterprises to great risks. It was determined that the investment position of the business entity should correlate with the strategic model of its development and represent a balanced mechanism. This has made it possible to reasonably systematize the risk of investment activities and approaches to their management. Statistical analysis became the basis for evaluating the dynamics of direct and capital investments in the leading sectors of the Ukrainian economy. The results gave grounds for asserting a significant deterioration of the investment climate in Ukraine as a result of the war. The level of direct and capital investments is low. We focused attention on the possibility of flexible adjustment of strategic development plans to unforeseen risks. The proposed recommendations, unlike existing ones, consist of a combination of state and market levers to stimulate investments in the economy of Ukraine. Existing military risks restrain the investment activity of stakeholders. Therefore, the conditions for the practical implementation of the mechanism of distribution and reduction of risks are the formation of insurance protection of investments for investors

Conversions: The emerging informalisation of housing in the Global North

Housing informality in the Global North is becoming an increasingly important topic amongst planners. In this paper, we build on recent debates on informality and planning to highlight forms of housing informality that emerge at the intersection of affordability crises, and capitalism’s new extractivist frontiers through digital platforms. Using the lens of conversions, we show how the flexible transformation of building uses, from commercial to residential (and vice versa) by landlords create new and emerging forms of informality and subsequent planning challenges. These conversions present three specific characteristics: platform-led rapidity, regulatory grey areas, and professional intermediation. These are being extended through corporate and institutional alignments with for-profit motives of rent extraction, and by rapid real estate investment dynamics. Such conversions do not involve material of physical alterations to the built form and thus remain invisible. They exist flexibly in the grey areas of the law, and as a consequence, the rights of tenants, users and those of the wider community become weaker. We focus on examples of property guardianship and digital platforms-enabled home-sharing in England to illustrate our argument, and propose emphasising conversions as dynamic processes to draw attention to their implications for planning theory and practice.

SPECIAL BORDER ECONOMIC ZONES BETWEEN MALAYSIA AND THAILAND

The evolving landscape of global trade and economic cooperation has spurred the establishment of Special Border Economic Zones (SBEZs) as a comprehensive strategy to catalyse economic growth and enhance collaboration between neighbouring countries. These zones have developed as a distinctive economic strategy to harness the potential of cross-border collaboration, while addressing the particular socio- economic difficulties of border regions as globalisation continues to change the dynamics of global commerce and investment. However, the main challenge to such an effort is understanding how to fully tap the potential of the SBEZs to facilitate cross-border trade, drive economic development, and advance regional integration while simultaneously minimising potential hazards and unfavourable effects. This article provides an in-depth analysis of the relationship between Malaysia and Thailand and the relevance of a SBEZ between the two neighbors. It aims to pursue these objectives: (1) To delve into the historical trajectory of economic progress in the relationship between Malaysia and Thailand, (2) To critically examine the importance of the SBEZs in the Malaysia-Thailand context from various aspects, and (3) To critically evaluate the SBEZs by comparing the economic development of Malaysia and Thailand and by analysing the factors that led to the Thailand-Malaysian SBEZ. Content analysis was used to analyse the secondary data obtained from journals, publications, and official reports. The findings are as follows: 1) There have historically been several economic periods in the relationship between Malaysia and Thailand; 2) In the Malaysia-Thailand region, Special Border Economic Zones are significant in terms of their role in trade facilitation, economic growth, investment, industrialisation, and regional economic balance; and 3)Three factors had an effect on the development of the SBEZs.

Comparison of different drivers on energy systems investment dynamics to achieve the energy transition goals

The signing of the Paris Agreement represents a consensus on limiting the increase of the average global temperature compared to the preindustrial period. The European Union has set an ambitious goal of achieving climate neutrality by 2050. By 2030, the European Commission's REPowerEU plan aims to accelerate the processes of increasing the share of renewable energy sources, improving energy efficiency, reducing energy use, and, at the same time, diversifying energy sources and increasing electricity connectivity between member states.In order to achieve the stated goals, future energy systems will be based on renewable energy sources, which are characterized by production variability. Such systems require flexibilization technologies that ensure security and stability of supply. In this study, an analysis of how different fuel and technology costs, as well as policy targets, influence the pace of the energy transition dynamic was made on the case study of Croatia, as there was no such previous investigation. Therefore, the goal of the research is to identify the most prominent driver to achieve energy transition targets in Croatia, with an emphasis on the required flexibilization technologies. The investigation has been implemented in the energy planning tool H2RES, a detailed open-source long-term optimization model in a five-year step model based on scenario analysis of different RES and CO2 targets, technology costs, and fuel prices. The results reveal a need for an ambitious energy policy if the goal is to achieve full energy system decarbonization. Currently, high carbon prices and lower technology costs won't be enough to lead the energy transition, without legislative support.

The Efficiency of Financing Environmental Protection Measures in the Context of Ukraine’s Future Membership in the EU

In recent decades, humanity has had a significant negative impact on the environment. This problem can be solved only by establishing a rational environmental management policy and ensuring an effective financial policy in the context of balancing emissions and expenditures on environmental protection measures. The purpose of this article is to analyze the efficiency of financing environmental protection measures by determining the dependence of pollutant emissions on environmental protection expenditures in Ukraine and the European Union. The following methods were used for the study: analysis, synthesis, generalization, comparison, specification, and statistical and graphical methods. The statistical information was systematized on the basis of open data from the Open Budget web portal, the State Statistics Service, and Eurostat. This study identified the dynamics of revenues from environmental taxes in Ukraine; taxes on air emissions prevail. Most of the expenditures are made from the state budget. According to the functional classification, environmental expenditures are mainly aimed at preventing and eliminating environmental pollution. The dynamics of capital investments in environmental protection were also studied. To assess the effectiveness of the state policy in the field of environmental protection, we analyzed the dependence of pollutant emissions in Ukraine, Poland, and Romania on the amount of environmental expenditures and investments in this area and revenues from environmental tax. In Ukraine, the amount of pollutants released into the atmosphere depends mostly on investments in this area; in Poland—on revenues from environmental taxes; and in Romania—on expenditures on environmental protection. It has been established that the obtained models are adequate and can be used to build future forecasts of pollutant emissions. Directions for the development of financial and environmental policy are proposed. Post-war restoration of the environmental situation should be carried out on the basis of sustainable development, focusing on the European Green Deal A triple-task approach should be implemented, including environmental restoration, the minimization of negative climate change and balanced use of resources, and the expansion of powers of the relevant ministry with a focus on the strategic goals of the state policy. It is necessary to develop methodological recommendations according to international standards to assess the real state of the environment.

Investments in Fixed Capital of the Oil and Gas Region as an Indicator of Its Readiness for the Financial Embargo and Transformation of the Global Energy Balance

The financial embargo has a special impact on the economic systems of oil and gas regions. This is explained by the increased foreign trade turnover of oil and gas regions, as well as the high capital intensity of the oil and gas industry, a long period of return on financial investments, and the high profitability of innovative investments. Thepurposeof the study is to identify various aspects of the problem of investing in fixed assets in oil and gas regions, find ways, forms and methods of investment stimulation of their innovative production development and assess the possibilities of transitioning to new technological structures in the conditions of a financial embargo and the transformation of the global energy balance.Methodsof regression analysis of the structure and dynamics of investment in fixed capital of organizations in the oil and gas regions of the Volga Federal District were used and polynomial trend lines were constructed until 2030. An economic analysis of the structure of investment in fixed capital of oil and gas regions was made by sources of financing, types of fixed assets, forms of ownership, types of economic activity, as well as a regression analysis of the dynamics and forecast of the balance (receipt minus withdrawal) of foreign direct investment in oil and gas regions according to the balance of payments of the Russian Federation. Theresultof the study was the development and justification of a system of priority factors for creating a favorable investment climate in oil and gas regions to increase their resistance to the conditions of the financial embargo and the economic transformation of the global energy balance.

Economic and Business Pathways Towards Sustainability: A Comprehensive Exploration

Sustainable and inclusive economic development constitutes a multifaceted and intricate domain, wherein economists grapple with divergent interpretations. The consensus remains elusive regarding the precise delineation of sustainability and inclusiveness within this context. However, it may be construed as the conscientious orchestration and execution of economic endeavours aimed at advancing prosperity and development while concurrently upholding the enduring equilibrium across economic, social, cultural, and environmental dimensions, not only for present individuals and societies in their entirety but also for the preservation of ecosystems and the perpetuation of environmental integrity for posterity. Present economic advancement often exacts tolls upon forthcoming generations. This exposition endeavours to delineate the dilemmas, quandaries, and hurdles confronting environmental sustainability and sustainable economic progression. Within the profit-driven capitalist paradigm, production mechanisms frequently exploit natural reservoirs deemed lucrative in the immediate term, with scant regard for long-term ramifications. Hence, the realization of sustainable economic development necessitates judicious policy frameworks aligned with the attainment of the United Nations’ Millennium Development Goals. The prime objective of this paper is to furnish a comprehensive overview of the foundational tenets, theoretical underpinnings, and pragmatic applications pertinent to sustainable and inclusive economic development. It delves into the theoretical constructs underpinning guiding principles, and delineates strategies for surmounting impediments to economic advancement, particularly against the backdrop of the COVID-19 pandemic and prevailing global military conflicts. Moreover, it scrutinizes the repercussions of these phenomena on international trade, investment dynamics, and overall developmental trajectories. The paper accords particular emphasis to the dynamics of energy provision, sources of energy, ecological footprints, governmental stewardship, and methodologies for curbing pollution, drawing insights from contemporary scholarly contributions disseminated across various mediums including academic journals, newspapers, periodicals, doctoral dissertations, news agencies, online platforms such as YouTube, and webinars. The study proffers a compelling recommendation encapsulated in the imperative that economic development must be entrenched in sustainability, predicated upon the prudent utilization of extant natural endowments. Thus, it advocates for a harmonious equilibrium between the exigencies of the present epoch and the imperatives of future generations. Received: 28 March 2024 / Accepted: 26 June 2024 / Published: 8 July 2024