Regional Investment Research Articles

The Spatial Spillover Effects of Transportation Infrastructure on Regional Economic Growth—An Empirical Study at the Provincial Level in China

This study examines the spatial spillover effects of transportation infrastructure on regional economic growth, utilizing panel data from 31 provincial-level administrative divisions in China from 2003 to 2022. Using the spatial Durbin model (SDM) and three distinct spatial weight matrices—0–1 adjacency, spatial economic–geographical nested, and GDP-based economic distance matrices—this study comprehensively analyzes the multifaceted impacts of transportation infrastructure. The results show that transportation infrastructure significantly promotes economic growth in both local and neighboring regions across all spatial weight matrices. The total effect is most pronounced in geographically proximate regions, with a coefficient of 7.845 (p < 0.01). Regions with similar economic development levels also show strong collaborative effects, with a coefficient of 2.074 (p < 0.01), although the marginal effect of transportation infrastructure diminishes. Furthermore, adjustments in industrial structure and innovation inputs demonstrate a short-term inhibitory effect on economic growth, highlighting the need for synchronized development of transportation infrastructure alongside industrial and innovation policies. This study incorporates multi-dimensional spatial weight matrices to systematically reveal the direct and indirect impacts of transportation infrastructure on regional economies, providing essential empirical support for regional coordination and infrastructure investment policies. The findings offer valuable insights for infrastructure planning in other regions, particularly in formulating policies that promote cross-regional economic cooperation and optimize resource allocation.

Bangladesh-China-India-Myanmar (BCIM) – Economic corridor: an opportunity for regional connectivity and development cooperation in south and Southeast Asia

China is the largest country in terms of the purchasing power parity (PPP); and the country has started to invest hugely in the developing countries of the Southeast Asia, South Asia, Africa, Central Asia and the Middle-East. It wants to be connected with Europe, Africa and Middle East through its economic corridors such as BCIM, BRI, MSR and OBOR. It can be mentioned here that most of the South and Southeast countries are poor and need huge investment in the infrastructural projects. Therefore, the concept of BCIM is a win-win geostrategic and economic policy for South, Southeast and China. On the other hand, India is largest country in terms of the size of population; and its economy is also rising rapidly. And this country also needs huge investment and development cooperation from the different countries including China. Besides, Bangladesh is a lower middle-income country; it also wants to grow rapidly in terms of economic growth, transfer of technology and infrastructural developments. On other hand, Myanmar is a developing country in Southeast Asia which requires vast developments, transfer of technology, foreign investments in the coastal regions and regional connectivity for economic growth and development. Therefore, carrying out study on BCIM economic corridor is extremely important in the region. It’s a qualitative study in the context of mythology. This study has found that implementation of BCIM economic corridor is very important for South and Southeast Asia including Bangladesh for regional connectivity, trade and investment and development cooperation.

The Impact of Government Data Accessibility on Cross-Regional Venture Capital Investments

This study examines the association between government data accessibility and venture capital (VC)'s cross-regional investments. Exploiting the staggered establishment of government data open platforms (GDOPs) across different cities in China as a positive shock to government data accessibility, we find that this policy significantly increases cross-regional VC investments in treatment cities relative to others. Furthermore, the positive impact is achieved through the reduction of information asymmetry, as the establishment of GDOPs attracts VC investments from greater geographical distances. Additionally, we find a more pronounced positive effect of GDOPs on promoting cross-regional VC investments in regions with higher terrain ruggedness and lower fiscal transparency. Overall, this study demonstrates that the government's informatization and transparency initiatives can positively influence financial markets by enhancing the cross-regional flow of financial capital.

Impact of regional investment on the sustainable development goals: A group analysis of economic and territorial development

AbstractThe European Green Deal aims at increasing the sustainability of European economic sectors to mitigate the effects of climate change. Complementing this initiative, the Next Generation EU (NGEU) program, whose budget will exceed 800 billion € by 2026, is not merely a recovery plan but also a catalyst for green technologies and sustainable activities. Within this framework, Italy stands as the largest beneficiary of funds. The present study explored the distribution to date of 194.4 billion € NGEU funds across Italian regions and the Sustainable Development Goals (SDGs) that have received the most significant attention as a result of this funding. Leveraging multiple comprehensive datasets, including one encompassing more than 306,706 measures and sub‐measures, the analysis revealed that 55.5 billion € was directed towards Italy's “Green Revolution and Ecological Transition,” with a further 104.1 billion € allocated towards (predominantly) SDGs 7 and 9. Moreover, 70.3 billion € was directed towards southern Italy (including the islands), while 81.0 billion € was allocated to the north. Although the population in the north is approximately one‐third larger than that of the south, on a per capita basis, the north received 2930 € while the south received a significantly greater sum of 3470 €. Thus, the NGEU has not significantly reduced the north–south divide in economic terms. Furthermore, some southern regions have shown satisfactory sustainability performance, despite receiving a relatively lower allocation of NGEU funds. The “Made in Italy” initiative may represent a strategic approach to increasing competitiveness in the global and digital markets and fostering fraternity among Italian regions. The present research offers valuable insights into the regional distribution of funds and their impact on sustainable development, suggesting that territorial gaps may be mitigated through a pragmatic, community‐based approach.

Regional divergence in France and international integration: Is foreign direct investment attraction policy part of the problem?

What if certain policy actions that a country takes to promote international integration also promote regional divergence at home? Different policy options available to regions and countries for promoting inward foreign direct investment are considered in a global production networks framework. Theory and evidence suggest that certain pro-integration policies can be divergence-promoting. Mixed evidence for France for the period 1990–2019, including longitudinal statistics and interviews with managers at regional investment promotion agencies, supports this conclusion. If policy itself is encouraging regional divergence, this would help explain the origins of, and also potentially remedies to, the ‘discontent’ in Europe’s peripheral regions. It would also raise questions about the political and social consequences of pro-integration policy prescriptions that flow from the New Economic Geography.

How does regional GDP manipulation affect livelihood investment?

People’s livelihood serves as the primary impetus driving all social activities. Faced with intense regional competition and stringent assessment, regional governments often resort to manipulating GDP figures. This study investigates the repercussions of such economic distortion on residents’ welfare. Our findings reveal a significant negative relationship between regional GDP manipulation and investment in livelihood improvements. This correlation is particularly pronounced during the initial phase of officials’ tenure and diminishes when officials serve in their hometowns. Moreover, we observe that the reduction in livelihood investment is exacerbated during periods of economic downturn. These conclusions contribute to the existing literature on regional GDP manipulation and livelihood investment, shedding light on the potential implications for residents’ welfare.

Impact Of International Trade On Regional Economic Growth

This study aims to analyze the impact of international trade on regional economic growth through literature studies. International trade is one of the main drivers of economic growth in the era of globalization. Despite a significant increase in the volume of global trade, the distribution of benefits is not always evenly distributed across regions. Some regions with adequate infrastructure access and supportive economic policies experience rapid economic growth, while other less developed regions face limitations in taking advantage of international trade opportunities. This study shows that international trade contributes significantly to increasing Gross Regional Domestic Product (GRDP), investment, and job creation, although these impacts depend on the readiness of infrastructure and the competitiveness of each region. Factors such as government policies and access to global markets also play a role in influencing the benefits obtained. This study recommends policies for infrastructure development and strengthening the competitiveness of local products to ensure that all regions can feel the optimal benefits of international trade. The results of this study provide direction for the government in formulating policies that encourage inclusive and sustainable economic growth at the regional level.

Linking regional investments and revenues at the provincial level to investment loan decisions by local government banks in Indonesia

This study aims to analyze how two different types of investments (local domestic and foreign direct investments at the provincial level) and revenues (booked by the provincial governments, general allocation funds, special allocation funds, local taxes, and retribution) affect investment loan decisions by local government banks in Indonesia. The study uses panel data applying ordinary least squares and multiple linear regression. Thus, 144 data were sampled from 2013 to 2021 from 16 local government banks out of Java Island in 21 provinces in Indonesia. The study found that local domestic investment at the provincial level affects investment loan decisions by local government banks. In contrast, foreign direct investment did not affect lending decisions, indicating that local domestic investment contributes to the real local economy at the provincial level. Different results were found in provincial revenues in the form of general and special allocation funds, which negatively affected loan investment decisions, possibly due to provincial revenues utilized to cover the financial deficit and capital expenditure spent chiefly on imported goods. Additionally, local taxes at the provincial level also negatively affect investment loan decisions, possibly due to fluctuations in local tax collection during COVID-19. However, the study found that local retribution contributes to predicting loan investment decisions, suggesting revenue collection by the governments considering local economic conditions. The study findings suggest that provincial governments should direct investments that can impact the local economy and spend their revenues on goods and services that can drive local economic growth. AcknowledgmentThe investment loan made by local government banks, which is associated with local investment and revenue, is part of a research grant project from the Economics and Business Faculty of Hasanuddin University. This project is a result of collaboration with national and international researchers. In carrying out this research, some inputs from people working in local government banks, financial service authorities, and provincial and regency governments are addressed.Thanks to Ahmadi Usman for secondary data and Syahidah Ulhaq for some application programs enabling mapping literature, as well as Israa Natiq Jabar for supervising the result and applied some inputs in the section of research method.

Regional perspective on prospects and risks of the renewable energy in Russia

AbstractThe expansion of renewable energy (RE) relies on both natural factors and socioeconomic conditions fostered at the regional level. This paper examines the key factors influencing RE development in selected Russian regions. We conducted a literature review, surveyed 250 industry experts, and analyzed reports from energy and rating agencies, along with natural resource maps, to identify specific risks and indicators. Our expert survey revealed that the most significant technical risks are low resource potential (68%), energy system surplus (68%), and the absence of transport logistics with neighboring regions (58%). Politically, the lack of additional sector initiatives (6%) was noted. Economically, the high cost of RE (56%) and insufficient experience with “green” investments (54%) were highlighted. Social factors included low unemployment rates (74%), and the absence of remote areas without power supply (72%). Environmentally, the lack of enterprises for energy unit utilization (84%), low greenhouse gas emissions (60%), and insufficient accessible territories for facilities (58%) were significant concerns. We developed risk profiles for nine Russian regions, categorizing them into leaders, intermediates, and nascent stages of RE market formation. Our findings indicate that the most impactful factors include resource potential, space limitations for energy facilities, proximity to equipment manufacturers, regional support measures, and the development of “green” investment instruments. Conversely, regional investment attractiveness had a lesser influence. On the basis of these insights, we recommend enhancing RE development through refined federal and regional support programs. We propose additional criteria for project selection: (1) minimum construction costs covered by “green” investments and (2) quantitative restrictions on new capacities, considering regional energy system status. Practical recommendations also include developing regional centers for servicing generating facilities and increasing the sector's investment attractiveness to stimulate private investment.

DETERMINANTS OF REGIONAL TAX REVENUES WITH DOMESTIC INVESTMENT AS MODERATING VARIABLE

This study aims to find out whether gross regional domestic product, labor class, and domestic investment as moderating variables affect local tax revenue. The sample in this study were all provinces in Indonesia. Sampling using saturated samples. Data analysis using panel data regression. The amount of data observed is 198 data. The results showed that gross regional domestic product, and labor had a significant influence on local tax revenue, while domestic investment could not moderate gross regional domestic product and total labor on local tax revenue.

Efektivitas Layanan Arsip dalam Pembuatan Salinan Perizinan di Dinas Penanaman Modal dan Pelayanan Terpadu Satu Pintu (DPMPTSP) Kabupaten Kubu Raya

This study aims to analyze the performance of the Investment and One-Stop Integrated Services Agency (DPMPTSP) of Kubu Raya Regency in efforts to increase regional investment. The research method used is descriptive qualitative analysis with a case study approach. Data were obtained through in-depth interviews, observations, and documentation studies. The results show that DPMPTSP Kubu Raya Regency has implemented various service innovations that have successfully increased the efficiency of the licensing process and investment realization. The implementation of the Online Single Submission (OSS) system and the "Jemput Bola" service has reduced licensing process time by up to 30%. Focus on developing superior sectors, especially agribusiness, has contributed 40% of total investment. The "UMKM Go Digital" program has successfully increased MSME turnover by 30%. However, challenges remain, such as digital infrastructure gaps and inter-agency coordination. This study concludes that DPMPTSP's comprehensive approach in regulatory reform, infrastructure development, and institutional capacity building has contributed significantly to creating a conducive investment climate in Kubu Raya Regency.

The Tendencies of Cryptocurrency Policies in Indonesia

Cryptocurrency has set intriguing and innovative trends in investment amidst the fluctuating global economy following government policies. This research aims to investigate the trends of policies of cryptocurrency in Indonesia, seen from the perspective of taxation and investment laws. Low tax charged in Indonesia is seen as relaxation by investors and cryptocurrency users, while the trends in legal policies concerning investment are experiencing hyper regulations in legislative products set to assure investors, in comparison to those of other countries. These trends attract some attention from investors and cryptocurrency users from abroad. This research is a unique offering that will illustrate which countries are suitable and friendly for businesspeople to carry out crypto business activities. The methodology used in this study is normative research with a conceptual approach and comparative law. The research results are expected to shed light on foreign investors wishing to invest their money in cryptocurrency businesses by considering the low tax from the perspective of current taxation law in Indonesia compared to those in Canada, the United States, and Singapore. According to the details of taxation in Canada, the United States, and Singapore, it is obvious that Indonesia gives ease to foreign cryptocurrency investors in Indonesia from the aspect of taxation law. The countries compared seem to charge very high taxes for cryptocurrency users and businesses in investment cryptocurrency. This comparison gives easier access to foreign investors to invest their assets for the development of cryptocurrency businesses and companies in Indonesia by considering the amounts of taxes imposed on cryptocurrency businesses and users. Indonesia makes it easier for foreign cryptocurrency investors in Indonesia compared to Canada, the United States, and Singapore from a tax law perspective. In terms of investment regulations, Indonesia has broader laws and regulations compared to other countries, where the investment process involving cryptocurrency businesses in Indonesia receives sufficient attention from these laws and regulations.KEYWORDS: Cryptocurrency, Investment Law, Taxation Law.

Assessment of the Quality of the Regional Investment Environment in the Context of Ensuring the Technological Sovereignty of the Economy

Assessment of the Quality of the Regional Investment Environment in the Context of Ensuring the Technological Sovereignty of the Economy

Spatial and temporal differentiation and its driving factors of air quality in the economic circle of Shandong Province during 2013–2020

As the negative repercussions of environmental devastation, such as air quality decline and air pollution, become more apparent, environmental consciousness is growing across the world, forcing nations to take steps to mitigate the damage. China pledged to achieve air quality improvement goal to combat global environment issue, yet the spatial-temporal differentiation and its driving factors of environment-meteorology-economic index for air quality are not fully analysed. To promote regional collaborative control of air pollution and achieve sustainable urban development, spatial and temporal different and its driving factors of air quality in Shandong Province during 2013–2020. Results revealed that concentrations of sulfur dioxide (SO2), nitrogen dioxide (NO2), particulate matter 2.5 (PM2.5), particulate matter 10 (PM10), and carbon monoxide (CO-95per) exhibited decreasing trend (SO2 concentrations decreasing 84 % and CO-95per concentrations decreasing 90 %). Air quality was improved from inland areas to coastal areas. Pollutant indicators of SO2, NO2, PM10, PM2.5, and CO-95per demonstrated significant positive correlation (P < 0.05). Air temperature and precipitation are significantly negatively correlated with concentrations of SO2, NO2, PM10, PM2.5, and CO-95per but significantly positively correlated with ozone (O3-8 h). SO2, NO2, PM2.5, PM10, CO-95per, and proportion of days with heavy pollution are strongly positively correlated with proportion of secondary industry but strongly negatively correlated with proportion of tertiary industry and volume of household waste. Except for O3-8 h, pollutant index of Provincial Capital Economic Circle (PCEC) and Southern Shandong Economic Circle (SSEC) has significant negative correlation (P < 0.05) with regional gross domestic product and investment in environmental protection; however, investment in environmental protection of Eastern Shandong Economic Circle (ESEC) has no significant correlation with air pollution index. There was significant negative correlation between vegetable sowing area and SSEC pollutant index. The relationship between pollution emission and investment in environmental protection has shifted from high pollution-low investment to low pollution-low investment in PCEC, ESEC and SSEC, and the inflection point was in 2020 for PCEC, 2019 for ESEC, and 2020 for SSEC. Those results provide empirical evidence and theoretical support for the improvement of regional air quality, aiming to achieve high-quality development. According to these findings, it has been found that meteorological elements, pollutant emission, socio-economic factors and agricultural data affect air quality. Those results could provide meaningful and significant supporting for synergistic regulation of diverse pollutants.

Peri-urbanisation in Surakarta City and Economic Transformation in the Fast-Growing Region of Sukoharjo Regency

The massive development of Surakarta City, a city with a strategic location, has caused a butterfly effect on its surrounding area. This research explores the economic transformation of Sukoharjo’s peri-urban, specifically in five districts, namely Mojolaban, Gatak, Grogol, Kartasura, and Baki, as the area adjacent to Surakarta City. A quantitative approach is employed with descriptive quantitative analysis techniques and scoring analysis. Primary data collection is based on the results of stakeholder’s interviews and field observations and secondary data gathered from government documents and literature review. The study results show that in the period 2000 – 2020, there has been economic transformation in Sukoharjo’s peri-urban area, especially the changes from rural to urban characteristics. The transformation can be indicated by the changes in population, livelihoods, agricultural land use, regional investment, and the number of emerging small and medium industries (SMIs) in each peri-urban region in the northern part of Sukoharjo. This research contributes a perspective on the unique characteristics of the diverse economic transformation driven by different patterns of land-use changes. It recommends that policymakers foster the roles of peri-urban areas in creating mutual development and sustainable urbanisation.

Competency level and determinants among infection prevention and control staff in the Middle East and North Africa region

BackgroundCompetency of the staff working in infection prevention and control (IPC) is the cornerstone of successful IPC programs. The objective was to assess competency level and associated factors among IPC staff working in the Middle East and North Africa (MENA) region.MethodsA cross-sectional study was carried out in 2019 among active IPC staff who were members of the Arab Countries Infection Control Network. The questionnaire covered demographic and professional characteristics of IPC staff and characteristics of work facilities and IPC programs. A competency score was created from self-perceived responses to 8 competency domains. The competency score was then transformed into 100-scale and categorized into two groups (≥ median and < median).ResultsA total of 176 participants completed the survey. Participants were mostly female (65.7%), and the mean age was 40.2 ± 8.3 years. The mean competency score was 61.4%. It was slightly variable between domains, being highest with preventing transmission of infection (65%) and lowest with sterilization and disinfection (59%). Higher (≥ median) competency score was associated with having CBIC certification (p < 0.001). It was also associated with facilities having IPC plan (p = 0.005), IPC committee (p = 0.049), regular meetings of IPC committee (p < 0.001), and IPC plan included communications with healthcare workers (p < 0.001). Domain-specific competency scores were significantly associated with receiving same domain-specific training (p < 0.05 for all).ConclusionsThe competency levels of IPC staff in the MENA region is still suboptimal. The current finding calls for more regional and national investment in IPC staff by providing up-to-date customized educational and training opportunities.

Regional drivers of industrial decarbonisation: a spatial econometric analysis of 238 EU regions between 2008 and 2020

ABSTRACT The European context of socio-economic integration and physical proximity likely plays an essential role in explaining the decarbonisation outcomes of industrial sectors. However, there is hardly any spatial regional analysis on CO2 emissions drivers in European countries. This study investigates the role of geographical space and regional determinants in industrial decarbonisation by analysing how socio-economic drivers and their interregional relationships impact industrial carbon emissions in European regions. We employ a spatial panel data econometric model to a novel panel dataset comprising 13 years (2008–20) of carbon emissions from hard-to-abate industrial sectors from 238 NUTS-2 regions across 27 European Union countries. Results indicate the presence of endogenous spatial interactions and high-time persistence between CO2-eq emissions in European Union regions. As such, industrial carbon emissions of regions follow similar patterns to their neighbours, supporting the evolutionary economic geography and growth theory assumptions of the spatial interaction of carbon emissions between regions. Furthermore, the use of a spatial econometric model illustrates the negative direct and spillover effects that higher levels of education and regional investment in research and development have on industrial CO2-eq emissions.

Determining the optimal food hub location in the fresh produce supply chain

Purpose Using recent US regional data associated with food system operations, this study aims at building optimization and econometric models to incorporate varying influential factors on food hub location decisions and generate effective facility location solutions. Design/methodology/approach Mathematical optimization and econometric models have been commonly used to identify hub location decisions, and each is associated with specific strengths to handle uncertainty. This paper develops an optimization model and a hurdle model of the US fresh produce sector to compare the hub location solutions between these two modeling approaches. Findings Econometric modeling and mathematical optimization are complementary approaches. While there is a divergence between the results of the optimization model and the econometric model, the optimization solution is largely confirmed by the econometric solution. A combination of the results of the two models might lead to improved decision-making. Practical implications This study suggests a future direction in which model development can move forward, for example, to explore and expose how to make the existing modeling techniques easier to use and more accessible to decision-makers. Social implications The models and results provide information that is currently limited and is useful to help inform sustainable decisions of various stakeholders interested in the development of regional food systems, regional infrastructure investment and operational strategies for food hubs. Originality/value This study sheds light on how the application of complementary modeling approaches improves the effectiveness of facility location solutions. This study offers new perspectives on elaborating key features to encompass facility location issues by applying interdisciplinary approaches.

A Comparative Analysis of the Gas Pipeline Geopolitics of China and India in the Central Asia Republics

After the discovery of large oil and gas deposits in Central Asia, the region has become a vital battlefield for major world powers’ competing interests, resulting in a complex geopolitical and energy transportation interaction known as ‘pipeline politics’. After independence, multinational energy companies and global powers contacted the Central Asian Republics. Chinese investment has dominated the region’s energy sector throughout the past decade. India is strategically seeking Central Asia’s energy resources as it becomes more global. This article compares China’s and India’s Central Asian natural gas strategy and identifies research shortcomings. The complex geopolitical landscape is considered while examining their objectives and regional investments. This analysis reveals these methods’ motivations and their effects on the Central Asian Republics and the world. China has an advantage over India in Central Asian pipeline politics, making the region vital to China’s energy security.

ECONOMIC-STATISTICAL ANALYSIS OF THE DEVELOPMENT OF THE FRUIT AND VEGETABLE SECTOR IN UZBEKISTAN

This article describes the current state and dynamics of the agricultural network of our republic, an economic and statistical analysis of the production of agricultural products in economic entities and promising directions. The activities of farms operating in our country were also carefully analyzed, and with the help of statistical methods, the role and importance of this industry in the development of the industry was revealed. Dynamic changes in statistical indicators of network development over the years are shown. KEY WORDS: agriculture, agricultural products, gross domestic product, gross regional product, agriculture, livestock breeding, structural changes, investments, regional economy, economic and statistical analysis, agrarian reforms, socio-economic processes .