Private Foreign Investment Research Articles

Optimization of human capital in the agrarian sphere: goals, principles and methods

Sufficient provision of agricultural enterprises with labor resources, their territorial and structural balance, rational use, high level of labor productivity are the key directions of effective functioning of agro-industrial complex, growth of production volumes and increase of its efficiency. Purpose - to analyze the criteria of human capital optimization in the agrarian sphere, to identify existing problems and to determine promising directions. Methods - the study used quantitative and qualitative analysis methods, including the collection and processing of statistical data, questionnaire survey of employees of the agrarian sector, as well as interviews with farm managers. Using the correlation and regression method, the influence of the studied factors on the optimization of labor activity was substantiated. Results - the article identifies the main issues of agricultural staffing, which consist in the decline in the professional qualification level of specialists, low staffing levels, outflow of able-bodied population from rural areas, loss of prestige of agricultural professions. Conclusions - this study emphasizes the need for a comprehensive approach to the management of labor potential in agro-industrial production of the republic. The introduction of advanced training programs, improvement of working conditions and social infrastructure is the basis for sustainable development of the industry. It is also recommended to strengthen state support and stimulate the attraction of capital of domestic and foreign private investors and investment funds in rural regions to ensure stable activity of agricultural enterprises. It shows further prospects for increasing human resources to ensure the competitiveness of domestic agricultural producers and as the main driving element in the establishment of innovation economy and the expansion of globalization processes.

What investors want from whom: international organizations and the International Association for the Promotion and the Protection of Private Foreign Investments (APPI) 1958–1974

Abstract Using archival material from states, international organizations, and business actors, this paper explores how the Association for the Promotion and Protection of Private Foreign Investments (APPI), a transnational business interest association (BIA), liaised with different international institutions to lobby for better foreign investment protection. We zoom in on the United Nations, the Organization for Economic Co-operation and Development, and the World Bank to examine how APPI influenced the global institutional landscape during its heydays from 1958 until 1974. We show that business actors, particularly oil and banking corporations, created APPI as a nimble, efficient alliance that could move faster than existing BIAs. We further demonstrate how companies “forum shop” between different BIAs, and how APPI injected its ideas into the policymaking process, using the framework of the three faces of power. By shedding light on the role private business actors played in foreign investor protection, the paper contributes to a better understanding of the emergence of global economic governance in the second half of the 20th century.

Research on Counterclaim Rules in International Investment Arbitration

<p class="MsoBodyText" align="justify">In recent years, with the rapid development of international investment, inevitably, the investment disputes between foreign private investors and the host country are increasing. From the results of the cases submitted to ICSID arbitration, it can be seen that the investor’s winning probability is extremely high, which leads to the imbalance of interests between investor and the host country, and it is difficult to protect the legitimate rights and interests of host country. In this case, the host country may initiate counterclaim arbitration proceedings against the investor’s arbitration request according to the provisions of international investment arbitration treaties, international investment agreements or domestic laws to offset the investor’s request. However, in the practice of examining and dealing with the counterclaim of the host country, the arbitration tribunal often has strict requirements on the jurisdiction and acceptance conditions of counterclaims. On the one hand, the counterclaim clauses involved in the convention are vague, and the standards of “connection” and “consent” are difficult to identify. On the other hand, the lack of investor’s obligation clauses in investment agreements makes it difficult to obtain strong legal support for counterclaims. In order to solve the application dilemma of the host country’s counterclaim rules in practice, the arbitral tribunal should give priority to factual relevance when judging whether the counterclaim is related to the original claim. The way of opposing the request for “consent” should be appropriately modified, and a broader identification standard should be adopted. On the one hand, the host country should strive to set up a special counterclaim clause in the investment agreement, and adjust the rights and obligations structure of both parties in international investment agreement.</p>

Does Aid Induce Foreign Direct Investment: Updated Evidence from a Quasi-Experiment

Abstract While the catalytic effect of aid on foreign direct investment (FDI) has long been an implicit consensus among many policymakers and practitioners, assessments of this causal relationship remain limited and are not always reliable. To mitigate this evidence gap, this study applies an instrumental variable approach that leverages the graduation of the International Development Association (IDA) income threshold as a quasi-experiment to identify the causal linkage between foreign aid and FDI. The analysis reveals that a 1 percent drop in the ratio of aid to gross national income leads to a decline in FDI relative to gross domestic product by 0.9 percent in 42 developing countries from 1987 to 2019. In face of the aid shock induced by IDA graduation, governments in recipient countries restrict their financial policy openness, through which aid could significantly impact subsequent foreign private investment. Results emphasize the necessity of concerted policy interventions to mitigate this negative aid shock.

The impact of political parties on foreign direct investment within Mexico

Today we can identify a variety of political and economic systems in the world. A free market economic system is more likely to work if it is based on a democratic political system. According to the Democracy Index 2021, Mexico went from being an imperfect democracy to a hybrid regime, with the risk of becoming an authoritarian regime. The transition from a political system of imperfect democracy to a hybrid regime represents a great risk for domestic and foreign private investment. There is a latent political risk for investors in this type of countries, which scares away foreign direct investment. This research presents an analysis of the behavior of foreign direct investment in Mexico from 2000 to 2021 by state and political party. The results from a point biserial correlation test prove the existence of a dependence between the attraction of foreign investment and the political party in government. Mexico attracted lower capital inflows since the presence of MORENA, actual political party that is in both, the federal and some state governments. Descriptive statistics show that in most of the matches there is a dependence and also a correlation, however it is prudent to study the direction of this relationship and the strength. The findings are based on an analysis of three years of government of the MORENA political party; therefore, a longer period could be considered for future research.

THE DETERMINANTS OF NEUTRALIZING THE INFLUENCE OF THE PRODUCTION RISKS OF AGRICULTURAL ENTERPRISES ON THE COMPETITIVENESS OF THE PROCESSING INDUSTRY

Background. The article explores the impact of production risks in agricultural enterprises on the competitiveness of the processing industry, considering information asymmetry in an unpredictable environment. The paper identifies key production-stimulating elements crucial for the processing industry competitiveness using the theory of value. Economic ties between agricultural enterprises and processing industry subjects aim to integrate production and technological cycles for enhanced competitiveness. The article characterizes quasi-crisis pressures in the processing industry, providing indicators for economic relations between agricultural enterprises and processing industry subjects. The paper analyzes Ukraine's grain, oil and animal-origin raw material production for the processing industry and assesses the country's processing industry competitiveness crisis level. The financial processes of meat-processing agricultural holdings in Ukrainian regions, excluding occupied territories, were studied, considering private foreign investments in the pre-war and war period. Results and conclusions. In summary, the methods employed in this research encompass a combination of an economic analysis, risk management techniques, a theoretical synthesis, diagnostic tools, a stakeholder analysis and a resource system analysis. These methods would be tailored to address the specific challenges faced by the agricultural and processing industry. Changes in the competitiveness crisis level of meat-processing agroholdings were calculated, taking into account the production and technological cycle. The article concludes with anti-crisis scenarios for cross-industry interaction to neutralize competitiveness crisis factors.

ОЦІНКА СТАНУ РОЗВИТКУ МОЛОКОПРОДУКТОВОГО ПІДКОМПЛЕКСУ ЛЬВІВСЬКОЇ ОБЛАСТІ

The article defines the essence and structure of the dairy subcomplex as an important component of the agro-industrial complex of Ukraine, focusing on changes in its localization with the outbreak of full-scale military operations. The results of the functioning of its main sectors: cattle breeding and production of dairy raw materials, milk processing, export-import commodity operations with dairy products and the sphere of consumption are investigated. It is found that Lviv region, with its considerable potential, does not show good results in the domestic market of raw milk, but due to its territorial remoteness from the area of direct hostilities, it has to some extent strengthened its competitive position in this market. There are significant differences in the structure of raw milk production in the region compared to the national figures, and the same disproportions are typical for foreign trade operations with dairy products. At the same time, there are a significant number of milk processing enterprises operating in the region, both local, interregional and national. The analysis of the situation showed that over the past five years, there have been steady deterioration trends in almost all sectors of the dairy subcomplex in Lviv region. These include high costs of keeping livestock, reduced livestock numbers (especially in households), lower milk yields, difficulty ensuring high quality raw milk and sufficient quantities in private households, unfavourable pricing policy on the foreign dairy market, low solvency of the population, negative demographic changes, and a difficult security situation due to the ongoing military operations in the country, a serious shortage of energy resources, which makes it difficult or even impossible to ensure the proper quality of dairy products in the supply chain. To support domestic dairy producers in the region, programs are being implemented to support farming and small manufacturing businesses, numerous grants are being provided, and production cooperation is taking place with the involvement of foreign private and public investment, which is yielding positive results. Also, the dairy industry in Lviv region actively promotes its products in the retail market, which ensures high ratings throughout the country, and is engaged in both meeting the needs of defenders and their social support.

Effectiveness of Foreign Aid on Economic Growth of Nepal

This study investigates the impact of foreign aid on the economic growth of Nepal from 1975/76 to 2021/22, with a focus on the association between foreign aid and private investment. The research utilizes secondary data from the National Reserve Bank (NRB), Ministry of Finance (MOF), Central Bureau of Statistics (CBS), and other related government agencies. The study employs the models to analyze the impact of foreign aid on economic growth and investment in Nepal. The Ordinary Least Square (OLS) method is used to establish a simple relationship between the variables under study. The study reveals that foreign aid positively affects the GDP growth of Nepal and is inversely related to private investment. Based on these findings, the following recommendations are made:
 Foreign aid plays a significant role in the development of some categories of people in Nepal, but most rural people do not benefit directly due to the ineffective use of foreign aid. The government should focus on improving the efficiency of foreign aid utilization to maximize its benefits for the entire population.
 The government should prioritize projects and initiatives that promote economic growth and private investment, as these efforts can help create a more sustainable and prosperous future for the country.
 In conclusion, this study highlights the importance of foreign aid in the economic development of Nepal and provides insights into the relationship between foreign aid, economic growth, and private investment. By implementing effective policies and strategies, the government can leverage foreign aid to foster economic growth and improve the lives of the Nepali people.

Effect of Ownership Structure on Financial Performance: Evidence from Listed Airlines in Africa

Objective: This study empirically examines the impact of ownership structure on the financial performance of listed airlines in Africa. Design/Methods/Approach: The research utilized quantitative techniques to collect secondary data from listed airlines over ten years (2010-2019). Descriptive statistics and multiple regression were used for analysis. Findings: The results revealed that airlines with the majority of private domestic and private foreign ownership showed a significant positive effect on financial performance (ROA and ROE). In contrast, state ownership had an insignificant impact on airlines' financial performance. The study supports the property rights theory, emphasizing the importance of private ownership in airlines. Originality/Value: This study adds to the existing literature by providing evidence on how ownership structure influences financial performance in African airlines, contributing to aviation research. Practical/Policy Implication: The findings suggest that private and foreign investors should consider acquiring controlling airline stakes to enhance financial performance. Policymakers should aim to create flexible laws and regulations that attract domestic and foreign private investors to the aviation sector, potentially fostering improved management practices and policy developments.

Foreign Private Equity in China: Challenges and Opportunities Under Chinese Legal Environment

As the world's second largest economy, Chinas private market is attractive to investors around the world. The legal environment in China can be one of the major concerns for foreign investors who are interested in investing in the Chinese capital market. With enough knowledge on how foreign private equity firms operate in China, unnecessary loss can be easily avoided. This article analyzes opportunities and challenges that foreign pri-vate equity investors would face by looking over structures of PE and the legal environ-ment in China. From a historical perspective, the restrictions on foreign equity investors are gradually removed by the Chinese government, so investing in the Chinese private market overseas is now much more viable. Since 2020, foreign-owned private equity funds can be freely established in mainland China after a series of applications. Under this trend, the Chinese private market is expected to encourage more foreign investors to enter which also brings international investors more potential opportunities.

India-Russia Relations Through the Ages

Indian Prime Minister Narendra Modi in a speech said when Indian kids are asked to mention the most valuable friend of India, they without any hesitation say it is Russia. From the very beginning of our foreign relations, we have Russia who stood beside us through thick and thin. Russia is an all-weather friend of India. Enunciation of the policy of non-alignment by India received accolades from the Soviet Union but ruffled the feather of America. After independence when India had a tussle with Pakistan on the issue of Kashmir only the Soviet Union had extended much required political support to India. During the 1965 Indo-Pakistan war and in particular, the 1971 war with Pakistan Indian sovereignty was threatened by America and Pakistan. Pakistan being a member of the US-led NATO alliance immediately sought help from America in the wake of an outbreak of war with India. Being a soft power, it was beyond India’s military capability to rebuff the possibility of joint aggression by Pakistan and the USA. Considering this, India concluded Peace, Friendship, and Co-operation Treaty with the Soviet Union in 1971. This treaty proved to be a boon for India when the Indo-Pak war broke out and America and China the two most powerful countries backed aggressor Pakistan. The decision of the Soviet Union to move its fleet to the Indian Ocean area was considered an effective deterrent to the decision of the US to deploy its Seven Fleet from the Gulf of Tonkin to the Bay of Bengal during the Indo-Pak war. After the disintegration of the Soviet Union, India’s growing friendship with America created rifts in the Indo-Russia relationship. Shifts from a socialist planned economy to liberalisation and opening of the Indian market to the outside world and foreign private investment in the Indian market and deepening cooperation with America have led to a tumultuous relationship between two old friends. Dilapidated relations somehow improved when India decided to release the five pilots of Russian origin sentenced to life for their involvement in the Purulia arms drop case. Russia extends its support to India for its claim of permanent membership in the Security Council of UNO. Presently Russia is the second-highest defence supplier to India. In the pandemic situation of covid 19, Russian President Putin visited India ignoring his health concern and promised to give medical aid in India’s effort to fight covid 19.

THE INTERNATIONAL LEGAL RESPONSIBILITY OF A HOST STATE FOR THE DESTRUCTION OF FOREIGN INVESTMENT LOCATED IN ITS TERRITORY ICSID: Award, Individual Opinion and Declaration in American Manufacturing & Trading Incorporated v Republic of Zaire 36 ILM 1531 (19

In recent years on the international stage, it has become very common practice for developing countries, eager to attract the flow of private foreign direct investment capital into their economies, to conclude Bilateral Investment Treaties (BITs) with the developed capital-exporting countries. Recent studies have estimated that, since the 1980s, well in excess of 900 such treaties have been concluded. This note examines the international rights and duties of the contracting parties to one such treaty which was concluded between the United States of America and the then Republic of Zaire, now known as the Democratic Republic of Zaire. It discusses the nature of the international legal responsibility which Zaire as a host state owes foreign nationals and their corporations which invest in her territory under both customary and conventional international law. It is firmly concluded that host states such as the Republic of Zaire clearly act in breach of their international legal responsibilities when they fail to put in place the necessary measures and environment for the protection and security of foreign nationals, their investments, and properties located in the territory of the host state. The note further states that in this area of public inter-national law, it is generally agreed that there is an international minimum standard which applies and a host state cannot rely on its own municipal law and practice which falls below the standard of international law.

Foreign Investors of the World, Unite! The International Association for the Promotion and Protection of Private Foreign Investments (APPI) 1958–1968

Abstract This article studies lobbying efforts by the actors that investment treaties protect – namely, foreign investors. It uses a legal-historical approach to analyse the activities of the International Association for the Promotion and Protection of Private Foreign Investments (Association internationale pour la promotion et la protection des investissements privés en territoires étrangers or APPI), a transnational business interest association that lobbied for better protection of private foreign investment under international law. The article considers the role of this group in lobbying for three multilateral investment treaties (an investment code, investor-state arbitration and investment insurance) during the 1950s and 1960s, using unexplored archival sources. The article makes three substantive contributions to the literature. First, it shows that the key actors involved in APPI were a transnational advocacy network of businessmen and lawyers at multinational companies, mainly in the oil and banking sector. Second, it shows how these two types of actors (businessmen and lawyers) acted symbiotically. The businessmen provided access to policy-makers and introduced company lawyers into the policy-making cycle. The company lawyers provided expertise and specific legal texts with which civil servants could work. Third, it argues that, despite the group members’ common goal to improve foreign investment security, competing individual initiatives and institutional competition, next to state preferences, often impeded more effective lobbying.

Foreign direct investments from the european union in the economy of Ukraine: current state and trends of involvement

Methods. The theoretical and methodological basis of the research is the work of domestic scientists, data from government agencies, in particular the Ministry of Finance of Ukraine, the State Statistics Service of Ukraine, the National Bank of Ukraine. Information from the International Monetary Fund, the EU website, and the European Business Association was also used. The results were obtained using a range of methods: the method of logical analysis made it possible to develop the logic of the research; structural and statistical analysis of dynamics was used to evaluate private foreign investments in Ukraine by EU countries and types of economic activity; graphic method – for visualization of the obtained research results; grouping methods, tabular – for selection, generalization of data and presentation of calculation results; deduction – to highlight certain factors affecting the investment attractiveness of Ukraine and others. Results. The article is devoted to the analysis of trends in foreign direct investment inflows to Ukraine, in particular from EU member states. The essence of direct foreign investments is considered. The volume of FDI in the economy of Ukraine, FDI inflows (operations and balances under instruments) by EU investor countries were studied. It was revealed what events influenced the excess of FDI outflows over inflows in the national economy. The dynamics of the volume of FDI (share capital) in the domestic economy, in particular from EU countries, FDI (residues on instruments) in Ukraine by types of economic activity were also considered and analyzed. The investment attractiveness is characterized and the main negative factors influencing the investment climate of Ukraine are identified. Novelty. An assessment of the current state of direct foreign investment in the economy of Ukraine by EU countries is provided. The general trends of FDI attraction in the economy of Ukraine are substantiated. Prospects for the further development of Ukraine's investment relations with EU countries have been determined. Practical value. The analysis of the dynamics of the volume of private foreign investments in Ukraine makes it possible to predict the trends of future inflows, in particular from the EU countries. It is also possible to identify EU member states that invest the most and the least in our country and, as a result, develop measures to increase Ukraine's attractiveness for FDI from EU countries, since they are economically and innovatively developed.

Private Investment and Economic Performance in Nigeria

This study examines the impact of private investment on economic performance in Nigeria using time series data from 1980 -2018. Multiple regression and co-integration methods are employed to analyze the data. The objectives of this study is to, among other things, examine the casual relationship between private investment and economic growth in Nigeria and to investigate the impact of private domestic investment on economic performance in Nigeria. Being a time series data, the first step is to test for the stationarity of the data by using Phillips Perron-Fuller unit root test. Ordinary least square (OLS) and Auto regressive distributed lag (ARDL) technique is used to estimate the models. The results of the unit root test show that some variables; Labour Force Participation rate (LPR), Private Domestic Investment (PDI),Foreign Direct investment (FDI), Misery Rate (MR), Private Investment (PI), Exchange Rate (EXR), Unemployment Rate (UNEM) and Trade Openness (TOP) are integrated of order one (1) while two variables; Real Gross Domestic Product Growth Rate (RGDPR) and Real Interest Rate ( RINTR) are integrated of order zero (0). The findings from the analysis using the Ordinary Least Square (OLS) and Auto Regressive Distributed Lag (ARDL) methods show the following: that there is no causal relationship between private investment and economic performance in Nigeria. Private Domestic Investment (PDI) recorded a positive but insignificant impact on economic performance (RGDPR) both in the short run and long run; unemployment rate reveal a negative but insignificant impact on economic performance (RGDPR) in the short run but the impact is statistically significant in the long run. There is no long run significant impact of Foreign Direct Investment (FDI) on economic performance in Nigeria, Trade Openness showed a significant inverse relationship with Misery Rate which was proxy for economic performance. The co-integration tests also confirm the existence of long run relationship between the variables and results gotten from stationarity and normality test reveal that the model is fairly well specified and could be used for policy analysis. Based on these findings, the study recommends that the AKSU Journal of Social Sciences (AJSS) Vol. 3, No. 1 (April) 2023 – G. M. Ekpo, E. B. Iwatt & A. A. Uduimoh, pp. 55-85 58 Nigerian government should promote and encourage both domestic and foreign direct investment. The investment policy should be more transparent, attractive and competitive.

Hybrid Political Regime: The Fall of Foreign Direct Investment in Mexico

Today we can identify a variety of political and economic systems in the world. A free market economic system is more likely to work if it is based on a democratic political system. According to the Democracy Index 2021, Mexico went from being an imperfect democracy to a hybrid regime, with the risk of becoming an authoritarian regime. The transition from a political system of imperfect democracy to a hybrid regime represents a great risk for domestic and foreign private investment. There is a latent political risk for investors in this type of country, which scares away foreign direct investment. This research presents an analysis of the behavior of foreign direct investment in Mexico from 2000 to 2021 by state and political party. A point biserial correlation test is performed to prove the existence of a dependencie between the attraction of foreign investment and the political party in government. Lower capital inflows in Mexico is observed since the presence of MORENA, actual political party that is in both, the federal and some state governments. Descriptive statistics show that in most of the matches there is a dependence and also a correlation, however it is prudent to study the direction of this relationship and the strength. The findings are based on an analysis of three years of government of the MORENA political party; therefore, a longer period could be considered for future research.

Domestic and Foreign Debt Dynamics and Nonlinear Effects on Private Investments in Nigeria: Evidence with Asymmetric ARDL and Causality

The ultimate goal of the study was to determine the asymmetric and dynamic effects of public debt on private investment in Nigeria from 1990 to 2019. Because of the nature of data stationarity, the study then adopted the Nonlinear Autoregressive Distributed Lag (NARDL) modelling technique, which can produce both long-run and short-run parameter estimates of negative and positive decomposed values of domestic and foreign investment. The study used the Augmented Dickey-Fuller (ADF) test to ascertain the true order of integration for the study variables. The findings for the NARDL model showed a stable long-run cointegration among private investment, domestic debt, foreign debt, economic growth, inflation and real exchange rate for the study period. The results show an asymmetric relationship between domestic and foreign debts and private investments in the long run. The estimated results further show that private investment is a significant positive function of positive and negative changes in foreign debt, and a significant negative function of positive and negative changes in domestic debt in the long run, while there were significant instant positive s on impacts on domestic and foreign debt shocks in the short-run.

Incorporating Sukuk Provisions into the Law on Domestic and Foreign Private Investment in Afghanistan

The current legal system in Afghanistan provides for commercial and financial dealings through the Civil Code (Qanuni Madani) and covers several Islamic financial transactions, such as the contract of sale which can be found under articles 1035 to 1123 of the Civil Code1 and the contract of Future Commodity Sale (salam) which is under articles 1124 to 1132 of the Civil Code1. In Afghanistan, while the Islamic finance sector is still in its nascent stage, there is still a growing demand for it. Its potential, therefore, remains untapped. One such Islamic finance instrument that is underutilized is Sukuk (an Arabic term, which denotes a financial instrument similar to the issuance of a bond). While the central bank of Afghanistan has taken the initiative to develop and standardize the Islamic banking sector by issuing guidelines on various Islamic finance contracts that are meant to regulate the activities of Islamic banks, it has yet to issue Sukuk regulations. The main purpose of this paper is to examine the current law on Domestic and Foreign Private Investment in Afghanistan (2005) and to consider the issuance and regulation of Sukuk as part of such investments. It also briefly assesses the Malaysian legislation on Islamic Capital and Sukuk to serve as a guide for Sukuk legislation in Afghanistan. This paper proposes the introduction of new Sukuk provisions and the amendments of existing articles within the current investment law to cover different aspects of Sukuk issuance, structures and investment. This research is the latest effort in developing the Sukuk industry in Afghanistan through Sukuk legislation and serves as a guide for initiating efforts for incorporating provisions related to Sukuk issuance into the current law. The methodology used is purely doctrinal and will make use of examining the law and regulations that are relevant to Sukuk. Keywords: Sukuk, regulations, Afghanistan legal system, Malaysian legislation, Islamic finance, investments

Incorporating Sukuk Provisions into the Law on Domestic and Foreign Private Investment in Afghanistan

The current legal system in Afghanistan provides for commercial and financial dealings through the Civil Code (Qanuni Madani) and covers several Islamic financial transactions, such as the contract of sale which can be found under articles 1035 to 1123 of the Civil Code1 and the contract of Future Commodity Sale (salam) which is under articles 1124 to 1132 of the Civil Code1. In Afghanistan, while the Islamic finance sector is still in its nascent stage, there is still a growing demand for it. Its potential, therefore, remains untapped. One such Islamic finance instrument that is underutilized is Sukuk (an Arabic term, which denotes a financial instrument similar to the issuance of a bond). While the central bank of Afghanistan has taken the initiative to develop and standardize the Islamic banking sector by issuing guidelines on various Islamic finance contracts that are meant to regulate the activities of Islamic banks, it has yet to issue Sukuk regulations. The main purpose of this paper is to examine the current law on Domestic and Foreign Private Investment in Afghanistan (2005) and to consider the issuance and regulation of Sukuk as part of such investments. It also briefly assesses the Malaysian legislation on Islamic Capital and Sukuk to serve as a guide for Sukuk legislation in Afghanistan. This paper proposes the introduction of new Sukuk provisions and the amendments of existing articles within the current investment law to cover different aspects of Sukuk issuance, structures, and investment. This research is the latest effort in developing the Sukuk industry in Afghanistan through Sukuk legislation and serves as a guide for initiating efforts for incorporating provisions related to Sukuk issuance into the current law. The methodology used is purely doctrinal and will make use of examining the law and regulations that are relevant to Sukuk.

Green finance development and environmental sustainability: A panel data analysis

This study considers five regions, i.e., South Asia, South-East Asia, China, Middle Eastern countries, and European countries, and took their data for 15 years. This study makes a significant contribution to the literature by examining the impact of green finance on environmental sustainability. Green finance development is represented by GDP, investment in renewable energy sources, investment in research and development (R&D) for eco-friendly projects, and public–private partnership investment in renewable energy projects. Green financing development in the chosen panel exhibits a distinct geographical cluster effect, with significant regional variances. The most important influencing elements are regional GDP, regional innovation level, and air quality, whereas the degree of financial development and industrial structure optimization are insignificant. The degree of financial development and industrial structure optimization are related to the amount of green finance development mostly via spillover effects. The degree of financial development has a positive spillover impact, but industrial structure optimization has a negative spillover effect. This study reveals that an increase in the production of energy from renewable sources, an increase in R&D, and the evolution of public–private partnership investment in renewable energy reduce CO2 emissions. It is evidenced that green finance in renewable energy sources is necessary to achieve environmental sustainability. There is a strong need to increase green finance in renewable sources to target the minimization of global CO2 emissions. There should be cross-border trade of renewable energy between regions/countries to mitigate CO2 emissions globally. Moreover, this study ranks the regions based on environmental sustainability, which may help researchers and decision-makers to entice foreign direct and private investment in these regions. The implications of the findings of the study suggest that environmental sustainability benefits greatly from green financing and investing in renewable energy sources through public–private partnerships, which represents one of the best ways to ensure environmental sustainability.