Fixed Capital Research Articles

Unlocking Uzbekistan's Growth Through Project Financing

This study examines the implementation and impact of project financing in Uzbekistan's unique economic landscape, particularly its role in fostering investments in fixed capital. Given the country's transition towards market reforms, the research aims to assess how project financing contributes to economic development amidst these changes. Utilizing a mixed-methods approach that combines quantitative data and qualitative interviews, preliminary results highlight the effective mobilization of substantial investments in key sectors such as energy and infrastructure. However, challenges in regulatory and financial transparency remain. The findings suggest that while project financing holds significant potential for economic growth in transitional economies like Uzbekistan, improvements in governance and financial regulations are crucial to optimize its benefits. Highlights: Economic Transition: Project financing boosts Uzbekistan's market reforms. Methodological Insight: Mixed-methods reveal financing impacts. Regulatory Challenges: Improved governance necessary for success. Keywords: Project Financing, Credit Portfolio, Economic Development, Fixed Capital Investment, Transitional Economiesm

Composite Supply Index of Investment Products as a Proxy Indicator of Fixed Capital Investment

Composite Supply Index of Investment Products as a Proxy Indicator of Fixed Capital Investment

From Geospatial to Temporal Separation: A Review on Carbon Accounting Endogenizing Fixed Capital

A scientific and systematic approach that provides accurate carbon accounting is a fundamental prerequisite for responding to the climate crisis. The carbon accounting system has evolved from production-based accounting measuring territorial emissions to consumption-based accounting, gradually covering spatial and temporal separation. Its scientificity is thus enhanced. The temporal separation (between past production and current consumption) from fixed capital has become of recent interest, but a panoramic overview still rarely exists because of longstanding neglect. Combining quantitative analysis with a literature review, this study systematically analyzed the historical development and current state of carbon accounting, especially on studies endogenizing fixed capital, to locate hotspots and predict future trends. The current studies with fixed capital endogenization mainly use a flow matrix and augmented method to analyze the total and structure and the difference with traditional results, which are still in the initial rise stage; however, the process analysis and influence factor identification are insufficient. Therefore, this study proposes future avenues for analyzing the entire process of spatial and temporal carbon transfer based on a metabolic perspective and considering the initial input factors to identify the key drivers, which will provide new ideas and perspectives for policy formulation.

Trade off Between Military Expenditure and Fixed Capital Formation on Economic Growth: Panel Study of Some SAARC and ASEAN Countries

This paper intends to investigate the relationship between military expenditure and fixed capital formation on economic growth of some SAARC and ASEAN countries including Nepal with balanced yearly panel data of military expenditure (MILEX), gross fixed capital formation (GFCF) and constant GDP as the proxied for the variables of interest over the period of 2001 to 2020. The quantitative strategy is applied to establish the presumed relationship. The paper employs the cross-sectional dependency test, then panel generalized least square (GLS), fully modified ordinary least square (FMOLS), and finally Dumitrescu-Hurlin panel causality approaches. The CD test shows the cross-section dependency among the panel groups. The panel GLS reveals that there is positive relationship between both military expenditure and fixed capital formation on economic growth. However fixed capital formation is more crucial than military expenditure on economic growth. FMOLS suggests that military expenditure and fixed capital formation can promote economic growth but more by fixed capital formation. However, D-H panel causality does not support the view of casual relationship between military expenditure and fixed capital formation on economic growth. But there is unidirectional relationship between economic growth on explanatory variables and there is bidirectional causality between military expenditure and fixed capital formation. The stylized facts suggest to sampled countries that they need to focused on fixed capital formation with maintaining the minimal level of military to accelerate the growth. This paper has an attempt to fill the empirical gaps in Asian countries with Nepal. The updated panel data and comparative studies support to scientific communities cum policy makers of respective countries.

Crowding-in or Crowding-out? Modelling the Relationship between Public and Private Fixed Capital Formation Using Co-integration Analysis: The Case of Pakistan 1964-2000

This paper uses the Co-integrating VAR’s [Johansen (1988); Ericsson, et al. (1998)] to examine the relationship between economic growth, public investment, and private investment in the presence of unit roots. Exogeneity is not implicitly assumed but explicitly tested for, and evidence of co-integration and feedback between public and private investment leads to a model in the form of a parsimonious VAR. The analysis is conducted using 37 years of annual data for Pakistan. The analysis suggests that public investment has a positive impact on private investment, and that economic growth drives both private and public investment as predicted by the accelerator-based models.

The Effect of Public and Private Sector Fixed Capital Investments on Gross Domestic Product and Employment in Turkey

Purpose: The aim of this study is to analyze the effects of public and private sector investments on gross domestic product (GDP) and employment econometrically with the panel data method in order to determine the efficiency of investments in Turkey.
 Design/Method/Approach: In the study, the possible effects of public and private sector investments on GDP and employment in Turkey are examined by dividing them into sectors. Sectors are included in the analysis as agriculture and other non-agricultural sectors. Since the data of various sectors within a certain time period are used, time series and horizontal cross-sectional data are analyzed using the panel data method, which allows them to be used together. Four different models are created in the research. Among them, the effects of public investment expenditures on GDP in the period of 2004-2020 in Model 1, private investment expenditures on GDP in the same period in Model 2, public investment expenditures on employment in the period of 2014-2021 in Model 3 and private investment expenditures on employment data in Model 4 are investigated.
 Findings: The results obtained from the analyses show that public and private sector investments have a significant and positive impact on GDP and employment in Turkey.
 Practical Implications: It is generally accepted in the public finance literature that investments will positively affect economic growth, production level, employment and regional development if they are used in productive areas.
 Originality/Value: What makes this study different from others is that the relationship of public and private sector investments with both GDP and employment is analyzed separately. In this way, a comparison can be made from the point of public and private sector investments in Turkey in terms of the contribution of investments to both GDP and employment, and an answer can be sought to the question of how correct the policy of increasing the share of the private sector in investments, especially in recent years, is in Turkey.
 Research Limitations/Future Research: This study will make a significant contribution to the literature on the economic effects of public and private sector investments. It will be determined how accurate the idea of increasing the share of private investments in Turkey in recent years is. According to the results obtained from the study, new studies will be conducted on what can be done to increase the efficiency of public or private sector investments.
 Disclaimer: This article was produced from the doctoral thesis prepared by Özgür Mustafa Ömür at Bursa Uludağ University Social Sciences Institute, Department of Finance, under the supervision of Prof. Dr. Filiz Giray.
 Paper Type: Empirical
 JEL Classification: E01, E22, E24, H54

THE NEXUS BETWEEN PUBLIC FIXED CAPITAL INVESTMENTS AND PERFORMANCE OF STATE OWNED ENTERPRISES

The aim of this study is to analyze the effects of public fixed capital investments on the performance of state-owned enterprises (SOEs). Within the scope of the study, we include the data of 20 non-financial SOEs operating in Turkey regarding the period of 2011-2018. We take into consideration the following performance dimensions: profitability and operational efficiency. Our dynamic panel data analysis results obtained after controlling the firm characteristics show that the public fixed capital investments have a partial and positive effect on the profitability, while it is a negative effect on the operational efficiency.

PROBLEMS OF APPLICATION OF NEW FEDERAL STANDARDS ON ACCOUNTING OF FIXED ASSETS AND CAPITAL INVESTMENTS IN TRANSPORT COMPANIES

Реформирование бухгалтерского учета в Российской Федерации связано с гармонизацией национальных и международных стандартов финансовой отчетности. Статья посвящена проблемам, возникающим при применении новых федеральных стандартов в практике ведения учета в транспортных компаниях.

Pre-design of Biphenyl Chemical Factory from Benzene with Capacity of 10.000 Ton Per Year

The design of a biphenyl chemical plant from benzene with a capacity of 10,000 tons/year will be built in Tuban, East Java with a land area of ​​10,010 m2. The raw material in the form of Benzene is obtained from Trans-Pacific Petrochemical Indotama (TPPI), Tuban. The factory is designed to operate continuously for 330 days, 24 hours per day, and requires 214 employees. Biphenyl preparation begins with reacting benzene (2,807.74 kg/hour) in a Pipe Flow Reactor (R-01) at a reactor temperature of 377 oC and a pressure of 2 atm. This reaction takes place with a conversion of 90% and is endothermic so that a Hitech heater is used to maintain the operating temperature. The products that come out of the reactor are biphenyl and hydrogen. It is then cooled and condensed in a Partial Condenser (CD-01) to a temperature of 151 oC. Then enter into Separator-02 (SP-02) to separate hydrogen from a mixture of benzene, toluene and biphenyl. Hydrogen in the gas phase as a result of the separtor. The bottom product in the form of benzene, toluene and biphenyl in the liquid phase is pumped and put into a distillation tower (MD-01) to purify the product with the bottom product in the form of biphenyl with a purity of 99.3%. The result of the distillation tower is benzene and its impurities are recycled as feed into the reactor with a temperature of 83 oC and a pressure of 1 atm. This factory requires Fixed Capital (FC) Rp. 34,341,856,338,- + US$ 4,195,836, Working Capital (WC) (Rp. 127,536,505,173,- + US$ 170,019), Manufacturing Cost (MC) (Rp. 254,092,040,390,- + US$ 816,090), and General Expenses (GE) (Rp. 33,990,417,539,- + US$ 81,609). Economic analysis shows the value of ROI before tax is 50.38 % and the value of ROI after tax is 32.75%. POT before tax is 1.65 years and POT after tax is 2.34 years. The BEP value is 43.11% and the SDP value is 23.75%. The interest rate in DCF for 10 years is 19% on average. Thus, from a technical and economic point of view, a biphenyl plant from benzene with a capacity of 10,000 tons/year is worthy of consideration.

The Relationship Between Agricultural Fixed Capital Investment and Agricultural Growth in Turkey

Bu çalışmanın amacı, Türkiye’de tarım sektörüne yapılan tarımsal sabit sermaye yatırımlarının tarımsal büyüme üzerindeki etkisini incelemektir. Bu amaçla çalışmada tarımsal büyüme, tarımsal özel sabit sermaye, tarımsal kamu sabit sermaye yatırımları ve tarımsal istihdam değişkenleri 1995-2018 yılları arası yıllık veriler kullanılarak VAR Analizi ve Granger Nedensellik Testi yardımıyla incelenmiştir. VAR Modelinden elde edilen varyans ayrıştırması ve etki tepki fonksiyonlarının sonuçlarına göre değişkenlerin etkileşim içinde olduğu ve tarımsal büyümenin sabit sermaye yatırımları ve istihdam değişkenlerinden etkilendiği tespit edilmiştir. Granger nedensellik analizi sonuçları ise tarımsal büyüme ile istihdam arasında çift yönlü ve kamu sabit sermaye yatırımlarından da tarımsal büyümeye tek yönlü nedensellik olduğu yönündedir.

MODERN FEATURES OF DEPRECIATION POLICY OF FIXED CAPITAL OF ENTERPRISES AND BUSINESS STRUCTURES

MODERN FEATURES OF DEPRECIATION POLICY OF FIXED CAPITAL OF ENTERPRISES AND BUSINESS STRUCTURES

Analisis faktor-faktor yang mempengaruhi pendapatan pedagang kaki lima di Kota Jambi (studi kasus warung manisan Kecamatan Telanaipura)

This study aims to: 1) To determine and analyze the socio-economic characteristics of street vendors at candied stalls in Telanaipura District, Jambi City. 2) knowing and analyzing the factors that influence the income of street vendors at candied stalls in Telanaipura District, Jambi City. The research analysis tool uses multiple linear regression analysis tools. Based on the results of multiple linear regression, it can be concluded that simultaneously the independent variable fixed capital, operating capital, working hours, length of business, and location have a significant effect on the dependent variable income of the candied warung merchants and partially only the operating capital and working hours variables have a significant effect on traders' income. candied stalls, while the variables of fixed capital, length of business, and location did not have a significant effect on the income of the candied stall traders. Furthermore, the R-square value is 0.923. This means that 92.3 percent of the variation in the income of the candied shop traders is explained by the variables in this study, while the remaining 7.7 percent is explained by other variables outside the research.
 Keywords: Income, Fixed capital, Operating capital, Working hours, Length of business, location

On Increasing the Market Value of Fixed Capital in Russia

The article compares the market value of Russian and American fixed capital in general and by type of economic activity. The multiple backlog of Russia in specific and especially in gross indicators is shown. The required investment (based on PPP for investment in fixed assets) necessary to bring the capital/labor ratio of the workplace in the Russian Federation up to the level of the United States in the economy as a whole and its sectors, the impact of more active implementation of the investment program on the Russian employment structure is calculated. The potential of reducing the net international investment position of the Russian Federation and restructuring of monetary policy as factors in the activation of the investment process is considered.

ИНВЕСТИЦИИ В ЭКОНОМИКУ ВОСТОЧНЫХ РЕГИОНОВ РОССИИ. ПРОБЛЕМЫ УСКОРЕННОГО РАЗВИТИЯ

The article presents the results of the analysis of the dynamics of the investment flows in fixed capital (FC) in the East of Russia and their economic efficiency for the period 2011–2018. Special attention is paid to the sectoral structure of FC investments in the regional economy, their importance for creating conditions for the accelerated socio-economic development of the Eastern border regions of Russia – the subjects of the Far Eastern Federal District and the Baikal Region. The purpose of this study is to assess the economic effects generated by the investments in the economy of the Eastern border regions of the Russian Federation. As a hypothesis, we consider the assumption that attracting investment to the region is a key factor of not only accelerated, but also sustainable development of the regions under consideration. The factors hindering the sustainable development of the economies of these regions are considered. It is shown that there are multidirectional trends in the socio-economic development of the considered regions. Analysis of investment flows and indicators of socio-economic development of the Eastern regions of the Russian Federation for the period 2011–2018 allows to confirm the conclusion that the existing institutional environment does not yet ensure sustainable economic development of the East of Russia. The integration processes here are hampered by excessively strong dependence on the federal centre and a focus on specific investors. Therefore, the Eastern Russian regions are forced to build their economic policy, focusing on creating attractive conditions for large investors. The stability of economic growth can be ensured only through stable growth of the region population and an improvement of the human capital quality. For the successful implementation of large-scale development plans for the East of Russia, it is necessary to stop the processes of depopulation of the territory and maintain optimal proportions between the economic and demographic reproduction

정치적 안정성과 은행 예대율이 OECD 국가의 고정자본 투자에 미친 영향 - 건설투자 분석을 중심으로 -

정치적 안정성과 은행 예대율이 OECD 국가의 고정자본 투자에 미친 영향 - 건설투자 분석을 중심으로 -

English

Tax is the income which is paid to the government in order to fulfill the need of the public. However tax evasion is the act of not paying the tax by use of illegal ways. Allingham and Sandmo being the first researchers studying the tax evasion found a relationship of tax evasion with low penalty fees and a low detection. The tax evasion basically is affected by various factors but it also affects many economic factors. Sub Saharan Africa being a developing region is facing the phenomenon of tax evasion in a crucial way. This study measures the impact of the tax evasion on the Gross Domestic Product (GDP) per capita of Sub Saharan Africa. The relationship between the GDP per capita and tax evasion is tested using the generalized least squared whereby it is found that there is a positive impact of tax evasion on the GDP per capita however the p-value states that the tax evasion is insignificant and is not an important component for the determination of the GDP per capita. Moreover in the presence of tax evasion, this study shows that GDP per capita has also a negative relationship with the Foreign Direct Investment (FDI), positive relationship the Gross Domestic Fixed Capital Formation (GDFCF), a favorable connection with the export, a negative relationship with the import, a positive impact on the inflation and a negative relationship with the government expenditure. To fight against tax evasion for the economic benefit of Sub Saharan Africa, it is advised to review the tax system, to implement strict and severe penalties and very high fines for tax evaders. Moreover, the tax authorities of Sub Saharan Africa need to appoint more experts in auditing department to be able to detect the non-compliance tax payers easily and rapidly Key words: Tax evasion, cross sectional regression, tax morale.

Depreciated Depreciation Methods? Alternatives to Sraffa’s Take on Fixed Capital

ABSTRACTThis article discusses the treatment of fixed capital in the classical theory of price. Sraffa uses non-linear depreciation of ‘physical’ capital that equalizes all annual profit rates individually, but violates the proportionality of monetary machine value reduction and physical use-up on an annual basis. One alternative is to apply simple linear depreciation that has equal annual fixed capital costs. The key for consistency is that the internal rate of return on fixed capital investments throughout the fixed asset lifetime must be equated with the normal profit rate. A second alternative is to use ‘monetary’ capital, where the ‘correct’ amortization charges depend on the ability of the accumulated depreciation fund to earn interest. Among these valid alternative methods are the original proposals of Marx and Torrens, which were dismissed falsely and prematurely by Neo-Ricardian economists. These alternatives are shown here to imply fundamentally different prices of production. For all methods, the formulas for deriving amortization charges and fixed capital prices of all vintages are derived. The article also illustrates how the system of Sraffian price equations can be modified to incorporate these methods.

The Analysis of the Age Structure of Regional Fixed Capital in the Agriculture

The paper deals with an estimate and analysis of the value of regional net fixed capital stock and the age structure of machinery and equipment in Czech agriculture. In order to perform such analysis, the official model of perpetual inventory method is transformed into the Markov chain model and applied on regional data separately. Regional net fixed capital stock is presented for the period of 2008-2013. The development of the average age of machinery and equipment comprises a potential indicator of the modernisation process in the industry. The analysis of the age structure is based on the structure heterogeneity indicator. For these purposes, the real age structure in each Czech region is compared with the theoretical stable and stationary structure. Currently, the most heterogeneous age structure of machinery and equipment occurs in Prague and the Karlovy Vary region.

Public Fixed Capital Formation in Indian Agriculture: Revisiting the Intellection

What constitutes public GFCF in agriculture has emerged as a major methodological controversy among researchers. Though it has been repeatedly pointed out that there is a need for reconceptualization of agricultural capital formation, a real framework was suggested by the Bhattacharya Committee in 2003. The present paper constructed an alternative series for public GFCF in Indian agriculture, which accounts not only for direct, but indirect GFCF as well. The series constructed at the all-India level was also compared with the conventional CSO series. Broadening of public GFCF series for agriculture reflected an altogether different picture as compared to the CSO series. Among the other sectors of the economy, transportation heads such as rural roads and railways were found to have a dominant contribution towards total public GFCF in Indian agriculture. It was also observed that manufacturing heads in general, and agricultural machinery industry, in particular, experienced a declining share overtime in total public GFCF in the agricultural sector.

Advertising investment as a tool for boosting consumption: testing Galbraith's hypothesis for Spain

The recession that most of the world economies have been facing in the last years has caused a great interest in the study of its macroeconomic effects. In this context, a debate has resurged regarding the advertising investment, as for its potential capacity to impel the consumer spending and to impact positively on the economic recovery. This idea, sustained in the so-called Galbraith's hypothesis, constitutes the core of this paper, where the main objective is to test that hypothesis by means of an empirical analysis. In this study, we focus on the Spanish case and the data correspond to the period 1976 -2010. A cointegration analysis is carried out, using two different approaches (Engle-Granger test and Gregory-Hansen test, respectively), to determine if there is any relationship between the advertising investment and six macromagnitudes (GDP, National Income, Consumption, Savings and Fixed Capital Formation), as well as the registered unemployment rate. Based on the results obtained, we conclude that Galbraith's hypothesis is not fulfilled for the Spanish case.