Investment Framework Research Articles

Decision making framework for foreign direct investment: Analytic hierarchy process and weighted aggregated sum product assessment integrated approach

Foreign direct investment (FDI) plays a paramount role in economic and social growth of every country. FDI acts as a source of external capital and helps in economic growth of the host country. Making decision for FDI during uncertain business environment is a challenge for all stakeholders. Therefore, in this study, we are proposing a decision making framework for FDI. Through literature review, we have identified the factors, on which FDI depends. A process‐based, multi‐criterion, integrated hierarchical approach for deciding about FDI, has been illustrated. In this study, five sectors are considered, that is, petroleum and natural resource, retailing and e‐commerce, healthcare, information technology, and road and highways for illustrating the proposed framework. It is observed that information technology sector has got top priority for FDI followed by retailing and e‐commerce and health care sector. Findings will help in taking appropriate decision by stakeholders for FDI. Ultimately it will also help in creating employment, economic growth, and welfare of society at large in the host country.

Are Cambodia-U.S. Relations Mendable?

Are Cambodia-U.S. Relations Mendable? Thearith Leng (bio) and Vannarith Chheang (bio) The essay analyzes the evolution of U.S.-Cambodia bilateral relations since the turn of the century and explores possible avenues that may help improve bilateral ties. Since 2000 the relationship has been troubled by differences over human rights and democracy, the China factor, and Cambodia's debt to the United States that was incurred during the 1970s. Nevertheless, both countries have an opportunity to promote mutual trust if they embrace the principles of mutual respect, noninterference, and equal sovereignty. The United States and Cambodia can find common ground to expand and deepen cooperation. U.S.-Cambodian Relations since 2000 On the heels of decades of conflict, instability, and volatile U.S. relations, Phnom Penh's relations with Washington improved significantly after the 2003 national election in Cambodia. The two main political parties, the Cambodian People's Party (CPP) and FUNCINPEC (Front uni national pour un Cambodge indépendant, neutre, pacifique et coopératif), managed to reach a deal and formed a government solely led by Prime Minister Hun Sen of the CPP. In the eyes of the United States, this move showed that the CPP at least accepted a pluralist government, even if it did not meet U.S. democratic standards. In early March 2006, CPP lawmakers amended the constitution from a two-thirds majority formula to a 50%-plus-one model that allowed the CPP to create a government on its own if it won the majority of votes or parliamentary seats in future elections. Momentum for restoring bilateral ties grew after Secretary of State Colin Powell visited Cambodia in 2003 and the two countries normalized their relations. The first U.S. Peace Corps volunteers arrived in 2007, and Secretary of State Hillary Clinton visited Cambodia in 2010. From 2000 to 2009, the United States provided over $470 million in aid to improve health [End Page 124] and education systems, stimulate economic growth, and promote human rights and democracy in Cambodia. From 2008 to 2010, U.S.-Cambodia defense and security cooperation also expanded considerably as Washington increased financial assistance and its training programs in the country. In 2008 the United States granted $4 million to assist in demining activities and offered loans and training to build the Royal Cambodian Armed Forces' capacity for participating in UN peacekeeping operations. An annual bilateral defense dialogue, established in 2008, became a foundation for defense and security cooperation, confidence-building measures, and operational topics of mutual concern. Cambodia and the United States created a security cooperation coordination group in September 2009 to discuss operational issues involving theater security cooperation. In the summer of 2010, Phnom Penh was invited to participate in the Cooperation Afloat Readiness and Training (CARAT) Program and received a port visit by the USS Tortuga. Cambodia and the United States also then co-hosted the U.S. Global Peace Operations Initiative capstone exercise Angkor Sentinel, which included around a thousand peacekeeping personnel from over twenty countries.1 Contemporary Economic Relations Cambodia has become steadily dependent on the United States economically since its 1993 elections, after which Washington and its Western allies re-established economic ties with the country, having made democracy and human rights protection preconditions for accessing their markets. The Cambodian government signed a bilateral textile agreement with the United States in 1996, and the two sides have regularly met under their 2006 trade and investment framework agreement.2 Since 2010 the United States has emerged as a key market for Cambodian exports and one of the kingdom's most important donors. The United States is Cambodia's second-largest export market (around 23.9% of Cambodia's total exports) after the European Union (29.1%).3 The kingdom is currently the United States' 58th-biggest trading partner, with two-way trade [End Page 125] volume nearly tripling between 2010 and 2020 from $245.46 million to $690.63 million.4 Among its economic priorities, Cambodia has continually sought to retain the general system of preferences (GSP) designation from the United States and actively seeks U.S. investment. For example, in September 2020, the Cambodian ambassador to the United States, Chum Sounry, together with...

Facilitating Sustainable Investment To Build Back Better

Foreign direct investment (FDI) flows are at a low point as a result of not only the COVID-19 pandemic but also restrictive FDI policies adopted in recent years. Investment facilitation has gained in importance as a set of practical measures to increase the transparency and predictability of investment frameworks and promote cooperation to advance development. Investment facilitation can help to reduce the transactional and administrative costs faced by foreign investors and contribute to a resilient and sustainable economic recovery. Discussions on a distinct set of investment facilitation policies and measures have gained momentum in recent years. Negotiations are undertaken at the bilateral and regional levels, for example, in the context of the Regional Comprehensive Economic Partnership (RCEP) or the Sustainable Investment Protocol of the African Continental Free Trade Agreement (AfCFTA). Another important initiative is underway among members of the World Trade Organization (WTO) which are negotiating an Investment Facilitation Framework for Development. This article develops a set of key recommendations for policy-makers on how investment facilitation frameworks can be designed to help attract sustainable FDI for sustainable development and recovery in general. These recommendations can be summarized in three guiding principles: contribute directly to sustainable development, focus on conflict prevention and management, and learn from experiences from other processes such as trade facilitation.

Research and Development Investment and Collaboration Framework for the Hydrogen Economy in South Korea

South Korea developed its hydrogen strategies to achieve carbon neutrality and dominate the hydrogen economy amidst, and with the impetus, of the coronavirus disease 2019 (COVID-19) pandemic. The government strives toward the goal via continuous investment in green hydrogen technologies, as well as strategic collaborations. To facilitate the transition into the hydrogen economy, this study presents a research and development (R&D) investment and collaboration framework as a national strategy. The framework offers abundant information to elucidate the technology, R&D spectrum, and regional dimensions of the strategy. Furthermore, the proposed framework was applied to the Korean hydrogen economy comprising 955 nationally funded projects worth USD 565.7 million. The statuses and trends of the government’s investment in nationally funded research projects are illustrated with regard to the value chains of the hydrogen economies of 16 regions, as well as nine technology clusters relating to the hydrogen economy, thereby determining the research organizations that played crucial roles in each cluster of the 16 regions between 2015 and 2020. The results indicate that the research organizations in Daejeon acquired the highest government R&D funding in many hydrogen-economy-related research fields, and that an R&D spectrum-based research/strategic collaboration is required to accomplish specialized complexes in the regions.

House Price Forecasting from Investment Perspectives

Housing market dynamics have primarily shifted from consumption- to investment-driven in many countries, including Australia. Building on investment theory, we investigated market dynamics by placing investment demand at the center using the error correction model (ECM). We found that house prices, rents, and interest rates are cointegrated in the long run under the present value investment framework. Other economic factors such as population growth, unemployment, migration, construction activities, and bank lending were also important determinants of the housing market dynamics. Our forecasting results show that the Sydney housing market will continue to grow with no significant price decline in the foreseeable future.

Prevention of mental and substance use disorders: Shaping priorities for research and implementation

Prevention efforts can substantially reduce the human and economic costs of mental and substance use disorders. However, a strategically integrated set of priorities for research and implementation is lacking. The Leaders in Prevention Summit sought to address this need by bringing together a diverse range of stakeholders to identify shared opportunities and priorities. Eighty individual delegates were involved and 235 responses and 1338 votes were received during an interactive, online workshop. The responses were grouped thematically and ranked according to popularity. Collaboration and coordination and sustainability emerged as key themes. Identified priorities include to better understand and target risk and protective factors, share leadership and promote co-design/co-production with key stakeholders, improve coordination of data collection and management, and undertake ongoing evaluation and improvement. There was considerable agreement on the need for a coordinated national framework and strategy for prevention research, policy, and implementation and significant investment to maximise and sustain the benefits of prevention programs.

Considering intervention intensity in habitat restoration planning: An application to Pacific salmon

Habitat restoration is a key strategy for recovering imperiled species, and planning habitat restoration activities cost effectively can help advance recovery objectives. Habitat restoration planning involves decisions about where and when to undertake restoration, and what type of restoration to undertake. This article focuses on decisions about the amount of restoration to undertake for a given type, location, and time, termed intervention intensity. A return on investment framework is developed for incorporating intervention intensity into habitat restoration planning. The framework is then applied in the context of planning habitat restoration for Pacific salmon recovery as a case study. Results showed that no single intervention type or location dominated, and several returns to scale relationships emerged across the candidate interventions. Scenarios that considered interventions across multiple intensities outperformed single-intensity scenarios in terms of total benefits and cost effectiveness. These findings highlight the usefulness of exploratory return on investment analysis for prioritizing habitat restoration interventions, and underscore the importance of systematically considering how much restoration to undertake, in addition to what to do and where.

Overview of Regional and International Collaboration on Water, Sanitation and Hygiene in Africa

BACKGROUND AND AIM: The current level of investment for water, sanitation and hygiene (WASH) in Africa remains totally inadequate to meet the sectoral needs of the countries resulting in the lowest service coverage and annual deaths of about one hundred forty-three thousand children. The supply of WASH is also threatened by other factors including water scarcity, rapid population growth, urbanization and industrialization. Over eighty percent of the countries have been unable to achieve their national WASH goal due to insufficient funds, The aim of the study is to assess the current financing mechanism and the regional disparities for WASH service delivery and identify evidence based intervention that will harmonize the role of the development partners. METHODS: A review of relevant literature, reports on WASH financing from government and external financing agencies, regional inter sectorial framework, country case studies. RESULTS:As African countries get started to meet the Sustainable Development goal, lack of adequate financial resources are being magnified. A water sector infrastructure and investment framework in South Africa found that only half of the required fund for WASH project is available for the next ten years. In the past less than one percent of lending was targeted to Sub-Saharan Africa. We find household expenditure and capital investment for sanitation far below compared to drinking water. New strategy for the sector financing should consider grants, loans, community cost sharing, and repayable finances from external support agencies. As part of this effort, accountability and cost reduction need to be prioritized while strengthening alliance with development partners. CONCLUSIONS:Much effort is needed by the countries to optimize the mobilization of all possible resources to direct solutions to the critical financial need to achieve the goal of universal access to WASH in Africa. KEYWORDS: Environmental disparity, international collaboration, WASH

РОЗРОБКА ТРИКОТАЖНИХ ПОЛОТЕН ДЛЯ ВИГОТОВЛЕННЯ ФУНЦІОНАЛЬНОЇ НИЖНЬОЇ БІЛИЗНИ ВІЙСЬКОВОСЛУЖБОВЦІВ

Development of functional knitted fabrics to improve the properties of underwear for military serviceen. The work applies methods of analysis and synthesis of scientifi c and technical literature in the fi eld of manufacturing of functional knitted fabrics for underwear. Standardized methods for studying the parameters of the structure, changes in linear dimensions after washing, relaxation characteristics, capillarity, and breathability of textile materials (in particular knitwear) were used. The analysis of the market of innovative types of raw materials used in the production of knitted underwear is carried out. The choice of materials for the manufacture of knitted underwear is provided in accordance with the requirements for the underwear of military personnel. To ensure the function of removing vaporous moisture from the underwear space, to provide antibacterial action and a high degree of deodorization yarn containing "DEO-W" fi bers were used. The innovation of these fi bers consists in the neutralization of all types of human body odor an d preservation of the specifi ed functional properties for up to 10 days of continuous wearing of underwear and the process of 50 washings of fabrics made of them. Within the framework of the Educational Investment and Technological Cluster of Light Industry (which includes KNUTD and LLC "RA.DA"), a plain knitted fabric was produced at PJSC Knitting Factory "ROSA" on the basis of yarn containing "DEO-W"fi bers with the use of a single jersey circular knitting machine (28 Gauge). Scientifi c novelty. The consumer characteristics of the developed samples of knitted underwear have been studied, namely: the change in linear dimensions after washing, deformation characteristics, capillarity and breathability. The infl uence of the elastomeric thread upon physical and mechanical characteristics of the knitwear has been proved. Practical value. The developed knitwear samples are recommended to be used in the process of manufacturing of functional underwear for the military personnel. The use of above-mentioned types of knitted fabrics will help to optimize the microclimate of the body, moisture exchange, rapid drying of the skin during the operation of underwear and, in general, increase the quality level of clothing.

Defining Pathways towards African Ecological Futures

Africa has experienced unprecedented growth across a range of development indices for decades. However, this growth is often at the expense of Africa’s biodiversity and ecosystems, jeopardizing the livelihoods of millions of people depending on the goods and services provided by nature, with broader consequences for achieving the United Nations Sustainable Development Goals. Encouragingly, Africa can still take a more sustainable path. Here, we synthesize the key learnings from the African Ecological Futures project. We report results from a participatory scenario planning process around four collectively-owned scenarios and narratives for the evolution of Africa’s ecological resource base over the next 50 years. These scenarios provided a lens to review pressures on the natural environment, through the drivers, pressures, state, impacts, and responses (DPSIR) framework. Based on the outcomes from each of these steps, we discuss opportunities to reorient Africa’s development trajectories towards a sustainable path. These opportunities fall under the broad categories of “effective natural resource governance”, “strategic planning capabilities”, “investment safeguards and frameworks”, and “new partnership models”. Underpinning all these opportunities are “data, management information, and decision support frameworks”. This work can help inform collaborative action by a broad set of actors with an interest in ensuring a sustainable ecological future for Africa.

Establish an assessment framework for risk and investment under climate change from the perspective of climate justice.

Under the threat of climate change, the issue of climate justice has gradually received international attention in recent years. Climate justice focuses on the unfair phenomena in various regions caused by climate change. At present, some countries are facing "double inequality," that is, the reverse and separate distribution of "natural hazard" and "social resilience" and that of "risk" and "responsible input." Therefore, this study constructed a research framework for evaluating climate justice. The framework reconstructed the indicator system and conducted verification analysis on the research issues of climate justice, including the spatial correlation between "natural hazard" and "social resilience" and that between "risk" and "responsible input," and uses the "bivariate local indicators of spatial association" method to detect the regional current situation and test the justice after government's resource investment. In this way, four-quadrant spatial characteristics were obtained (high-high, low-low, high-low, and low-high districts) to identify the areas with the characteristics of climate justice. This study used Taiwan as the research area. The results show that Taiwan currently has only 7 regions with "double inequality." Therefore, only a small part of the region has "double inequality." The results can be used as the basis for future government's resource input and the allocation of climate responsibility.

Arbitraje de inversión en el sector energético

A significant development in the renewable energy field has happened in several countries like Italy, Spain and the Chez Republic over the last years mainly due to the state´s support for renewable energy projects. However, because of the financial crisis, these countries decided to review and change the policies. As a result of the changes implemented renewable investors were affected in some manner. Consequently, many arbitrations claim against these states have been brought under the Energy Charter Treaty. The present Chapter analyses this jurisprudence. Based on the results of these arbitrations the lack of consistency results evident. Different interpretations around the Fair and Equitable Treatment standard and how to find a balance between the need for a stable and predictable investment framework and the sovereign right to regulate are the principal cause of diverse decisions. The concept of the standard in the treaty is reviewed and compared with the evolution of the concept in other investment agreements. In conclusion, possible amendments to increase consistency in the arbitrations under the Energy Charter Treaty will be proposed.

Decarbonizing Everything

We analyze how the use of different climate risk measures leads to different portfolio carbon outcomes and risk-adjusted returns. Our findings are synthesized in a rules-based investment framework, which selects a different type of climate metric across industries and weighs industries in the portfolio based on the variability of carbon outcomes among firms within each industry. We conclude that analyzing the merits and applicability of various climate data can help investors manage climate risk while increasing risk-adjusted returns.

Jacob Mincer Award

Jacob Mincer Award

Construction of the legal framework of Chinese-funded enterprises’ agricultural investment under big data technology

ABSTRACT This paper analyses the legal framework of Chinese-funded enterprises' agricultural investment under the background of big data. To analyses the policies even that contradictions with several entities and their problems were undertaken to choose the best judgements using a decision making support system in the context analysis of the big data approach. Under the conditions of the market economy, to ensure the sustainable development of China's agricultural investment, the construction and improvement of the legal system is an effective way. Meanwhile, under on the background of big data, on the basis of in-depth reflection on the history, current situation, problems and institutional roots of China's agricultural investment legal system, this paper draws on the experience and lessons of foreign agricultural investment legal systems to conduct a more systematic analysis of China's agricultural investment legal system from the perspective of economic law. Finally, this paper gives advice on agricultural investment decision-making through problem analysis, which provides a reference for subsequent related research.

Portfolio optimization under mean-CVaR simulation with copulas on the Vietnamese stock exchange

This paper studies how to construct and compare various optimal portfolio frameworks for investors in the context of the Vietnamese stock market. The aim of the study is to help investors to find solutions for constructing an optimal portfolio strategy using modern investment frameworks in the Vietnamese stock market. The study contains a census of the top 43 companies listed on the Ho Chi Minh stock exchange (HOSE) over the ten-year period from July 2010 to January 2021. Optimal portfolios are constructed using Mean-Variance Framework, Mean-CVaR Framework under different copula simulations. Two-thirds of the data from 26/03/2014 to 27/1/2021 consists of the data of Vietnamese stocks during the COVID-19 recession, which caused depression globally; however, the results obtained during this period still provide a consistent outcome with the results for other periods. Furthermore, by randomly attempting different stocks in the research sample, the results also perform the same outcome as previous analyses. At about the same CvaR level of about 2.1%, for example, the Gaussian copula portfolio has daily Mean Return of 0.121%, the t copula portfolio has 0.12% Mean Return, while Mean-CvaR with the Raw Return portfolio has a lower Return at 0.103%, and the last portfolio of Mean-Variance with Raw Return has 0.102% Mean Return. Empirical results for all 10 portfolio levels showed that CVaR copula simulations significantly outperform the historical Mean-CVaR framework and Mean-Variance framework in the context of the Vietnamese stock exchange.

Managerial ability, internal control and investment efficiency

This paper discusses the relationship between managerial ability]and inefficient investment, as well as the impacts of internal control on them by using information asymmetry and agency theory based on data of Shanghai and Shenzhen A-share listed companies over 2012–2016. (i) Managerial ability alleviates the under-investment caused by information asymmetry but aggravates the over-investment caused by agency problem; (ii) Internal control restrains the relationship between managerial ability and over-investment but promotes the relationship between managerial ability and under-investment. (iii) There is a significant positive correlation between managerial ability and over-investment and internal control has a significant suppressed effect for state-owned firms. (iv) There is a significant negative correlation between managerial ability and under-investment and internal control has a significant promote effect for private-owned firms. (v) Where the firm’s chairman and the general manager are the same person, internal control has little effect on the relationship of managerial ability and over-investment. This study contributes to establish comprehensive analysis framework of inefficient investment and has some implications for corporate investment decision-making behavior.

Interaction of IT investment mandates and mobile savvy affecting mobile office performance in corporates: Focusing on the moderating effects of IT savvy

This study investigates the effect of IT investment portfolios on the performance of mobile business services, as well as the moderating role of IT savvy. This study pulls the concept of IT investment mandates into the conceptual research framework of mobile investment. A survey for the IT specialists working at 123 enterprise-level companies was conducted and hierarchical regression analysis was adopted. Our results show that IT investment and organizational IT capabilities influence the performance of the mobile office and that IT savvy plays as a moderator in the relationship between investment mandates and mobile office performance. This research also may indicate that transactional assets are most helpful factors for a change by the adoption of mobile technology. This study is a rare research paper to explain the impact of IT investment portfolios on the mobile office performance in an academic methodology.

Institutional Barriers to On-Site Alternative Water Systems: A Conceptual Framework and Systematic Analysis of the Literature.

Scientists are increasingly exploring on-site water systems to supplement conventional centralized water and wastewater infrastructure. While major technological advancements have been achieved, we still lack a systematic view on the non-technical, or institutional, elements that constitute important barriers to the uptake of on-site urban water management systems. This paper presents a conceptual framework distinguishing between institutional barriers in six key dimensions: Equity, Knowledge and Capabilities, Financial Investment, Legal and Regulatory Frameworks, Legitimacy, and Market Structures. The analysis of the existing literature covering these barriers is translated into a typology of the socio-technical complexity of different types of alternative water systems (e.g., non-potable reuse, rainwater systems, and nutrient recovery). Findings show that socio-technical complexity increases with the pollution load in the source water, correlating to potential health risk, and the number of sectors involved in the value chain of an alternative water system. For example, greywater reuse for toilet flushing might have systematically less complex institutional barriers than source separation for agricultural reuse. This study provides practitioners with easily accessible means of understanding non-technical barriers for various types of on-site reuse systems and provides researchers with a conceptual framework for capturing socio-technical complexity in the adoption of alternative water systems.

Assessing the Broader Value of Planted Forests to Inform Forest Management Decisions

This study highlights the importance of incorporating objectively quantified, non-market environmental values (such as avoided erosion and carbon sequestration) into land use decision making for sustainable forest management. A continuously developing approach that has facilitated discussions between researchers, industries, and governments on the quantification of non-market values is the ecosystem services (ES) framework. Using a spatial economic tool, called Forest Investment Framework, this study is, to the best of our knowledge, the first assessment of the market (timber) and non-market (carbon sequestration, avoided nitrogen leaching and avoided erosion) ES values of the 1.75 million-hectare New Zealand planted forest estate. To collect the views of key planted forest industry representatives on ES assessment/quantification, we interviewed 14 forest managers representing 60% of the planted forest area. Results from the spatial economic analysis indicated that the non-market ES values can be more than four times the timber profit nationally, and up to 12 times higher in New Zealand’s most erosion-prone region. These estimated values are indicative and should be treated with caution. From a sensitivity analysis, we found that different discount rates significantly impact ES values, ratios, and distributions. Results from the interviews indicated that ES quantification helped inform decision making by supporting license to operate, while also signaling the development of a reward system for sustaining ES. Sixty-four percent of survey respondents identified the importance of quantifying ES in ecological terms and describing other non-market ES in spatial, qualitative, or binary forms. Overall, this study provided evidence of how estimated non-market ES values compare with market values and highlighted the importance of including them in decision making processes. Future cost benefit analyses that incorporate these non-market monetary ES values would complement multi-criteria analysis that integrate additional dimensions and allow decision makers to rank options based on their particular criteria.