Investment Cooperation Research Articles

Development of Economic Cooperation Between Russia and China in the Condition of New Geopolitical Threats and Challenges

The purpose of the study is to analyse the state and directions of development of foreign economic cooperation between the Russian Federation and the People’s Republic of China in conditions of growing macroeconomic instability. During the study, the following tasks were set and solved: the prerequisites for the formation and content of the global foreign economic initiative ‘One Belt, One Road’ (OBOR) were analysed (Belt and Road Initiative [BRI]), as well as Russia’s participation in the implementation of transnational infrastructure projects; the advantages and risks of implementing the strategic initiative ‘BRI’ for the state of the economy of Russia and China have been identified; an analysis of the dynamics of indicators of trade and economic cooperation between the Russian Federation and the People’s Republic of China was carried out; the main directions of development of Russian–Chinese foreign economic relations have been identified. It was determined that the sanctions restrictions imposed on Russia by a number of unfriendly states confirmed the validity of the decision on the need to expand foreign economic contacts with China. Dynamics of indicators of trade, economic and investment cooperation between Russia and China in the period from 2013 to 2023 indicates the steady growth of its indicators and the mutually beneficial nature of interstate relations. The analysis showed that the prospects for trade and economic cooperation between Russia and China within the framework of the strategic initiative ‘OBOR’ are determined by the projected sustainable growth rates of macroeconomic indicators of the participating countries, as well as the effectiveness of foreign economic policy instruments.

ON THE SOLUTION UNIQUENESS IN PORTFOLIO OPTIMIZATION AND RISK ANALYSIS

In this paper, we consider the issue of solution uniqueness of the mean-deviation portfolio optimization problem and its inverse for asset returns distributed over a finite number of scenarios. Due to the asymmetry of returns, the risk is assessed by a general deviation measure introduced by Rockafellar et al. [(2006b) Optimality conditions in portfolio analysis with general deviation measures, Mathematical Programming 108, 515–540] instead of the standard deviation as in the classical Markowitz optimization problem. We demonstrate that, in general, one cannot expect the uniqueness of Pareto-optimal profit sharing in cooperative investment and the uniqueness of solutions in the mean-deviation Black–Litterman asset allocation model. For a large class of deviation measures, we provide a resolution of the above nonuniqueness issues based on the principle of law-invariance. We provide several examples illustrating the nonuniqueness and the law-invariant solution.

China and Shanghai Cooperation Organization: Reconsideration and Improvement of Multilateralizing Effect of Most Favored Nation Clause in BIT

Since the Maffezini case, debates upon the application of the Most-Favored-Nation (MFN) clause have never stopped. Research from the perspective of the Shanghai Cooperation Organization (SCO) can test the way for further advancement of this issue. The analysis on the international investment arbitration cases involving the SCO states may shed some light on the crucial point on dispute. At present, the bilateral investment treaties (BIT) between China and other states of the SCO are in an urgent need of renewal in order to meet the interests of deepening investment cooperation. Problems of fragmentation of the interpretation method and of unpredictability of the interpretation conclusion of the MFN clauses manifested in international investment disputes involving SCO states will provide concrete preventative suggestions on the updating of the wording of MFN clauses. Under SCO framework, the multilateral effect of the MFN clause can play a model role for other regional integration organizations to build an integrated and multilateral investment treatment system in the fragmented and bilateralism-based framework of international investment law, and in fact promote investment facilitation for regional organizations.

Анализ развития современной двусторонней торговли между РФ и КНР

Analysis of the development of trade and economic relations between the People's Republic of China (PRC) and the Russian Federation (RF) is an important aspect of research in the field of international economics and the development of economic relations between these two countries. Since 2022, trade turnover between them has been constantly increasing, setting new historical records. For about 14 years, China has been Russia's largest trading partner in many respects. The purpose of this article is to analyze the development of trade and economic relations between China and Russia over the past few years and identify prospects for future mutually beneficial cooperation. To do this, reports from customs departments of the two countries, expert reviews, and reports from public and private organizations have been used as the main sources of information. These sources provide detailed information on the flow of goods, currency transactions, investment projects, and other important aspects of the trade and economic relationship between the PRC (China) and Russia. Analysis of these sources revealed several key trends and factors affecting the development and prospects for mutual relations between the two countries. An increase in trade turnover was observed, as was an increase in China's share in Russian trade. Additionally, there was a diversification of the commodity structure and a deepening of investment cooperation. Problems faced by the two nations in the process of establishing economic ties were identified, along with their possible solutions. Based on this analysis, conclusions were drawn regarding the possible future evolution and prospects for mutually beneficial cooperation between China and the Russian Federation over the coming years.

Coordination and Collaboration between Secret Intelligence Agencies and Government Institutions: Challenges, Opportunities, and Dynamics

Effective coordination and collaboration between secret intelligence agencies and government institutions are crucial for national security in the face of complex and evolving threats. Despite technological advancements in artificial intelligence (AI) and machine learning, which have enhanced intelligence capabilities, achieving seamless collaboration remains a persistent challenge, owing to differences in organizational culture, communication barriers, and the need for secrecy. This study explores the interplay between technological advancements, organizational dynamics, and legal frameworks to foster coordination between intelligence agencies and government institutions. Through a comprehensive literature analysis, this study examines the historical evolution of intelligence agencies, their functions and responsibilities, and the legal and regulatory frameworks governing their operations. The dynamics of coordination and collaboration were investigated, including various models (centralized, decentralized, and hybrid), factors influencing effectiveness (communication, trust, and leadership), and the role of technology in facilitating information-sharing. The study also identifies key challenges, such as bureaucratic barriers, legal and ethical concerns, resource constraints, political interference, and cybersecurity risks. Opportunities for enhancing collaboration are discussed, including policy reforms, strengthening interagency trust, adopting technological innovations, international cooperation, and capacity-building programs. Case studies on success and failure in intelligence collaboration provide valuable insights into the best practices and lessons learned. The study concludes with recommendations for improving intelligence collaboration, emphasizing the importance of strong legal frameworks, ethical AI integration, effective communication, and sustained investment in capacity building and international cooperation.

Media Narratives on China’s Belt and Road Initiative in Nepal: Impact on Nepal-China Relations

China and Nepal have signed a number of bilateral agreements aimed at expanding mutual cooperation in infrastructure, trade, investment, and cultural exchange. With Nepal currently involved in Belt and Road Initiative (BRI) projects, China's BRI has provided a foundation for future economic collaboration in the region. This paper utilizes framing theory and qualitative content analysis to explore the media narratives on China's BRI projects in Nepal by three prominent Nepalese newspapers: My Republica, The Himalayan Times, and The Kathmandu Post. Analyzing news articles, the study examines how these newspapers frame BRI projects in Nepal across economic, geopolitical, and sociocultural dimensions. The analysis contributes to a comprehensive understanding of Nepal's participation in the BRI framework by highlighting the complexities and considerations across economic, geopolitical, and sociocultural domains using framing theory and qualitative content analysis methodology. The study reflects various media narratives on Chinese BRI projects in Nepal and its impacts on public opinions in understanding about BRI.

МІЖНАРОДНЕ ІНВЕСТИЦІЙНЕ СПІВРОБІТНИЦТВО ТА ЙОГО РОЛЬ У ПОВОЄННОМУ ВІДНОВЛЕННІ ПРИМОРСЬКИХ ТЕРИТОРІЙ УКРАЇНИ

The article is devoted to the study of the scientific and theoretical foundations of international investment cooperation and the analysis of its impact on the economic development of the coastal areas of Ukraine. It is conducted the critical review of existing definitions of the studied concept. It is proposed the proper definition that considers the socio-economic nature of such cooperation. International investment cooperation should be understood as economic relations formed as a result of international investment and mediating the movement of international investments. It is defined the main purpose of the investigated phenomenon, which consists in making a profit. It is emphasized the key difference between international investment cooperation and other forms of cross-border movement of capital by the presence of a commercial basis that accompanies this process in one way or another. It is considered previous developments in formulating the principles of investment cooperation. It is proposed own list of principles for its implementation: economic expediency, freedom and equality of parties, fair distribution of benefits and risks, regulatory and tax coordination, social, environmental and ethical responsibility, strategic, transparent and contractual nature. By constructing polynomial regression equations of the dependence of the gross product of the coastal regions of Ukraine on direct foreign investment, the regularities of the influence of international investment cooperation on the economic development of the respective territories are investigated. It is determined that such cooperation is characterized by its fundamental importance for the economic growth, its direct impact on the regional economic complex, the marginal possibilities of rational placement of international investments and the unevenness of the positive effect they generate. It is substantiated the practical advantages and limitations of the potential increase in the volume of international investment in the post-war period.

A simple model and rules for the evolution of microbial mutualistic symbiosis with positive fitness feedbacks

The evolution of microbe-microbe mutualistic symbiosis is considered to be promoted by repeated exchanges of fitness benefits, which can generate positive fitness feedbacks ('partner fidelity feedback') between species. However, previous evolutionary models for mutualism have not captured feedback dynamics or coupling of fitness between species. Here, a simple population model is developed to understand the evolution of mutualistic symbiosis in which two microbial species (host and symbiont) continuously grow and exchange fitness benefits to generate feedback dynamics but do not strictly control each other. The assumption that individual microbes provide constant amounts of resources, which are equally divided among interacting partner individual, enables us to reveal a simple rule for the evolution of costly mutualism with positive fitness feedbacks: the product of the benefit-to-cost ratios for each species exceeds one. When this condition holds, high cooperative investment levels are favored in both species regardless of the amount invested by each partner. The model is then extended to examine how symbiont mutation, immigration, or switching affects the spread of selfish or cooperative symbionts, which decrease and increase their investment levels, respectively. In particular, when a host associates with numerous symbionts without enforcement, neither mutation nor immigration but rather random switching would allow the spread of cooperative symbionts. Examples using symbiont switching for evolution would include large ciliates hosting numerous intracellular endosymbionts. The simple model and rules would provide a basis for understanding the evolution of microbe-microbe mutualistic symbiosis with positive fitness feedbacks and without enforcement mechanisms.

Statistical assessment of direct investment (equity capital instruments) in the economy of the Dnipropetrovsk area

Introduction. The statistics above prove that the Dnipropetrovsk area in terms of the volume of attracted foreign direct investment is confidently ranked 1st among the regions of Ukraine in 2024. The purpose of the paper is to build a model of statistical assessment of direct investment (tools of participation in capital) in the economy of Dnipropetrovsk area. Results. The shortcomings that create significant problems of formation of information and analytical support of existing models of analysis of investment cooperation between countries are identified. Adaptive forecasting based on the method of exponential smoothing. The essence of this method is that each element (level) of the time row is smoothed with a weighted average, and its weight decreases as the end of the row is removed. The forecast of direct investment (instruments of participation in capital) of EU countries in the economy of Dnipropetrovsk area by 2028 was built. Based on statistical analysis for the period 2015-2023. The forecast of direct investment (instruments of participation in capital, by types of economic activity) of EU countries in the economy of Dnipropetrovsk area by 2028. On the basis of statistical analysis for the period 2021-2023. It is emphasized that in 2021. Three industries (education (P); art, sports, entertainment and rest (R); providing other services (S)) are not made public in order to ensure compliance with the requirements of the Law of Ukraine "On Official Statistics" on the confidentiality of statistical information. Conclusion. According to the analysis, six key consequences and risks of war in Ukraine are separated when attracting foreign direct investment. As a prospect of further research in the subject area is to build a gravitational model of direct investment relationship between the economy of Dnipropetrovsk area and EU countries, for example by the following factors: GDP per capita of the country; geographical distance between Ukraine and donor countries; The population of the country. This will identify problematic issues in forming a foreign investment stimulating policy. The possibility of constructing a gravity model of foreign direct investment for Dnipropetrovsk area has been grown.

Russia in the system of functioning models of the modern world market for arms and military equipment

In the context of modern geopolitical conflicts, which have led to complications in the international trade and investment cooperation between countries, there are serious changes in the positions of states in the global export of arms and military equipment (hereinafter referred to as AME). Structural transformations in the international exchange of the AME are also conditioned by the clash of economic interests of individual countries due to globalisation of recent decades as well as by the use of various models of production and export of the AME at the national level. As shown in our article, states of the world are seriously differentiated in their own production of the AME according to the degree of their dependence on imports and foreign suppliers of components and technologies. The fact that countries can be advanced participants in the technological chain or be niche suppliers determines new directions for their international specialisation and, largely, the rules and nature of competition in the modern AME market. As part of the presented analysis of the national specialisation models of states, the competitive advantages and weaknesses of Russia as one of the leading arms exporters in the world are shown. At the same time, the foreign policy and economic risks of strengthening its position in the global AME trade have been assessed. Based on the results of the study, directions for reinforcing the potential of the Russian military-industrial complex in the world AME market have been formulated.

Cooperative investment of service efforts and bundled pricing of complementary products in a tourism omnichannel

Cooperative investment of service efforts and bundled pricing of complementary products in a tourism omnichannel

Analysis of the Potential Attractiveness of Business Investment Cooperation in Natural Resources and Cultural Development of Fakfak Regency

Analysis of the Potential Attractiveness of Business Investment Cooperation in Natural Resources and Cultural Development of Fakfak Regency

Economic and Cultural Partnership Opportunities between Kupang and Chiba Cities through Sister City Cooperation

The Kupang city government has officially proposed a sister city partnership with Chiba, Japan, through representatives of the Japanese government in Bali. This proposal, currently in the initial stages, aims to explore the potential economic and cultural benefits of such a collaboration. This cooperation involves the governments of Kupang City and Chiba City in enhancing economic and cultural cooperation between the two, with the aim of increasing cooperation in trade, investment, and culture, as well as increasing cooperation in education, technology, and infrastructure. This research identifies Chiba as an ideal partner for Kupang, given their various economic and cultural similarities and complementary potentials. By employing qualitative research methods, this study comprehensively examined the prospective advantages of the sister-city relationship. The findings revealed significant opportunities for both cities, including the establishment of an international trade route between Kupang and Chiba and the creation of a central institution dedicated to the research and preservation of their cultures. Based on these insights, the study recommends that the city governments of Kupang and Chiba initiate negotiations and formalize their sister city cooperation, as the anticipated benefits would substantially enhance the development and prosperity of both cities.

Reframing water demand management: a new co-governance framework coupling supply-side and demand-side solutions toward sustainability

Abstract. Water demand management adopts economic and non-economic measures to reduce human water use. However, it is argued in this study that water use changes may cause idle water supply facilities and revenue losses, thereby challenging the sustainability of water supply systems in the context of climate change. A co-governance framework was established to inspire practical strategies of sustaining water supply systems by re-evaluating the long-term impacts of water demand changes. This framework adopts a broader view of water demand management by integrating the political, financial, and consumptive needs of the government, the market, and the users in the form of a collaborative strategy coupling both supply-side and demand-side solutions. The proposed framework was applied to the analysis of the sustainability of China's South-to-North Water Diversion Project. It is found that the South-to-North Water Diversion Project is not a simple water supply infrastructure but rather a synthesis of supply-side and demand-side water management solutions. Actively releasing water for ecological and cultural purposes is suggested in this study to maintain the socio-ecological benefits of the project in the context of human water use decline. The economic cost of the water supply could be recovered by ongoing revenues that include not only the water fees charged to users but also the benefits gained from cooperative investment in broader water-related businesses by both the state-owned water transfer company and local governments in water-receiving areas. The proposed framework and strategies are valuable for other water utilities around the world, especially those challenged by reduced water demand caused by climate change, high water prices, and economic depression.

Cooperative investment strategies of ports and shipping companies in blockchain technology

Cooperative investment strategies of ports and shipping companies in blockchain technology

The (Political) Economics of Bilateral Investment Treaties—The Unique Trajectory of Brazil

Brazil, after signing several traditional Bilateral Investment Treaties without ratifying them, recently shifted towards a different type of bilateral investment agreement, i.e., Investment Cooperation and Facilitation Agreements. Two claims have been made in the literature regarding the transition from traditional Bilateral Investment Treaties to Investment Cooperation and Facilitation Agreements—Claim #1: The non-ratification of the traditional BITs has not harmed Foreign Direct Investment into Brazil, a claim which puts into question the purpose of Bilateral Investment Treaties. Claim #2: While Investment Cooperation and Facilitation Agreements avoid some of the problems of traditional Bilateral Investment Treaties, on balance they are less effective than traditional Bilateral Investment Treaties would have been. We examine the two claims from an empirical economic point of view. We build on the literature about Brazil’s position vis-à-vis Bilateral Investment Treaties, which must be viewed by an amalgamation of (i) a historical legacy; (ii) domestic initiatives, and (iii) a particular U-turn in the political debate. Using empirical evidence on Foreign Direct Investment effects of Bilateral Investment Treaties, the following conclusions emerge: With regard to claim #1, empirical evidence in general as well as specific to Brazil suggests that Brazil has forgone Foreign Direct Investment by not ratifying traditional Bilateral Investment Treaties. Concerning claim #2, while Investment Cooperation and Facilitation Agreements include alternative dispute settlement mechanisms, which aim at a better compliance of states with the Investment Cooperation and Facilitation Agreements’ rules, rather than the compensation of foreign investors, the lower stringency of the State–State dispute settlement mechanism compared to Investor–State dispute settlement mechanism makes Investment Cooperation and Facilitation Agreements less effective. Yet, this weakening effect must be weighed against the effects on Foreign Direct Investment from innovative clauses in Investment Cooperation and Facilitation Agreements, which are absent in many traditional Bilateral Investment Treaties.

INNOVATIVE INVESTMENT ACTIVITIES OF ENTERPRISES: CASE OF INDUSTRIAL PARKS

The research aims to validate the efficacy of creative and investment endeavors undertaken by firms operating inside eco-industrial parks in the framework of a circular economy. The research is based on the use of system and synergistic approaches to study the innovation and investment activities of enterprises within the ecoindustrial park. These approaches allow for the examination of these activities as distinct subsystems, which ultimately contribute to the overall synergistic effect of the park. The consolidation of manufacturing firms inside eco-industrial parks involves a more cohesive collaboration among businesses, facilitated by cooperative investments. The proposed systematic approach for assessing the effectiveness of innovation and investment activities of enterprises within ecoindustrial parks has been approved, demonstrating the potential for achieving positive outcomes from investments and innovative projects undertaken by enterprises operating within ecoindustrial parks, within the framework of the circular economy.

Китай и страны Латинской Америки: проблемы и перспективы сотрудничества в XXI веке

The aim of this study is to identify the problems and determine the prospects for China’s cooperation with Latin American countries in the 21st century. The relevance of the topic is caused by the increasing interaction be-tween China and the region, which has a direct impact on the international geopolitical environment. In the course of the research general scientific methods such as analysis and synthesis, comparisons and groupings, as well as generalisation of the results obtained were used. The paper analysed the development of trade in-teraction between the countries, investment cooperation and the peculiarities of China’s projects in the region. The specificity of the global position of Latin America in the conditions of division of influence between the USA and China is reflected. As a result of the conducted study, the strengthening of China’s position in the region was identified, and contradictions in China’s foreign trade policy towards Latin American countries were re-vealed.

The impact factors of China’s outward foreign direct investment in Singapore

The sudden outbreak of COVID-19 pandemic led to a global recession, but China's OFDI remained on a steady rise, attracting global attention. By the end of 2020, Singapore was the second most developed country after the US in terms of receiving outward foreign direct investment (OFDI) flows from China. The investment cooperation between China and Singapore played an important role in promoting the high-quality development of the Belt and Road Initiative and enhancing the economic cooperation between China and ASEAN after the COVID-19 pandemic. This study delves into the influencing factors of Chinese OFDI to Singapore: home country institutions, host country institutions, and investment motives. This study takes Singapore as the research object and uses the data of China’s OFDI to Singapore from 2001 to 2020 to conduct an empirical analysis through a modified regression model to analyze the development of China’s OFDI to Singapore, so as to make contributions to: (1) providing empirical evidence for studying OFDI from developing to developed countries; (2) providing reference for investment cooperation in the post COVID period between China and Singapore.

ТОРГОВО-ЭКОНОМИЧЕСКИЕ ОТНОШЕНИЯ РОССИИ И ЕГИПТА

The article analyzes the dynamics and structure of trade between the Russian Federation and the Arab Republic of Egypt. The authors note the positive dynamics of trade turnover between the two countries over a period of more than twenty years, highlighting trends and stages in the development of mutual trade in 2002-2023. Such a long period of time allows us to draw reasonable conclusions. The novelty of the author's approach lies in the fact that in addition to the absolute indicators of Russian-Egyptian trade relations, the article considers relative indicators, such as the share of mutual trade in the foreign trade turnover of the Russian Federation and Egypt, as well as the comparative dynamics of Russian exports to Egypt, imports from Egypt and GDP of our country. The authors show that if the absolute indicators of trade turnover between the two countries are characterized by positive dynamics, then when considering the relative indicators of trade between the two countries, such a trend is not so clearly manifested. Particular attention is paid to the analysis of the dynamics of the structure of Russian exports to Egypt and imports from Egypt.
 As a result of the study, the authors conclude that there are quite big problems in the development of Russian-Egyptian trade cooperation. These include the unidirectional nature of these relations and the low level of investment cooperation. In addition, Russian exports prevail in mutual trade, and grain supplies have a significant share in it. The weak diversification of the structure of Russian-Egyptian trade hinders the development of mutual trade between the Russian Federation and Egypt. It is also necessary to take into account the fact that the Arab Republic of Egypt pursues a multi-vector foreign trade policy, in which Russia is far from being the highest priority.