Competition For Investment Research Articles

Modeling and techno-economic analysis of the integration of a FC-based micro-CHP system for residential application with a heat pump

This work aims to analyse the techno-economic performance of an integrated system for a residential CHP (Combined Heat and Power) application, based on the integration of a Fuel Cell (FC) micro-cogeneration device coupled with an Heat Pump (HP).The main components of the system are: the Fuel Cell unit, the Heat Pump and the thermal storage – required to cover the thermal peaks, mainly due to the domestic hot water demand. The analysis will be focused on the most diffused FC technologies for residential applications: a low temperature Polymer Electrolyte Membrane Fuel Cell (PEMFC) and a high temperature Solid Oxide Fuel Cell (SOFC).FC-based cogeneration systems usually produce an electric power surplus respect to the thermal production, because of their high electrical efficiency. Currently, however, the households heating load exceeds significantly the electricity requirements, thus making difficult the sizing of a FC system for a single family house without including large electrical and thermal storages or high grid/boiler integration. The combination of a Fuel Cell and an Heat Pump has been found to be an optimal solution to manage this problematic while achieving a reduction in the primary energy consumption and avoiding energy overproduction.In the proposed scenario the heat is exploited by feeding both the domestic hot water and a low-temperature radiant floor heating system operating between 35 °C and 45 °C.An energy and economic analysis has been performed to understand and to evaluate the plant feasibility.Results have pointed out that the best economic choice, with the current energy tariff scenario, is related to a small size FC-based CHP system able to produce enough electrical power to feed the HP plus a low electrical consumption (<1 kW electrical size), which corresponds to the base electrical household consumption (the electrical power which is near-always requested by the house). The electrical load is in fact deeply changing during the day (with one-minute variable peaks) and with a higher electrical production from the FC, most of the electrical power would be sold to the grid without no energy advantages.The best PEMFC configuration was able to reach a total efficiency of 75%: if compared to the case with separated energy generation (electricity from the grid and heat from a boiler) the saving is estimated in three years of payback for the current scenario (2015).With the SOFC system, thanks to its higher total efficiency equal to 81%, the primary energy consumption was reduced (−30% respect to PEMFC) with a consequent reduction in the operating costs. However, from an economic point of view, the payback still results extended because of its not competitive investment cost.

The legal character of mineral rights under the new mining law of Kenya

Kenya enacted a new mining law in May 2016. The law aims to position Kenya as the most attractive destination for mining investment in Africa and to enhance the country’s competitiveness globally. A key feature underpinning the new legal framework is the emphasis on security of mineral rights. Secure mineral rights are considered to be a critical component of a competitive mining investment climate. One aspect of security of mineral rights is the legal character of the mineral rights or titles that may be held by or granted to prospective applicants. The right to explore for and produce a mineral in Kenya is conferred by a mineral right over a defined area and over a period which is granted pursuant to the mining law. In this context, investors are interested in knowing the nature of the mineral rights which the title confers upon them and the circumstances under which the mineral right may be terminated, and the remedy available to the holder. This article discusses the legal character of mineral rights under Kenya’s new legal framework. It focuses, in particular, on the protection that the mining law offers to holders of mineral rights.

To disclose or not to disclose: How global competition for foreign direct investment influences transparency reforms in extractive industries

In the last decade, the Extractive Industries Transparency Initiative (EITI) has grown in both popularity and influence. The ascendance of EITI is surprising because traditionally, leaders of resource-rich states prefer to tightly control their extractive industries. This paper investigates the underlying causes of EITI membership in order to understand its acceptance, even among some of the most authoritarian regimes. The paper argues that leaders of resource-rich countries use the EITI to consolidate their international prestige as eager reformers, which serves to both maintain and lure foreign investment. The cross-national and interrupted time series analyses reveal that EITI members not only have higher FDI levels compared to non-members, but these investments increase once countries join the initiative.

Moving Up the Value Chain in ICT: ASEAN Trade With China

ABSTRACTThe rise of China increased competition for foreign direct investment and exports for the ASEAN economies. It also increased ASEAN trade with China. But, are ASEAN countries able to move up the value chain in their trade with China? The objectives of this article are to examine upgrading in the information and communications technology (ICT) value chain through changes in the product quality of parts and components (PNC) exports from ASEAN to China and the influence of these changes on their ICT trade with China. The main findings indicate that there is little or no product upgrading in the most important SITC 776 sub-component of the PNC exports from the four major ASEAN economies (ASEAN-4) to China after 2005. It is also found that improvements in product quality are more apparent for SITC 772 but this product group constitutes a small share in total manufactured exports from the ASEAN-4 to China. Lastly, with little or no product upgrading, exporters from the ASEAN-4 have shifted to exports of non-PNC goods to China. This shift has enabled the overall ICT exports from the ASEAN-4 to China to continue to grow for the period of this study.

Double-edged incentive competition for foreign direct investment

This paper studies the impact of special interest lobbying on competition for foreign direct investment (FDI) in a common agency framework. We argue that special interest lobbying may provide an extra political incentive for governments to attract FDI. We show that compared with the benchmark case where governments maximize national welfare, now (1) an economically disadvantageous country has a chance to win FDI competition; (2) the equilibrium subsidy for attracting FDI is higher than in the benchmark case; (3) allocative efficiency cannot be always achieved.

METHODOLOGICAL ASSESSMENT OF TERRITORIAL COMPETITIVE POSITIONS: CONSUMER GOODS AND SERVICES INDUSTRIES AND MARKETS INFRASTRUCTURE IN KEMEROVO REGION CASE STUDY

Abstract: The priority tasks of the modern times include challenges in assessment of the industrial competitiveness. Today the problem of assessing the competitiveness of regions is the main and the first. When competition for investments, innovations and new technologies between regions increases, the role of their key competitive positions start to go up too. A development of methodological approaches to assessment of territorial competitive positions of a region is a primary focus of the article. Consumer goods and services industries and markets infrastructure of Kemerovo region were selected to be an object of the current study. The results of our earlier works presented three groups of competitive positions to assess competitiveness of a given region: territorial competitive positions of a region (TCP), industrial competitive positions of a region (ICP), territorial and industrial competitive positions of a region (TICP). The object of more detailed research is some positions of the first group. The TCP has been divided into two subgroups: basic TCP (based on geographical location and general resource potential) and controllable TCP (built up by a region proactively in a targeted manner). Today the region market infrastructure becomes one of the most important controllable TCP. It is academic and practical interest to work out assessment methods to evaluate a rate of its development and contribution into economic performance of a region. Market infrastructure was classified by three characteristics: functional and industrial, services markets, hierarchical. To evaluate development rate of consumer goods and services markets infrastructure in Kemerovo region we defined its components and suggested three groups of indicators: absolute and relative, flow data, overall. Sets of additional indicators further determine each of the above groups. Through the detailed analysis, the overall indicators were used to assess Kemerovo region economic structure and how industries and consumer goods and services markets infrastructure contribute to its GRP. We analyzed changes that occurred in economic structure of the region during the last years and presented macroeconomic, aggregated, enlarged model of Kemerovo region. The study generally concludes that there is a need to further strengthening of territorial competitive position in service sector.

Keeping Up WithWhichJoneses: Spatial Diffusion of Rule of Law Through Economic International Organizations

I develop a theory of spatial diffusion of the rule of law, where “space” is conceptualized as shared memberships in economic international organizations (IOs). I argue that the rule of law diffuses as a result of economic competition and socialization. Outside evaluators, such as international leaders, activists, and most importantly, international firms and investors, often assess states’ attractiveness as a business venue by comparing them to similar states. The natural reference group for such comparisons is not just geographical neighbors, but also states with shared memberships in economic IOs. Responding to this evaluation, states identify members of their own reference groups and view them as competition for investment. As a result, states within the same reference groups converge on issues related to lowering domestic economic risks, which are referred to by the umbrella term “domestic rule of law.” The resulting process of policy convergence is further aided by socialization. Socialization may involve emulation of policies of similar states or “active” learning through norm entrepreneurs, who use the reference groups for both evaluation and access to their target audiences. I capture the theorized spatial processes using a multiparametric spatiotemporal autoregressive model (m-STAR) and find support for the prediction.

Contested Continuity: Competing Explanations of the Evolution of the Corporate Form

:The history of the electric utility industry provides the occasion for testing competing explanations of the emergence and persistence of the corporate form. This industry, characterized by capital intensity, intense competition, and attractive investment opportunities — along with rapid technological change as well as legal and regulatory changes — provides lessons for newer industries with network externalities. Drawing on the work of institutional economics and business history, I examine the evolution of the electric power industry in the US to test competing explanations of choices of finance and technology.

Crowdfunding: The collaborative economy for channelling institutional and household savings

The financial disintermediation mechanism known as “loan-based-crowdfunding” has recently come under regulation in several countries. This competitive investment and finance vehicle is already well established in the US and British markets.By compiling empirical data from a reference crowdfunding platform, this article compares loan-based crowdfunding with traditional investment vehicles such as investment funds, equities or pension funds.The conclusion of the study is that saving through crowdfunding allows the optimization of a portfolio comprising both institutional and retail investors.

Early-stage entrepreneurial financing: A signaling perspective

We analyze an entrepreneur’s choice between angel and venture capital (VC) financing in a competitive investment market, where the entrepreneur seeks to maintain his ownership share as well as equity value. The key to our analysis is the idea that a negative signal is inferred by the market if an inside investor chooses not to follow on a subsequent investment. We first show that when ventures are ex-ante identical, entrepreneurs retain higher ownership shares by financing with angel investors who commit to not participate in a future round. When entrepreneurs are ex-ante heterogeneous, there is a separating equilibrium where entrepreneurs with higher (lower) likelihoods of success choose VC financing (angel financing) in the first round.

Impact of Bayesian Learning and Externalities on Strategic Investment

We investigate the interplay between learning effects and externalities in the problem of competitive investments with uncertain returns. We examine a game theoretic duopoly investment model in which (i) a firm can learn about the profitability of the investment by observing the performance of the first mover and (ii) externalities exist between the investments of two firms. We find a region of a war of attrition between the two firms in which the interplay between externalities and learning gives rise to counterintuitive effects on investment strategies and payoffs. In particular, we find that, contrary to the conventional war of attrition where an increase in benefits for the follower generally delays the first move, an increase in the rate of learning—which tends to benefit the follower—can hasten the first investment. This paper was accepted by James Smith, decision analysis.

How organizational design and ERP implementation have become investment in competitiveness: The case of 'Sintelon'

At the end of 2002, Sintelon entered in strategic partnership with Tarkett, as a privatized, well-organized and restructured company with implemented ERP software as well as with the potential for investment and growth in the broad area of Europe and Asia. The direction of restructuring of Sintelon was defined and elaborated primarily in three documents - studies: Revision assessment of the proposed new organization of Sintelon, The functioning of Sintelon after restructuring and Sintelon strategic planning methodology. The new organizational solution implied formation of divisions based on criteria of business areas (business lines) while maintaining strategic support functions at the company level. The improvements in the information system made possible for hundreds of people within the company to have better understanding of the links between financial and non-financial elements of the business, to develop more precise and detailed plans and to better understand the overall business process.

Optimal Amount and Timing of Investment in a Stochastic Dynamic Cournot Competition

By making use of the optimal stopping theory, we construct a multi-stage stochastic Cournot model to examine the effect of increase in uncertainty and number of entrants on the amount and timing of strategic cost reduction investment. It is revealed that firms should enlarge and postpone the investment if 1) the market is more uncertain, or 2) there exist more firms in the market.

The Role of Supply Chain Investment in Capacity Competition

When a manufacturer enters a new geographic location to explore product- and factor-market opportunities there, one crucial concern is that its investment in building new production capacity might ...

Aggregation with Cournot Competition: An Empirical Investigation

This paper empirically investigates the existence of Cournot equilibrium and the validity of the Le Chatelier-Samuelson (LCS) principle in the aggregate. Whereas two well known existence conditions are statistically rejected, we cannot reject a third, original, condition. We also find some empirical evidence for the LCS principle, as well as both increasing and constant returns to scale for two-digit US manufacturing industries. The results highlight the importance of imperfect competition for understanding aggregate growth, investment and employment.

The role of place branding in local and regional economic development: bridging the gap between policy and practicality

Place branding has become an increasingly integral part of local and regional economic development strategies in the global competition for business investment. Professional and academic understanding remains limited, however, regarding whether place branding can be classified as a ‘high-road’ policy with substantive and effective merits or a ‘low-road’ policy that is generally inefficient and ineffective at fostering sustainable economic growth. Through the context of business attraction, this study examines whether place branding represents ‘high-road’ policy by comparing what economic development practitioners are doing to create and support their brands against the needs and desires of businesses considering relocation. The research goal is achieved through a series of in-depth interviews with economic development practitioners (n = 25) and private-sector site selectors (n = 10) in the province of Ontario, Canada. Gaps between policy and practicality are identified by comparing the responses of the two groups. Results demonstrate that place branding has the potential to be ‘high-road’ policy given its utility in business attraction. In its current implementation, however, place branding remains better described as a ‘low-road’ policy, as it is not being used efficiently. Several gaps in place-branding policy are identified, including an overreliance on visual identities and narratives, poor communication of the brand information, and overemphasis on presenting quality of life and affordability. These gaps present possible areas of ineffectiveness that can limit the ability of a place brand to attract investment, but provide areas of future policy improvements, thus enabling place branding to shift from ‘low road’ to ‘high road’.

Innovation race under revenue and technology uncertainty of heterogeneous firms where the winner does not take all

ABSTRACTWe analyze the competitive investment behavior on innovative products or services under revenue and technology uncertainty for heterogenous firms. Firms make a decision on how much to invest in research and development of an innovative technology at the beginning of the time horizon. They discover the technology at an uncertain time in the future. The time of successful discovery depends on the amount of investment and the characteristics of the firms. All firms collect revenues even though they are not winners. Although there can be positive or negative external shocks, the potential revenue rates decrease in time and the first firm to adopt the technology is less prone to negative shocks and benefits more from positive shocks. Therefore, the competition is a stochastic race, where all firms collect some revenue once they adopt. We show the existence of a pure strategy Nash equilibrium for this game in a duopoly market under general assumptions and provide more structural results when the time to successfully innovate is exponentially distributed. We show the uniqueness of the equilibrium for an arbitrary number of symmetric firms. We argue that for sufficiently efficient firms who are resilient against market shocks, consolidating racing firms will decrease their expected profits. We also provide an illustrative computational analysis for comparative statics, where we show the non-monotonic behavior of equilibrium investment levels as examples. It appears that the equilibrium investment level behavior in innovation can be highly dependent on firm characteristics.

Mirror Images in Different Frames? Johor, the Riau Islands, and Competition for Investment from Singapore by Francis E. Hutchinson ISEAS, Singapore, 2015 Pp. 150. ISBN 978-981-4620-45-1

Mirror Images in Different Frames? Johor, the Riau Islands, and Competition for Investment from Singapore by Francis E. Hutchinson ISEAS, Singapore, 2015 Pp. 150. ISBN 978-981-4620-45-1

Are Stricter Investment Rules Contagious? Host Country Competition for Foreign Direct Investment Through International Agreements

We argue that competitive diffusion is a driver of the trend toward international investment agreements (IIAs) with stricter investment rules, namely defensive moves of developing countries concerned about foreign direct investment (FDI) diversion in favor of competing host countries. Accounting for spatial dependence in the formation of bilateral investment treaties (BITs) and preferential trade agreements (PTAs) that contain investment provisions, we find that the increase in agreements with stricter provisions on investor-state dispute settlement and pre-establishment national treatment is a contagious process. Specifically, a developing country is more likely to sign an agreement with weak investment provisions if other developing countries that compete for FDI from the same developed country have previously signed agreements with similarly weak provisions. Conversely, contagion in agreements with strong provisions exclusively derives from agreements with strong provisions that other FDI-competing developing countries have previously signed with a specific developed source country of FDI.

Are stricter investment rules contagious? Host country competition for foreign direct investment through international agreements

We argue that competitive diffusion is a driver of the trend toward international investment agreements with stricter investment rules, namely defensive moves of developing countries concerned about foreign direct investment (FDI) diversion in favor of competing host countries. Accounting for spatial dependence in the formation of bilateral investment treaties and preferential trade agreements that contain investment provisions, we find that the increase in agreements with stricter provisions on investor-to-state dispute settlement and pre-establishment national treatment is a contagious process. Specifically, a developing country is more likely to sign an agreement with weak investment provisions if other developing countries that compete for FDI from the same developed country have previously signed agreements with similarly weak provisions. Conversely, contagion in agreements with strong provisions exclusively derives from agreements with strong provisions that other FDI-competing developing countries have previously signed with a specific developed source country of FDI.