Investment Partnership Research Articles

Asymmetric linkages between public-private partnership, environmental innovation, and transport emissions

No one denied the significant role of transportation infrastructure in economic development; however, it is also considered a major contributor to global warming. Therefore, to achieve sustainable development, it is imperative to transform the transport sector investment into low-carbon transportation choices. The public-private partnership investment in the transport sector could be proved a suitable tool for sustainable transport and efficiency. Therefore, we investigate the significance of public-private partnership investment (PPP) on transport emissions by incorporating the role of environmental innovation, economic growth, and population. Our preliminary findings confirm that all variables are abnormally distributed and embodied with structural breaks that distort true parameters in traditional regression. In compliance, we employ Quantile ARDL (QARDL) technique which provides more reliable results in case of non-normality, dynamic trends, and structural changes in data. The long-run empirical outcomes indicate that PPP reduces transport emissions mainly from middle (40th) to highest (95th) emissions quantiles. Similarly, environmental innovation reduces transport emissions from 60th to 95th quantiles. These results imply that the emissions-mitigating effect of PPP and environmental innovation is only pronounced at higher levels of transport emissions. The results provide valuable policy recommendations.

Transnational Corporations in Transregional Initiatives: Goals and Problems of Participatio

The activities of transnational business have already become an integral part of the global political and economic development, affecting integration processes in the world. However, the dichotomy of relations between a state and TNC in the context of trans-regional development is not fully understood. The article analyzes the consequences of quantitative and qualitative strengthening of TNC in the world political processes on the example of four major trans-regional projects - the Trans-Pacific Partnership, the Trans-Pacific Trade and Investment Partnership, European Union and MERCOSUR Free Trade Agreement, the Belt and Road Initiative. The authors define the tools promoting each project, which reflect the nature of interaction between states and TNC at the trans-regional level. In addition, the study highlights various objectives of TNC participation in a particular trans-regional association, as well as appropriate resources for the implementation of their interests, which can generally be divided into economic, political and image. To answer the question on how states and transnational business interdepend not only in trans-regional processes but also in the world economy, the authors, based on the practice of modern world politics, construct models of the relationship between states and business and come to the conclusion that the type of interaction these actors use largely depends on states internal political system, as well as their foreign policy goals. Nevertheless, despite the increasing role of TNC as an influential actor in world politics, at the moment it is premature to declare that they are completely independent from states.

Выявление зависимости между финансовыми инструментами для структурирования венчурного раунда и инвестиционной стадией развития портфельной компании

The purpose of this article is to identify the financial instruments that a venture capital fund uses when structuring а round of financing and the investment stages of development of a portfolio company. Based on a systematic literature review we investigated the portfolio companies’ investment stages, at which venture capital investments are made: seed stage, start-up stage, early stage, expansion stage. As a result of this study the definition of “venture investments” has been clarified. This article examines the financial instruments that venture capital funds use to structure a deal with portfolio companies’ founders on the venture stages of development. It has been established that the choice of financial instruments is the result of the negotiation process between the venture capital fund and new venture founders and depends on the risk of failure, which is determined by the investment stage of the portfolio company. Moreover, shortcomings of the national legislative regulation system were highlighted, and positive trends were noted in the national rule-making process – the adoption of a federal law that establishes the procedure for using a convertible loan. The possible ways of structuring the transaction between the founders and domestic venture capital funds formed under investment partnership agreements were identified. The results obtained can be used to build a venture infrastructure with operating mechanisms that are understandable for foreign investors.

Central Asia in modern integration economic processes

Subject. This article discusses the issues of cooperation between Russia and the countries of Central Asia in the field of investment. Objectives. The article aims to identify the most effective economic investment partner for building integration processes in Central Asia and identify the reasons for the strengthening of China's role in the economic development of the region. Methods. For the study, I used a comparative analysis and the expert assessment method. Results. Based on the analysis of investment flows in the region, the article finds that the countries of the region are tending more to bilateral relation arrangement with China. Conclusions. The countries of Central Asia need to develop a unified strategy that takes into account their own national interests and the most acute problems, as well as determine the form of partnership both among themselves and with integration associations and other countries, especially with China.

China in Africa: On the Competing Perspectives of the Value of Sino-Africa Business Relationships

In this article we examine how the strategic investment partnership between China and African countries has come to be identified and labeled in the discourse on Sino-African relationships. The emerging narrative is that Chinese investment in Africa is fraught with issues such as labor abuses, risky loans, and imported labor, therefore contributing little to employment generation and local skills development. Nevertheless, we identify good Chinese-financed business outcomes, suggesting that Chinese investments in Africa have positively impacted technology transfer and significantly bridged Africa’s infrastructure gap; our estimation points to a high workforce localization rate within Chinese firms, of above 80%. In making explicit how these competing perspectives play out in the form Sinophilia and Sinophobia, we induce an integrative framework which assimilates the two perspectives to delineate the affection/disaffection phenomena characterizing the evolving China-Africa business relationship. We also set out an agenda for future research.

International legal aspects of the European Union’s foreign trade policy

Effective foreign trade policy has a direct impact on innovative development, diversification of national economies and increasing their competitiveness, investment partnership, and ultimately – is an effective tool for responding to existing challenges and potential risks of a competitive international environment. At the same time, in the system of providing the necessary conditions for effective foreign trade and foreign trade policy are of principal importance on the one hand regulatory support, development and application of legislation that would ensure the proper level, and of organization and promotion of international trade relations, on the other hand, providing the necessary protection to national producers in relations with foreign partners. The analysis of scientific publications devoted to the foreign trade policy in the system of international relations shows that the emphasis of domestic authors is primarily focused on the economic component. At the same time, the legal support of these processes remains to a certain extent ignored, especially regarding the implementation of the experience and practical developments of the relevant structures of the European Union. In theoretical terms, the interdisciplinary nature of regulatory support for foreign trade policy is overlooked to a certain extent. Scientific, practical and methodological value in this context are the issues of study, analysis and gradual implementation in the Ukrainian practice of EU regulatory norms in the field of foreign trade policy in order to ensure the effectiveness of export-import operations. Defending the national economic interests of Ukraine should remain an absolute imperative. It is proved that in the system of providing the necessary conditions for effective foreign trade and foreign trade policy, regulatory support, development and application of legislation that would ensure the proper level, on the one hand, of organization and promotion of international trade relations, on the other hand, providing the necessary protection to national producers in relations with foreign partners is of primary importance. It is relevant for the domestic practice of foreign trade relations to develop a strategy for the development of Ukraine's foreign trade based on the EU experience. Orientation to the regulatory standards of the European Union for the development and assistance of domestic business entities can lay in the development of this strategy the principles of ensuring an appropriate level of competitiveness in foreign markets, which is one of the factors of the country's economic growth.

Экономическая конвергенция в методологии структурных сдвигов

Throughout the entire period of market transformations, the trend towards the distance of the Russian economy from technologically advanced countries has persisted, in terms of both the dynamics of the main macroeconomic indicators and structural proportions. This is due to the high sensitivity of the Russian economy to external shocks, including technological ones, as well as a number of successive negative structural shifts. At the same time, the commonality of endogenous processes, which affect the structure of factors of production and distribution of national income, in the economies of advanced and catching up countries is not fully associated with economic convergence. The studies are dominated by exogenous sources of convergence - sociopolitical, cultural. Therefore, the study of the role and place of structural shifts in the system of economic convergence is a methodological approach that allows one to come close to the theoretical foundations for stabilizing macroeconomic dynamics, reducing the susceptibility of the national economy to external shocks, and entering a long-term growth trajectory above world rates. In this article, the authors consider the problem of launching convergent structural shifts - the basis for the transition of the Russian economy from economic divergence to convergence with advanced countries, which was the basis for the aim of this study. Within the framework of this article, a methodology for analyzing structural shifts in their mutual influence on technological, structural and economic convergence is presented. The authors give a typology of convergent and divergent structural shifts that bring the national economy closer or further away from technologically advanced market systems. Such a typology of structural shifts implies the endogenous nature of economic convergence, due to a change in the proportions of accumulation and consumption, the involvement of production factors in the creation of national income and its distribution, contrary to the prevailing exogenous approach to the study of economic convergence. Based on the presented typology, the article highlights the factors of structural convergence -neo-industrial and fundamental investment, associated with a priority increase in funding for fundamental research, the creation of new innovation and investment partnerships between the state and business, and the modernization of basic industries based on convergent technologies. The authors show that these factors should be institutionalized in a system of convergence-oriented structural policy, which is a key condition for the transition of the Russian economy from structural divergence to convergence, with access to a sustainable growth trajectory and a reduction in exposure to external shocks.

Risks in the formation of public-private partnership investment funds and factors to reduce them

Risks in the formation of public-private partnership investment funds and factors to reduce them

The Effect of Public-Private Partnership Investment, Financial Development and Renewable Energy Consumption on Ecological Footprint in South Asia and Pacific Region

The Effect of Public-Private Partnership Investment, Financial Development and Renewable Energy Consumption on Ecological Footprint in South Asia and Pacific Region

Ռուսաստանի դեմ պատժամիջոցների ազդեցությունը Հայաստանի տնտեսության վրա. հնարավորություն, թե՞ խոչընդոտներ / Impact of Sanctions Against Russia on the Economy of Armenia: an Opportunity or an Obstacle?

The paper deals with the impact of sanctions against Russia on the economy of Armenia. Under difficult economic conditions, the pressure of sanctions on the economy of the Republic of Armenia is great, since Russia is the main trade and investment partner of the Republic of Armenia. The sanctions led to a slowdown in the global economy and accelerated inflation. In turn, the EAEU countries, including Armenia, fell under the influence of various factors of the turbulent external environment. It should be noted that today Armenia was able to minimize the negative impact of the sanctions applied against Russia on the economy, and to some extent take advantage of the opportunities that have opened up.

Determinants of CO2 emissions in the BRICS economies: The role of partnerships investment in energy and economic complexity

The anthropogenic implications of energy consumption, real income level, and natural resources abundance have been well documented in the environmental economics literature. However, given the uniqueness of many economies i.e., partnerships investment in energy and economic complexity around the globe, it is imperative to investigate the nexus between the outlined variables in a carbon-income framework. To this end, we leverage on second- generational panel methods for its superiority over first-generation model over annual frequency data from 1990 to 2018 for the case of BRICS countries. Empirical findings show that positive changes in trade openness and economic complexity stimulate environmental quality. On the contrary, economic growth, natural resources and public-private partnership contribute to environmental degradation. Based on these results, new insights are obtained for the policymakers, and policies are recommended to develop the environmental quality in BRICS economies.

EU STRATEGIC INTERESTS IN KAZAKHSTAN IN THE CONTEXT OF GEOPOLITICAL AND GEO-ECONOMIC CHANGES IN THE REGION WITH FOCUS ON CHINA

Kazakhstan has an important position as the EU´s main trading partner in Central Asia and the EU has been its largest trade partner as well as the largest source of foreign direct investment. The importance of China as trade and investment partner is rising, on the contrary, the EU’s share is declining. Even though there remains plenty of scope for further growth, mutual relations and cooperation are influenced by increased geopolitical tensions and geo-economic changes in the wider region. The paper evaluates the position of the EU and its strategic interests in Kazakhstan in the context of geopolitical and geo-economic changes in the region based on the assessment of the trade and investment position of the EU in comparison with the position of China.

Strategy for the Development of Public-Private Partnership in the Context of Global Changes

In modern science and practice, public-private partnership is the interaction of the public and private sectors: in a broader sense, any cooperation in various spheres of public life, supporting society with entrepreneurship and strengthening its social role. The intensification of the process of public-private partnership development is due to the steady growth of demand for public services and increased attention of a wide range of people to optimise their provision. Today, public-private partnership has become an important tool for attracting investment to create a modern public service infrastructure. The purpose of this study is to examine possible strategies for the development of public-private partnerships in the context of decentralisation. The methodological basis of the presented research is a combination of theoretical methods: information synthesis and analysis, classification, systematisation. In addition, an analysis of the scientific literature on the research subject was conducted during the study. In particular, articles on public-private partnerships were analysed. As a result of the study, the general trend towards decentralisation of power and reform of local self-government was established, which means transferring more powers to local state structures, where the state, represented by a territorial community, becomes one of the main subjects. It is proved that partnerships between local communities and business structures, including foreign ones, considerably expand the competence of local authorities, in particular, attract investment in the development of urban infrastructure. Based on the analysis of European experience and considering the specific features of Ukrainian legislation, the most acceptable forms of cooperation between the state and companies were identified: private partnership investment agreements, asset management agreements, leases, concessions, and joint venture agreements. The practical value of the study is that the highlighted results will be useful for public and private sector managers

Competitiveness of the EU Agri-Food Sector on the US Market: Worth Reviving Transatlantic Trade?

The systematically strengthening role of emerging economies has become a factor strongly determining the overall trade policy of the European Union (EU) and the United States of America (USA), as well as their bilateral relations. One of the initiatives aiming at the strengthening of economic ties within the transatlantic partnership, as a consequence promoting stabilization of the positions of the EU and the USA in the world economy, was related with negotiations concerning the Transatlantic Trade and Investment Partnership. The EU-USA trade talks were suspended at the end of 2016; however, the establishment of the EU-USA free trade area might be a breakthrough in the transatlantic relations, while the conclusion of this agreement would significantly determine the competitive position of the agri-food sector of these two economies, both in their bilateral relations and in world trade. In view of the above, the aim of this paper is to estimate the competitive position of the EU agri-food sector in transatlantic trade considering the conclusion of the agreement establishing the EU-USA free trade area. For this purpose, Widodo’s method of mapping products on the target market was applied. Results from the conducted analyses suggest that from 2010–2020 comparative advantages gained by the EU on the US market were sources of an advantageous export specialization. In view of the forecasted dynamic increase in agri-food export from the EU to the USA caused by possible liberalization of bilateral trade, the relatively strong competitive position of the EU on the American market might be maintained or even strengthened. However, such a situation would be determined by the regulatory cooperation progressing with the reduction of tariffs.

Remittances and the future of African economies

AbstractAfrican nations have, with the passage of time, over‐relied on remittance inflow to augment domestic savings for growth and development. Although remittance—both as a viable investment financing option and as a growth complementary factor—helps drive growth and development, concerns of fading altruism exist. As regards altruistic giving, decreasing external financing options might overwhelm growth and development. We argue that the altruistic connection, which has been the bedrock of sending remittances to African countries, could eventually fade into oblivion. We assigned numerical weights to establish the influence of remittances on the future of African economies. We took cognizance of endogeneity of regressors and accounted for cross‐sectional dependence. We found a positive relationship between remittances and financial development besides the influence of exchange rate, technological change, inflation and population on the latter. African governments, donors, investment partners and the society at large should be concerned about fading altruistic connections from old and young African migrants. Altruism could be a springboard to the diversification of external capital sourcing and creation of a migrant policy that puts Africa at the forefront of development ahead of seeking increased worker remittances from abroad.

Problems of Social and Economic Modernization of Kazakhstan

The article analyzes the features of the socio-economic development of the Republic of Kazakhstan after gaining independence in 1991. It is noted that historically the economy of Kazakhstan for many decades was formed as a raw material base for the unified national economic complex of the USSR. Under the conditions of independence, the raw materials industries, primarily the fuel and energy and mining and metallurgical complexes became the basis for the socio-economic development of Kazakhstan, thanks to which the country made an economic breakthrough and deeply integrated into the world economy. Kazakhstan is the leader among the post-Soviet countries in terms of the volume of attracted foreign direct investment, which contributed to the increase in the extraction of natural resources, the construction of new industrial enterprises and infrastructure facilities. The most important trade and investment partners of Kazakhstan are the European Union, the Russian Federation, China and the United States. At the same time, despite the geographical proximity, common social and ethnocultural features, only 4.9% of Kazakhstan’s foreign trade falls on the neighboring countries of Central Asia.
 The dependence of Kazakhstan on the sale of raw materials, the low investment attractiveness of the manufacturing industries make the country’s economy vulnerable to changes in the situation in the commodity markets, periodically lead to an aggravation of the socio-economic situation. In the structure of Kazakhstani exports, about 70% are products of the extractive industry. A problem in the development of the energy sector is the limited supply routes for energy carriers to world markets. The issue of changing the model of economic growth through the development of high-tech sectors of industry and support for small and medium-sized businesses is extremely relevant. The system of public administration, which is too bureaucratic and cumbersome, also needs to improve efficiency. Also, a reform of social policy is ripe, which should be aimed at increasing social support for citizens. It is necessary to change the strategy for the development of regions, primarily with regard to the creation of jobs and the reduction of regional imbalances.

Transatlantic Trade and Investment Partnership, and Environmental Consequences

We empirically investigate the effect of the <i>Transatlantic Trade and Investment Partnership</i> on the per capita emissions of eight air pollutants and municipal waste. By introducing the same explanatory variables and applying the same empirical strategy and methodologies as in Qirjo and Pascalau (2019), we provide robust evidence suggesting that the implementation of the partnership could be beneficial to the environment because it may reduce per capita emissions of CH<sub>4</sub>, hydrofluorocarbons/ perfluorinated chemicals/ SF<sub>6</sub>, N<sub>2</sub>O, NH<sub>3</sub>, and SF<sub>6</sub> for a typical partnership member. This result is based on statistically significant evidence showing that, on average, the pollution haven motive based on national per capita income variations is dominated by the factor endowment argument based on the Heckscher-Ohlin trade theory and the pollution haven motive originating from an inverse measurement of national population density differences. However, we also report statistically significant evidence that the implementation of the partnership could denigrate the environment by increasing per capita emissions of SO<sub>2</sub> and municipal waste.

Investment Evaluation and Partnership Selection Model in the Offshore Wind Power Underwater Foundations Industry

With a plan to achieve a target of 5.7 GW offshore wind power capacity in 2025, Taiwan anticipates building a 36-billion USD industry, which makes Taiwan a center of attention in the global marketplace of civil engineering construction. Aimed at Taiwan’s underwater foundations industries, this study is the first to develop an investment evaluation model (IEM) by applying FPR to obtain risk factor weights and calculate the overall investment risk value with a numerical scoring method. In a context where no precedent exists for reference, this study provides auxiliary and supportive tools to help builders to make the decision, based on objective indicators, whether to undertake an investment. To date, no research has been conducted to introduce a reasonable mathematical model that discusses the issue of partner selection in the field of offshore wind power. This study is the first paper to construct a SWARA-FTOPSIS partner selection model, which enables underwater foundations builders to take specific Taiwanese characteristics into account in their selection of the best partners to meet transportation, construction, and installation requirements. Finally, the study uses the case of the Taipower Offshore Wind Power Project (2nd phase) to verify the feasibility of this model.

Conjectured Cournot Duopoly Model for the EU–US Automobile Trade: A Game Theoretic Analysis of the TTIP’s Most Traded Product

Economic actors, in their interactions with each other, certainly make decisions which are able to improve their original situation. In the case of free trade agreements, tariffs have the effect to manipulate countries’ trade and welfare. In this paper, we try to estimate the impacts of the Transatlantic Trade and Investment Partnership (TTIP) on the profit level of participating countries in the context of the Cournot duopoly model. More specifically, we elaborate the most traded product (MTP) and determine the profit levels in the equilibrium regarding two scenarios (pre and post situations of the TTIP). The findings suggest that the Cournot model seems suitable since it illustrates the possible options and provides a guideline for the decision-making process. Based on the model, it can be shown at which point the highest benefit can be achieved for the participating economies (EU, US) i.e. how long it is worth for the parties to apply additional automotive tariffs.

Investment Partnership in the realm of Other Forms of Joint Ventures Existing in Russia in comparison with US Limited Partnership

Globally the developed countries economies exist in conditions of ever-increasing competition. In recent decades, the states whose economy is based on modern technologies, the introduction of innovations and the creation of a favorable environment for their emergence has gained some advantage. Venture investment is an important component of the innovation economy, without which it is difficult to imagine the rapid development of new technologies. Under these conditions, the task of the legal systems of developed countries has become to create a legal framework for venture investment: convenient, transparent and understandable for national and international investors.In Russia, an important stage in the creation of a legal infrastructure for investment was the adoption of the Federal Law “On Investment Partnership” in 2011, designed to provide the investment community with contractual organizational and legal forms of collective investment activity, taking into account the specifics of the implementation of venture (especially risky) business projects. The Russian investment partnership is a direct analogue of the American limited partnership (limited partnership).The paper considers the main advantages of an investment partnership over other forms of collective investment activity, as well as analyzes some aspects of the regulation of investment partnerships in Russia and limited partnerships in the United States. The author concludes that an investment partnership is the optimal form of collective investment activity provided for by Russian legislation. There is no doubt that the general proximity of the construction of an investment partnership and a limited partnership, common in the United States (and other common law countries), makes an investment partnership the most attractive form of attracting foreign investment to the Russian market.