Level Of Public Investment Research Articles

The Role of Social Cognitive Perspective on Investment Intentions in Sharia Stocks in Indonesia

The majority of Indonesia's population recorded in 2024 will be Muslims, reaching 85% with a figure of 263 million out of a total population of more than 278 million people. However, the level of public investment in shares is still low, especially in sharia shares. The aim of this research is to examine the impact of attitudes, social influence, and self-confidence on Indonesian investors' intentions to invest in sharia shares. This will be achieved by exploring further with Social Cognitive Theory. This research uses a quantitative methodology which is used to collect data from a minimum sample size of 85 respondents. This research was conducted by giving questionnaires to investors who have knowledge about sharia shares in Indonesia. The expected result of this research is to increase understanding of the determining factors that influence investment intentions in sharia shares. Therefore, this research is expected to provide a significant contribution to policy makers in their efforts to increase the number of investors in Islamic stocks.

Public Education Investment, Economic Growth and Welfare: A Political Economy Analysis with Preference Heterogeneity

This study examines the politics of public education policy and its impact on economic growth and welfare under intergenerational altruism. The study considers an endogenous growth model with altruistic overlapping generations. Due to its significant role in promoting long-term economic expansion, we consider investment in public education to be an effective tool of productive government intervention. Nonetheless, public educational investment has been the subject of political disputes owing to its inherent intergenerational redistributive implications. Backed by the tendency of democratically elected governments to maintain their political power, the preferences of some particular individuals or group of individuals become more dominant in the political process of determining the level of public investment in education. In particular, governments are more concerned with the preferences of the median voter, or the current generation at large, because they, as electors, have the ability to determine the next government. This reality leads governments to exhibit a bias toward the desires of these people. As a result, such political considerations divert the economy from its optimal path of economic growth and reduce the welfare of future generations. This effect becomes more pronounced when individuals with lower levels of altruism toward their offspring assume a more influential position in the political decision-making process over the allocation of public funds for education. Our theoretical analyses demonstrate the implications for economic growth and welfare resulting from policy decisions made by democratically elected governments with inherent biases, as opposed to decisions made by an unbiased social planner.

Public investment, infrastructure and private investment in Brazil: is there a crowding-in effect?

PurposeOur study aims to evaluate the impact of infrastructure and public investment on private investment in machinery and equipment in Brazil from 1947 to 2017. The contribution of our article to the existing literature lies in providing a more comprehensive understanding of the presence or absence of the crowding effect in the Brazilian economy by leveraging an extensive historical database. Our central argument posits that the recent decline in private capital accumulation over the last few decades can be attributed to shifts in economic policies – moving from a developmentalist orientation to nondevelopmental guidance since the early 1990s, which is reflected in the diminished levels of public investment and infrastructure since the 1980s.Design/methodology/approachWe conducted a series of econometric regressions utilizing the autoregressive distributed lag (ARDL) model as our chosen econometric methodology.FindingsEmploying two different variables to measure public investment and infrastructure, our results – robust across various specifications – have substantiated the existence of a crowding-in effect in Brazil over the examined period. Thus, we have empirical evidence indicating that the state has influenced private capital accumulation in the Brazilian economy over the past decades.Originality/valueOur article contributes to the existing literature by offering a more comprehensive understanding of the crowding effect in the Brazilian economy, utilizing an extensive historical database.

The Recovery and Resilience Facility Under Next Generation EU: A Breakthrough in Economic Policy Coordination and Policy Programming

Next Generation EU, specifically its Recovery and Resilience Facility (RRF), has been a groundbreaking new experiment for the EU. From the speed of the reaction at the EU level with an agreement between leaders a few weeks after the COVID-19 crisis erupted, the size of the instrument (being the largest EU fund ever created), to the RRF's design features (including the performance nature of the instrument, its leverage on reforms, and its method of financing), it is a fundamentally novel EU instrument. Aimed at both recovery and resilience, it first led to a firm common response to a simultaneous economic downturn across the EU, ensuring rapid macroeconomic stabilization and preservation of public investment levels, in contrast with previous crises. It has also planted the seeds of a significant increase in the resilience of the EU economy by fostering the implementation of major structural reforms in line with the common priorities of the EU. Lessons about absorption capacity, incentives, flexibility, and governance will all advance future program design in the EU and beyond.

The current situation of the tax system and administration in Albania

Abstract A large part of the world’s economies, but especially countries in transition, face high levels of fiscal evasion and tax avoidance. The tax administration must analyze the factors that influence the level of income declaration by taxpayers, specifically the identification of the problems of this fiscal policy in relation to VAT, Social Security and Health contributions and consolidate the infrastructure in order to improve the situation in a way to achieve a better performance in the realization of tax revenues. Tax control remains one of the most discussed issues in this case. Despite the fact that there are other important structures that affect the performance of the tax administration, tax audit has a significant impact on increasing the awareness of taxpayers. The quality of tax control has been treated as one of the basic performance indicators of the tax administration that has a direct impact on tax revenue collection. Fiscal evasion and tax evasion leads to a low level of revenue realization, which causes low levels of public investment. The object of the study will be the identification of the current problems of the fiscal policy, the identification of influencing factors in the behavior of taxpayers and the impact of tax control on tax performance. There are studies related to the structuring and management of the tax audit and the factors that make a tax audit more qualitative. These studies emphasize that an independent tax control takes on new burdens aiming to guarantee the budgets with the necessary revenues to carry out economic and social programs for the benefit of citizens. The recent global and regional economic crisis has affected fiscal administration, requiring all governments to increase tax performance in support of the minimization of informality and the fight against fiscal evasion and tax avoidance. In a country like Albania, where the informal economy is present (World Bank, 2015), taxpayers try to use all the “ways” they find to avoid paying tax obligations. The difference between the taxes that should be collected and those actually collected 1 is calculated to be somewhere between 16% and 20% for VAT and for profit tax an average of 38%, also if measures for tax controls had not been taken, the potential evasion reaches 66% (World Bank, 2015). Also, the occasional changes in tax legislation and the tax burden creates difficulties for business until finding abusive ways. Under these conditions, for the tax administration in Albania, maintaining an efficient and effective tax administration is a difficult challenge. In all countries, the tax audit plays an important role in the performance of the tax administration. The main purpose of the tax administration is to make taxpayers aware of their tax obligations. An important tool for improving efficiency and effectiveness of an administration is the implementation of an appropriate tax control system in relation to the conditions in which the country is located. This study constitutes a scientific effort to present the problems of the current fiscal policy and the influencing factors in the performance of the tax administration in Albania. Through this study it will be possible to prove the relationship that exists between the various factors that have been studied (which are thought to affect efficiency) and the efficiency of the tax administration. At the same time it will be analyzed what part of the income is realized from the tax control from the total collected income. This study is a novelty in this field, since there are no studies in Albania that have dealt with these issues before, but it will also serve the senior managers of the tax administration and policy makers to take the appropriate measures.

Democratic Republic of the Congo

This technical report discusses the results of the Public Investment Management Assessment (PIMA) of the Democratic Republic of Congo (DRC) undertaken in March 2022. Despite some recovery in the 2000s, the levels of public investment in the DRC remain well below the average for comparator countries, and access and quality of infrastructure are very poor, with major risks of deterioration. While the government aims to meet part of these needs by creating fiscal space, successful infrastructure development will hinge on improvements in investment efficiency, which can be achieved by strengthening public investment management practices. Public investment management in the DRC suffers from weaknesses across the whole project cycle, both on paper (legal and regulatory framework) and in practice. Efficient project management is hampered by administrative and legal fragmentation, which leads to dilution of capacity, and by budget credibility issues. This report proposes seven high-priority recommendations that could greatly improve public investment management in the short to medium term. The report also includes the results of the climate module of the PIMA evaluation, which reflect that the DRC’s commitments in the fight against climate change are beginning to feed into public investment management practices.

Ko šalje novac kući - fiskalne posledice teritorijalne reprezentativnosti narodne skupštine

The practice of political representatives trying to provide benefits to voters in their local communities is not new. The phenomenon is most often operationalized through financing of public works, projects, subsidies, direct transfers or social benefits, provided in order to increase the political ratings and ultimately ensure reelection. Although the practice is more pronounced in candidate-oriented electoral systems consisting of single-member districts, it can also be identified within the countries employing the proportional list system. The authors' intention is to examine a correlation between the local representation in the Serbian parliament and budgetary transfers and moreover a general level of local financing. For this purpose, data on the residence of MPs was compared with the levels of transfers, subsidies and amount of local expenditures, while the models are additionally controlled with various variables including size of municipality, development level, unemployment rate, share of elderly population, as well as other developmental and societal factors. The sample covered 145 cities and municipalities in Serbia, for a period from 2013 to 2021. The empirical results indicate that pork barrel practices are indeed present even in the environment of closed electoral lists with at-large single district, which does not create institutional incentives for the cultivation of personal vote. But even in Serbia, it seems that local politicians favor their places of residence by increasing the level of public investments. Consequently, municipalities without deputies will remain without financial benefits that parliamentary representation provides. We found that these practices are primarily accomplished through central level subsidies, but can also be identified in the amounts of local budgets and local expenditures. On the other hand, direct annual transfers from the higher levels of government are mostly fixed due to the exact legal criteria, exempting the interference of elected deputies on this particular financing mechanism.

Health Investments to Reduce Health Inequities in India: Do We Need More Evidence?


 
 Large inequities in health outcomes and treatment-seeking behaviour continue to exist in India, across households, states and residence. A few large populous states continue to contribute the most to multi-dimensional poverty, including indicators for health outcomes. A significant contributor is the high out-of-pocket spending that continues to be a key feature of India’s health sector, accompanied by one of the lowest levels of public investment on health. The COVID pandemic has brought out sharply the lack of preparedness of the country and its states to face a catastrophe of this kind. A resilient health sector can only be built by bridging the various gaps in key inputs into the sector – infrastructure, personnel, supplies and training. This investment is likely to bring down the demand for health services in the private sector and reduce spending on health services by households by making these affordable and accessible. A quantum jump in investment would also be required to offer health coverage that is truly universal in scope and coverage. Unless that happens, India would remain unprepared for the next calamity and continue with significant inequalities in health outcomes and access to services.

Research on the efficiency of public investment from the perspective of performance audit

<p>Public investment is an important means of promoting stable economic development, quelling economic fluctuations, and the government’s macro-control. However, in the process of my country’s continuous deepening of reforms, public investment has exposed problems such as waste of resources, corruption, and policy incoherence. The performance level of public investment is relatively low. Based on the perspective of performance auditing, this article discusses the key points of public investment performance auditing, the institutional issues of public investment and the path of influence on public investment. Finally, this article puts forward policy opinions on improving public investment performance through public investment performance auditing.</p>

Research on the Efficiency of Public Investment from the Perspective of Performance Audit

Public investment is an important means of promoting stable economic development, quelling economic fluctuations, and the government’s macro-control. However, in the process of my country’s continuous deepening of reforms, public investment has exposed problems such as waste of resources, corruption, and policy incoherence. The performance level of public investment is relatively low. Based on the perspective of performance auditing, this article discusses the key points of public investment performance auditing, the institutional issues of public investment and the path of influence on public investment. Finally, this article puts forward policy opinions on improving public investment performance through public investment performance auditing.

Difficulties of municipalities in the cearense metropolitan region in adhering to the public accounting convergence process: a multi-study

Objective: The purpose of this multi-case study is to evaluate the perceptions of Brazilian municipalities regarding the process of convergence of public accounting to international standards, initiated in 2008, considering the importance of these federated entities in the primary provision of public goods and services to society.
 Methodology: It was based on the application of a questionnaire with structured questions applied to the finance departments in 7 (seven) municipalities of the Metropolitan Region of Fortaleza. In addition to this aspect, the municipalities were selected based on the state’s GDP and the level of public investments made by them.
 Results: The results were considered consistent by emphasizing that 71% of the municipalities started the convergence process within the deadline established by the National Treasury Secretariat (STN), however only 43% stated they were prepared to apply the NBCASP. One of the main related difficulties refers to the lack of investment in training for the technicians involved and of their own systems to operate the changes determined by the STN.
 Contributions of the Study: Effectively, the research proved real difficulties experienced by part of the surveyed municipalities that can compromise the progress of the convergence process in Brazil, aspects which were not considered in the researches previously carried out.

The determinants of public investment in Ethiopia: An ARDL approach

Public investment has shown increasing trends both in nominal and as a share of GDP over years in Ethiopia. These upsurges in public investment are believed to be due to factors that have visible impact on the fiscal posture of the country. To investigate the validity of Wagner’s law in Ethiopia; this study sets determinants of public investment in Ethiopia as a general objective. Specifically, the study sought to examine the main influencing factors on level of public investment in Ethiopia along three sets of explanatory variables. In order to meet the aforementioned objective, the study employed an autoregressive distributed lag (ARDL) approach over the period 1985–2019. Results from the bound tests show that there is a long-run relationship between the variables. The real per capita GDP is found to be positively and significantly impact on level of public investment which shows that there an evidence in favour of Wagner’s law,i.e. public spending has a high income elasticity of demand. This study also found that there is a positive relationship between public investment and private investment which shows that two are moving in tandem. Again, the study also found that foreign aid has positive impact on public investment implying that additional foreign aid leads to larger spending of the government on capital. Moreover, the study found that the degree of urbanization suggests that levels of public spending are higher in the urban sector than rural economies. These findings give strong policy implication to the policy makers because an increase in public investments in may then help spur economic growth.

An alternative for poor cities in urban planning in the developing world

The efforts made to plan cities in emerging and developing countries are confronted with a number of issues, particularly in small and middle-sized cities, which can be classified as poor based on a number of criteria, including the socioeconomic level of the majority of the population, low levels of public investment, poor quality of local administration, and a high reliance on external donors. One of the main reasons, according to several authors, is that the philosophy and methods of urban planning applied to these specific contexts are directly reproduced from a Western tradition, which does not correspond to the local and national context in terms of needs, priorities, and financial resource organization. The cases of Koudougou, a medium-sized city with a population of 115, 000 in one of the poorest countries in the world, Burkina Faso, and Montes Claros, an industrial blooming city with a population of 360, 000 in Brazil, one of the most dynamic emerging countries in the world, will allow comparisons to be made in order to understand concretely which and how these deficiencies exist. And, more broadly, alternative models of urban planning better adapted to medium-sized cities, focusing on intermediation with their environment, with the goal of offering new urban planning instruments capable of addressing the main constraints of their urbanization in an efficient manner: growing population; territorial Extension and Fragmentation; Environmental Contamination and Heaving.

E-Government clusters in the EU based on the Gaussian Mixture Models

The use of advanced ICT technologies and the support of new ways of thinking, acting and working in public administration, together with the increased provision of information and interactive services accessible through various channels, is the foundation of eGovernment. In recent years, there has been visible progress in all EU countries in terms of the general framework for e-government strategy, which is based on best practices and methodologies. The aim of our research is to discover the way in which the EU states are situated from the point of view of the digitalization of the administration. For this I used Gaussian models. The main research parameters were: accessibility; transparency, investments in information and communication technologies and investments in infrastructure related to public administrations in EU countries. The results show significant differences between state administrations. We applied Gaussian Mixture Model clustering in order to make an analysis of the national E-government situation in the European Union for 2018. The GMM algorithm estimated six clusters. We find that the first cluster, with Nordic countries, Netherlands and Austria, has the highest values of telecommunication infrastructure, citizens’ access to e-government services and Transparency International’s Corruption Perception Index. At the opposite pole, in cluster 2, Romania and Bulgaria have the lowest values of these three indicators, while their public investment levels are not significantly under EU averages. Our research provides not only an overview of the digitization of administrations, but also what are the main lags that state administrations have to recover in order to reach a digital system integrated into the EU's administrative space.

Belize

The level of public investment in Belize has varied over the past years in the context of existing constraints. The sharp increase in public debt has limited available fiscal space.1 This has resulted in an increase in externally financed investments as a share of the capital budget and a growing interest in public private partnerships (PPPs) to help achieve the government of Belize’s national strategy objectives.2 However, the correlation between Belize’s public investment and GDP growth remains weak, and the public capital stock as a ratio to GDP shows a sharp deterioration, possibly pointing to investment inefficiencies.

Government Public Investment Dynamic Multiplier Effects: An Empirical Analysis for Spain

We estimate the dynamic multiplier effect of public investment in Spain. To this aim, we employ annual data of the seventeen Spanish Autonomous Communities for the 1980-2016 period. We disaggregate public investment in productive infrastructure investment, INFINV, and in social investment, SOCINV. Thus, we analyze the dynamic multiplier effect of INFINV and that of SOCINV. Our findings suggest that an increase in the level of public investment generates a positive and permanent effect on the level of GDP. One year after the fiscal expansion, the dynamic fiscal multipliers of INFINV and SOCINV reach values above one, thereby confirming that government public investment expansions have Keynesian effects on the level of output. We also find that the value of the dynamic multipliers is asymmetric when we consider above-average-GDPpc and below-average-GDPpc Autonomous Communities.

Connected and Automated Transport: Research and Innovation Capacity in Europe

Evaluating the future impacts of transport innovation on society is notoriously difficult. Yet foresight and monitoring tools are important to anticipate on possible futures so that research funding and policy making efforts can be guided. This paper presents a comprehensive two-tiered approach to 1) identify new and emerging technologies and trends in transport and 2) leverage a transport research database and analysis tool to assess the status of transport research and innovation. The approach is applied to the field of Connected and Automated Transport (CAT). The level of public investment is identified and the geographical distribution of research organizations shown. We argue that this approach can aid policy makers to support the future development of CAT technologies and help researchers to forge collaborations and identify research gaps.

Analysing policies to increase graduate population: do tuition fees matter?

ABSTRACT Although broadening equal access to higher education has been an objective public policy for decades, little is known about the effectiveness of alternative means for achieving this goal. Moreover, it has raised a need of explaining the heterogeneity in Higher Education attainment across European countries, where high level of graduate population can be observed both in the presence of high- and low-levels of fees. This paper surveys the extant literature providing some background on the economic concepts of higher education market, and reviews key determinants of demand and supply. A theoretical and empirical model of aggregate demand and supply of higher education is derived, with the aim to facilitate the understanding of the challenges in today’s higher education systems, as well as the opportunities for development. The model is validated on some exemplary case studies describing different relationships between the level of public investment and levels of graduate population.

Public Investment in Bolivia: Prospects and Implications

Bolivia’s “Patriotic Agenda 2025” sets targets for social and economic development propelled by state-led industrialization under a five-year development plan (2016–2020). Large-scale public investment has aimed to fill infrastructure gaps and raise productivity to ensure sustained medium-term growth. Pursuit of these goals in a period of lower hydrocarbon revenues has, however, contributed to widening fiscal and external current account deficits. The paper uses a structural model to outline different scenarios for the level of public investment in the face of declining hydrocarbon revenues. It finds that if public investment is sustained at current levels as a share of GDP while hydrocarbon revenues continue to decline, the sustainability of the public debt could be called into question.

Public Investment in Bolivia

Bolivia’s “Patriotic Agenda 2025” sets targets for social and economic development propelled by state-led industrialization under a five-year development plan (2016–2020). Large-scale public investment has aimed to fill infrastructure gaps and raise productivity to ensure sustained medium-term growth. Pursuit of these goals in a period of lower hydrocarbon revenues has, however, contributed to widening fiscal and external current account deficits. The paper uses a structural model to outline different scenarios for the level of public investment in the face of declining hydrocarbon revenues. It finds that if public investment is sustained at current levels as a share of GDP while hydrocarbon revenues continue to decline, the sustainability of the public debt could be called into question.