Investment Projects Research Articles

Cost–benefit analysis on the implementation of nature-based treated wastewater reuse: case of sekem farm El-Wahat, Egypt

In a context of increasing pressure on water resources and severe aridity; expansion in the reuse of naturally treated wastewater can be a viable and low-cost solution particularly for irrigation forests, green non-fruit trees, fabric crops, industrial oils, and non-edible raw crops. Wastewater treatment is increasingly recognized as a potential means in El-Wahat El-Bahariya in Egypt. However, investment decisions concerning the reuse of treated wastewater in irrigation needs to be justified in terms of financial and economic feasibility and profitability. Therefore, this research study aims to conduct a cost–benefit analysis (CBA) of an investment project “reuse treated wastewater in irrigation compared to other modes of water irrigation projects. The CBA results revealed that the cost of the initial investment for the production of treated water used for irrigating green non-fruit trees, Bamboo trees, and Cactus in Sekem El-Wahat, is economically efficient with 88% compared to the exploitation of aquifer groundwater for irrigating the same crops. That project allows for an economic gain of about 4,428.5 €/ha compared to the cost of producing aquifer ground water in Sekem Farm El-Wahat is estimated at 10,800 €/year. Substituting the use of aquifer ground water for irrigating crops with reuse of treated wastewater helps reducing energy consumption and offers great financial benefits to the beneficial communities. A net benefit of the reuse of treated wastewater project is largely positive with NPV equivalent to 4599 €/year with a medium economic efficiency (BCR) of about 0.44.

How do stock markets in emerging economies respond to World Bank loan approvals?

This paper examines the impact of World Bank loan approvals on equity markets in borrowing countries. We exploit a rich dataset with World Bank loan commitments and daily stock market returns for 47 emerging markets, allowing us to study short run market reactions to news about World Bank programs. These programs fall into three categories: investment projects, structural adjustment loans that tie future macroeconomic reforms to future loan disbursements (prior to FY2006), and development policy loans that reward completed macroeconomic reforms with current loan disbursements (since FY2006). Event study analysis shows positive abnormal stock market returns on the trading day following investment project loan announcements. The effect depends on loan size as well as market characteristics. Structural adjustment loan announcements are followed by negative abnormal returns; development policy loan announcements, in contrast, are considered good news. This suggests that expected macroeconomic implications of policy change in response to loan conditions drive market reactions, and that changes in the conditionality and disbursement structure of World Bank policy lending were successful in improving market reactions to World Bank programs.

Green investments and inclusive growth: The case of the BRICS economies

Investments in green energy projects are highly critical to promoting climate transition and sustainable development. This objective motivates the investigation of the effect of green investments on inclusive growth. We develop an endogenous inclusive growth model that illustrates the channel through which private and public investments in green investments contribute to inclusive growth. By employing a dataset of the BRICS economies from 1990 to 2019, we fit both linear fixed-effects and fixed-effects threshold regression, the latter of which exhibits better prediction of green investment effects. Accordingly, the threshold regression estimates reveal that higher thresholds of green investments substantially accelerate inclusive growth in the BRICS economies. Furthermore, by controlling for the threshold role of financial sector development, we document the heterogeneous effects of green investments on inclusive growth. Unlike financial institutions’ development thresholds, a higher level of overall financial development and financial market development strengthens the positive role of green investments. Our findings offer impeccable policy actions to the governments and policymakers of the BRICS economies on pathways to promote green energy investments for sustainable development.

The determination of the exchange rate: A new-developmental approach

This paper discusses the long-term determination of the exchange rate, given that it may remain depreciated or overvalued for some time. It defines the equilibrium exchange rate and the competitive exchange rate; the latter makes investment projects competitive internationally. Instead of starting from the PPP theory, it starts from the concept of the value of foreign money or the exchange rate around which the price, the exchange rate, revolves according to the supply and demand of foreign money. This, in turn, is influenced by three factors: the terms of trade, the current-account balance as a determinant of the net capital flows or inflows, and the interest rate differential. This paper criticizes the “fundamental equilibrium” concept and develops two econometric tests. The first checks whether the four determinant variables used in the model are relevant. The second verifies whether this model is a good predictor of the exchange rate throughout time.

Research on Environmental Legal Risks in Foreign Investment of Chinese Transnational Corporations

Since the development of the trend of economic globalization, the number of China's overseas investment projects has risen sharply, but at the same time, the potential environmental problems and risks in the investment process have become evident. This essay discusses the environmental legal risks faced by Chinese transnational enterprises in the process of outbound investment and analyzes the specific impact of host country environmental regulation risk and multilateral treaty environmental regulation risk. As global environmental problems become increasingly serious, the investment activities of transnational corporations (TNCs) may be harmful to the local environment while promoting local economic development. This essay summarizes the current status of research on environmental legal in Chinese and international academia, emphasizes that home countries should take responsibility for environmental protection in their investment places when promoting overseas investment. This essay proposes a strategy covering three dimensions--international level, home country and TNCs, in order to promote the sustainable development of TNCss overseas investment.

How does green finance affect human well-being in the context of aging populations? Evidences from China

Purpose The purpose of this study is to investigate the influence of green finance on human well-being in China in the context of urbanization and aging population. It aims to explore the contributions of green finance in such demographic scenarios. Design/methodology/approach This study innovates and optimizes the calculation of the carbon intensity of human well-being (CIWB) index and strengthens the integrity of the assessment model for green finance development. It uses the serial multiple mediator model and moderation effect analysis to address the impact of green finance on human well-being in China on the provincial level from 2009 to 2020. Findings Green finance has a significant, positive and direct impact on human well-being. Simultaneously, it influences human well-being indirectly through three transmission channels. Urbanization and an ageing population are significant individual mediators through which green finance contributes to human well-being improvement. Notably, these two mediators also work together to transfer the promotional impact of green finance to human well-being. Practical implications The government can perfect the regulations to strengthen the market ecosystem to accelerate the development of green finance. Reforms on the administrative division to expand the size of cities with the implementation of ageing friendly development strategy is also necessary. Attracting incoming foreign direct investment in sustainable projects and adjusting public projects and trade activities to fulfil the sustainable principles are also regarded as essential. Social implications The findings challenge traditional views on the impact of aging populations, highlighting the beneficial role of green finance in improving well-being amidst demographic changes. This offers a new perspective on economic and environmental sustainability in aging societies. Originality/value A multi-dimensional well-being indicator, CIWB and the serial multiple mediator model are used and direct and indirect impacts of green finance on human well-being is exhibited. It offers novel insights on the transmission channels behind, identifies the mediating role of urbanization and ageing population and offers empirical evidences with strong academic and policy implications.

토픽모델링에 기반한 R&D 투자 포트폴리오 분석 및 예측

Many countries are identifying crucial technologies for national security and economic growth amid global tech competition, crafting cross-departmental strategies to pursue them. We propose a platform for analyzing and predicting R&D investment portfolios based on government R&D project information and investment data to provide scientific evidence for strategic budget allocation. The proposed platform consists of the following four processes. First, topic modeling and project labeling are performed using project-related text data. Second, we propose a method for calculating the importance of each label based on the centered log ratio (CLR) transformation. Third, we predict the label importance for the next year using linear regression and Holt's linear trend method. Fourth, we propose a method for constructing investment portfolio in specific fields. Real data analysis demonstrates the explanability and predictability of the proposed platform by using research project data spanning 11 years from 2012 to 2022. We believe a novelty of the proposed method can contribute to the establishment of data-driven R&D investment portfolios.

Factors Affecting Contract Compliance and Execution of Public Works in the Executing Unit: Special Project Huallaga Central and Bajo Mayo in Peru, 2022

Cost overruns, delays, and poor quality are frequent in public investment projects under the contract modality, executed by the Executing Unit: Special Project Huallaga Central and Bajo Mayo (PEHCBM). The purpose of this research is to identify the factors that affect the fulfillment of contracts for the execution of public works in the PEHCBM. This research includes the determination of the most influential factors using the relative importance index (RII), as well as surveys administered to a sample of 25 experts. A total of 91 articles from 48 academic journals were selected. With the application of the RII, 21 factors were determined, distributed among the dimensions of cost, time, and quality, and validated by the experts with a Spearman’s coefficient of value 0.521. In the case study, seven relevant factors were determined in PEHCBM execution contracts, identifying overtime between 4.7% and 524.2%, as well as a cost increase between 8.8% and 52.2%. Similarly, adverse situations detected by the Comptroller’s Office were determined, with an accumulated economic damage of about PEN 19 million, determining the high influence of the cost, time, and quality dimensions on them. In conclusion, this study shows the high overtime and the deficient quality of the works carried out by the contracting modality, which generated economic damage to the State.

A Framework for Investment and Risk Assessment of Agricultural Projects

A Framework for Investment and Risk Assessment of Agricultural Projects

Investment Project Analysis in the Crusher Replacement Plan

Investment Project Analysis in the Crusher Replacement Plan

Modelling Bank Lending in Cameroon Using Two Steps Cointegration Technique

This paper has as objective to model the key determinants of bank lending in Cameroon using time series data collected mainly from the World Bank database for the period spanning from 1979 to 2019. After exploring related theoretical and empirical literature, Engle and Granger two steps cointegration testing procedure was employed together with the necessary pretesting (unit root tests) and post estimation testing. Results of stationarity tests indicate that variable were a mixture of stationary and first difference. The lagged residual term possess unit root at level indicating that the variables are actually cointegarted and that ECM is relevant. The estimated cointegration regression model and the corresponding ECM were globally significant at one percent and the models were equally adequate with explanatory power of over 73 and 52 percent respectively. The results of the two models revealed that the effect of economic growth on bank lending was positive and highly significant, the effect of interest rate is negative and equally significant, then the effect of Gross Investment rate was also positive but not very significant in the short run. Based on the major findings, bank lending can be encouraged by stimulating the level of economic activities, by reducing interest rate on loans and by encouraging more investment projects.

Efficiency in Municipal Management: Participatory Budgeting and its Relationship with Public Projects in Rural Areas in Peru

The Participatory Budget is a key tool in public management that seeks to improve transparency and efficiency in local projects. The objective of the study was to analyze the relationship between the Participatory Budget (PP) and the Public Investment Projects (PIP) in the Municipality of Anco Churcampa, Huancavelica, during the year 2020, to evaluate how citizen participation influences the effectiveness and efficiency of publicly funded projects. For this purpose, a quantitative correlational approach with a cross-sectional design was used. A structured questionnaire was applied to 42 participants, among whom were municipal authorities and representatives of civil society. The collected data were analyzed using Spearman's rank correlation coefficient, which allowed the association between the PP and PIP variables to be evaluated. The results showed a positive and significant correlation between the dimensions of the PP, such as preparation, consultation, coordination and formalization, and the perception of success in the PIP. It was observed that the average levels of perception in the PP corresponded with average levels in the perceived effectiveness of the PIPs, which underlines the importance of well-structured participatory management. In conclusion, the study highlights that the PP is a fundamental tool to improve the transparency and effectiveness of the PIPs, highlighting the need to strengthen citizen participation in decision-making to promote more equitable and sustainable local development.

ESG-Driven Investment Decisions in Photovoltaic Projects

As global climate change intensifies and environmental awareness increases, investing in renewable energy has become a primary economic and social development priority. Photovoltaic (PV) projects, as a clean and sustainable energy technology, have garnered significant attention due to their notable environmental and economic benefits. However, traditional investment evaluation methods such as net present value (NPV) analysis fail to adequately capture the flexibility and future uncertainties inherent in PV project investments. This paper presents a case study analysis proposing a delay option model that incorporates environmental, social, and governance (ESG) factors, providing a more scientific and flexible investment decision framework for PV projects. The case study results indicate that considering ESG factors significantly enhances the investment value of PV projects. This model not only provides comprehensive support for PV project investment decisions but also underscores the importance of establishing stringent carbon trading markets and policy incentive mechanisms to promote the widespread adoption and sustainable development of renewable energy projects.

Financial Impact Analysis of Carbon Pricing on Geothermal Power Plant Project Investment at PT PLN (Persero)

Financial Impact Analysis of Carbon Pricing on Geothermal Power Plant Project Investment at PT PLN (Persero)

Features of the innovative approach in the formation of regional industrial policy

The article is considering the phenomenon of blurring boundaries between economic sectors, the merging of various stages and functions within the production process occurs, which is a distinctive feature of modern economic development. The authors emphasize imbalance in the distribution of capital: in conditions of excess financial resources throughout the national economy, there is a shortage of funds allocated for innovative projects. A key aspect of this problem is the lack of a long-term perspective and development strategy among economic entities. It is substantiated that insufficient attention to the development and implementation of risk management strategies leads to underestimation of the value of innovations with a long-term perspective, and in order to effectively overcome innovation shortsightedness, necessary an integrated approach that includes not only improving corporate culture and developing innovation infrastructure, but also improving legal and regulatory environment. The concept of innovative short-sightedness is considered, which reflects the underestimation of future benefits and the narrowing of the planning horizon of economic agents. Attention is focused on the fact that government policy and regulation can also have a significant impact on innovation activity; an imperfect legal framework in the field of intellectual property or unpredictability of tax policy creates uncertainty for entrepreneurs and investors, which can discourage investment in innovative projects. It is argued that in the context of industrial policy formation, the most significant aspects are the establishment and support of economic entities. It is emphasized that industrial policy should be focused on stimulating the primary links of production; it can be aimed at ensuring the development of high-tech sectors of the economy, which can become the driving force of innovative growth and increasing the competitiveness of national producers in world markets. In the realm of investment strategies, significant attention is directed towards crafting standards for utilizing approaches that simplify the integration of intellectual assets into economic systems, all while considering the expected duration of product viability.

Decision-making in major investment projects with a life cycle cost: improvement with sensitivity analysis and sustainability assessment

This study focuses on compressor station investments in Germany’s natural gas infrastructure, offering insights applicable to machinery, energy, and maintenance cost-driven decisions. A life cycle cost (LCC) analysis can guide investment choices; however, uncertainties in input data and future developments pose risks. The LCC-based studies encounter questions impacting their results and optimal selections. These uncertainties may lead to misallocations, emphasizing the need for careful consideration of investment decisions to avoid potential consequences and efficiently allocate limited funds. Various measures are available to mitigate the uncertainties and risks in LCC analyses. Recognized measures are deterministic and probabilistic. Seven case studies on investments in the natural gas infrastructure in Germany were analyzed in this context. In addition to the executed case studies, a case study from a scientific journal (published in 2001) was included in the analysis. The case studies were conducted by transmission system operators from 2005–2015, and a retrospective view made it possible to recognize whether the best options (due to the LCC analysis) were identified. Simulations were conducted with generated models using real historical input data such as energy costs. The re-calculation of the net present value or better discounted cumulated expenditure with real input data shows that the LCC analysis results are significantly dependent on the reliability of the input data and the prediction of their development. Therefore, validating the results using appropriate measures is mandatory. This study illustrates how sensitivity analysis can be used as a deterministic method to evaluate the LCC analysis results. A company’s success is increasingly determined by its sustainability. A pure LCC analysis is insufficient, so social, ecological, and economic sustainability assessments must be conducted. This study demonstrates the effectiveness of the weighted scoring method for sustainability assessments. Although this study relates to LCC in Germany’s natural gas infrastructure, the suggested process can be adopted for other investment projects comprising capital and operational expenditures.

ANALISIS KELAYAKAN INVESTASI PROYEK PENGADAAN ALAT PENGEMBANGAN CHAMBER BALAI UJI DENGAN MENGGUNAKAN NET PRESENT VALUE, INTERNAL RATE RETURN DAN PAYBACK PERIOD DI PT DEF

PT DEF is one of the electronic equipment calibration checking companies in Depok, West Java. PT DEF carries out various checks in the activity chamber to support the successful entry of electronic equipment into Indonesia. The Anechoic Chamber is a chamber designed to absorb electromagnetic waves or sound so that environmental conditions outside the room will not affect the conditions inside the chamber. The Anechoic Chamber. An anechoic chamber is a chamber designed to minimize the reflection of sound waves. This space is lined with thick sound-absorbing material to prevent sound waves from bouncing off the walls, ceiling and floor. This allows accurate measurement of the acoustic characteristics of an object or sound. Anechoic chambers are used in various applications Acoustic research Anechoic chambers are used to research acoustic phenomena, such as sound wave propagation and diffraction. Investment. The anechoic chamber calculation uses Net Present Value (NVP), Internal rate of return (IRR), and Payback Period (PBP). The feasibility of investing in a project to procure test center chamber development equipment can be determined based on the calculation of Net Present Value, Internal Rate of Return and Payback Period. . Based on the results of the NPV calculation, the results obtained were IDR 1,030,241,369,221. So, this investment project can be accepted. Based on the IRR calculation results, the result was 14.803%, meaning that the company's rate of return was greater than the interest rate that the company had to bear. This shows that in the 10th period the company will be able to provide profit results at the level of 14.803%, which is the cutting level. Therefore, the results of this analysis provide investment decisions that are worth implementing. Based on the calculation of the payback period, the Payback Period is less than the maximum amount (10) that can be accepted by the Payback Period, the project can be accepted and continued. In other words, more or less the return on capital from this investment is 8 months

A UTILIZAÇÃO DE CRÉDITOS FISCAIS NAS PARCERIAS PÚBLICO-PRIVADAS PARA HABITAÇÕES DE BAIXA RENDA

This article examines the use of tax credits in public-private partnerships (PPPs) for the development of low-income housing in the United States. PPPs offer a collaborative approach to addressing the housing crisis by combining resources from both the public and private sectors. Tax credits, such as the Low-Income Housing Tax Credit (LIHTC), play a crucial role in incentivizing private investment in affordable housing projects. This study analyzes the effectiveness of these partnerships and the impact of tax credits on expanding low-income housing. Furthermore, we discuss the challenges and opportunities associated with implementing such initiatives, highlighting success stories and lessons learned.

Evaluating the Effects of Public Debt on Sri Lanka’s Economic Growth: A Short-term and Long-term Perspective

Aims: The objective of this paper is to examine whether public debt enhances economic growth in Sri Lanka by separating debt into domestic and external debt. Study Design: The paper adopts the Keynesian demand-side model to estimate GDP on demand-side and supply-side factors such as domestic debt, external debt, gross fixed capital formation (investment in short), labour force, general price level, money supply, government spending and trade openness. In a model where debt causes investment, public debt effects are netted out from investment by removing the estimated investment effects of domestic and external debt. Duration of Study: quarterly data from Q1 2010 to Q1 2023 are utilized to trace the long-term and the short-term effects of domestic and external debt on GDP. Methodology: The ARDL method of estimation is used and the model is estimated in double log form so that estimated parameters reflect output elasticities. A general to specific modelling approach is adopted to find the best suited model. Results: Variables such as government spending, money supply, general price level and labour force are not relevant while domestic debt, external debt, investment (debt effects netted out) and trade openness are significant in describing GDP. The long-term domestic debt elasticity of GDP is 0.588 while short-term domestic debt elasticity (sum of contemporaneous and lag effects) is about 0.63. The cumulative effects of domestic debt on GDP tappers off to 0.60 in the long-run. The result suggests negative impacts (-0.272 and -0.254) of external debt on the economic growth in short-term and long-term respectively. The negative effect of external debt can be justified if recent external borrowings have been used to repay loans taken to finance war and unproductive projects. Conclusion: The paper finds that the domestic public debt creates relatively strong positive effects on GDP in the short-term and the long-term. Contrary to the expectations, the effects of external debt on GDP have become negative both in the short-term and the long-term. The paper also finds that debt effects on GDP have been significantly reduced when debt effect-ridden investment variable is included in the regression in place of debt-effect netted out investment. Thus, this study recommends researchers to carry out further research on why the effects of external debt on GDP become negative. Further, it recommends policy makers to use both domestic and external debt to finance public investment and productivity enhancement projects rather than borrowing merely for the purpose of consumption and repaying of existing debt.

Trade credit, labor employment, and demand for skills: An empirical investigation of Vietnamese small and medium enterprises

AbstractThis paper examines the effect of firms' trade credit use on their labor demand and the composition of this labor demand in terms of skilled and unskilled workers. Our analysis is conducted on a rich data set of private manufacturing small and medium enterprises in Vietnam over the period of 2009–2013. We find strong and robust evidence that these firms recruit more workers when they receive trade credit offered from their suppliers. In addition, larger trade credit is associated with firms' higher propensity to hire skilled labor. We also find that the effect of trade credit on firms' labor market decision works through the investment channels, especially through those investment projects leading to the enhancement of firms' innovative capability. These findings highlight the role of trade credit regulations for job creation and economic development.