Investment Expenditures Research Articles

How U.S. job policy affects China's scientific and technological manufacturing firms? A perspective based on the competitive environment

This paper develops an index to measure the job policy uncertainty (JPU) of Chinese high-tech talents in the US, and investigates the impact of the U.S. JPU on the competitive environment of scientific and technological manufacturing firms (STMs) in China. The result shows that the U.S. JPU leads to a more intensified competitive environment for Chinese STMs. We further show the promotional effect of U.S. JPU is due to its role in promoting investment expenditure and capital agglomeration in STMs. We also find that this effect is more pronounced in samples that are more likely to attract talent inflows, such as areas with low levels of environmental pollution and STMs with high levels of high-tech talent demand. Our paper provides evidence that U.S. employment policies have significant spillover effects on the competitive environment of Chinese STMs.

Application of Fuzzy Simple Additive Weighting Method in Group Decision-Making for Capital Investment

Investment management is a common process and practice used for achieving a desirable investment goal or outcome. Unfortunately, the systematic variation of economic situations in the marketplace effects the continuous and frequent change of investment conditions and environment in which the investor should act and operate. Hence, the rules required for providing a reasonable quality of investment projects can be based only on the investor’s management strategy, intuition and practice. There exists various decision-making approaches to investment management, and simple additive weighting (SAW) is one of the most well-known multicriteria decision-making (MCDM) methods aiming to provide an optimal decision for the decision-maker when solving various real-life problems, particularly investment problems. In this paper, the fuzzy simple additive weighting (FSAW) method is applied in group decision-making to undertake capital investment expenditure for purchasing cars with the purpose of renting them out to the public. A numerical example illustrates the importance and effectiveness of the suggested approach with the aim of ranking alternatives, and, hence, determining the preferred alternative in the MCDM problem.

Input subsidies, public investments and agricultural productivity in India

The fund allocation in agricultural sector in India is heavily tilted toward input subsidies provision; however, researchers seem to favor investment expenditure instead. The present paper seeks to compare the usefulness of input subsidies as compared to investment with regard to agricultural productivity so that policy makers hit the right tool and avoid less productive state expenditure. We investigated a total of four regression models using autoregressive and distributed lag cointegration in a time series framework covering period from 1983 to 2019. The first model considers all input subsidies in aggregate form, and the rest three models take input subsidies in disaggregate forms, namely fertilizer subsidy, irrigation subsidy and power subsidy, respectively. It is observed from the results that input subsidies still contribute more than what public investment does to agricultural productivity. It is also found that power subsidy is the most effective component of input subsidies followed by fertilizer subsidy. Hence, government expenditure on input subsidies is justified on the ground that it ensures all farmers to have access to affordable agricultural inputs. Targeted subsidies combined with adequate investment in agricultural infrastructure could deliver long-term agricultural development in India.

Corruption, political connection, and firm investments

I provide evidence that U.S. firms in more corrupt areas have lower investment expenditure than firms in less corrupt areas. A one standard deviation increase in corruption rate is associated with a 8.6% decline in a firm’s investment from the median. Firms with a high degree of geographical concentration cut investment spending more aggressively in response to corruption. Notably, firms primarily scale down on research and development. I also find that political connections insulate firms from the negative impact of corruption. The investment reduction effect is almost non-existent in firms well connected to politicians. This finding further affirms the advantage that politically connected firms enjoy over non-connected firms.

Applications of the levelized cost concept

Levelized cost is a life-cycle cost measure that aggregates investment expenditures and operating costs into a unit cost figure. So far, most applications of this concept have originated in relation to energy technologies. This paper describes the role of the levelized cost concept in cost accounting and synthesizes multiple research streams in connection with electricity, energy storage, hydrogen and carbon capture. Finally, we sketch multiple potential future applications of the levelized cost concept.

A multi-dimensional analysis on potential drivers of China's city-level low-carbon economy from the perspective of spatial spillover effects

Under the background of “carbon peak” and “carbon neutrality”, China's cities are at the heart of climate change mitigation. To fulfill the commitments, the potential drivers of China's low-carbon economy at the city level should be explored. Thus, this study estimated the quality of low-carbon economy from the perspectives of carbon emissions and sequestration. Subsequently, spatial econometric approach was adopted to analyze the direct and spatial spillover effects of drivers on low-carbon economy. Moreover, to explore more potential variables, this study combined machine learning algorithms with different weight matrices to assess the importance scores of neighbouring cities' potential variables. The results show that (1) GDP per capita, emissions reduction technological progress, terrestrial vegetation's net primary productivity and the ratio of forest land cover improved cities' low-carbon economy; (2) land urbanization reduced nearby cities' low-carbon economy (especially those with high human footprint index at the inter-city border), which was caused by its negative spatial spillover effects on forest net primary production; (3) based on importance analysis, this study found that the characteristics of different sectors (e.g., the ratio of labor to fixed capital stocks, employment and fixed asset investment expenditure) also significantly influenced nearby cities' low-carbon economy.

The effect of investment and financing optimization policies for developing photovoltaic power generation in Cameroon; a dynamic CGE model assessment

With less than a decade remaining until 2030, global investment in clean energy access falls short of the anticipated levels required to achieve the sustainable development goals. Notably, nations with the greatest gaps in electricity access, particularly those in Sub-Saharan Africa, have been largely excluded from energy access funding. Interestingly, the energy sector policy documents of these countries have neglected to incorporate financing strategies or plans for photovoltaic (PV) power generation. This discrepancy in the literature underscores the need to assess the economic impact of finance and investment policies that align with long-term PV power generation targets. To address this gap, our study employs a dynamic Computable General Equilibrium model to evaluate the macroeconomic consequences of achieving Cameroon’s Nationally Determined Contributions for PV power generation through optimized PV investment and finance. The model examines three policy scenarios: the Business-as-Usual, SC1 scenario involving a stable 100% increase in PV investment, and SC2 scenario featuring a stepwise 5%–100% increase in PV investment. By simulating these scenarios, we aim to shed light on their effects. The results reveal that SC1 and SC2 exhibit a 50% higher final demand for PV investment compared to the BAU scenario. Optimizing PV finance and investment in both scenarios leads to a slowdown in Cameroon’s economic growth, with SC1 showing a more pronounced impact. Additionally, SC2 encourages rapid decarbonization in energy-intensive sectors such as crude oil production and electricity generation industries. However, the SC1 policy scenario results in a rapid reduction in total investment expenditure for PV power generation. By 2035, PV power generation is projected to be three times higher in both SC1 and SC2 compared to the BAU scenario. The SC2 policy scenario also predicts relatively high levels of consumption among rural affluent and urban impoverished households. In conclusion, our study highlights the pressing need for enhanced investment and finance strategies to propel PV power generation, particularly in underserved regions. By leveraging the findings of this research, policymakers can make informed decisions and implement policies that promote sustainable and inclusive energy access, driving progress towards the fulfillment of SDGs.

Preparing for the Just Transition from Local Economies’ Perspective: Belchatow Brown Coal Basin Case Study (Central Poland)

This article addresses the matter of investment decisions undertaken by the local authorities of coal-dependent economies in the context of oncoming transition resulting from the industrial facilities closure. The article offers an analysis of investment expenditures in three areas: technical infrastructure, social infrastructure, and environmental protection. The theoretical part of the article is focused on the issues of the just transition process and the role of institutions in effective planning for the post-coal future. Examples of concrete investments mitigating the negative effects of the coal phase-out are presented. The research is also completed by the recommendations and suggestions for policy makers.

Reporting of Investment Expenditure: Should It Be Aggregated with Operating Cash Flows?

ABSTRACT Corporate managers are often better informed than outside investors about the uncertain future benefits of investments. However, information about investment prospects is not verifiable and therefore not amenable to direct disclosure, but instead inferred by investors from other accounting disclosures. Given this situation, we study the normative question of how the market’s perceptions of uncertainty and its beliefs about the expected level of future benefits of investment should factor into mandatory financial reports of investment expenditures. We establish a threshold of uncertainty in future benefits beyond which it is better to aggregate investment expenditures with cash flow from ongoing operations, rather than measuring and reporting the two separately. We obtain the surprising result that the higher the expectation of future benefits, the lower this uncertainty threshold should be. JEL Classifications: M40; M41; M48.

Kommunale Investitionen sinken real seit COVID

Abstract Until the pandemic, the level of real investments made by municipalities was noticeably on the upswing. Three years after the outbreak of the pandemic and one year after the start of the Ukraine war, the question arises as to how municipal investment activity has developed in the wake of both crises. In nominal terms, investment expenditure continues to grow, but appearances are deceptive: in price-adjusted terms, noticeably less is being invested today than in 2020. At the same time, the structure of investment activity has changed.

Pengaruh Ukuran Pemerintah Daerah dan Fiscal Stress Terhadap Alokasi Belanja Modal di Provinsi Lampung

This study aims to examine the effects of two variables, namely regional government size and financial pressures, on the distribution of investment spending in the districts/cities of Lampung province over the three last year, specifically 2019-2021. The districts/cities of Lampung province became the study population with a total of 48 regions and to obtain representative results this study used saturation sampling method. The methods used in data analysis and discussion are quantitative methods, applying descriptive statistical analysis, panel data regression analysis and hypothesis testing. These methods provide a more detailed picture of the impact of local government size and budgetary constraints on the allocation of investment spending. The results of this study indicate that partly or simultaneously, the size of the regional government (UPD) has a significant positive effect on the allocation of investment spending in the districts/cities of Lampung province. However, this study did not find any significant effect of budgetary stress (FIST) on investment expenditure allocation. These results can provide valuable information and policy recommendations for decision-making at the local government level to promote more efficient allocation of investment spending.

Does minimum wages affect executive compensation? – Evidence from China

Based on the urban minimum wage data in China from 2011 to 2021 and the Chinese listed firm data, this study empirically examined the impact of the minimum wage hike on corporate executive compensation. We found that the increase in the minimum wage significantly increased executive compensation. This conclusion still holds through multiple endogenous analyses. Labor expenditure and investment expenditure are the main mechanisms by which minimum wage hikes lead to increases in executive compensation. The impact of minimum wages on executive compensation is more pronounced in competitive industries and labor-sensitive companies, but less pronounced in companies with stricter internal and external monitoring. Further, we found that a minimum wage hike will reduce pay-performance sensitivity and widens the pay gap between executives and employees.

The Impact of Public Investment Expenditures on Economic Growth in Türkiye

Bu çalışmada, Türkiye ekonomisinde 2012Q1:2022Q3 dönemi için genel yönetim bütçesinden yapılan kamu yatırım harcamalarının ekonomik büyümeye etkisi ARDL analizi ile araştırılmıştır. Araştırmanın ampirik bulguları, Türkiye’de hem uzun hem de kısa dönemde kamu kesimi tarafından genel yönetim bütçesinden yapılan yatırım harcamalarının ekonomik büyümeyi olumlu yönde etkilediğini göstermektedir. Uzun dönemde genel yönetim yatırım harcamalarında meydana gelecek %1’lik değişim ekonomik büyüme üzerinde %0,28’lik pozitif yönlü bir değişime neden olmaktadır. Ayrıca, nedensellik testi sonuçları genel yönetim bütçesinden yapılan yatırım harcamaları ve ekonomik büyüme arasında çift yönlü nedensellik ilişkisinin varlığını göstermiştir. Bu sonuçlar, Türkiye ekonomisinde tamamlayıcılık (crowding in) etkisiyle kamu yatırımlarının ekonomik büyüme üzerindeki olumlu etkisine işaret etmektedir.

The Asymmetric Effects of Oil Price Shocks on Aggregate Demand for Goods and Services in Ghana

Procyclicality has been discovered in crude oil price shocks on aggregate demand. Most studies have used linear estimation techniques, resulting in the loss of asymmetric correlations. We disaggregate the impact of changes in oil prices into positive and negative shocks on aggregate demand and its components from 1970 to 2015 using the nonlinear ARDL framework. The results show that oil price shocks in Ghana have a long-term beneficial asymmetric impact on aggregate demand and its components. Specifically, a positive change in oil price (0.230) has a greater positive effect on the aggregate demand than a negative effect (-0.009) emanating from a negative change in the oil price shock. Further, the same result was obtained for the components of the aggregate demand with the impact on investment expenditures (0.662) being the greatest. Policymakers should diversify energy demand according to our recommendations. Instead of exporting crude oil, officials should encourage its refinement and consumption. Lastly, we suggest that policymakers hedge and use price-smoothing strategies to reduce oil price volatility.

Using the Induced Response Function to Measure and Analyze the Impact of Fiscal Policy Shocks on Some Macroeconomic Variables

Purpose: The purpose of this research is to use the induced response function to measure and analyze the reality of the general budget and the trade balance and the impact of the flexible fiscal policy on some macroeconomic variables. Theoretical framework: The public finances after 2003 in Iraq were oriented towards consumerism, far from the orientations and objectives of economic policy, through the increase in commercial expenditures at the expense of investment expenditures, in contrast to the increase in the volume of imports of goods and services with the dominance of oil exports over the volume of total exports, and these factors Together, they made the flexible fiscal policy unable to achieve its goals, foremost of which is economic stability. Design/methodology/approach: The study starts from the hypothesis. The fiscal policy shocks were deliberately created by the government as part of strategic plans that serve its policy, philosophy, and goals it seeks, or as preventive plans against undesirable events, or may occur within treatment plans in response to certain pressures. To achieve the objectives of the study and to prove or refute the mentioned hypothesis, the research relied on the descriptive analysis method To reach the required results. Depending on the period from 2003 to 2018 (Iraq is a case study). Findings: The shock that was occurring in the financial policy tools were fabricated by the decision-makers to meet the needs of the security side, which was reflected in its shadows on the increase in current spending resulting from the wages and salaries system and allocations directed to the security system to achieve stability and control the security situation, in addition to the political repercussions that increased the level of employment or Operation to achieve other goals. Research, Practical & Social implications: Future studies can look at measuring and analyzing the impact of fiscal policy shocks on macroeconomic variables or their repercussions on economic, social, and political policies. Originality/value: This study contributes to the literature related to fiscal policy by analyzing the results of the impact of financial shocks on some macroeconomic variables, and provides a practical and applied perception of the role played by the fiscal policy methodology in Iraq.

Insights into CO2 emissions in Europe in the context of COVID-19: A panel data analysis

This paper analyzes the dynamics of CO2 emissions over the last decade for a large group of 25 European countries, an issue that is at the center of the ecological transition project involving various commitments (COP21, COP26, G20 meetings, etc.). To this end, our model measures the repercussions of energy price shocks (oil, gas, coal) for carbon emissions, as well as changes in industrial production and sustainable development in the context of the coronavirus pandemic. Using annual data for 23 EU countries, together with Russia and the UK, our findings show that CO2 emissions reacted significantly to oil and coal price shocks and vary with industrial production cycles. We quantified this reaction while computing the related elasticities. Further, while a significant reduction in CO2 emissions was observed during the COVID-19 pandemic, the stepping up of investment in sustainable development and renewable energy consumption also had a negative impact on CO2 emissions. This suggests that the key driver to reducing the risk of climate change and lowering high carbon dioxide (CO2) emissions involves significant commitment to sustainable development.

Sentiment-driven business cycle dynamics: An elementary macroeconomic model with animal spirits

We propose an elementary macroeconomic model with animal spirits in which aggregate investment expenditure depends on firms’ sentiment. Firms display one of three sentiment states. When national income increases (decreases) strongly, firms are optimistic (pessimistic) and aggregate investment expenditure is high (low). Otherwise, firms are neutral and aggregate investment expenditure is normal. A rigorous mathematical analysis of our elementary macroeconomic model sheds new light on how animal spirits may contribute to fluctuations in economic activity. In particular, we show that a bidirectional feedback process between national income and investor sentiment may create endogenous business cycles that coevolve with waves of optimism and pessimism.

기업규모와 지분가치에 대한 투자효

The purpose of this study is to examine the relative influence of investment expenditure and equity value according to firm size. However, according to previous studies, there is a difference in management decision making and various management policies depending on the size of the company, and the response in the capital market also suggests that there is a difference in the size of the company. The larger the size of the firm and the higher the market dominance, the more likely it is to realize economies of scale, so it is clear that the market response to the investment of these large firms will be different from the market response to the investment of small firms. Therefore, this study focuses on the difference in the size of these companies and examines the relationship between investment and equity value by each size. In addition, it is divided into alternative investment and adaptive investment according to the attributes of investment, and it is intended to compare and examine how these investments affect equity value. Forecasts related to this study are expected to differ in the relationship between investment expenditure and equity value depending on the size of the company, and to differ depending on investment properties. In order to empirically analyze this, this study analyzed the large and small sized companies, and as a result of the analysis, there was a difference in the response of the market in both the large and small sized companies. In other words, investment expenditure, alternative investment, and adaptive investment of large companies showed positive effects on equity value, but small companies showed non－significant effects. The results of this study are expected to provide important implications for research on investment decisions and decision making.

Weaknesses of MMT as a guide to development policy

Abstract This paper addresses the limitations of Modern Money Theory (MMT) as a guide to development policy. We explore two main questions on this topic: whether policies championed by MMT advocates (i) ought to be implemented in low- and middle-income economies and (ii) can be implemented. In relation to the first question, we argue that the MMT literature mischaracterises the essence of the development challenge for low- and middle-income economies. Our argument is that the chief long-run growth challenge faced by developing countries concerns structural transformation rather than general aggregate demand insufficiency. We use several formal representations of the consumption–investment trade-off in growth theory, found in the Harrod–Domar growth model, the Feldman–Mahalanobis model and Kalecki’s 1963 growth model to illustrate this point. Concerning the second question, we argue that even if MMT had the correct diagnosis of the principal growth challenge faced by developing countries, its chief policy recommendations would likely be counter-productive if implemented outside of select advanced economies. We draw from the international economics literature on currency hierarchy and exchange rate volatility to illustrate this point.

Investment, innovation activities and employment across European regions

This study examines the effect of various forms of investment expenditure (gross fixed capital formation, R&D and European Structural and Investment Funds) on employment across NUTS2 European regions from 2000 to 2016. We find that the effect of R&D is heavily conditional upon regional characteristics. Only in NUTS2 regions with medium to high levels of innovation is R&D likely to generate employment. Gross fixed capital formation is labour friendly, but less so in highly innovative regions. Accordingly, the more that European regions shift closer to the world's technology frontier, the more that R&D expenditure, rather than investment in physical assets, will be capable of generating positive employment externalities. Amongst European Structural and Investment Funds, we find an especially significant effect for the European Agricultural Fund for Rural Development (in the more developed regions) and the Cohesion Fund.