Government Investment Projects Research Articles

Estimating social discount rate for government investment projects in Russia

The article explores methods of estimating discount rate for investment projects financed with budgetary funds and aimed at creating social benefits. Social benefits often do not have a direct monetary value, so the methods for determining the discount rate for such projects differ from market ones. Spending budget funds on investment projects means that society gives up consumption at the current moment in time for the sake of future return on investment. The discount rate should reflect public preferences regarding the distribution of consumption between the current and future periods. The method for estimating these preferences is called the social rate of time preferences. Another approach to determine the discount rate allows one to consider the alternative possibility of implementing a project in the private sector (social opportunity cost of capital). The article describes the development of methods for evaluating the social discount rate and discusses the possibilities of their application for Russia. The value of the social rate of time preferences, equal to 2.5%, and the value of the social opportunity cost of capital, equal to 4.4—5%, are substantiated for short-and medium-term public investment projects in Russia. Rates are given in real terms.

Research on the Conception of Performance Evaluation for Government Investment Projects

Research on the Conception of Performance Evaluation for Government Investment Projects

Proliferation mechanism of collusive alienation in tendering for government investment projects

Collusion between governments and enterprises has occurred in many economies around the world in the context of government investment projects and tenders. Not only is collusion an illegal act, but it may also lead to learning and imitation by non-colluding parties. Therefore, to control collusion and ensure the quality of government investment projects, investigating the spread of collusion in the bidding process of such projects is important. This study presents a simulation of the diffusion process of collusion among multiple entities through NetLogo, drawing on a contagious disease model. The effectiveness of the hypothesised control tools is validated through the changing trend of collusion in bidding in China. The findings provide a new approach to controlling collusion based on the perspective of the proliferation of bidding behaviour and have some reference value for the government to formulate policies.

How to effectively control vertical collusion in bidding for government investment projects-Based on fsQCA method.

The impact of collusion during the bidding processes of Chinese government investment projects is a major concern in academic and policy circles, as collusion breeds corruption and destroys the credibility of governments. Furthermore, it negatively impacts successful project completion, leading to cost overruns and the illegitimate enrichment of colluding agents, regardless of the intended social benefits. Using data from 166 selected regional policy implementations as the research sample, this paper uses the fuzzy set qualitative comparative analysis method to conduct a group analysis of typical cases. The purpose of this study is to identify and better understand the cooperative regional policy implementation environments in China and to identify effective methods to improve the governance quality of collusion controls in construction investment project bidding processes. Five key control paths are identified, covering 94% of the cases. It is also found that in lower social collusion situations, reasonable market competition regulations can directly reduce collusive behavior. The research results will help the government to formulate more adaptive control policies and promote high-quality development of government investment projects.

Can government investment expansion benefit everyone: a study with state-owned enterprises in the Chinese context

ABSTRACT The main difference between China and other major economies is the presence of a large number of state-owned enterprises. Focusing on the Chinese context, we divide firms into state-owned and private enterprises, and households into working and capitalist class; thereafter, we simulate the effects of government investment expansion on income distribution under different financing instruments. We found that when financed by corporate income tax or value-added tax, government investment expansion makes the working class in both types of enterprises better off, but the capitalist class worse off; however, when financed by labour income tax, government investment expansion yields the opposite result. When the expansion is financed by government debt, the real wealth of the working class in state-owned enterprises and the capitalist class increases, but that of the working class in private enterprises decreases. The difference in income distribution outcomes between the working class and capitalist class is due to the differing composition of their wealth, and the difference in income distribution outcomes among working class is because the enterprises for which they work perform differently in undertaking government investment projects and obtaining loans from the financial market.

Research on the Whole Process Cost Management of Government Investment Projects

Research on the Whole Process Cost Management of Government Investment Projects

Greenwashing behaviors in construction projects: there is an elephant in the room!

In the process of urbanization, a brisk building boom triggers a series of environmental problems. Construction contractors usually present environmentally fraudulent behaviors, i.e., greenwashing behaviors (GWBs), to legitimize their activities, ultimately hindering the sustainable development of the society. However, the formation mechanism of the contractors' GWBs is still unclear. Through the lens of fraud GONE theory (i.e.,greed, opportunity, needs, and exposure), this study applies the multi-group structural equation model (SEM) and fuzzy-set qualitative comparative analysis (fsQCA) to examine the formation mechanisms of GWBs. The results of SEM show the relationships between four fraud factors and GWBs. Additionally, the projects are grouped into three categories: government investment projects, private-public-partnership (PPP) projects, and private investment projects. The results of multi-group SEM reveal that the effects of four fraud factors differ significantly across projects with different investment characteristics. The results of fsQCA suggest that there are three typical driving mechanisms for GWBs. Furthermore, this study develops a project information transparency framework and a "greenwashing tree" to form a systematic understanding of GWBs. Finally, on these bases, this study provides targeted suggestions and policy recommendations for governing contractors' GWBs.

Evaluation of the Effectiveness of Collusion Control Policy Implementation by BP Neural Network Based on Annealing Algorithm Optimization

Due to the national economic development form and social development demand, in recent years, the government has been vigorously promoting the control of government-enterprise collusion in the bidding process of government projects in order to promote the standardization of the market. How to predict the vertical collusion behavior under different internal and external environments has become an important research content. Although the prediction of individual behavior is difficult to achieve, the prediction of group behavior has certain possibilities. In this paper, we propose a method for predicting and evaluating the vertical collusion behavior of government investment project bidding based on BP neural network analysis optimized by an annealing algorithm. First, drawing on the traditional evaluation model, the evaluation index system of government-enterprise collusion behavior is constructed from five dimensions: internal environment, external environment, policy development, enforcement effort, and feedback channel. Secondly, a machine learning method based on BP neural network optimized by an annealing algorithm is introduced to evaluate the influence of the change of initial conditions on the bidding collusion behavior. This study has certain significance for government managers to discover the problems and causes in policy formulation, which in turn can support the government in further improving the policy utility.

Analysis on the Types and Characteristics of Collusion Behavior of Government Investment Project Tenderees

The classification of collusion behaviors of government-invested project tenderers is one of the important methods to describe the characteristics and laws of collusion behaviors and strengthen the governance of collusion. Firstly, the variables that affect the type of collusion behavior are selected and cluster analysis is carried out on the cases of collusion in government investment project bidding. Then use the social network to mine the types and characteristics of the collusion behavior of the tenderee. Finally, a BP neural network automatic identification model is established to quickly discriminate the types of collusion, which can effectively overcome the subjectivity of traditional methods. As a result, three typical types of collusion of tenderees can be obtained: intervention type, opportunity type, and cooperation type. The study found that the three types of collusion behavior have their own characteristics and laws, and the relationship between the variables that affect the type of collusion behavior is complex and affects each other.

Over time or on time? A study of delays in large government projects

This paper investigates the extent of delays in large government investment projects in Norway. We use a data set consisting of 112 road, railway, building, defence and ICT projects. All projects have been planned and implemented within a standardised governance framework. This ensures a more robust assessment of causation compared to studies that use data from disparate projects around the world. The results have shown that about half of the projects are completed on or before time, there are a large proportion of projects that are severely delayed. Defence projects are particularly prone to problems during their delivery. This is in accordance with findings from other countries. The paper shows that there has been a slight improvement in time, that is, the extent of delays seems to have been reduced over the last 20 years. Counter to expectations, projects that are delayed do not seem to be more at risk to overrun their costs.

Government Fund for Local Investments – Legal Aspects of Financial Support for Local Government Investment Projects during the COVID-19 Pandemic

Abstract The effects of the COVID-19 pandemic in the form of a reduction in the own revenue of local government units and the corresponding reduction in their expenditure, including asset expenditure, were the determining factor for the introduction of extraordinary and temporary mechanisms to minimise this negative phenomenon from 2020. One of such solutions is the Government Fund for Local Investments, separated within the state special-purpose fund - the COVID-19 Counteracting Fund. The aim of this study is to establish the legal status of the Government Fund for Local Investments (Rządowy Fundusz Inwestycji Lokalnych - RFIL). The hypothesis about the temporary nature of this fund and its close relations with the COVID-19 Counteracting Fund has been verified as being true. It has been established that the RFIL does not have its own sources of revenue, and its financial resources are the result of separating a certain amount of funds accumulated in the account of the COVID-19 Counteracting Fund, which means it is, in fact, its sub-fund with clearly defined tasks to be performed. The RFIL-provided support is non-returnable, and its only beneficiaries are local government units. The resources transferred from this fund may only be used for the implementation of investment projects or for meeting asset expenses. The study uses the legal-dogmatic method and, additionally, the statistical analytical method, to present specific numerical values reflecting the importance of the RFIL support in relation to the own revenue of local government units.

Does the COVID19 pandemic change the relationship between government expenditures and economic growth in Azerbaijan?

This paper investigates the impact of the Government's capital and current expenditures on economic growth in Azerbaijan. The estimation strategy of the research consists of two directions. First, all estimation approaches were used for the period of 2005Q1-2019Q4. The estimated model for this period is called Model 1. Second, the model which is called Model 2 was estimated for whole period of 2005Q12021Q1. This approach allows comparing the role of the Government expenditures on non-oil economic activity in normal times and during the COVID-19 pandemic in Azerbaijan. Estimations show that coefficients characterizing the impact of Government current expenditures and capital expenditures on non-oil economic growth are almost the same for both periods. Therefore, we can state that COVID-19 pandemic did not affect the structure of the relationship between Government expenditures and non-oil economic growth. Results show that 1 percent increase in capital and current expenditures of state budget increases the real non-oil GDP by 0.10 and 0.40 percentage points, respectively. Accordingly, both capital and current expenditures of the state budget have positive impact on the real non-oil GDP growth for the both periods. This is in contrast to findings in the literature, which argue that increasing current expenditures financed by tax hikes lead to a lagged decrease in private investment, having an overall negative impact on economic growth. We attribute this opposing finding to the Azerbaijani state budget revenue system, which is financed by transfers from the State Oil Fund (Stabilization Fund). Thus, large government investment and social projects mostly rely on non-tax sources. Therefore, we argue that positive impact of capital and current expenditures of government budget on non-oil GDP seems plausible for Azerbaijan. Another result of our estimation is that expansion of economic openness accompanied by non-oil economic growth plunge in Azerbaijan. We interpret this phenomenon with very low share of non-oil export, where openness is mostly caused by increase in import volume.

ARCHITECTONICS OF ADAPTIVE MECHANISM MANAGEMENT OF SUSTAINABLE ECONOMIC DEVELOPMENT OF AGRICULTURAL PRODUCTION

Introduction. The current state of the environment, which is determined by the challenges of sustainable economic development, has become an objective basis for the statement: ensuring the successful operation of enterprises (increasing competitiveness and strengthening their potential) is not possible without external factors and rapid response to their changes, the formation of adaptive management mechanisms that can ensure the transition of agricultural enterprises to the trajectory of sustainable economic development. The purpose of the article is to offer the architectonics of the adaptive mechanism of management of sustainable economic development of agricultural production and to substantiate its main elements. Results. It is substantiated that the instrumental content of the activities of the environment includes mechanisms of direct influence (legislative and regulatory framework, implementation of government programs and investment projects, tariff restrictions, non-tariff restrictions) and indirect influence (processes of effective demand; instruments of competitive interaction; price mechanism; contract system, infrastructure development, intangible instruments, monetary, financial, social policy, financial assistance). The use of the software product TextAnalyst allowed to formulate generalized definitions of the category of control mechanism (a set of interrelated forms, methods, tools of purposeful influence on the object of management to achieve certain goals). An adaptive mechanism for managing sustainable economic development of agricultural production based on the "white box" method has been developed. The latter is represented by a block of input streams, object structure of influence, output streams. It is established that the current state of agricultural production and its ability to change is determined by the internal system of adaptation mechanism in the complex interaction of adaptive potential, adaptation process, adaptation capabilities, elements of adaptation, attractors, bifurcation points, adaptation vector. Key words: adaptability, management mechanism, management tools, sustainable economic development, agricultural production.

A Study on the Feasibility Study for Local Government Investment Projects- Focusing on development of local sport complex

A Study on the Feasibility Study for Local Government Investment Projects- Focusing on development of local sport complex

政府投资项目代建制的演化博弈模型

政府投资项目代建制的演化博弈模型

Research on Diminishing Discount Rate of Government Investment Projects Based on LCCA

The discount rate will affect the whole life cycle cost calculation and project selection result. The current fixed discount rate is not suitable for the life cycle cost analysis of the project. This paper analyze the rationality of decreasing discount rate applied in government investment projects in the LCCA, and the decreasing discount rate is calculated. Finally, a life cycle costing model is constructed based on the decreasing discount rate,and a case is exemplified.

Efficiency differences of government investment projects: an application of a DEA and Tobit analysis

Previous studies have evaluated the investment efficiency of the government from a macro perspective, but few studies focus on specific projects with government investment. Therefore, this paper presents a method that combines data envelopment analysis and Tobit regression, which highlights the sources of funds, social benefits and influencing factors. It concludes that the overall efficiency of government investment projects (GIPs) is very high, but the excessive input and insufficient output are widespread and big improvement spaces exist; the public requirements rank first of all the influencing factors. This paper can provide references to guide the GIPs to gradually obtain better investment efficiencies.

Efficiency differences of government investment projects: an application of a DEA and Tobit analysis

Previous studies have evaluated the investment efficiency of the government from a macro perspective, but few studies focus on specific projects with government investment. Therefore, this paper presents a method that combines data envelopment analysis and Tobit regression, which highlights the sources of funds, social benefits and influencing factors. It concludes that the overall efficiency of government investment projects (GIPs) is very high, but the excessive input and insufficient output are widespread and big improvement spaces exist; the public requirements rank first of all the influencing factors. This paper can provide references to guide the GIPs to gradually obtain better investment efficiencies.

Resources programming model of government investment project group based on improved firefly algorithm

Government investment project group (GIPG) plays an important role in increasing the welfare of the public, so the public is concerned about its investment efficiency, which can be reflected by resource programming level of GIPG. Previous research pays little attention to this field, and several problems exist: ordinary resource programming procedure is directly adopted; project management targets only focus on cost and schedule and the proposed optimisation algorithms are inapplicable. Hence, this research is carried out as follows: first, resource programming procedure of GIPG is organised. Second, the strategic targets of GIPG are determined based on the national, regional planning, and the projects targets are determined based on strategic targets, which ensure the coherence of national planning and projects targets. Third, the newly proposed optimisation algorithm-Gaussian firefly algorithm (GFA) is described and its effectiveness is validated through comparison with other algorithms. Finally, a case study demonstrates the effectiveness of resource programming method of GIPG.

Resources programming model of government investment project group based on improved firefly algorithm

Government investment project group (GIPG) plays an important role in increasing the welfare of the public, so the public is concerned about its investment efficiency, which can be reflected by resource programming level of GIPG. Previous research pays little attention to this field, and several problems exist: ordinary resource programming procedure is directly adopted; project management targets only focus on cost and schedule and the proposed optimisation algorithms are inapplicable. Hence, this research is carried out as follows: first, resource programming procedure of GIPG is organised. Second, the strategic targets of GIPG are determined based on the national, regional planning, and the projects targets are determined based on strategic targets, which ensure the coherence of national planning and projects targets. Third, the newly proposed optimisation algorithm-Gaussian firefly algorithm (GFA) is described and its effectiveness is validated through comparison with other algorithms. Finally, a case study demonstrates the effectiveness of resource programming method of GIPG.