Expansion Of Investment Research Articles

On the spillover effect of China's outward FDI in Germany

AbstractThe outward foreign direct investments of China have been steadily decreasing since the 21st century up to a point where the country has begun to passively accept direct investments from outsiders and holding off its active investments in expansion. Such trend has motivated scholars to examine the effects of countering investment. In line with these efforts, this study uses German firm‐level data from the Academus database to examine the investment of China in Germany as its research object. Using the new investment review system as a quasi‐natural experimental event construction instrument variable, an empirical analysis of how the investments of China in Germany can produce spillover effects on the productivity of German firms highlights the significant and robust effects of such investments as well as their negative horizontal and backward vertical spillover. Such negative spillover effect is particularly salient among German industries with low product heterogeneity, import and export intensities, and R&D levels of China.

NEPLAN-Based Analysis of Impacts of Electric Vehicle Charging Strategies on Power Distribution System

This paper aims to analyze the impacts associated with the incorporation of EV charging stations into the distribution network. Using NEPLAN software, a typical distribution network was simulated and analyzed under normal conditions and with integrated coordinated and uncoordinated EV charging stations. A comparative study was then conducted on the main parameters of the distribution system: voltage profiles, transformer loading, as well as power demand and losses. Based on the simulation results, it can be argued that the worst adverse effects are associated with an uncoordinated charging strategy, while the use of a coordinated charging strategy demonstrates significant improvements. Although the distribution network components or requirements of either strategy have not been changed, it is evident, however, that shifting and splitting EV loads has resulted in a coordinated approach that eliminates all adverse effects. Implementing these strategies helps to overcome the challenges of incorporating charging stations into the distribution network, such as equipment overheating, rapid aging issues, as well as the need for additional investment in distribution infrastructure and capacity expansion.

Follicular fluid during individual oocyte maturation enhances cumulus expansion and improves embryo development and quality in a dose-specific manner

We evaluated the effect of supplementation of different concentrations of bovine follicular fluid (FF) during in vitro maturation (IVM) on oocyte development and blastocyst quality in group and individual culture conditions. To do so, in vitro maturation medium (TCM-199 with 20 ng/mL epidermal growth factor and 50 μg/mL gentamycin) was supplemented with 0 (control), 1, 5, or 10% of FF. Follicular fluid was collected from slaughterhouse-derived ovaries, selecting follicles between 12 and 20 mm in diameter. Oocytes were either produced in groups or individually matured, fertilized, and cultured to the blastocyst stage, allowing for separate follow-up of each oocyte. Development (cleavage and blastocyst rates) among experimental groups were fitted in mixed-effects models, and blastocyst quality parameters (assessed via differential apoptotic staining) were evaluated in mixed linear regression models. We also assessed the cumulus expansion (prior and after maturation) for individual culture conditions, and their difference was fitted in mixed linear regression models. The FF was collected from two batches, with an estradiol/progesterone ratio higher than 1. The FF batch did not affect the development or blastocyst quality in group or individual culture conditions (P > 0.05). In group culture, development was similar among experimental groups (P > 0.05). Five or 10% of FF supplementation improved (P ˂ 0.05) aspects of blastocyst quality such as total cell numbers (TCN), trophectoderm (TE), inner cell mass (ICM), and ICM/TCN and apoptotic cells/TCN ratio in comparison to control. In the individual culture system, 5% FF supplementation increased (P ˂ 0.05) day 8 blastocyst rate (33 ± 3.4% (LSM ± SE)) in comparison to control (20 ± 2.7%) and 1% FF supplementation (19 ± 2.6%) but it was not different (P > 0.05) from 10% FF supplementation (28 ± 3.4%). Five percent of FF supplementation resulted in greater TCN, ICM, and ICM/TCN than control (P ˂ 0.05). It also resulted in a greater expansion of cumulus cell investment than the other groups (P ˂ 0.05), with a 3-fold increase compared to control. In conclusion, 5% of FF supplementation during IVM improved the cumulus expansion and the blastocyst development and quality in an individual culture system. However, FF supplementation during maturation in a group culture system did not increase development, but it modestly improved some embryo quality aspects when 5 or 10% of FF was added.

The potential for expansion of irrigated rice under alternate wetting and drying in Burkina Faso

Achieving rice self-sufficiency in West Africa will require an expansion of the irrigated rice area under water-scarce conditions. However, little is known about how much area can be irrigated and where and when water-saving practices could be used. The objective of this study was to assess potentially irrigable lands for irrigated rice cultivation under water-saving technology in Burkina Faso. A two-step, spatially explicit approach was developed and implemented. Firstly, machine learning models, namely Random Forest (RF) and Maximum Entropy (MaxEnt) were deployed in ecological niche modeling (ENM) approach to assess the land suitability for irrigated rice cultivation. Spatial datasets on topography, soil characteristics, climate parameters, land use, and water were used along with the current distribution of irrigated rice locations in Burkina Faso to drive ENMs. Secondly, the climatic suitability for alternate wetting and drying (AWD), an irrigation management method for saving water in rice cultivation in irrigated systems, was assessed by using a simple water balance model for the two main growing seasons (February to June and July to November) on a dekadal time scale. The evaluation metrics of the ENMs such as the area under the curve and percentage correctly classified showed values higher than 80% for both RF and MaxEnt. The top four predictors of land suitability for irrigated rice cultivation were exchangeable sodium percentage, exchangeable potassium, depth to the groundwater table, and distance to stream networks and rivers. Potentially suitable lands for rice cultivation in Burkina Faso were estimated at 21.1 × 105 ha. The whole dry season was found suitable for AWD implementation against 25–100% of the wet season. Soil percolation was the main driver of the variation in irrigated land suitability for AWD in the wet season. The integrated modeling and water balance assessment approach used in this study can be applied to other West African countries to guide investment in irrigated rice area expansion while adapting to climate change.

Chinese and Indian FDI in Hungary and the role of Eastern Opening policy

The aim of this paper is to assess the main features of Chinese and Indian investments in Hungary and the role of the Hungarian Government’s Eastern Opening policy in the attraction of investments from these two Asian giants. This paper covers the sectoral distribution, modes of market entry, and motivations of Chinese and Indian foreign direct investments. The automotive sector is the most attractive sector for investors from both countries. ICT manufacturing (electronics) and services, and the renewable energy sector are also very attractive for Chinese companies. The same is true for IT/BPO services and the chemical sector in the case of Indian companies. Chinese and Indian companies enter the Hungarian economy mainly through green-field investments or acquisitions. Market-seeking and strategic asset-seeking motives are dominant in the case of investors from both countries. This paper also puts a special emphasis on studying the impacts of Hungary’s Eastern Opening policy (launched in 2012) on Chinese and Indian investments. The findings show that the Eastern Opening policy has had a significant impact on the investment decision (location choice) of new Chinese and Indian investors and further expansion of investments by Chinese and Indian companies located in Hungary due to four factors, namely high-ranking political meetings, strategic cooperation agreements, cash grants from the Hungarian Government and supportive services of HIPA.

Implications to the electricity system of Paraguay of different demand scenarios and export prices to Brazil

Paraguay's power system is based entirely on hydropower. It serves as the largest net electricity exporter in Latin America. Nonetheless, the country´s electricity consumption per capita is one of the lowest in the world and the transmission and distribution network has one of the highest losses in Latin America. This paper presents an electricity expansion investment outlook (2018–2040) for Paraguay using OSeMOSYS, analyzing three electricity demand scenarios under different electricity export prices to Brazil. The study identifies the least-cost power generation mix, future investments and the financial requirements to meet the needs of different demand scenarios. We find that Paraguay will need to invest in hydropower plants, by mainly expanding the capacity of Yacyreta to cover its electricity needs and sustain national electricity exports levels. In the High demand scenario, where the electricity demand could approximately double by 2040, the country's overall electricity exports decrease by 50% compared to the Reference scenario. Based on the different scenarios examined, the government spends approximately 18.3–31.2 billion USD on power plant investments for the period 2018–2040 to cover future electricity demand. The findings could be useful in supporting decision-making concerning socio-economic development pathways in the country.

Airport infrastructure investments and valuing expansion decisions using the compound real option approach

This study examines the value and the best time period to expand the investment of an airport infrastructure project by operating a flight school, skydiving center and guesthouse on the airport using compound real options and net present value methods. The results demonstrate that real option value of the project is more optimistic than traditional valuation method and the best time for expansion investment is eighth year of the operation. Moreover, sensitivity analyses showed that, the strongest variables effecting the project are volatility and discount rate. The findings show how real option methods and sensitivity analysis can contribute to future decisions of the managers.

Crossing the Brownian Bridge: valuing infrastructure capacity expansion policies as real options

In countries where transportation infrastructure is underdeveloped, newly built facilities tend to attract and increase demand. This can lead to situations where future traffic levels exceed the concession capacity limit, and additional investments in expansion is required. One common solution is to mandate this investment as a firm obligation in concession contracts, either after a set number of years or when demand reaches capacity. In this article, we show why these policies are suboptimal and propose a model that combines flexible capacity expansion decisions with conditional term extensions. We model this flexibility under the real options approach and the project value uncertainty during the life of the concession as a Brownian Bridge. As a novel contribution, we take into account the fact that concession revenues are bounded by the current traffic capacity of the road, which represents an upper absorbing barrier that has implications for the expansion decision. As a numerical application, this model is applied to a typical toll road project in Brazil. The results show that flexible expansion policies, coupled with conditional term extensions, have significant advantages. These findings can be of use to government officials involved in developing policies to attract private investment in public infrastructure projects.

Cash Flow and Profit Impact on Capital Account Liberalization-Investment Growth Nexus in Nigeria: An Aggregated Firm Case

Abstract The article examines the firm’s investment growth effect following capital liberalization and financial constraints. It employs firm-level aggregated data of 80 firms for the period of 2006 to 2016. Employing the differenced dynamic panel regression technique, the analysis has revealed among others that investment growth appears to be significantly determined by cash flow (internal), thereby indicating the presence of profound financial constraint among firms in all industries. Second, the capital account liberalization appears to drive investment more through the indirect channel (capital/credit availability channel proxied by cash flow). Third, capital account liberalization-investment growth nexus appears to be less sensitive and significant with high profitability. This could be attributed to “profit flight” or repatriation of profit by foreign investors who may not necessarily prefer ploughing back of profit, which has implication for further expansion of investment among firms. This suggests that the level of capital openness is still low; hence, there is a need for further liberalization of the capital account with some mandate of profit ploughing back.

Drivers of agricultural productivity: Evidence from transforming economies

Abstract This study empirically investigates the drivers of agricultural productivity in transforming economy. The study used a 35-year period (1980–2014) panel data sourced from World Development Indicators, Penn World Table, United States Department of Agriculture and Statistics on Public Expenditure for Economic Development. Data used for the study include Agricultural Productivity (AP), Real Gross Domestic Product (GDP), Government Agricultural Expenditure (EXP), Agricultural Trade Barrier (ATB), Consumer Price Index (CPI), Farm Machinery (MACH), Fertiliser (FERT), Human Capital (HCAP) and Irrigation (IRRG). Data were analysed using Impulse Response Function, Levin-Lin-Chu unit root test, Johansen-Fisher Panel Cointegration test and Panel Least Squares regression technique. Impulse Response Function revealed that ln (GDP)reacted negatively to a shock from ln (Agricultural Productivity). Levin-Lin-Chu unit root test revealed that the variables were stationary either at level or at first difference. The result of the Johansen-Fisher panel cointegration test showed that for every case at 5 percent level of significance, we reject null hypothesis of no cointegration. Panel Least Squares revealed that Agricultural Trade Barrier (α = 0.0531, p < 0.05), Human Capital (α = 1.2409, p < 0.01) and Irrigation (α = 0.0771, p < 0.01) increased Agricultural Productivity. However, Fertilizer (α = −0.0730, p < 0.01) decreased Agricultural Productivity. This study therefore concluded that Agricultural Productivity will grow in transforming economy with trade restriction on imported agricultural tradable commodities, increased investment in human capital and expansion in irrigation application. The study therefore recommends measures that will protect domestic agriculture, capacity building of the farmers and improved irrigation infrastructure that will enhance small scale farmers for all-season cropping.

Comparison of the labor market between the countries of the Western Balkans

The improvement of the labor market, the management, the expansion of foreign direct investment, etc., all play a key role in the economic development of the Western Balkans. The main purpose of this study is to analyze and compare trends in employment, unemployment, gross domestic product (GDP), foreign direct investment (FDI), labor market management and to study the effects of foreign direct investment on employment in the Western Balkans (Albania, Bosnia and Herzegovina, Kosovo, North Macedonia, Montenegro, and Serbia) between 2015 and 2019. However, evidence for FDI’s impact is mixed (Navaretti & Venables, 2004). In terms of methodology, comparative and empirical analyses of the strength of the correlation between the dependent variable of employment and the independent variable of FDI for the countries of the Western Balkans have been conducted. Based on analyses, the employment rate in the six Western Balkan countries in 2019 has improved when compared to 2018, except in Montenegro, where it has declined. This study will contribute to enhance understanding of the labor market and the impact of FDI on employment in the Western Balkan countries

FOREIGN INVESTMENT OF UKRAINIAN BUSINESS

The qualifying thesis is devoted to the study of Ukraine's attractiveness for foreign investment, as well as the main problems in attracting foreign direct investment. The principles of state regulatory policy in the field of FDI in the group countries have proven their effectiveness, but cannot be fully taken into consideration as a basis for Ukraine because of different conditions of sociopolitical and socio-economic development. A comprehensive analysis – quantitative and qualitative – of foreign direct investment in Ukraine was held: the periods of FDI inflows, their main trends, FDI regulation features have been considered; factors and conditions of influence on the investment process in Ukraine have been determined; the essential characteristics of foreign direct investment have been revealed through consideration of the dynamics and structure of FDI inflows by regional, sectoral and geographical distribution. The results of the analysis showed the lethargy (lack of qualitative expansion) of foreign direct investment and the inconsistency of the investment structure to the strategic objectives of Ukraine's development. This characterized by a significant degree of regional heterogeneity, low diversification of FDI revenues by geographical distribution, the relatively low share of investment in the real sector. The methodological approach to assessing the effectiveness of FDI in the system of economic security indicators has been improved, which has been characterized by the use of a number of indicators (determination of threshold and optimal values of indicators, their weights) and the appropriate methodology for calculating the integrated index. The assessment made it possible to establish that during the analyzing period the integrated index was within the danger zone. The values of the indicators testified the lack of environment for the proper and effective functioning of FDI, as well as the need to improve management in the field of foreign direct investment in the context of NEI implementation.

Прямые инвестиции из России за рубеж: изменения с 2018 года

The article considers the specifics of Russian foreign direct investment outflows in 2018 – the first half of 2020. Three main reasons for the new stagnation of Russian foreign investment expansion are identified: 1) the strengthening of “sanctions war” with the West after the election of Vladimir Putin for the 4th presidential term; 2) the slowdown in the global economy in 2018-2019 against the background of relatively low prices for hydrocarbons and other raw materials exported from Russia; and 3) the crisis caused by the coronavirus pandemic in 2020. These factors resulted in a reduction of both outward foreign direct investment stocks by Russian MNEs (partially due to revaluation of their assets after the collapse of the ruble rate), and a decrease in investments of wealthy Russians in foreign real estate as well as pseudo-foreign investment because of the regular attempts to conduct de-offshorization. Based on a study conducted at INION within the framework of the international program for studying MNEs from emerging markets, a list of leading Russian non-financial MNEs by the end of 2019 is presented. Further prospects of Russian direct investment are shown at the end of the article.

Direct Investment from Russia Abroad: Changes since 2018

The article considers the specifics of Russian foreign direct investment outflows in 2018 - the first half of 2020. Three main reasons for the new stagnation of Russian foreign investment expansion are identified: 1) the strengthening of sanctions war with the West after the election of Vladimir Putin for the 4th presidential term;2) the slowdown in the global economy in 2018-2019 against the background of relatively low prices for hydrocarbons and other raw materials exported from Russia;and 3) the crisis caused by the coronavirus pandemic in 2020. These factors resulted in a reduction of both outward foreign direct investment stocks by Russian MNEs (partially due to revaluation of their assets after the collapse of the ruble rate), and a decrease in investments of wealthy Russians in foreign real estate as well as pseudo-foreign investment because of the regular attempts to conduct de-offshorization. Based on a study conducted at INION within the framework of the international program for studying MNEs from emerging markets, a list of leading Russian non-financial MNEs by the end of 2019 is presented. Further prospects of Russian direct investment are shown at the end of the article. © 2021 Ltd Integration: Education and Science. All rights reserved.

O Programa de Aceleração do Crescimento (PAC): uma análise preliminar sobre as implicações do PAC-1 nos investimentos em infraestruturas sociais e urbanas

Neste artigo, analisa-se a Política de Saneamento Básico no Brasil, tomando como referência ações direcionadas ao abastecimento de água e esgotamento sanitário, buscando entender a tendência no segundo mandato do Governo Lula – marcadamente sob referência das proposições da primeira etapa do Programa de Aceleração do Crescimento (PAC). A análise empreendida se apoia na direção teórico-metodológica do materialismo dialético crítico, entendendo-o como capaz de compreender tendências, determinações e contradições que permeiam o objeto analisado. Os resultados da pesquisa apontam que os rebatimentos dessa dinâmica estiveram pautados na ampliação do crescimento e do investimento em infraestrutura, materializada, inicialmente, na redefinição do aparato normativo e financeiro para o setor, que, todavia, reverberou interesses do capital, sob o mote público/privado, que permeia o atendimento às necessidades sociais de acesso à água e esgoto. Portanto, essa configuração se reafirma no contexto do PAC sem alterar significativamente o déficit de atendimento às demandas por Saneamento Básico.

A novel approach for distributed generation expansion planning considering its added value compared with centralized generation expansion

Abstract Technological progress of distributed generation (DG) units, global approach to reduce the pollution emissions, and creating the opportunity for local investors to participate in the generation expansion investment, are some of the important reasons to involve the DG as an alternative option in the GEP. In this regard, expansion of the DG units compared to the expansion of centralized generation units should be evaluated economically and technically. Therefore, this paper proposes a novel approach for modeling the composite centralized and distributed generation expansion planning problem in the regulated power system. An integrated objective function is presented to involve the most important decision-making factors overall the power system. The purpose is to find the optimal combination of generation expansion created by power plants and DG units to minimize the total costs related to generation expansion, operation, maintenance, fuel, emission, distribution loss and expected energy not supplied, for the decision-making period. The proposed model reveals as a mixed integer nonlinear programming where, genetic algorithm is applied to find the optimal solution which contains the capacity, technology and operation strategy of non-stochastic DG units that will be optimally allocated into some distribution feeders. Results confirm the effectiveness and superiority of the proposed approach.

Property Rights and Governance of Land Resources in Pastoral Areas of the Oromia Region, Ethiopia

This article examines customary institutions governing rangeland resources in the Oromia Region, Ethiopia. Using data from different pastoral groups, we employed a case-study approach to explore how property rights are defined and enforced. The study indicates heterogeneity in systems of defining and enforcing rights. Due to the fugitive nature of resource use in pastoral systems, property rights vary seasonally. Though flexibility in the definition of such rights has become central to the survival of pastoral herders, formal administrative boundaries and policies have limited resource access, becoming sources of violent conflict and obstacle to customary systems. Government policies favouring private land use, expansion of large-scale investment on pastoral land, establishment of national parks, and certification of privately used land challenged the smooth functioning of customary land governance. This implies that state intervention should not undermine customary systems but permit them to exercise rangeland governance and ensure pastoral rights to secure livelihoods.

Cash transfers and residential demand for electricity: insights from BISP, Pakistan.

We examine the causal impacts of the cash transfer program, namely the Benazir Income Support Program (BISP), on residential demand for electricity among ultra-poor in Pakistan. We also analyze the effects of BISP cash transfers on a household's decision to acquire electrical appliances. The empirical analysis is based on the fuzzy regression discontinuity design (RDD) using primary data collected from 1200 households. We find that BISP cash transfer has a significant positive impact on electricity demand among the target group. The cash transfer positively affects the use of few essential electric appliances, such as a washing machine and refrigerator, but not all electrical appliances. The electricity demand mainly stems from the additional use of existing electrical devices. Therefore, the extra income from BISP may not allow the recipients to move up the electric appliances ladder. The provincial analysis shows that the impact of BISP cash transfers on electricity demand varies across provinces and the development level, signifying the importance of regional heterogeneities, such as electricity supply. The findings suggest that cash transfers may facilitate the transition from traditional to modern energy to overcome the rising pollution problem and protect health. The expansion in the cash transfer program demands continuous investment in the power sector to fulfill the growing need for electricity.

Conditional factors for training activities in Chinese, Indian and Mexican subsidiaries of German companies

PurposeThe purpose of this paper is to analyse the qualification measures of 12 German multi-national companies (MNCs), all of which are present in China, India and Mexico. In particular, the transfer of dual initial training practices and further training measures are investigated. It examines the impact consistent training strategies across national borders have emerged in German companies or local arrangements have developed despite identical internal influencing factors.Design/methodology/approachBecause of its design, the focus is on the external factors that influence the companies’ training measures. However, an exploratory approach was followed. To pursue the research question face-to-face expert interviews were conducted with 46 training managers in 12 active companies in all 3 countries. The interviews were completely transcribed and evaluated using qualitative methods.FindingsThe analysis shows that it is not internal company factors but country-specific contextual factors that influence training measures and that companies cannot act in the same way worldwide.Research limitations/implicationsThe study is based on 12 MNC and only analyses the blue-collar area. Therefore, it would have to be evaluated whether a similar analysis would result from a survey of other companies in different sectors or whether the differences in terms of training and further training measures would then be even greater.Practical implicationsThe study supports the internationalization strategies of MNC by providing first-hand empirical results concerning recruitment and training of blue colour workers on an intermediate skill level. It gives evidence on the need of national adaptation in the process of transferring training cultures from countries of origin into the host countries. More attention must, therefore, be paid to external factors when developing and implementing training measures.Social implicationsThe economic development in many countries includes an expansion of foreign investments. MNC provides employment and income for workers and their families. However, successful foreign investments also include sustainable recruitment and training strategies of the local workforce. The results of the study support policymakers to guide and support foreign companies to develop successful Human Resource Management strategies in the host countries.Originality/valueThis paper is original because due to the research design the internal factors are kept largely constant and the external influencing factors are singularly focused in detail. Therefore, this procedure makes it possible to investigate whether consistency training strategies across national borders have emerged in German companies or local arrangements have developed despite identical internal influencing factors.

Modelling and computation of optimal multiple investment timing in multi-stage capacity expansion infrastructure projects

<p style='text-indent:20px;'>So far, the optimal investment timing to maximize the total profit of multi-stage capacity expansion infrastructure projects is not clear. In the case of uncertain demands, the optimal multiple stopping time theory is adopted to model the optimal decision-making of investment timing for multi-stage expansion infrastructure projects in a finite time horizon. In this context, the first-stage of the project involves a dedicated asset investment for later expansion, and the capacity of the project at each stage is constrained, which makes the cash flow of the project exhibit the characteristic of bull call spread. The upwind finite difference method and multi-least squares Monte Carlo simulation are combined to solve the project value and determine the optimal exercise boundaries at all stages described by a sequence of demand thresholds. A multi-stage power plant project is taken as an example to validate the model. Through the example, the optimal investment strategies and the value of the multi-stage project are provided; the effects of the dedicated asset and capacity constraint are illustrated. This study novelly reveals the effect of the capacity constraints on the project value using the bull call spread theory.</p>