Investment Environment Research Articles

Узагальнення методології аналізу інвестиційних процесів у регіоні

The article updates the issue of developing a methodology for analyzing investment activity and investment development at the regional level. The aim of the study is to generalize and further develop the methodological principles of analyzing investment processes at the regional level. It is proved that the analysis of investment processes in the region gives a more complex picture regarding the volumes, dynamics, structural characteristics and efficiency of investment activities in the regional economy. In general, in order to carry out a systematic and comprehensive analysis of the processes of development of investment activity and activity in the region, it is important to form a full-fledged regulatory and methodological support, consisting of approaches, methods and tools of analysis and diagnostics, as well as a system of indicators. It is established that the results of the analysis are conclusions regarding, on the one hand, the investment activity of economic entities, and, on the other hand, the quality of the regional investment policy. It has been proven that the regulatory and methodological support for the analysis of investment processes in the region consists of two blocks: (1) microeconomic, (2) macroeconomic. It is determined that the criterion of the first block is the ease (operational, cost-effectiveness, efficiency) of passing through the stages of the investment process, while the second block is the contribution (volume, structure, quality) of investments to the socioeconomic development of the region. It is substantiated that the introduction of the system of analysis of the investment environment at the regional level involves the following procedural stages: institutionalization of the practice of analysis; formation of resource support; identification of persons responsible for the analysis; consolidation of the system of indicators prepared by official statistics bodies; forming a database of experts; development of clear regulations for surveying and evaluating the characteristics of the investment environment; determination of procedures for "reaction" of authorities to the results of the analysis, publication of the results.

A Deep Reinforcement Learning Model for Portfolio Management based on Weight Adjustment

Existing portfolio management models based on deep reinforcement learning adjust funds dynamically by constructing an action space with specific trading behaviors. However, this method cannot effectively adapt to complex investment environments. This paper proposes an LSTM-ER-DCPPO portfolio management model based on the improved PPO algorithm. The model provides stable policy learning, enhanced strategy exploration, and trend identification, enabling more precise capital allocation through continuous asset weight output. To evaluate the model, a simulated market trading environment based on real stock data was created. The experimental results show that the LSTM-ER-DCPPO model achieved an annualized return of 58.62%, a maximum drawdown of 8.53%, a Calmar ratio of 6.873, and a Sharpe ratio of 2.434, outperforming other benchmark models.

Assessment of the Impact of Green Economy Development on Employment

The relevance of this study is due to the growing attention to the development of green economy and its potential impact on employment. The purpose is to evaluate how green economic development affects employment in Russia, using panel data from 82 regions spanning the period from 2016 to 2020. To analyze the data, we use generalized linear regression models such as OLS, random effects, and fixed effects models. The final fixed effects model explains about 25% of the total variation in unemployment rates across different regions. However, evidence of cross-sectional dependence in the residuals suggests potential challenges, such as the omission of relevant variables that capture unobserved heterogeneity and inadequate consideration of spatial clustering within specific regions. The main results show that expenditure on environmental protection and maintenance of protected areas are positively linked with unemployment. This suggests that these expenditures may not directly lead to job creation. There could be several reasons for that: administrative costs, the delayed effect of environmental investments, or regional disparities in infrastructure and skilled labor availability.

Adjusting energy polices based on the Energy Trilemma Index

In response to the imperative of climate change, global governments are steering energy systems towards sustainability. However, this transition encounters challenges from climate, geopolitical, and economic factors. Decision-makers must craft adaptive policies to address these complexities. This study proposes a method, utilizing the Energy Trilemma Index, to adjust energy goals and policies. Drawing on World Energy Council data spanning 2000 to 2022 for 124 countries, the Analytic Hierarchy Process refines policies at strategic, indicator, and operational levels. Using China as a case study, the study recommends that decision-makers prioritize environmental investment, equitable resource distribution, and strengthened energy security.

Designing a biodiversity credit accounting framework for environmental investment and financing

<p>Achieving biodiversity goals and targets poses a significant financial challenge due to biodiversity externalities. Efforts to address this challenge have focused on market-based solutions for biodiversity offsets to bridge the financial gap. However, accurately calculating biodiversity credits remains a barrier to promoting and implementing these solutions. Here, we propose an innovative accounting framework for biodiversity credits based on the emergy accounting approach. Emergy (spelled with an m) represents the biosphere work performed over time and space (ecosystem services) that supports species, human societies and economies, and is measured in units of solar equivalent energy (emergy, sej). This unified accounting method considers the perspectives of ecosystem productivity, ecosystem networks, and human well-being. We evaluated the biodiversity credits in 157 restoration projects and found several advantages in terms of differentiating project types and setting thresholds for biodiversity credit increases in restoration projects. Only 66% of the projects achieved biodiversity credit increases, and only 29% of the generated credit can be traded on the market. This study provides a scientific foundation for decision-making in ecosystem restoration management and contributes to broader biodiversity conservation solutions as well as to bridging the financial gap in achieving biodiversity goals.</p>

Determinants of NEPSE Index: Insights from ARDL Modeling

Background: The stock market, acting as an economic barometer, crucially influences a nation's development by gauging its financial stability. In contrast, sustainable stock market indices have become vital in assessing listed companies' long-term viability and ESG performance.
 Objectives: The research aims to uncover the influence of various macroeconomic factors (GDP growth, inflation, broad money supply) and bank-specific indicators (bank stability, funding risk, interest rate) on the NEPSE index.
 Methods: This study delves into the determinants shaping the NEPSE index in Nepal, utilizing the autoregressive distributed lag (ARDL) model with annual time series data spanning from 1995 to 2022. The NEPSE index, as a measure of sustainable stock market performance, becomes crucial in understanding market dynamics. This study analyzes the impact of GDP growth, inflation, broad money supply (M2), and bank-specific indicators on the NEPSE index.
 Results: The study found that the NEPSE index is positively influenced by GDP growth, broad money supply (M2), and bank stability (BSTAB). Policymakers are urged to focus on fostering GDP growth, implementing effective monetary policies, and enforcing robust banking regulations to create a conducive market atmosphere, thereby inspiring investor trust. Conversely, the study demonstrates that inflation and funding risk (FRISK) exert a negative and significant impact on the NEPSE index. Hence, policymakers and central banks are advised to closely monitor and manage these variables to ensure stability and investor confidence, thereby nurturing a healthy stock market environment.
 Conclusion: There is a long-term equilibrium relationship between selected variables and the NEPSE index. Macroeconomic policies and bank-specific quality play an important role in the sustainable NEPSE index.
 Implications: The outcomes of this research underscore the importance of maintaining stable inflation rates and effectively managing funding risks and interest rates. By doing so, regulators can facilitate a stable and conducive environment for stock market investments, encouraging economic growth and investor participation. These insights are invaluable for shaping effective policies and regulations, promoting a vibrant stock market, and fostering economic stability in Nepal.

Державне регулювання процесу ініціювання інноваційних проектів за умов обмеженого фінансування

Державне регулювання процесу ініціювання інноваційних проектів за умов обмеженого фінансування

Assessment of the Primary Schools' Physical Environment in Harion Municipality, Sarlahi

The study assesses the physical environment of schools, highlighting their generally satisfactory but improvable state, emphasizing the pivotal role of school infrastructure in education, and the need for increased investment for an optimal learning environment. The aim of this study is to comprehensively assess the physical environment and infrastructure of schools in the context of Hariwan municipality, Nepal, encompassing aspects such as cleanliness, water and canteen facilities, toilet conditions, waste management, and playground safety. Method of this study is descriptive research design collecting data from 12 primary schools by using observation checklist to evaluate the physical environment. The study found that while the majority of schools in Hariwan municipality provide reasonably comfortable learning spaces, there is a strong case for increased investment in school infrastructure to ensure better physical conditions, including sanitation, water, canteen facilities, waste management, and playground safety, to enhance the overall educational experience and student well-being.

FDI, FDI’s Impact on Economic Growth and the Investment Environment in Georgia

Georgia, with its open policy towards foreign investment flows, was one of the first countries in the Post-Soviet space. From the day of gaining independence, FDI has become the most important indicator of the country, and the assessment of the volume of foreign investment flows carried out in the country, statically or dynamically, has not lost its relevance to this day. Present article explores the volume of foreign direct investments made in Georgia, in dynamic; From the total indicators, in terms of geography, the largest investor countries are identified; In the period 2013-2022, the structure of FDI is expanded according to components and the percentage distribution of share capital, reinvestments and debt obligations from the total indicators is highlighted; The impact of FDI on economic growth indicators has been determined using correlation-regression analysis. The article also provides global figures for foreign direct investment, including countries receiving the largest FDI flows; In order to assess the investment environment, in dynamics, the sovereign credit ratings of Georgia evaluated by the leading rating companies are presented. Statistical observation, collection-grouping and analysis techniques and methods are used in the research process.

The Role of Digital Economy in Iraqi Economic Growth for The Period of 2010-2022 (Analytical Study)

The research addresses the role of the digital economy in the growth of the Iraqi economy during the period from 2010 to 2022. The research is based on the hypothesis that the digital economy has become one of the primary growth drivers worldwide and has a close relationship with economic development. Therefore, the digital transformation in Iraq can accelerate bridging developmental gaps with other countries.
 It has become evident that the Iraqi economy suffers from structural imbalances for various reasons, hindering economic growth. These reasons include political and economic factors, as well as the absence of a well-thought-out policy to promote the agricultural sector, which is considered one of the fundamental sectors capable of stimulating the Iraqi economy.
 The study found that the digital economy contributes to increasing the gross domestic product if computer technology and information and communication technology are applied in economic activities such as agriculture, industry, trade, finance, and services. Furthermore, focusing on local expertise and educated individuals can be significant. The study recommends providing the necessary infrastructure for the digital economy in Iraq to serve all sectors, especially the agricultural sector and e-commerce. It also emphasizes the need to promote innovation, reduce corruption, and achieve security stability to create a safe environment for foreign investment. It aims to introduce advanced technology to Iraq and preserve scientific capabilities. Establishing an independent institution to manage and regulate the implementation of the digital economy as a national priority and working on improving information and communication technology is also advised.
 
 Paper type: Research paper.

The impact of China’s new Environmental Protection Law on corporate environmental investments

As an important lever for China’s green development strategy, whether the new Environmental Protection Law can effectively form investment incentives for enterprises has attracted much attention and is also an important topic that theoretical research urgently needs to explore. This paper utilizes corporate data from non-financial listed companies in Shanghai and Shenzhen A-shares from 2007 to 2018. By adopting a double-difference model, it explores the incentive role and internal mechanism of the new Environmental Protection Law (EPL), implemented in 2015, as an environmental regulation on the environmental protection investment of enterprises, taking the new EPL’s enactment as a quasi-natural experiment. The study revealed a noteworthy and positive impact on motivation, which remained consistent even after various robustness tests. Additionally, the impact of incentives varied depending on the level of competition within the industry, financial constraints, and ownership type of the enterprises. Investigating the mechanism, it has been discovered that the incentive effect advances the environmental investment of firms through diminishing agency costs, enriching the quality of environmental information disclosure, and facilitating government subsidies to enterprises. This study not only verifies, from the factual empirical level, that environmental regulation policies can promote corporate environmental investment but also provides important evidence to support to a certain extent that the implementation of the new EPL can promote enterprises’ environmental governance behaviors. This article reveals the microeconomic effects of the new Environmental Protection Law from the perspective of corporate behavior strategies, and the research conclusions have important reference significance for the construction of national legal systems and the deepening of green development strategies.

PRIORITIES AND MECHANISMS FOR ENHANCING UKRAINE'S INVESTMENT STRATEGY IN THE POST-WAR RECONSTRUCTION PERIOD

This article examines the current challenges and strategies for attracting foreign capital to Ukraine's post-war economic modernisation. Russia's full-scale invasion has had a significant impact on the Ukrainian economy, causing widespread damage to businesses and significant shifts in business activity and budget spending. In the face of these difficulties, a sound investment strategy is essential to support the country's future recovery and growth. Methodology. This study uses a mixed-methods approach, combining qualitative analysis and quantitative examination of economic and trade statistics, to evaluate strategies for attracting foreign investment and economic modernisation in post-war Ukraine. Traditionally dependent on foreign trade, including with its neighbours (such as Russia and Belarus), Ukraine's economy has undergone significant post-invasion changes, particularly in terms of trade dynamics and sectoral growth. The paper examines the context of Ukraine's trade agreements, its position in global markets and the impact of the war on its external economic relations. The analysis underlines the urgent need to reform and modernise key sectors such as agriculture and energy, and the crucial role of foreign investment in these areas. It underlines the importance of improving the investment climate, fostering competition, encouraging continuous innovation and improving the skills of the labour force in order to create a favourable environment for investment. The article also examines Ukraine's potential as a candidate for EU membership and how this status could enhance its investment attractiveness. It emphasises the need for Ukraine to align itself with European standards and to incorporate provisions relating to reconstruction and rehabilitation into its legal system. The results indicate that Ukraine's post-war economic recovery and modernisation depends heavily on targeted foreign investment and alignment with EU standards. The paper provides recommendations for a strategic investment policy, including the expansion of trade agreements, the development of quality infrastructure, the improvement of logistics with the EU, etc. Finally, the publication identifies priority sectors for investment that will lead to a transformative review of Ukrainian legislation and institutions, preparing the country for EU integration. This comprehensive approach and the coordinated support of the EU are crucial for Ukraine's recovery and long-term growth, underlining the important role of investment in achieving these goals. Practical implications. This study provides insights into Ukraine's post-war investment strategies and economic policies aimed at sustainable economic reconstruction and growth, improvement of the investment climate in Ukraine, and legislative reforms to ensure economic sustainability.

Aquaculture in Zambia: The Current Status, Challenges, Opportunities and Adaptable Lessons Learnt from China

As a land-locked country in Southern Africa, Zambia is rich in natural resources suitable for fish production. However, aquaculture is still in its infancy with enormous potential as most of Zambia’s fish now comes from capture fisheries. The aim of this study was to review the recent progress, status, challenges, and opportunities in Zambia’s aquaculture industry while drawing some lessons from China’s aquaculture experience, focusing on policy instruments, external support, quality seeds, and the investment environment for possible adaptation. To achieve this, we reviewed the existing literature about aquaculture in Zambia. This paper starts by reviewing the overall fishery sector’s developments based on the analysis of relevant statistics over decades before narrowing down to the aquaculture sub-sector. The review shows that aquaculture production has continued to expand significantly and will soon play a leading role in food and nutrition security in Zambia. However, the industry still faces major challenges relating to investments, science and technology, fish seed and feed, and an underdeveloped value chain besides the increasing demand for fish products. Nevertheless, great potential still exists to further develop the aquaculture sub-sector and meet the ever-growing demand for fish products caused mainly by the rapid population increase.

Economic and Legal Principles of Cybersecurity as a Prerequisite for the Introduction of Special Economic Regimes

The article conducts a scientific and practical study of the economic and legal aspects of the State policy in the field of cybercrime and its impact on business development in a particular region, country, etc. It is determined that the massive spread of cybercrime, the lack of effective mechanisms for combating economic crimes, and the leveling of conceptual approaches to creating an effective mechanism for legal support of the business environment development have a negative impact on the investment environment in particular and on ensuring sustainable development of the State as a whole. The author analyzes the regulatory and legal documents which form the legal basis of the mechanism for combating cybercrime, both at the international and national levels. The author identifies the weaknesses of the national system of legal regulation of cybersecurity. The author points out the sufficiency and fragmented nature of legislative support for cybersecurity and counteraction to the growth of economic crimes.
 It is established that the significant vulnerability of Ukraine's information sphere is due to the excessive use of foreign-made material and technical means. It is emphasized that the international scale of the fight against cybercrime requires clarification and harmonization of national legislation in order to be able to cooperate with law enforcement agencies abroad. The article focuses on the low efficiency of Ukraine's current cybersecurity system and the urgent need to improve and optimize it. Achieving this will not only solve the problem of information space security, but also ensure the continuity and sustainability of Ukraine's economic development.
 It is determined that one of the priority areas of work in the field of creating optimal conditions for business is the fight against computer crimes in the economic sphere. Among the main tasks in this area of activity is to counteract the legalization of shadow income. The analysis of money laundering schemes shows that organized crime is very interested in using the capabilities of electronic payment systems which allow for instant money transfers with almost complete anonymity of counterparties.

Impact of Information Security on National Digital Investment

In an era characterized by rapid technological advancements and increasing reliance on digital infrastructure, the importance of information security in shaping national digital investment cannot be overstated. This paper conducts a thorough literature review to explore the multifaceted relationship between information security and national digital investment. The review encompasses a broad spectrum ofscholarly works, including academic articles, reports, and case studies, to provide a comprehensive understanding of the subject. The findings contribute to the ongoing discourse on the role of information security in fostering a secure and resilient environment for sustained national digital investments.

Economic strategy to stimulate the regions of Ukraine in the postwar period

The post-war economic recovery of Ukraine's regions is a complex and multifaceted process that includes a number of measures and strategies. These paths may differ depending on the particular region, its needs and capabilities, and the political situation in the country. However, the key areas for the post-war economic recovery of Ukraine's regions are: infrastructure development, where regions should invest in the development and modernization of infrastructure, including roads, railways, ports, airports and communications, which will improve the business environment and increase the region's competitiveness; support for small and medium-sized enterprises can be a source of new jobs and stimulate economic development in the regions. This may include financial support, training and advice for entrepreneurs; development of education and science is important for creating a skilled workforce and developing innovative technologies that can increase the competitiveness of the region; support for the agricultural sector for many regions of Ukraine, namely investments in the development of the agricultural sector can improve the quality of life of the rural population and ensure food security; attracting foreign investment, i.e. a favorable investment environment that regional cooperation between different regions and local authorities can facilitate the exchange of experience and resources for joint development.
 These ways can be combined in various combinations, depending on the needs and capabilities of a particular region. However, a successful postwar economic recovery requires joint efforts of the government, business, and the public.

Low-carbon mergers and acquisitions as a driver for higher energy efficiency: Evidence from China's high energy-consuming companies

Under the target of carbon peaking and carbon neutrality, high-energy consuming enterprises face enormous pressure to reduce carbon emissions. In order to quickly obtain low-carbon resources, low-carbon mergers and acquisitions (LMA) have emerged. This study attempts to test the impact of LMA on energy efficiency (ENE) in listed high energy-consuming companies based on SYS-GMM and fixed effects models. Results are as follows: (1) Compared to firms without LMA, firms with LMA increase ENE by 1.7 %. (2) Cash-paid LMA, horizontal LMA, and local LMA are more likely to promote ENE. (3) LMA promotes ENE by increasing environmental responsibility, low-carbon technology innovation, environmental investment. However, LMA may inhibit ENE by increasing manager confidence, management costs, and performance pressure. (4) The higher the government regulation and media supervision, the higher the promoting effect of LMA on ENE. (5) In the firm heterogeneity, LMA has more promoting effect on ENE in state-owned enterprises and eastern enterprises. This study is beneficial for providing references for high energy-consuming companies to promote LMA.

Understanding Financial Management and Investments with Regards to Corporate Law and Management

This summary covers the complex relationship between financial management, investment and corporate law in the Indian business environment. India's dynamic economic landscape requires a holistic approach to address the complexities of capital optimization, strategic financial decision-making and compliance with regulatory frameworks. Through the lens of corporate governance, the study explores the symbiotic relationship between ethical leadership, sound governance structures and financial success, illustrated by a transformational case study of the Tata Group. The challenges of the crossroads emphasize the constant need for companies to find a balance between risk and return, while the recommendations emphasize the importance of collaboration, continuous training and technical solutions. As India becomes a global economic powerhouse, this study highlights the critical role of the harmonious interplay of financial strategies, investments and execution in driving sustainable growth and stakeholder value.

Tax risks and countermeasures of China’s OFDI under the Belt and Road Initiative

Since China put forward the "Belt and Road" Initiative in 2013, the investment exchanges between China and countries along the routes have become increasingly close, and gradually opened up a new pattern of global geo-economic trade. However, opportunities and challenges coexist. As the tax environment of countries along the "Belt and Road" is very different, Chinese enterprises face many tax risks in the process of OFDI. Based on the "Belt and Road" initiative, this paper studies the tax environment of the countries along the "Belt and Road". Through analyzing and discussing the tax risks of China's outward direct investment in the countries along the "Belt and Road", it proposes relevant countermeasures to resolve the tax risks. It is hoped that through the joint efforts of the government and enterprises, the tax risks of OFDI can be effectively avoided and a good investment environment can be created, thus promote high-quality development along the Belt and Road. So this paper has both theoretical and practical significance.

The impact of bank credit corruption on firms' carbon emission reduction innovations: Empirical evidence from China

The study investigates the impact of bank lending corruption on enterprises' carbon emission reduction innovation behavior by analyzing data from the 2011–2020 China Enterprise Investment Environment Survey. The empirical findings highlight the significant influence of bank lending corruption on company carbon emission reduction innovation potential. Furthermore, the article focuses on the mechanism by which bank credit corruption affects firms' carbon emission reduction innovation ability, and discovers that bank credit corruption has a considerable impact on firms' assets, undermining firms' carbon emission reduction innovation and traditional energy companies and businesses in highly marketized areas are more negatively impacted by bank loan misconduct.