Government Investment In Infrastructure Research Articles

Wheels in Motion: Exploring Challenges and Opportunities in Motorsports Management in Nepal

Nepal is a beautiful country with diverse terrain; Nepal's landscape consists of mainly three zones plain or terai, which occupy a quarter area of the country’s land this is almost surrounded by hills, which is around 40 per cent of the total area of the country. These hills are crowned by the majestic Himalayas including the world's highest peak Mount Sagarmatha (Mt.Everest )and other eight globally recognized mountains over 8000 meters. This unique backdrop of the country landscape gives enough trilling to motorsports events, including motorcycle, four-wheeler sports, and karting. The beautiful landscape of the country, where hill terrain is immediately accessible from the 5-10 km plain terai zone, (Plain Zone) along with beautiful scenes of mountains, lakes, rivers, and greenery, provides an ideal setting. The amazing fact is that when the riders reach the peak of the hills, not only the scenery will attract them but when they feel that the sky and stars are near to them and seem that they can be touched by their naked hand gives both pleasure, enjoyment and race emotion. We can assume Nepal as one of the best locations for the motorsports activities like touring. Additionally, the living cost is low, it is affordable for foreigners, and visitors, safety may be the other wonderful reason thus we can argue that Nepal is the best destination for motorsports tourism, presenting one of the main opportunities for the industry. To capitalize on the above potential, professionalism in event management is essential. Sometimes the traditional definitions of sports management may not work and redefining sports management may require however, traditional concerns of planning, budgeting, organizing, directing and ensuring profitability may need to be done for successful event execution in a country like Nepal. These are the functional areas that Sports managers perform. This article is the pathway to determine the challenges and opportunities in motorsports in Nepal. The findings are assumed to guide the Enthusiasts' club owners/managers and other concerned associates, they are engaged here in this article for their valuable inputs involving them in primary data collection. The Primary data are collected from clubs/ Motorsports Professionals national and international motorsports professionals to determine their major challenges. The importance of a disciplinary attitude among players is also highlighted. Primary data was collected through a questionnaire approach, and focus groups involving stakeholders such as clubs, federations, and provincial associations. The survey aimed to analyze the challenges and opportunities in motorsports management in Nepal. It has been observed that the Nepal Automobile Association (NASA-NEPAL) is the one and only Motorsports Federation, which is working in the development of motorsports in Nepal since its inception in 2008-09. It is affiliated with national and governmental regulating bodies like the Nepal Sports Council and international bodies like FIA, FIM, and CIK. Around 10 national clubs are associated with NASA Nepal and seven Provincial level associations are actively collaborating with the National Federation where approximately 200 players 100 marshals and 100 sports volunteers are primarily engaged in Nepal. During Primary data collection and the focus group discussion, it is also observed that this organized structure provides governance, safeguarding players, providing officiating training, and managing volunteers. In the primary stage of the Nepal motorsports fraternity, Nepalese youth or we can say players are drawn towards motorsports through their enthusiasm and they can be symbolized as self-taught players. Now the scenario has changed second stage Players are now playing the game. Apart from these systematic governing bodies, some of the motorsports clubs are now working in professional and business modules; secondly, Government investments in infrastructure, like racetracks, further enhance opportunities in the motorsports sector in Nepal. However, multiple challenges remain, and we have tried to identify the maximum by the research. Some of the heart-touching and crucial challenges may be financial security for players to compete nationally and internationally, along with the limited involvement of national automobile businesses in event sponsorship. The absence of automobile manufacturers poses challenges in fundraising, but collaborations with numerous other sponsors remain viable in the nation. In conclusion, Nepal's motorsports scene holds immense promise, contingent upon addressing financial challenges and securing support from stakeholders. This article offers insights into the challenges and opportunities in motorsports management in Nepal, contributing to its potential on the global stage.

An agent-based evolutionary system model of the transformation from building material industry (BMI) to green intelligent BMI under supply chain management

The building materials industry ranks first in terms of carbon emissions and energy consumption within the industrial sector. To achieve the goal of reducing carbon emissions, the development of the green intelligent building materials (GIBMs) industry has become a strategic priority and major demand for the country. Government support plays a vital role in promoting the growth of the GIBMs industry. This paper utilizes evolutionary game theory and Matlab software to analyze the impact of government regulations on the development of the GIBMs industry. The research findings indicate the following. i) Appropriate government control over building materials enterprises is beneficial for the advancement of the GIBMs industry. A balance is necessary, as both excessive control and weak control hinder the industry’s development. ii) Increased financial assistance from the government to enterprises producing GIBMs has a positive influence. This support enables building materials enterprises to overcome technical barriers, drive technological innovation, and encourage construction developers to actively purchase these materials. iii) Stronger government punishment for pollutant emissions by building materials enterprises serves as a catalyst for the production of GIBMs. Stricter penalties motivate these enterprises to adopt more environmentally friendly practices. iv) Moderate to strong government investment in infrastructure has a significant impact. It prompts construction developers to actively choose and purchase GIBMs. In response to government regulations and market demand, building materials enterprises are inclined to produce these environmentally friendly materials. This study emphasizes the importance of government regulations and support in promoting the growth of the GIBMs industry. By implementing appropriate control measures, providing financial assistance, imposing punishments for pollution, and investing in infrastructure, the government can effectively encourage the development of the GIBMs industry. These measures contribute to achieving the double carbon goals and fostering a more sustainable built environment.

Government infrastructure investment stimulation through booming natural resources: Evidence from a lower-middle-income country.

The dynamics of central government funding to regions depend on local investments. In regional autonomy, local governments are encouraged to be more self-reliant from the central government. For regions with high natural resource yields, they will not encounter difficulties in meeting their fiscal needs. Community welfare can be realized through fulfilling basic needs, one of which is infrastructure development. High-quality infrastructure will be able to contribute to further progress in trade, thus enhancing production efficiency. The objective of this research is to analyze the extent of the influence of central government transfer funds, especially the Natural Resource Revenue Sharing Funds (DBH SDA), on local government investments in infrastructure across 508 districts/cities in Indonesia. The method used is dynamic panel regression using the Generalized Method of Moment (GMM) Arellano-Bond approach. This study finds that the role of DBH SDA is still low in infrastructure spending. The role of the central government remains significant in determining infrastructure spending at the district/city level in Indonesia. This indicates that local governments rely more on other sectors in infrastructure investment. By enhancing the role of DBH SDA through technological advancements, it is hoped that the market value of natural resources can be higher through resource downstreaming. This strategy will have broader impacts, as labor needs can be absorbed not only in raw material production activities but also in the processing technology sector. Furthermore, the utilization of natural resources with modern technology can increase extraction efficiency, support sustainable development, and minimize environmental impacts.

The macroeconomics of establishing a basic income grant in South Africa

AbstractThis paper quantifies the effect of fiscal transfers on the trade‐off between social relief and debt accumulation and discusses the economic growth and fiscal implications of different combinations of expanded social support and funding choices. Given South Africa's already high level of public debt, the opportunity to fund a basic income grant through higher debt is limited. Using a general equilibrium model, the paper shows that extending the social relief of distress grant could be fiscally feasible provided taxes rise to fund such a programme. Implementing such a policy would, however, have a contractionary impact on the economy. A larger basic income grant (even at the level of the food poverty line) would threaten fiscal sustainability as it would require large tax increases that would crowd‐out consumption and investment. The model results show that sustainably expanding social transfers requires structurally higher growth, which necessitates growth‐enhancing reforms that crowd‐in the private sector through, for example, relieving the energy constraint, increasing government infrastructure investment and expanding employment programmes.

Time Series and Cyclical Analysis on Chinese GDP Growth in 2003-2022

This paper analyzes the trend of China's GDP from 2003 to 2022 using time series analysis, detrending and business cycle method. It highlights the importance of government investment in infrastructure and human capital to enhance efficiency in the Chinese economy. The paper finds that consumption, investment, and government consumption are highly positively correlated with GDP, suggesting that the government can stimulate the economy by increasing mass consumption, business investment, and government purchases. However, the value of net exports, which depends on the simultaneous changes of export value and import value, has great uncertainty and makes it difficult for the government to stimulate the economy through changes in net exports. Furthermore, the paper suggests that the priority in stimulating the economy should be given to increasing government consumption, followed by consumption and investment. The paper proposes several stimulus measures, including increasing infrastructure construction, issuing consumer vouchers, and reducing interest rates for business loans. These measures aim to boost government consumption, stimulate consumption, and encourage business investment, ultimately contributing to economic growth and development.

Public expenditure on infrastructural development and economic growth: Evidence from Nigeria

This research investigated the nexus between public spending on infrastructural development and economic growth: evidence from Nigeria. As a matter of urgency, there is a need for the Nigerian government to invest in infrastructure for sustainable economic growth since infrastructural development touches all human fields of endeavors in one way or another. Notably, despite the country’s pole position in the economic ranking in Africa, Nigeria’s infrastructural state still falls short, which has led to negative economic growth in recent years. Therefore, it is pertinent in this study to unravel the causes and the missing gaps between increasing fiscal spending on infrastructure and slow economic growth in Nigeria. Interestingly, Autoregressive Distributed Lags and cointegration techniques were adopted to investigate whether there are long interactions between economic advancement and public funding of social amenities in the case of Nigeria. Furthermore, post-estimation tests were carried out to ascertain the validity of the models adopted in the study. The investigations from the study showed that short and long-run nexus subsists between government investment in infrastructure and economic growth in Nigeria. Hence, to address the problems underpinning this research, the study recommended that a proactive policy framework be used to promote economic growth via a redesigned fiscal framework in Nigeria. Also, protective laws and acts to safeguard the existing infrastructures should be well-pronounced and adopted by policymakers to expand the productive life span of social goods.

DOES DIGITAL INCLUSIVE FINANCE PROMOTE ENTREPRENEURSHIP? EVIDENCE FROM CHINESE CITIES

There is a significant interest among policymakers and academics about whether or not digital inclusive finance (DIF) has achieved its intended effect in promoting entrepreneurship in China. This paper addresses this question from both the theoretical and empirical perspectives. Based on the panel data of 284 prefecture-level cities from 2011 to 2019 in China, this paper empirically explores the influence and mechanism of DIF on urban entrepreneurship by employing the fixed effect model and the interactive fixed effects model. The results show that the aggregate index of DIF, coverage breadth index (CBI), usage depth index (UDI) and digitization-level index (DLI) of DIF do significantly promote entrepreneurship. Moreover, further tests of robustness and endogenous treatment also have proved incentive effect. DIF can promote entrepreneurship through three mechanisms: increasing government infrastructure investment, stimulating resident consumption and motivating enterprise innovation. Heterogeneity analysis shows that the effect of DIF in promoting entrepreneurship is more obvious in medium-sized enterprises, the western regions and regions with low levels of entrepreneurship. Therefore, the government needs to vigorously accelerate the development of DIF and create a good external environment for entrepreneurship. DIF policies should be regionally differentiated to more effectively achieve the entrepreneurial targets.

Port capacity expansion under real options approach: a case study in Brazil

Investments in port container terminals are sensitive to uncertainties. Public investments in infrastructure have been significantly reduced in the last decade in developing countries. The Brazilian government infrastructure investment was only 1.85 % of GDP in 2019, representing the lowest level in the last fifty years. Nonetheless, the regulatory framework of the port sector in Brazil has undergone significant changes over time, increasing the number of private port container terminal leases. The expansion capacity of the private port facilities is strongly linked to the demand uncertainty, which impacts the financial return to the long run. In this scenario, the uncertainty of global cargo transportation can discourage infrastructure investments in this class of project in Brazil. To overcome these issues, the financial modelling applying real options approach is better suited than the traditional valuation methods based on Discounted Cash Flow (DCF) analysis. The present study aims to value flexibilities of anticipating, or postponing, or interrupting investments of an existing operational port terminal in Brazil with expansion capacity under the demand uncertainty. The financial decision to invest in a port expansion is modeled by an American option. The results demonstrate that the investor adds significant value to the project by having the possibility to postpone investments. The proposed model presents the contribution of optimizing the decision of sequential expansions of capacity in port terminals, at any time and according to scenarios' revelation. In addition, the model allows the government authorities to review lease contracts, considering the relevance of timing to invest in project expansion decisions. The proposed model can also be extended to other infrastructure projects in emerging economies.

Analysis of the Impact of High-Speed Railway on County Economic Development Based on the Synthetic Control Method: The Hubei Province in China

Studying the impact of the high-speed railway (HSR) on economic growth has important practical significance and can provide a theoretical basis for government investment in infrastructure. In this study, the adoption of HSR was used for natural and rigorous exploration. Based on the panel data on counties in Hubei Province of China from 2001 to 2017, a synthetic control method was used to analyse the impact of HSR on the economic growth of county-level areas with different economic bases. The results showed that HSR had different influences on the economic development of county-level cities with different economic bases in the short term. The Wuhan-Guangzhou HSR had significantly promoted the gross domestic product (GDP) growth of Chibi City with a good economic foundation. The robustness test results revealed that the promoting effect was significant at a level of 3.7%. The Hefei-Wuhan section of the Shanghai-Wuhan-Chengdu HSR had significantly inhibited the GDP growth of Hong’an County by developing on a weak economic foundation. The robustness test results revealed that the inhibitory effect was significant at the level of 2.8%. However, the Hefei-Wuhan section had a stable and promoting effect on Macheng City. Based on the abovementioned conclusions, each county-level city should focus on long-term economic development, invest in HSR construction based on local conditions instead of blind expansion, make use of HSR to vigorously develop characteristic industries, and implement talent retention and introduction policies.

Forests, Coca, and Conflict: Grass Frontier Dynamics and Deforestation in the Amazon-Andes

Population growth with weak economic development can promote tropical deforestation, but government infrastructure investment can also open new frontiers and thus increase deforestation. In the Andean region of South America, population growth has been a leading explanation for both deforestation and coca cultivation, but coca generates armed conflict and attracts counter-drug measures, obscuring the differences between population-driven and frontier-opening models of deforestation. Using a 15-year panel from Colombia, we model deforestation, coca cultivation, and conflict victims as interrelated responses with a suite of covariates encompassing land cover, land cover changes, population, population changes, counter-drug measures, and government infrastructure spending. Infrastructure spending suppresses coca, coca and eradication by aerial fumigation both increase conflict, and conflict promotes deforestation and is associated with depopulation. But the strongest predictor of deforestation is pasture growth, which covaries with coca. While these models show that infrastructure spending can help reduce coca, and coca’s influence on deforestation is indirect and mediated by conflict, the models also reveal the most important challenge to forest conservation is neither coca nor conflict, but an insatiable appetite for land that expresses itself through pasture growth.

Impact of Public Infrastructure Investment on Private Infrastructure Investment

The aim of this paper is to find the relationship among government and private capital formation in Pakistan during the period 1981 to 2018. This study employs Auto Regressive Distributive Lag (ARDL) bound test. The results show that government infrastructure investment negatively effects on private infrastructure capital formation in long run and short run, indicating that government infrastructure investment crowds out private infrastructure investment. In determining the role of the government in investment and liberalization policies, the results of this paper have important policy implications.

The Impact of Infrastructure Spending on Economic Growth: A Case Study of Indonesia

This paper aims to analyze the impact of infrastructure spending on economic growth in Indonesia, which includes investment in road, port and irrigation infrastructure. The period of observation was 2011-2018, which covered 29 provinces with consideration of data availability. This study employed the growth model with a panel data analysis, which analyze the relationship between the economic growth and government investment in infrastructure in the long run. The most essential finding in this study is that the economic growth is positively influenced by government investment in road, port and irrigation infrastructure. Road infrastructure investment has a significant positive impact and the effect occurs in the fourth year after infrastructure development. In comparison, port and irrigation infrastructure investment have a positive but not significant impact to other variables.

Government Infrastructure Investment Dividends and Urban Development

AbstractUrban developments in expanding economies require increasing investments in infrastructure and services. If these are not provided by developers and landowners, the cost has to be met by the government and taxpayers. Financial benefits of economic development accrue to developers and landowners in the form of increased land values, but previous attempts to redirect a share of these benefits to the government have rarely been successful. A more logical and practical alternative would be the introduction of a system that returns dividends to the government in proportion to its investments in infrastructure and services.

Informality, Infrastructure Investments, and New Firms’ Creation: The Location Strategy

This paper examines how government investments in infrastructure affect new firms’ creation and location. We analyze two scenarios. With an optimizing government, optimal location is a function of government expenditures in infrastructure. With a passive government, optimal location is independent of government expenditures in infrastructure. Productivity effects in the formal sector, as contrasted with informal sector, yield a greater impact on the formation of capital stock, and shadow price of location. The impact of fees on informal firms and taxes of formal firms affect output and welfare. With an optimizing government, entrepreneurs in the formal sector will have higher output and welfare; with a passive government, it is likely that the welfare of informal entrepreneurs is smaller than the one of formal entrepreneurs.

Response of potential grassland vegetation to historical and future climate change in Inner Mongolia

Assessing current and potential future grassland vegetation types and distribution has important practical implications in grassland management. In this study, historical and projected climate data from Inner Mongolia were used to classify grassland classes for two historical (1960–1986 and 1986–2011) and two future periods (2021–2024 and 2041–2060) using the Comprehensive and Sequential Classification System (CSCS). Changes of grassland classes in these time periods were investigated. The results indicated that (1) using the CSCS provided an efficient approach to investigate the impact of historical and future climate on grassland classes and their distribution in Inner Mongolia over time and space; (2) since 1986, the precipitation in Inner Mongolia has declined, decreasing the semi-humid zone area and expanding that of arid and semi-arid areas. The area of Tundra and alpine steppe, Temperate zonal humid grassland and Temperate zonal forest steppe decreased, and that of Frigid desert, Semi-desert, and Steppe group increased; and (3) under the projected increase in temperature and decrease in precipitation in large areas in Inner Mongolia by 2060, the area of arid grassland classes will likely expand (Frigid desert, Semi-desert, and Steppe), and the grassland classes of Tundra and alpine steppe may gradually disappear. Government investment in infrastructure and grassland management measures such as introducing drought tolerant grass species and improved precipitation utilisation through irrigation are needed to adapt to the changing climate. Inner Mongolia should take advantage of the benefits of the increase in temperature in the eastern semi-humid region that would permit reduced grazing pressure in the western arid region.

HAJI FUNDS FOR INFRASTRUCTURE INVESTMENT

<p>As an implementation of the conditions for istita'ah, for person who want to register pilgrimage, the government requires paying amount of money called Biaya Penyelenggaraan Ibadah Haji (BPIH). The accumulated funds have reached untill trillions of rupiah, this accumulation has potential to be developed. Currently, there is debate about the permissibility of using BPIH outside the direct interests of pilgrims such as government infrastructure investment. This research uses normative juridical research. This study also uses a statutory approach and a comparative approach. The results of this study indicate the pilgrimage fund can be invested. However, in terms of the ability to use the pilgrimage funds for investment in government infrastructure, there must be permitted by people who want to go on pilgrimage, or can be used in infrastructure that is directly related to the pilgrimage.</p><p> </p>

Current state, place and role of the People’s Republic of Chine in the world economy

The article considers the problems of China’s economy development, as well as the peculiarities of reforms over time through the prism of elucidating the possibilities and mechanisms of the country’s entry into the world market with the strengthening of its place and role in it. It has been demonstrated that only the expansion of the national internal market can create the necessary prerequisites for a full entry into the global economy. Particular attention is paid to supporting the economy through the government infrastructure investment programs. It was noted that sustainable growth of China’s economy in 2011-2018, the development of its industry, construction, are being traced, which significantly expanded the country’s opportunities to influence an international economy. Hence the conclusion is made about sustainable development of the China’s economy in an attempt by the government to focus on opening its new segments of the national economy on the foreign market with further liberalization of prices, which makes the country economically more powerful. It has been clearly demonstrated how the dynamic growth of state industrial production over the past two decades has transformed China into a leading country in the world. It is noted that China, which has a leading position in the world in the production of many types of products, is now focused on the need to increase domestic consumption in order to make the economy less dependent on exports in the future. The idea that the limited space of the internal market as it grows requires the search for new territories for further realization and development of its production is substantiated

Effect of Government Infrastructure Investment on Economic Growth in Kenya

Government investment in infrastructure is a precursor to the achievement of sustainable economic growth and poverty reduction goals of any economy. Despite shortage of capital, the Kenyan government has continuously invested in both economic infrastructure and social infrastructure with the aim of raising economic growth. However, the growth rate has stagnated at an average of 5% annually for the last 5 years despite the projection of annual growth rate of 10% from 2012 as per Vision 2030. The main objective of this study was to determine the effect of government infrastructure investment on economic growth in Kenya for the period 1990 to 2017. The study adopted Error Correction Model for estimation and conducted the regression analysis using Ordinary Least Squares. Granger causality test found that economic infrastructure investment causes economic growth in Kenya but social infrastructure investment has neutral causality with economic growth. Further, the study found that government investment in economic infrastructure has a positive and significant effect on economic growth in Kenya with a p-value 0.0000 0.05. Additionally, the study established that private investment and labour force have negative and significant effect on economic growth in Kenya. Since infrastructure spending in Kenya is still inadequate, the study recommends the government to increase funds directed to infrastructure investment in the country to the World Bank’s infrastructure investment threshold of 7-9% of GDP, as this will translate to improved productivity as a result of increased physical and human capital leading to actualization of the 10% economic growth rate. The study also recommends complementary government spending to private sector investment since the marginal capital of private capital will be increased leading to higher productivity. Finally, the government should promote conducive environment for private sector investment so that more jobs can be created that will absorb the underutilized or unemployed labour force in the country. Keywords: Government, Infrastructure, Investment, Economic Growth, Error Correction Model DOI: 10.7176/JESD/11-4-09 Publication date: February 29 th 2020

Effect of Infrastructure and Foreign Direct Investment on Economic Growth in Sub-Saharan Africa

This article investigates the effect of infrastructure and foreign direct investment (FDI) on economic growth in Sub-Saharan Africa (SSA) using panel data on 46 countries covering the period 2003–2017. The data were analyzed using fixed effects, random effects, and system generalized method of moments (GMM) estimation techniques. Based on the system GMM estimates, the results indicate that a 1 percent improvement in electricity and transport infrastructure induces growth by 0.09 percent and 0.06 percent, respectively. Additionally, FDI proved to be growth enhancing only when interacted with infrastructure. The interactive effect of FDI and infrastructure improves economic growth by 0.016 percent. The results suggest that public provision of economic infrastructure reduces the cost of production for multinational enterprises, thus providing an incentive to increase investment in the domestic economy to sustain economic growth. The results also suggest that the impact of FDI on economic growth is maximized when some level of economic infrastructure is available. Our findings thus provide ample justification on the need for a significant government investment in infrastructure to provide a less costly business environment for both local and multinational enterprises to improve economic growth.

Integração dos modais de transportes frente ao desenvolvimento econômico brasileiro

Este artigo tem como objetivo fazer uma comparação dos modais de transporte ferroviário e hidroviário com o modal rodoviário, por meio de sua caracterização, afim de avaliar a eficiência do transporte de cargas no Brasil. A metodologia baseou-se numa análise bibliográfica em materiais existentes no meio acadêmico (artigos, dissertações, teses e revistas) de modo a levantar os pontos fortes e pontos de melhoria no setor de transporte no Brasil atual, em detrimento ao seu alto potencial multimodal, alcance a eficiência no transporte necessário para manter o seu desenvolvimento econômico. Dentre as informações obtidas, evidenciou-se que há décadas a transposição das mercadorias brasileiras tem se dado pelo predominante modal rodoviário, esse por sua vez encontra-se saturado e limitado. Devido à falta de investimentos do governo federal na infraestrutura e logística, o país está na iminência de uma estagnação no crescimento econômico, visto que a produção se torna mais cara em consequência dos altos custos envolvidos no seu transporte, deixam os produtos em desvantagem competitiva tanto no território nacional quanto nas exportações. Dessa forma, o artigo mostra que não existe um modal de transporte melhor do que outro, a via de transporte se torna mais apropriada de acordo com sua finalidade.