Investment Restrictions Research Articles

Prinsip Ekstrateritorial Dalam Penegakan Hukum Persaingan Usaha

Economic globalization has led to trade liberalization, many countries embracing a free market where trade and investment are carried out across national borders. As a consequence the boundaries between countries have disappeared, trade and investment restrictions have also declined and the potential for unfair business competition has increased. For this reason, each country seeks to provide protection for its citizens in its territorial territory and bring about conflicts between jurisdictions. The regulations governing the prohibition of monopolistic practices and unfair business competition do not explicitly regulate the application of extraterritorial principles in Indonesia, but KPPU has handled several cases involving foreign business actors and imposed sanctions on business actors who are not domiciled in Indonesia and against acts committed outside of Indonesia. One of the KPPU's decisions stated the Temasek Holdings business group and its subsidiaries had been proven guilty of violating the provisions of Article 27 of the Law on the Prohibition of Monopolistic Practices and Unfair Business Competition and that the KPPU had imposed sanctions. This paper will discuss the application of extraterritorial principles in the context of business competition in Indonesia and see considerations in the relevant KPPU decisions. It will also examine legal obstacles and challenges in the execution of executions because of regulations that have not explicitly governed the application of extraterritorial principles.

Divestment as an ESG Tool: Calpers and Tobacco Stocks (a)

This case uses the California Public Employees' Retirement System (CalPERS) to set the stage for unfolding an analysis of economics and values in the decision to divest tobacco stocks and bonds from the internally managed portion of the CalPERS portfolio. Written from public sources, it offers a discussion about fiduciary responsibility for long-term retirement security and investment policies around environmental, social, and governance (ESG) strategies for the public pension fund. The material includes financial data that further allows calculations and discussion on tobacco investments outperforming the broader market. This A case opens with the CalPERS investment committee having made a decision to recommend removing tobacco investment restrictions. The CIO reflects on whether supporting investment in tobacco firms conflicts with CalPERS's member health and health care mission. Did supporting continued divestment mean CalPERS was putting its own social priority and ideals ahead of its clients' investment goals? The case data should lead most to conclude the fund was breaching its fiduciary duty. Excerpt UVA-F-1948 Rev. Jan. 22, 2021 Divestment as an ESG Tool: CalPERS and Tobacco Stocks (A) As he prepared for the December 2016 Investment Committee meeting, Ted Eliopoulos was conflicted. As the chief investment officer (CIO) of the California Public Employees' Retirement System (CalPERS), he oversaw an investment office of over 300 employees and was responsible for investment policies, risk management, corporate governance standards, and environmental, social, and governance (ESG) strategies for the public pension fund. At a time when some worried that the rising numbers of California retirees put significant burdens on pension funds, Eliopoulos was under pressure to shore up long-term retirement security while also staying true to the state's ESG principles. He knew this would require some difficult decisions. California's promise to pay pension benefits in future decades entailed a fiduciary obligation to ensure that as market conditions changed, the balance between risk and return on CalPERS's investments was appropriate. In 2014, CalPERS had initiated an investment strategy review under the Policy Revision Project, and by the spring of 2016, this had led the investment committee to revisit the organization's restrictions around tobacco investments. Over 15 years earlier, tobacco stocks and bonds had been divested from the internally managed portion of the CalPERS portfolio, though they were still permitted in externally managed portfolios. The belief at the time was that the tobacco industry would not survive the heavy regulation headed its way, nor would it recover from the immense litigation against tobacco companies. Despite these threats, by 2016 the tobacco industry had outperformed the broader market substantially, with significant cumulative returns. . . .

Alternative Asset: Evidence from Moroccan Insurance and Pension Funds

The goal of this paper is to provide a critical overview of Moroccan insurance/pension fund investments in alternative assets through data analysis techniques. The results show that the risk of reserve depletion and the investment restrictions imposed by the regulator are not the real reasons why insurance companies / pension funds in our database reduce their investments in the alternative asset market. The results also show that the barriers that deter Moroccan insurance/pension funds from alternative assets are of two kinds: the first are of a general nature and concern the whole world (not just Morocco), the second type of barriers are specific to the Moroccan context.

Tüketicilerin Destinasyon Seçim Tutumları ile Etnosentrik Tutumları Arasındaki İlişkinin Değerlendirilmesi

Bu çalışmada tüketicilerin destinasyon seçim tutumları ile etnosentrik tutumları arasındaki ilişkinin araştırılması amaçlanmaktadır. Çalışma tüketicilerin destinasyon seçim tutumlarındaki etnosentrik eğilimlerinin belirlenmesi açısından önemlidir. Araştırmada nicel araştırma yöntemlerinden alan araştırması benimsenmiş, veri toplama aracı olan anket kullanılmıştır. Veriler kolayda örnekleme yöntemiyle İstanbul’da bir vakıf üniversitesinde görev yapan 188 akademisyenden yüz yüze toplanmıştır. Destinasyon seçim tutumları kalite ve imaj önceliği, yurtdışı önceliği ve ülke bağlılığı olarak ele alınmıştır. Etnosentrik tutum boyutları da milliyetçi etnik tutum, yabancı yatırım kısıtlamaları ve liberal etnik tutum olarak incelenmiştir. Çalışmada faktör analizi, t-testi, tek yönlü varyans analizi uygulanmış, tüketicilerin etnosentrik tutumları ile tatile gitme sıklıkları ve destinasyon seçim tutumları arasındaki ilişkiyi belirlemek için korelasyon analizi kullanılmıştır. Analiz sonuçlarına göre; tüketicilerin tatile gitme sıklığı ile etnosentrik tutumları; destinasyon seçim tutumları ile etnosentrik tutumları arasında ilişki olduğu saptanmıştır.

Foreign Direct Investment Restriction Policy as an Effort to Empower Micro, Small and Medium Enterprises

Foreign Direct Investment is one of the important means to increase a country’s economic growth through equitable development. However, countries such as Indonesia, often put restrictions on their foreign investment policies. The purposes of this research are: 1) to explain the restrictive policies which are imposed upon foreign investments in Indonesia and to compare them to those of other countries in Asia; 2) to explain the practical impact of such restrictive policies on foreign investments in Indonesia. The author uses a qualitative-descriptive research method. The research is also conducted through a juridical normative approach. This research shows that: 1) Restrictions on foreign investment is regulated under the Presidential Regulation of the Republic of Indonesia No. 76 of 2007 on Criteria and Requirements for Formulation of Business Fields Closed to Investment and Business Fields Conditionally Open to Investment; 2) In its implementation, Presidential Regulation No. 76 of 2007 has not yet been able to boost sustainable economic growth evenly via the empowerment of MSMEs or domestic investors.

The Health and Competitiveness of the U.S. Semiconductor Manufacturing Equipment Industry

In 1991 the United States International Trade Commission initiated an Industry and Trade Summary series of informational reports on products imported to, and exported from, the United States. As part of this series, analysts from the Office of Industries published a summary of the state of the Semiconductor Manufacturing Equipment (SME) industry in June 2006. This report provides updated information on the health and competitiveness of the U.S. semiconductor manufacturing equipment industry. After discussing the structure of, and relationship between, the semiconductor and semiconductor manufacturing equipment industries, this paper provides an overview of the SME industry’s key characteristics, including supply and demand. The U.S. SME industry and market are then described along with trends in exports, imports and the balance of trade between 2014–18. The paper concludes with analysis of five challenges and opportunities that will affect the health and competitiveness of the U.S. SME industry: China’s rise as a producer and consumer of semiconductors, artificial intelligence, the end of Moore’s Law, the introduction of extreme ultraviolet lithography equipment, and foreign investment restrictions and export control reform.

The Internet of Things Cybersecurity Challenge to Trade and Investment: Trust and Verify?

This paper describes the problem of cybersecurity-based concerns regarding trade in IoT goods, and investment in manufacturing or distribution facilities for IoT goods, analyzes the applicable international law that would constrain national cybersecurity-based import or investment restrictions, and evaluates the availability of security or other exceptions to permit these defensive measures. Based on the defensive needs, and the legal constraints, it suggests some of the characteristics of a cooperative regulatory regime that can foster international trust or verification to allow trade and foreign investment in relation to IoT goods. Trade and investment in low risk consumer IoT products, such as household objects, will be manageable along traditional lines of other product standards, regulated by existing treaties such as the GATT and TBT Agreement to assure national treatment, MFN treatment, proportionality, and due respect for international standards. With respect to high risk industrial, infrastructural, medical or transportation IoT products, the path to liberal trade and investment is less clear, and will depend on the technical ability to surveil and confirm the safety of IoT products. It will be difficult to rely on trusted suppliers, whether on the basis of nationality or territoriality, because of the complexity of production and the magnitude of risk. States will restrict imports and investment in connection with high risk IoT products under security exceptions in trade and investment law, although the specific language of those exceptions do not necessarily support such restrictions. In some circumstances, restrictions will be based on protectionism or geoeconomic considerations, rather than cybersecurity per se. In order to avoid inefficient restriction, states will find it useful to identify means to verify security of high risk IoT products, as well as to establish trust in producers of high risk IoT products, and on the basis of sufficient combinations of verification and trust, to relax their use of security exceptions.

Mutual Interests and Issues in Implementation of Russias Cooperation with China and Mongolia

The issue of mutual interests of Russia, China and Mongolia in working partnerships and projects is not accidental and determined by modern foreign economic and foreign policy situation as well as national preferences of these countries. The People's Republic of China, the driving force of the project of the Economic belt of the Silk Road, remains the main partner of the Russian Federation in many international projects. Mongolia is the main visionary for the development of the «Steppe Road» project. The article explores the history behind the relations between those three neighboring countries in various public spheres, including political, economic, scientific, cultural, and environmental. The author examines the issues of further development of Russia, China and Mongolia relations in a complex environment of globalization of world economy. The article analyzes the statistical data on the economic status of these countries in world ranking system. The author puts forward possible ways to solve problems in implementation of cooperation among three countries in a present-day global politico-economical climate of the imposed sanctions, trade wars and investment restrictions. The author argues that to advance mutual interests the emphasis should be placed on joint global projects and creation of free trade zones in bordering regions of these countries.

Study on the spatial distribution of China's Outward Foreign Direct Investment in EU and its influencing factors

Since 2000s China's outward foreign direct investment (OFDI) in developed economies has grown rapidly, boosting the technological advancement of Chinese companies and the advancement of global value chains. In the context of the United States continuing to impose investment restrictions on China, the EU has an important position in the OFDI pattern in China. Although China's OFDI in the EU has maintained rapid growth overall, the location distribution is not balanced. This paper uses spatial measurement method to test China's spatial pattern change of OFDI in EU member states and finds that there are spatial agglomeration effects and spatial spillover effects. The spatial panel analysis method is used to test the factors affecting the spatial distribution China's OFDI in EU. It is found that the market size, technology level and investment freedom of the host country have positive effects on the location selection of China's OFDI in EU.

Interfund Lending in Mutual Fund Families: Role in Liquidity Management

AbstractThe Investment Company Act of 1940 restricts interfund lending and borrowing within a mutual fund family, but families can apply for regulatory exemptions to participate in such transactions. We find that the monitoring mechanisms and investment restrictions influence the family’s decision to apply for the interfund lending programs. We document several benefits of such programs for equity funds. First, participating funds reduce cash holdings and increase investments in illiquid assets. Second, fund investors exhibit less run-like behavior. Third, it helps mitigate asset fire sales after extreme investor redemptions. Offsetting these benefits, money market funds in participating families experience investor outflows.Received May 26, 2018; editorial decision November 27, 2018 by Editor Itay Goldstein. Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.

Trade regimes as a tool for cyber policy

PurposeThis research develops a framework for assessing international trade regimes which could be used to address global cybersecurity challenges based on the corresponding costs of implementation and their distribution. Trade regimes, such as export controls, tariffs, investment restrictions and localization requirements, have disparate effects on foreign and domestic producers and consumers.Design/methodology/approachThese trade regimes and their effects are explored through a literature review and conceptual framework. A case study then assesses trends in the use of the Committee on Foreign Investment in the United States (CFIUS).FindingsCFIUS investment restrictions have justified blocking specific Chinese acquisitions of American companies, at least partially, on cybersecurity grounds using a targeted and evidence-based approach. Because of its targeted effect, CFIUS is the least likely of these trade regimes to block legitimate international trade. Restrictions on international trade, without sufficient cause, produce dead weight loss under the theory of comparative advantage.Originality/valueThese costs should be accounted for in any policy-based decision, particularly as policy entrepreneurs increasingly push for embedding cybersecurity reforms into these trade regimes. While the literature on trade regimes and cybersecurity is growing, this paper advances this research with its comparative framework.

Rational Combination of Capital Mining and Construction Mining Operations in Coal Cuts

The purpose of the construction of a coal open-cut should be an achievement in the shortest possible time of an access to the mineral deposit and creation of favorable mining conditions for achieving the specified performance. In the con-text of investment restrictions during the construction of the mine, the volume of preparatory work should be minimized (preparation of the surface of the quarry field, organization of the field drainage system, creation of a system of tracks, construction of installation sites, power lines, electrical substations, warehouses, and other infrastructure facilities).The main reason for the failure to comply with the deadlines for the commissioning of coal mines is the un-preparedness of the mining front, so the priority in determining the sequence of putting infrastructure facilities into operation is their influence on the development of the mining front.Justification of the sequence of input of mining sites in the development should be carried out based on the analysis of mining and geological conditions, as well as take into account the location of mining sites relative to the systems of transport and energy communications.The creation of the necessary infrastructure should be carried out in stages with the transfer of costs to the later periods of operation of the mine, when conditions for reinvestment from the company's profits will be created.

Restriction and Incentives of Investment in Indonesia: Considering the Provisions of Basic Agrarian Law and Capital Market Law

Investment plays an important role in improving the economy, so investment is needed by every country. On the other hand the goal of investors in any investment is to gain profit, so investors expect assurance of investment security. Such security guarantees can be achieved by providing legal assurance of investment, and therefore adequate regulation is required.This study aims to briefly describe the notion of investment in its legal perspective. The study mainly discusses the Indonesian government arrangement in investment, by considering the provisions of two important laws in investment, that are Basic Agrarian Law and Capital Market Law.The results show that Indonesia as a developing country has already established some regulations about investment, especially direct investment, among others in the form of Basic Agrarian Law and Capital Market Law.In the Basic Agrarian Law the granting of land rights has been arranged for investors who are legal entities and individuals, while in the Capital Market Law the incentives and the facilities obtained by investors in the form of direct incentives / facilities are regulated.

Worth the Risk? A Comparison of Student Managed Investment Programs

Student Managed Investment Programs (SMIP) have grown in popularity at U.S. colleges and universities. Previous research has shown that these SMIPs vary in structure and operation. This comparative study analyzes such differences between large and small institutions to study the questions of student participation and investment risk. The results show that SMIPs have been in operation at both large and small schools for the same period of time, and that while large schools restrict student participation likely out of necessity, investment restrictions to control risk do not differ across institutions of different size.

Bond Covenants and Investment Policy

I provide evidence that covenants in bond indentures affect the firm's investment policy outside of covenant violations. Using a large dataset of public bonds, and controlling for the self-selectivity of covenant inclusion, I find that bonds with investment (financing) restrictions are associated with a decrease (increase) in investment in the two years following the issue. The effect of investment restrictions is entirely driven by firms that are more financially constrained. Both financially constrained and unconstrained firms have significantly higher investment spending after issuing a bond with financing restrictions, although the magnitude of the effect is higher in the latter group. These findings suggest that while bond covenants can help mitigate agency problems and reduce the cost of debt, they may also have externalities that lead to more investment distortions in firms that are closer to financial distress. This paper is the first to document a positive relationship between a covenant restriction and ex-post investment.

China’s carbon emissions abatement under industrial restructuring by investment restriction

This study applied CIECIA, a climate-economy integrated assessment model, to study the carbon reductions and the economic impacts under industrial restructuring realized by capital investment restriction policies in China. The carbon reductions and economic effects of the policy mix combining investment restrictions with low carbon technology progress measures were also assessed. The results show that investment restriction policies for energy-intensive industries in China effectively accelerate industrial restructuring and have significant carbon reduction effects. However, those restrictions hurt China’s economy, causing investment outflow that benefits other countries. Low carbon technology progress realized by investing revenues from investment restrictions in R&D and the sharing of advanced technologies between countries improves the carbon reduction potential of China, but it is difficult to obtain significant reduction in a short time period. Despite this finding, technology progress measures compensate for economic losses and therefore have great significance to carbon governance.

Smart Machines and Smarter Policy: Foreign Investment Regulation, National Security, and Technology Transfer in the Age of Artificial Intelligence

The Foreign Risk Review Modernization Act, a bill introduced to Congress in 2017 that seeks to strengthen the Committee on Foreign Investment in the United States (CFIUS), has the potential to increase restrictions on Chinese companies investing in the U.S. artificial intelligence (AI) industry. Although the bill addresses legitimate national security concerns related to the military applications of AI, it also has the potential to negatively impact the U.S. AI industry and the U.S. economy as a whole. Currently, the combination of a Chinese government focused on strategic technology acquisitions, the open and diffuse nature of AI systems, the off-the-shelf nature of defense technology procurement, the integrated Chinese and U.S. AI industries, and the connection of Chinese tech companies to the Chinese Communist Party create a pipeline for technology transfer from U.S. companies to Chinese government entities. Given the vague nature of what constitutes a national security threat according to CFIUS, past high profile CFIUS action against Chinese companies investing in the U.S. technology sector and an emerging bipartisan consensus that CFIUS needs to be strengthened, there is a strong potential for new foreign investment restrictions. Restricting Chinese investment in the U.S. AI industry, however, may be counterproductive, because it may negatively impact U.S. economic competitiveness by reducing the venture capital pool for AI, potentially driving away top talent and causing AI research and development centers to relocate elsewhere. Instead of increasing restrictions, a smarter policy would be to continue utilizing CFIUS risk mitigation measures in a non-discriminatory manner, while increasing government funding for AI research and development and increasing visas for science and technology graduate students who are foreign nationals.

ASSESSMENT OF THE TRANSPORT INFRASTRUCTURE IMPACT ON THE REGIONAL DEVELOPMENT

The development of infrastructure, and transport infrastructure in particular, can be attributed to key factors in the economic growth of regions. In conditions of the development of society, the requirements for infrastructure are constantly increasing, which inevitably changes its quantitative and qualitative characteristics, modifying the structures of the infrastructure complex of a specific region. At the same time, it is necessary to take into account both the impact of the social and economic situation in a particular region on the development of infrastructure, and the reverse impact of infrastructure on regional development. In this connection, the transport infrastructure in the article is proposed to be considered as a subsystem of the regional economic system, which establishes institutional links and provides transport services both to the sectors of the regional economy and to the population. The increase in government spending on infrastructure development provides a multiplier effect in the economy. However, in modern conditions, a country may face investment restrictions. Most likely, in the coming years, the share of government spending on infrastructure will decline due to falling incomes first of all when selling energy resources. Obviously, in such conditions it is necessary to change the traditional formsand methods of managing the infrastructure complex, to find new "growth poles". The urgency of improving the spatial organization of the economy is explained by the need to increase the quality of life of the population on the basis of increasing the efficiency of the functioning of the regional economy. The use of transport accessibility as a criterion for the development of regions destroys departmental barriers,promotes a combination of sectoral and territorial planning, allows to take into account both the efficiency of the commercial activity of the transport complex itself, its quantitative and qualitative characteristics, and the impact of transport on economic and demographic processes, the standard of living of the population, and territorial economic development.At the same time, one of the problematic aspects of ensuring transport accessibility is its assessment. Since, if there are difficulties with the adequacy of the results of the assessment of existing realities, then decisions to increase it, as well as decisions related to the development of regions, may prove to be erroneous.The article analyzes different approaches to assessing the impact of transport on the social and economic development of regions. Methods for determining the impact of the territorial concentration of the transport infrastructure, taking into account production, social and population factors, are proposed.

Information Induced Liquidity Crises

In a general equilibrium economy with uninsurable aggregate liquidity shocks, we show that public information may trigger allocative inefficiency and liquidity crises. Entrepreneurs do not internalize the negative impact of their investment decisions on the equilibrium risk of liquidity shortage. A more informative public signal decreases the risk of a liquidity shock, but increases the risk of capital rationing conditional on a liquidity shock. In equilibrium, information quality has a non-monotonic effect on expected returns on investment and social welfare. An increase in the quality of public information has redistributive effects on welfare as entrepreneurs gain and financiers lose. Investment restrictions and targeted disclosure of information achieve constrained efficiency as competitive market equilibrium.

The Economic Consequences of Mutual Fund Advisory Misconduct

We evaluate the economic consequences of mutual fund advisory misconduct from 2000 to 2015. An average of 31.25% reduction in monthly fund flows occurs in one year after the misconduct. The effect is more pronounced in funds facing strong investor monitoring. Although all types of misconduct have negative effects on sentiment-driven flows, only disclosure-related misconduct has negative effects on fundamental-driven flows. To respond, mutual funds raise marketing expenditures, reduce contractual incentives, impose stricter investment restrictions, hold more liquid assets, and replace malfeasant advisory firms subsequently. These measures alleviate the adverse effects of misconduct on investor flows. Overall, our study highlights the significant impact of misconduct on mutual fund flows and responsive policies in the mutual fund industry.