Local Investment Research Articles

Effectiveness of Financing Measures to Reduce Low Emissions in Poland - a Case Study

Local authorities are increasingly facing the challenges of climate change, which requires adaptation of various elements of local government systems, including infrastructure, communities and local economies. Operating in an ever-changing reality, local government units should plan for the necessary sustainable local government investments, with particular attention to structural gaps and financial mismatches. Local government is responsible for ensuring local energy security and thus for 'environmental sustainability'. The overall objective of this study is to assess the effectiveness of financing low-emission lowering measures from the Environmental Protection and Water Management Fund in municipalities in Lubusz Province in 2020. The article uses cause-effect relationship analysis (regression models). Investments implemented by local governments generally have a positive impact on the reduction of low emissions, although the results of the study indicate a negative impact of financing investments in alternative energy sources (RES). This may be related to large investment outlays, as well as difficulties in spatial planning, environmental impact and administrative inefficiency.

Population Change as an Aspect of Suburbanization of Major Cities in Poland

Abstract Cities function in people’s minds as reservoirs of opportunities and possibilities. For many people, living in a city seems an attractive and logical life choice compared to areas perceived as provincial. However, the reality of the modern city is also associated with numerous nuisances. The occurrence of these disadvantages has led to the development of mechanisms intended, at least in principle, to counteract the ills of urban life. One such mechanism is the phenomenon of suburbanization. The outpouring of urban functions beyond its boundaries occurs all over the world. However, this phenomenon also entails exacerbating transport bottlenecks, requires a lot of local investment, contributes to the deterioration of the environment, and disrupts household time budgets. This paper addresses population change as one of the demographic aspects of suburbanization. The trends characterizing the outflow of population from cities and the inflow of population to suburban areas has been examined. The study covers several of Poland’s largest cities using data from the 2011 and 2021 National Censuses. The main objectives of this study are to assess the scale of suburbanization in large and medium-sized Polish cities, so as to determine whether suburbanization occurs similarly regardless of city size. To identify those urban centers where the population change in neighboring municipalities is particularly high so as to raise the awareness of decision-makers and real estate market participants in relation to the challenges posed by suburbanization. In addition, using one city as an example, an assessment of how the influx of population affects number of transactions on selected real estate market was carried out. The results of the study may be useful in analyzing investment needs for various types of infrastructure, including roads and technical infrastructure.

Host‐country terrorism and outward foreign direct investment location choice of Chinese multinational firms: The moderating roles of state ownership and immigrant influence

AbstractThis study employs a novel approach based on real options theory to explore how host‐country terrorism influences the location decisions of companies seeking to invest overseas. Using data for publicly listed firms in China that engaged in outward foreign direct investment (OFDI) between 2008 and 2020, this paper reveals that the severity of host‐country terrorism negatively affects the flow of OFDI from Chinese firms to that specific country. Notably, this adverse impact of host‐country terrorism on OFDI is less pronounced for state‐owned enterprises (SOEs) compared to non‐SOEs. Furthermore, the extent of immigrant presence in the host country acts as a mitigating factor against the negative influence of host‐country terrorism on firms' OFDI decisions. A significant contribution of this article is its pioneering examination of the intricate connection between extreme risks such as host‐country terrorism and the firm‐level OFDI location choices. The insights derived from this study can play a crucial role in assisting companies in bolstering their strategies for risk mitigation and security when venturing into foreign markets. Beyond its practical implications, the findings also hold theoretical value, offering a deeper understanding of how a country can maintain a resilient and diversified international economic order, fostering stable trade relationships, and facilitating high‐level engagement with the global economy.

Державне регулювання регіонального розвитку

The authors examine the issues of public regulation of regional development in this article. The reasons for regulation are mentioned – a balanced distribution of resources, economic development, the need for local fiscal and investment policies, as well as the regulation of trade and market relations. Measures of public regulation are being considered. Among them, for example, investment in infrastructure to stimulate a region’s development, as well as specialization. Such measures of state regulation contribute to ensuring social justice. For example, creating economic zones or zones of priority development in underdeveloped regions will attract investment and create jobs. That will reduce the level of inequality between different regions of the country. The conclusion is as follows: the regulation of state development is important for the growth of the region’s economic development and correcting the imbalance in development between regions.

Nation branding as a tool to attract foreign direct investments: a case study of Qatar

Nation branding plays a critical role in attracting foreign businesses and, by extension, sustaining countries’ economic development and global competitiveness. Using Qatar as a lens for investigation, this research applied the single, embedded case study method. Purposive sampling with key decision makers in Qatar-based foreign companies representing diverse geographies and industries were used to understand the influence of nation branding on their investment location decision. The findings revealed five key thematic features of Qatar’s nation brand as an investment destination: socioeconomic prosperity, integrated global hub, activist engagement, collectivist culture, and high-end lifestyle. These brand characteristics were compared in relation to the Eclectic Paradigm’s locational advantage and the Anholt Ipsos NBI’s dimensions of exports, governance, culture/heritage, people, tourism, and investment/immigration. The dimensions exerted a strong effect on Qatar’s nation brand and varying levels of influence on FDI attraction. This research contributes to the nexus between nation branding and the FDI literature. Importantly, the results of the study provide useful guidance to government officials, policymakers, and public and private agencies involved in investment promotion. The findings will also prove relevant to foreign investors with regard to their international expansion and location choice.

The Challenges faced by the Iraqi electricity sector: Reform program and proposed solutions

The electricity crisis in Iraq presents a complicated challenge that extends beyond technical, administrative, and strategic dimensions, impacting the nation's economic and political landscapes. This research explores the roots of the crisis, emphasizing the need for comprehensive planning, enhanced leadership, and coordinated efforts within the state administration. This study proposes two alternative sources of financial support to revitalize the electricity sector. Firstly, the utilization of loans from local banks provides a viable economic and political solution, reducing costs associated with importing energy and alleviating the energy deficit. The second proposal suggests establishing a development investment fund, attracting local capital investments with competitive interest rates. These funds, reinvested in high-return projects, promise to augment the Ministry's revenues, and contribute to economic growth. To illustrate the viability of the proposals presented in this paper, a 1400 MW thermal power station is examined, comparing the cost of production (kWh) when financed by local banks against the cost of importing energy or purchasing from investors. Additionally, the study advocates for a rehabilitation program to increase unforeseen capabilities through maintenance campaigns, project acceleration, and a focus on the electric power transmission sector's development. In conclusion, the implementation of these proposals offers a transformative approach to address the electricity crisis in Iraq. Beyond immediate financial benefits, these initiatives contribute to economic growth, energy sustainability, and improved GDP income. The study emphasizes the necessity of a coordinated rehabilitation program and enhanced infrastructure development to realize a more resilient and efficient electrical system.

Paving Their Own Road? Local Chinese and World Bank Aid and Foreign Direct Investment in Africa

Abstract China’s emergence as a major donor and economic partner to sub-Saharan Africa has prompted questions if the aims and impacts of China’s efforts in the region are driven by self-serving commercial motives. While there are strong reasons to think that the foreign aid may make a location more attractive to investment, generally, by improving the infrastructural, institutional, or human capital environment and/or by serving as a signal of a location’s risk, there is also reason to suspect that Chinese aid may be “paving the way” for investment by Chinese firms. To investigate, this paper uses spatial and temporal variations in localized, geo-referenced data to find a strong overall support that local aid boosts local foreign direct investment (FDI). However, we also find some evidence that Chinese aid boosts its own FDI compared to FDI from third-party countries; but this differential effect is also visible with the Chinese FDI’s response to the World Bank aid as well as in the relationship between both aid and FDI from the USA, suggesting that the Chinese FDI may simply be following any aid and that the relationship between its aid and FDI is not exceptional among bilateral donors.

Applying Warren Buffet’s Investment Strategy to Indonesia Stock Market

In the past five years, there has been a significant surge in local Indonesian investors, predominantly comprising millennials and Gen Z, contributing to the positive growth of the stock market. However, a concerning phenomenon known as “herding bias” has been observed, highlighting the tendency of young investors to follow prevailing trends without fully understanding the intricacies and risks associated with their investments. This paper aims to address this issue by enhancing public awareness of stocks and minimizing associated risks, focusing specifically on value investing as an effective strategy. The research utilizes a ten-year period, selecting samples from companies listed in IDX30 through Warren Buffett’s screening test. This test incorporates key factors such as Conservative Debt, Price-to-Earnings Ratio (P/E Ratio), Price-to-Book Ratio (P/BV Ratio), Debt to Equity Ratio (D/E Ratio), and Return on Equity (ROE). Following the sample selection, the paper calculates the intrinsic value of chosen stocks, determines the margin of safety, estimates expected returns, and evaluate the risk-adjusted performance. Additionally, qualitative factors like understanding the business, market conditions, and internal company factors are considered. The findings indicate that Warren Buffett’s investment strategy can be successfully applied to Indonesian stocks. Investors are advised to select stocks based on careful consideration of financial ratios, analyzing annual reports, calculating intrinsic values, determining margins of safety, and assessing expected returns alongside associated risks. This research provides valuable insights that can serve as a practical reference for stock investment decisions, particularly for stocks with high market capitalization. By promoting a comprehensive understanding of value investing, this paper aims to empower young Indonesian investors to make informed and strategic choices, thereby mitigating the impact of herding bias in the local investment landscape.

Spatial diffusion of public-private partnership (PPP) in China: A county-level analysis

This paper explores the spatial diffusion of Public-Private Partnership (PPP) in China, assessing the effects of regional boundaries, including political and functional boundaries, and transaction costs on this process. We conduct an empirical analysis using county-level panel data from 2014 to 2020 and employ a combination of geographic information system (GIS) and spatial autoregressive models to analyze the spatial factors influencing PPP diffusion in China. Our findings reveal three key points: First, local governments' PPP investment positively correlates with neighboring regions, indicating a contagious effect. Second, the contagious effect is more significant within the same urban agglomeration, demonstrating a boundary effect and illustrating the impact of spatial rescaling on spatial diffusion. Third, the contagious effect is more pronounced for PPP sectors with lower output measurement difficulty, suggesting transaction costs influence spatial diffusion. These findings offer valuable insights into barriers to spatial diffusion and strategies to promote the spatial diffusion of innovation.

Development of carbon finance in China based on the hybrid MCDM method

As development progresses over time and changes in the environment take place, carbon finance development has become a very interesting research topic for many scholars worldwide. This paper proposes a hybrid MCDM method that combines the distance solutions of the TOPSIS and VIKOR methods. The contribution of this paper combines TOPSIS and VIKOR, incorporating AISM models to obtain the development ranking of Chinese carbon finance pilot cities as related to the Chinese carbon finance development pilot provinces and cities. The conclusion notes that Guangdong and Beijing are the most preferred investment locations for carbon investors. In addition, technological innovation, financial sector development, and an active ETS market can effectively drive the level of local carbon finance. Additionally, the MCDM methodology in this paper provides new ideas in environmental and economic development assessment.

Unveiling the Interplay of Institutional Quality, Foreign Direct Investment, Inflation and Domestic Investment on Economic Growth: Empirical Evidence for Latin America

Uplifting economic growth is crucial for the sustained development and prosperity of an economy. The main objective of this study is to investigate the impact of institutional quality, foreign direct investment (FDI), inflation, and domestic investment on the economic growth of Latin America from 1996 to 2021. The study utilizes a combination of panel unit root testing, cross-sectional dependency testing, panel cointegration testing, and the Panel Autoregressive Distributive Lag (PARDL) technique to shed light on the dynamics of the region's economic development. The panel cointegration techniques confirm the existence of a long-run relationship among the selected variables over the chosen time frame. The PARDL technique is employed to determine the short- and long-run impact of institutional quality, FDI, inflation, and local investment on the economic growth of Latin America. The results show that institutional quality, FDI, and local investment have a significant positive impact on the economic growth of Latin America, while inflation has a negative impact. These findings suggest that policymakers in Latin America should prioritize improving institutional quality, encouraging FDI, and promoting local investment while controlling inflation. A comprehensive economic strategy that considers both short- and long-term dynamics is necessary, highlighting the importance of an integrated approach that recognizes their interaction. The study recommends improving the quality of institutions, especially political stability, to attract FDI and encourage domestic investment by promoting a business-friendly environment, guaranteeing financial accessibility, encouraging innovations, promoting regional and global integration, controlling inflation, reducing income inequality, and raising the standard of living.

Fuzzy Cash Flow Analysis of Fluctuations in Interest Rates at the State Bank of Pakistan using Present Worth Criterion

A systematic approach is required to analyze present worth by incorporating annual interest rate fluctuations. This is a key factor in attracting local and foreign investors and maintaining a level of economic advancement. This study primarily focuses on the domain of the State Bank of Pakistan (SBP) and contributes towards achieving three major objectives. The first objective includes modeling interest rate values as triangular fuzzy numbers, and using the Analytic Hierarchy Process (AHP), a Multi-criteria Decision-Making technique (MCDM). Second, the triangular fuzzy interest rates are forecasted over a future timespan. Subsequently, the last objective includes the use of the Present Worth Analysis (PWA) to calculate the final net present value. The results demonstrate a trend in interest rates with net present values of specific future years. This research is a good initiative for the SBP and helpful for both foreign and local investors. The study is novel in that it involves the merging of qualitative and quantitative data. Furthermore, the combination of the forecasting technique, the AHP, fuzzy set theory, and present worth criteria renders a unique approach to formulating present worth. There is no previous research of this magnitude that has been conducted on this topic in a developing country such as Pakistan. This study delves into the annual interest rate fluctuations, providing valuable insights for present worth calculations.

A Traditional and Non-traditional Export Performance Assessment: An empirical examination of factors enhancing the competitiveness of Zambia's Exports

This study examined the performance of traditional and non-traditional exports and further analyzed the factors that determine their performance in Zambia using a time series analysis (1960 and 2021). With the aid of the Vector error correction model, the study found that increases in the Real GDP, and Foreign Direct Investment of Zambia positively and significantly affected the volume of exports. In the analysis of aggregate exports, the non-significance of the relative price elasticity (Foreign Exchange rate) suggests that trade policies that concentrate overly on expenditure switching such as tariff and non-tariff restrictions or devaluations do not effectively assist trade policy reform efforts. The study thus recommends the need to promote inclusiveness, diversification and growth in investment towards the production of export commodities, particularly through the Multi-Facility Economic Zones by providing incentives to expand export diversification and growth at the local level through revising the Fiscal and non-Fiscal incentive thresholds in MFEZs to reflect the financing capacity of local investors.

Energy consumption and economic growth nexus in Somalia: an empirical evidence from nonlinear ARDL technique

ABSTRACT The objective of this study is to ascertain the asymmetric impact of energy consumption on economic growth in Somalia for the period 1985–2017. A novelty econometric method of the Nonlinear Autoregressive distributed lag (NARDL) technique and the Granger causality test are employed to confirm the aim of the study. The empirical findings revealed the presence of asymmetric co-integration between energy consumption and economic growth in the long run. Both positive and negative shocks in energy consumption enhance economic growth in Somalia in the long run, even though, the positive shock has a stronger significant effect on economic growth in the long run. In contrast, a negative shock in energy consumption causes economic growth, thus, confirming the energy-led growth hypothesis. Hence, this calls for the policymakers to devise investment policies that are aimed at the improvement of foreign and local investments in energy sector.

Analisis Pengaruh PMDN dan PMA terhadap PDRB di Sumatera Utara

Purpose: This study analyzes the effect of Domestic Direct Investment (DDI) and Foreign Direct Investment (FDI) on Gross Regional Domestic Product (GDRP) in North Sumatra Province in the period 2001-2020. Methodology/approach: Secondary data obtained from the North Sumatra Central Bureau of Statistics were used in this study. The data analysis method used in this research was a multiple linear regression method using the Eviews 12 software. Results: The results of this study indicate that the DDI and FDI have a positive and significant effect on Gross Regional Domestic Product in North Sumatra. The coefficient of determination of 92.70% indicates that the model can explain the variation in Gross Regional Domestic Product significantly, and the coefficient value of 7.30% is influenced by other variables outside this study. Limitations: Only tests 2-factor variables that affect stock returns during a certain period are tested. Contribution: This research is expected to provide readers with a better understanding of the contribution of domestic and foreign investment to regional economic growth in North Sumatra. This research is also expected to serve as a reference for local and foreign investment policymakers to improve and stabilize regional economic growth.

Practice and Capabilities of Program Housing Policy Implementation in Ukraine

The need for the growth of housing construction is considered through the prism of increasing the affordability of housing for citizens, which is determined, in particular, by the development of preferential housing financing programs. Availability of housing is a primary socioeconomic task in the difficult conditions of martial law. State and local programs make it possible to purchase housing, creating additional demand for it on the part of the population of different income levels. The aim of the article is to systematize preferential programs within the state housing policy and analyze the capacity of the most significant mechanisms for their implementation, and to identify organizational forms of increasing housing affordability by applying a programmatic approach. The study was carried out on the basis of general scientific methods: generalization, analysis and systematization. To present the results of the study, statistical methods are used: groupings, comparisons, tables. The novelty of the study is in author s’ position on the issue and basic methods of application and implementation of the program approach to increase housing affordability for the population, in particular, an effective tool for attracting funds for the local investment projects – bonds of local development funds. The article systematizes the main goals, objectives, basic principles of preferential programs; the effectiveness of the most significant mechanisms for their implementation was studied, with the determination of urgent organizational forms of application of the program approach from the point of view of the availability of housing for the population. The banks’ participation in financing the construction of housing and other infrastructure facilities in the role of escrow agents that protect and defend the interests of future property owners was proposed. The importance of ensuring the availability of mortgage insurance in conditions of high war risks was indicated. In order to improve the situation with condominium lending, it would be important to strengthen the role of budget sources as a basic element of assistance, in order to encourage lower-level bud gets to increase their contribution to programs for providing housing to the population.

Higher chronic absenteeism threatens academic recovery from the COVID-19 pandemic.

The broad and substantial educational harm caused by the COVID-19 pandemic has motivated large federal, state, and local investments in academic recovery. However, the success of these efforts depends in part on students' regular school attendance. Using state-level data, I show that the rate of chronic absenteeism among US public-school students grew substantially as students returned to in-person instruction. Specifically, between the 2018-2019 and 2021-2022 school years, the share of students chronically absent grew by 13.5 percentage points-a 91-percent increase that implies an additional 6.5 million students are now chronically absent. State-level increases in chronic absenteeism are positively associated with the prevalence of school closures during the 2020-2021 school year. However, these increases do not appear to be associated with enrollment loss, COVID-19 case rates, school masking policies, or declines in youth mental health. This evidence indicates that the barriers to learning implied by the sharp increase in chronic absenteeism merit further scrutiny and policy responses.

Religious Diversity and Socio-Economic Development in Southwest Nigeria

Diversity management shares an important link with Socio-economic development. Religious diversity as a type of diversity also has a link with socio-economic development of southwest, Nigeria. The study investigated the effect of religious diversity on the socio-economic development of southwest, Nigeria. Regression analytical method was used to measure the effect of the parameters (religious diversity) which is the independent variable on the dependent variable (socio-economic development) which was measured with indicators like foreign and local investments, employment opportunities, quality education, good social amenities, higher life expectancy and personal safety using SPSS version 20.

Intelligence Function in Preventing Corruption: Indonesian Prosecutor's Office and Strategic Development Security

The prevention of corruption crimes involves both repressive and preventive measures. The Indonesian Public Prosecutor’s Office implements preventive efforts through various stages of intelligence functions. To enhance these efforts, the Attorney General’s Office of Indonesia introduced the Security for Strategic Development - Regional Investment program. This study aims to determine the legal status and certainty of the technical guidelines on security for strategic development and regional investments in the context of anti-corruption measures. It is a prescriptive legal study that employs descriptive analysis and a legal approach, considering various laws and regulations. Data collection includes library and field research surveys, documentary studies, and interviews. Qualitative analysis reveals that the strategic development and technical guidelines for security of local investments align with Law No. 16 of 2004 concerning the Attorney General’s Office of the Republic of Indonesia, Law No. 17 of 2011 concerning State Intelligence, and the Regulation of the Attorney General No. PER-006/A/JA/07/2017 concerning the organization and work procedure of the Indonesian Prosecutor’s Office. However, the authority to prevent corruption was not explicitly stated in the 2004 Attorney General’s Law, and thus, adjustments were made through B-484/D/Dpp/03/2020, dated March 12, 2020, based on Law No. 11 of 2021 concerning the Indonesian Attorney General’s Office to ensure legal certainty in anti-corruption efforts.
 Keywords: attorney, intelligence function, strategic development security

Project finance through Infrastructure Investment Trust: Legal and regulatory analysis

Structured finance, private equity, and public offerings drive a new global real estate and infrastructure age. Given the necessity for increased capital in funding infrastructure projects, a range of equity instruments can be employed to attract institutional investors in both advanced and emerging economies. In recent years, infrastructure sectors, including roads, highways, ports, power, and real estate, have seen increased financial demand and investment trusts have become critical in meeting India’s infrastructural needs. Especially in India, Infrastructure Investment Trusts (InvITs) play a vital role in establishing a well-balanced risk management system, which is essential for addressing infrastructure needs and fulfilling the financial requirements of developers. InvITs were established under the Securities and Exchange Board of India (SEBI) Regulations, 2014, to attract global and local long-term investments for public-private partnership (PPP) and infrastructure projects and to fill gaps in traditional project financing. Despite initial expectations, few projects have utilized this structure since its inception. The author’s review, incorporating doctrinal legal research, analyzes the regulatory framework surrounding InvITs in India. The paper contributes to the literature, emphasizing evidence of India’s programmatic approach to enhancing infrastructure financing and showcasing structural and financial reforms in InvITs governance as integral components of the nation’s strategy.