Public Private Investment Research Articles

Does energy productivity and public-private investment in energy achieve carbon neutrality target of China?

Carbon neutrality target is of great importance to all countries around the globe recently. Innovative methods are being evaluated to achieve the environmental sustainability. In this study, we aim to inspect the influence of public-private partnership in energy and energy efficiency on CO2 emissions in China from 1991Q1 to 2017Q4. In doing so, we include other important determinants of CO2 emissions also, such as environmental innovation, renewable energy, energy productivity and economic growth in our model. We employ the advanced cointegration methods that are developed recently. Moreover, spectral Breitung and Candelon (BC) causality test is used to find the causal effects of technological innovation, energy productivity, public-private partnership in energy, renewable energy consumption and GDP on CO2 emissions. The results suggest that increase in income and public-private partnership enhance carbon emission in China. Conversely, an improvement in energy productivity, renewable energy and technological innovation exert negative influence over CO2 emissions. There is a need to improve the efficiency of public-private partnership in energy projects in terms of carbon emission. Policymakers in China need to ensure an effective and timely transition towards renewable energy sources through environment related innovations and improved efficiency in all sources of energy.

Are start-ups funded by public venture capital different? New cross-country evidence from micro-data

Abstract Given the sizeable amount of public investments in venture capital (VC) in many countries, an emerging empirical literature investigates the impact of government venture funds on firm performance. We reassess the key findings of this literature using a new database on innovative start-ups and VC investments, which is unprecedented for granularity and comprehensiveness and covers a longer, more recent time period. Our analysis confirms the established finding that start-ups backed by government VC underperform start-ups backed by private investors. Differently from the extant literature, instead, we do not find that mixed public–private investments in the first stage are associated with additional private investments in later funding rounds. We interpret this as evidence that public VC is bounded to fail without an ongoing commitment throughout the process of development and growth of new ventures.

Agreement on the Protection and Promotion of Capital Investments as a Type of Public-Private Investment Contract

The article highlights a new type of investment agreements with the participation of the state, which was established by Federal Law of April 1, 2020 No. 69-FZ “On the Protection and Promotion of Capital Investments in the Russian Federation” and called as an agreement on the protection and promotion of capital investments. It is compared with other contractual forms provided for by the current Russian legislation, such as a public-private partnership agreement, a concession agreement, a special investment contract, a contract on the complex development of area, an agreement on the implementation of activity in a special economic zone, etc. It is argued to establish a single unified contractual type - a public-private investment contract that can cover many forms of interaction between the state and a private person under pursuing investment activity, taking into account the specifics in the legal capacity of the parties, subject and other terms of such a contract. It is also strongly recommended to systematize the present investment legislation of the Russian Federation for the purpose to streamline a lot of types of investment contracts, to eliminate unnecessary details and duplication, and to expand the freedom of contract in this area, leaving the parties free to clarify the terms of the public-private investment contract concluded between them.

Are Start-ups Funded by Public Venture Capital Different? New Cross-Country Evidence from Micro-Data

Abstract Given the sizeable amount of public investments in venture capital (VC) in many countries, an emerging empirical literature investigates the impact of government venture funds on firm performance. We reassess the key findings of this literature using a new database on innovative start-ups and VC investments, which is unprecedented for granularity and comprehensiveness and covers a longer, more recent time period. Our analysis confirms the established finding that start-ups backed by government VC underperform start-ups backed by private investors. Differently from the extant literature, instead, we do not find that mixed public–private investments in the first stage are associated with additional private investments in later funding rounds. We interpret this as evidence that public VC is bounded to fail without an ongoing commitment throughout the process of development and growth of new ventures.

Economic Vulnerabilities and Livelihoods: Impact of COVID‐19 in Fiji and Vanuatu

Economic Vulnerabilities and Livelihoods: Impact of <scp>COVID</scp>‐19 in Fiji and Vanuatu

Improving laws on Public-Private Partnership projects appraisal council – Experiences from Korean laws

Appraisal is an important stage in the preparation of Public-Private Partnership projects, which has an important influence on the project investment decision. However, the reality of the appraisal work over the past time has not been as effective as expected. To improve this situation, first of all, it is necessary to improve the legal basis of the organization, operation as well as the responsibility of the subject assigned to the appraisal task (the appraisal council). Only when the legal status of the appraisal council is independently designed, the composition of the appraisal council meets the professional requirements and the legal responsibility of each member of the appraisal council are clearly defined, thus the appraisal work can be done seriously and effectively. With the above orientation, this article will clarify Vietnamese legal regulations related to the appraisal council for Public-Private Partnership projects, including the current provisions of Decree 63/2018/ND-CP and the upcoming provisions of the Law on Public-Private Partnership Investment 2020. At the same time, this article will also compare with similar provisions of the Korean laws to have multidimensional views. On that basis, this article will propose a number of personal views to complete the legal basis for the appraisal of Public-Private Partnership projects in our country.

Beyond the Façade: layering downtown spillover investment

ABSTRACT In a time when funding for small communities is limited, an analysis of investment strategy is critical. Façade improvement grant programs are thought to spur spillover of both direct and indirect investment in downtown districts by leveraging built capital and harnessing a sense of place. Through case study, with interviews and observational analysis, we empirically analyze this phenomenon in three U.S. communities in the state of Montana; Helena, Kalispell, and Anaconda. Findings show that direct public-private investment through downtown façade grants, administered by downtown-focused organizations in accordance with long-range plans and visions, leverages positive indirect spin-off via supplementary privately initiated renovations and building maintenance. This implies that strategic downtown investment through façade grants generates a multiplier effect, creating layers of return on investment.

Islamic finance merging public finance within public–private partnership

PurposeThis paper aims to describe cooperation between public and private market players from different legal and religious orders. The author argues that such public–private partnerships (PPPs) enable the development of a possible convergence between selected areas of mainstream public finance and the Islamic moral economy (IME).Design/methodology/approachThis paper explores the theory of both mainstream finance and the IME, and using deductive reasoning from axioms, develops the assumptions of a theoretical approach to heterodox PPP. The proposed method affects the ability to find common platforms between mainstream public finance and the IME, through the example of public–private investment projects.FindingsThis endeavour is subject to trade-offs between profit maximisation and social justice values on the basis of long-term PPP contracts. The author shows the assumptions under which this compromise would be beneficial to public entities, multicultural societies and conventional and Islamic investors. It is proposed to distribute profit to the owners up to a predetermined value, above which the PPPs would finance public services for persons otherwise excluded from them.Originality/valueThe success of this approach must depend on a compromise between profit maximisation as the sole investment objective and investment guided by social justice values. Private investors can achieve a capped level of profit on a long-term contract basis, and public partners can obtain long-term contracts for providing public goods. Both would undertake a project with a strong emphasis on corporate social responsibility, with particularly large opportunities in developing Islamic countries.

Challenges and strategies for effective plastic waste management during and post COVID-19 pandemic

The advent of the COVID-19 pandemic has enhanced the complexities of plastic waste management. Our improved, hyper-hygienic way of life in the fear of transmission has conveniently shifted our behavioral patterns like the use of PPE (Personal protective equipment), increased demand for plastic-packaged food and groceries, and the use of disposable utensils. The inadequacies and inefficiencies of our current waste management system to deal with the increased dependence on plastic could aggravate its mismanagement and leakage into the environment, thus triggering a new environmental crisis. Mandating scientific sterilization and the use of sealed bags for safe disposal of contaminated plastic wastes should be an immediate priority to reduce the risk of transmission to sanitation workers. Investments in circular technologies like feedstock recycling, improving the infrastructure and environmental viability of existing techniques could be the key to dealing with the plastic waste fluxes during such a crisis. Transition towards environmentally friendly materials like bioplastics and harboring new sustainable technologies would be crucial to fighting future pandemics. Although the rollbacks and relaxation of single-use plastic bans may be temporary, their likely implications on the consumer perception could hinder our long-term goals of transitioning towards a circular economy. Likewise, any delay in building international willingness and participation to curb any form of pollution through summits and agendas may also delay its implementation. Reduction in plastic pollution and at the same time promoting sustainable plastic waste management technologies can be achieved by prioritizing our policies to instill individual behavioral as well as social, institutional changes. Incentivizing measures that encourage circularity and sustainable practices, and public-private investments in research, infrastructure and marketing would help in bringing the aforementioned changes. Individual responsibility, corporate action, and government policy are all necessary to keep us from transitioning from one disaster to another.

Are There Optimal Forms of Public-Private Partnerships?

Many emerging economies have launched ambitious efforts to privatize state-owned enterprises (SOEs). However, not all privatization entails complete ownership and control transfer from public to private hands. In this study, we recognize different forms of public-private partnerships in investment projects in emerging economies. We conceptualize these organization forms as different ownership and control by SOEs and private entities. Integrating transaction cost economics (TCE), agency theory, and institution-based view; we propose that public-private partnership forms are interdependent with characteristics of private entities and institutional environments. We find that there are optimal forms of partnerships that benefit the performance of public-private investments.

CONCEPTUAL PRINCIPLES OF STRATEGIC MANAGEMENT IN THE FIELD OF HEALTHCARE

Introduction. At the current stage of economic and social development in Ukraine, characterized by high levels of uncertainty, economic instability, deteriorating financial situation of the state and citizens against the background of the emergence and exacerbation of risks of epidemics, the processes of strategic health planning significantly complicate. The purpose of the article is to form the conceptual foundations of strategic management of healthcare. Results. It is determined that taking into account the intersectoral relationship of the healthcare system, as methods of reforming, it is appropriate to consider the spread of corporate economic activity within the system, on the basis of cooperation between government, community and business to achieve health goals. Conclusions. It is proved that the creation of corporate networks of the healthcare system at the regional level can be considered as a diversification of economic activities and sources of funding. The model of corporate governance in the national healthcare system should be based on the spread of partnerships (corporate) relationships, which are layered on the elements of process modeling in the healthcare system. Corporatism, as a kind of social organization of public relations, allows us to focus more on solving the problems of the healthcare system. In addition, it is important to use public-private investment partnerships, which involve cooperation between business authorities and the community to attract investment for health development. This variant of partnership is the most correct for the healthcare system of Ukraine, because then the content of partnership as a diversification of funding sources in the healthcare system is revealed, and the issue of funding is the most important to ensure the national healthcare system. Thus, the expediency of using the integrated possibilities of corporatization and public-private partnership in improving the investment climate of the national patient-centered healthcare system becomes obvious. Keywords: strategy, strategic management, healthcare, conceptual model.

Economic Growth, Public and Private Investment: A Comparative Study of China and the United States

Public and private investments play a central role in production functions by providing the required capital for development. There are many studies in the literature investigating the linear macroeconomic relations based on public and private investment in cross-country and country-specific analyses by focusing on various perspectives and methodologies. However, there is a gap in the literature in exploring nonlinear causal relations among public-private investment and economic growth, particularly in the U.S. and China, in order to comparatively discuss policy implementations and potential implications. To narrow the gap, this study investigates nonlinear causal relationships between public-private investment and gross domestic product in the U.S. and China, which are the largest economies comprising about 40 percent of the global gross domestic product (GDP) in 2018. These countries show a similar pattern in economic growth and implementing sustainable development goals, although they follow considerably different socio-economic regimes and fall into different development levels (i.e., developed and developing countries). Therefore, there should be a common underlying mechanism in macroeconomic factors that fosters economic development. In this regard, the motivation behind the study is to reveal a common, but hidden, behavior of the nonlinear causal relations of given macroeconomic factors in these countries to make recommendations about sustainable economic growth for policymakers. To this end, there are three main contributions of the paper. First, the research finds nonlinear dependencies in the related time series between 1960–2015, thereby nonlinear causality tests are performed to reach more reliable information than the linear causality. Second, the study formulates a feedback loop between public and private investment through economic growth, which indicates that public and private investment should stimulate each other directly or indirectly (i.e., through the GDP). Third, the direction of the causality does not affect sustainable economic growth as long as it exists directly or indirectly.

The public-private investment nexus in India: Evidence from a policy simulation approach

This study investigates the influence of public investment on private investment in India, at both the aggregate and Sectoral levels and under two different modes of deficit financing - monetisation and commercial borrowing - in an eclectic macroeconometric modelling framework. Using Generalised Method of Moments (GMM), the two simulation exercises conducted in the study highlight the crowdingin effect of public investment on aggregate private investment, irrespective of the mode of financing. The favourable accelerator effect and the complementary effect are found to outweigh the deleterious interest effect in both simulation exercises. At the Sectoral level, public investment is found to most strongly and positively affect private investment in manufacturing, followed by agriculture, the service sector, and finally infrastructure. The impact of public investment on the other sectors included in the model accords well with theoretical expectations.

Public-private investment substitutability-complementarity, taxation, and bank competition

This article examines how the fact that commercial banks finance both private investment through bank lending and public investment through government bond absorption in the bond markets, affects the substitutability/complementarity of the two types of investment. It is found that their relationship depends critically on tax policy; under imperfect bank competition, the growth rate of government expenditure and the issuance of bonds should depend inter alia on the success of private sector ventures as well, if public and private investment are to be complementary. Given some tax rate consistent with complementarity, when the credit extended to the public sector is suboptimal and more public projects need to be financed, seigniorage issuance should be adopted as a means of finance.

ПАРТИСИПАТИВНАЯ МОДЕЛЬ ПРОЕКТНОГО ФИНАНСИРОВАНИЯ ВУЗОВ В УСЛОВИЯХ ЦИФРОВОЙ ТРАНСФОРМАЦИИ ОБРАЗОВАНИЯ

The strategic line of development of the digital society in Russian Federation is aimed, first of all, at the development of human potential, that is, the «knowledge economy», and only then at the formation of a digital economy that provides technological leadership in the global digital space. Forms universal digital literacy and professional and communicative competencies necessary for the «knowledge economy», and also creates a supporting infrastructure for the digital economy in the sphere of professional education. In the era of digitalization, project financing has become one of the leading trends in financial support for education. In the course of the research, two types of financing models in the global educational space were identified: basic models and derived (partial) models. Taking into account the fact that in Russia the main investor in the field of higher education is the state, in order to attract extra-budgetary sources, the potential of the financial mechanism of public-private partnership should be used. That is, the mixed model of subsidizing pro jects of state programs can be expanded by introducing into it a block of project financing within the framework of the PPP mechanism that stimulates the inflow of private capital. In turn, the development of new information technologies and products is changing the models of pro ject financing in higher education. The participatory model of project financing of universities proposed in the study using the PPP mechanism ensures the embedding of civil society institutions both in the budgetary process that determines the level of spending on higher education and in the process of public-private investment in universities.

官民ファンドの功罪：産業革新機構、シャープ、JDI、ルネサスの事例分析

官民ファンドの功罪：産業革新機構、シャープ、JDI、ルネサスの事例分析

Kazakhstan: Socio-Economic Development, Research and Innovation

Today Kazakhstan economically is the dominant nation of Central Asia with an estimate population close to 19 million people. Indeed, it is the region’s largest country and has in abundance of both natural and human capital resources. Kazakhstan was a Soviet Union republic the last that in 1991 to declare independence during the dissolution of the Soviet Union; therefore, all planning for its development has been strongly centralised outside of the country rather than in its own new capital Astana, now called Nur Sultan. In 1991 Kazakhstan was. With its independence, the situation in Kazakhstan has changed radically, under new popularly elected leadership, the country has committed itself to achieving a level of socio-political, economic, and technological development comparable to that which exists in most mid-sized economically advanced Western countries. The major vehicle for bringing about this transformation is a series of carefully constructed scenarios whose implementation turned around on extensive public-private investment and partnerships in research and development, especially thanks to the state grants that support of industrial and innovative activities. This article will discuss two scenarios currently under way that have as their shared goal the advancement of Kazakhstan’s socioeconomic development through an emphasis on human resource development and innovation.

Does Large-Scale Neighborhood Reinvestment Work? Effects of Public–Private Real Estate Investment on Local Sales Prices, Rental Prices, and Crime Rates

ABSTRACTDuring the 1990s, the U.S. Department of Housing and Urban Development awarded over $6 billion in competitive grants (HOPE VI) to spur neighborhood redevelopment. We add to HOPE VI research by examining the impacts of a large set of public–private real estate investments, including HOPE VI, made over a 16-year period in a distressed neighborhood of Pittsburgh, Pennsylvania (Hill District). We estimate the effects of $468 million additional public–private investments that Hill District received compared with a demographically similar neighborhood on sales prices, rental prices, and crime. We find large, statistically significant impacts of these investments on residential sales prices, commercial sales prices, and on rental prices, and a marginally significant yet meaningful decline in nonviolent arrests. For each $10 million of public–private investment, we find a 0.95%, 2.7%, and 0.55% increase in residential sales prices, commercial sales prices, and rental prices, respectively. Given the accumulated difference over 16 years of $468 million in these investments across the two neighborhoods, the percentage increases amount to large changes in prices over that time. Cities should anticipate the potential impacts of major neighborhood investment on low-income households, especially unsubsidized renters who most directly experience the brunt of rising rents.

A Demand for Data to Improve Outcomes Creates the Why to Move to Third Generation Immunization Information Systems.

Investments over the past two decades to collect and store immunization events established a national population health data asset. The ability to track vaccine usage and storage has increased accountability, lowered wastage, protected valuable resources, and provided the correct vaccines at the right time. Sixty-four immunization registries support the current immunization ecosystem, yet all investments to date have been through state and federal funding. Much of the technology supporting these registries is becoming harder to support, limiting the utilization of the data. For the most part all current systems have legacy 2nd-generation technology and architectures as their foundation Current technology investments in these national assets tend to be for systems that within the next five years will not be cost effectively sustainable with only federal, state and local funding. Yet quality data is being reported by immunization providers across the health care network that is increasing exponentially through electronic data exchanges integrated within Electronic Health Records (EHR) and Pharmacy Management Systems (PMS) This increase in high-quality patient immunization records creates opportunity to build immunization intelligence from the data. However, 2nd-generation Immunization Information Systems (IIS) limit the effective and timely use of this information. Considering the increasing value of the data to public and private sectors working to close immunization care gaps in populations, supporting technology must ensure easy access This is the first of two papers that highlights the power of these national registries and the data they contain to provide opportunity intelligence to the immunization ecosystem user community. Paper one illustrates the "why" for change and the need for a truly community collaborative path forward to move from 2nd- to 3rd-generation systems through partners that leverages cost sharing and common goals The end goal is to establish new supporting technology assets that accelerate the use of data to impact vaccine preventable disease (VPD) outcomes which create a new model for public-private investments to sustain the IIS national infrastructure. The second a working paper with assumptions to be tested ("Model for Sustaining and Investing in Immunization Information Systems"), shares cost and investment strategies to complete the migration and create sustainable immunization systems for the future.

Global water access fund: a new idea to bridge operations and maintenance shortfalls for the poorest water utilities

Abstract Reaching the sustainable development goal for water and sanitation access will require significant investments. For some utilities, the private sector or blended public–private investments offer opportunities to expand and improve services, but this is not an option for many utilities serving the poorest households. These utilities are often unable to cover their current operations and maintenance costs and have limited capacity to increase tariffs in order to do so. Yet supporting these utilities is crucial to expanding access to safe drinking water for the majority of citizens. We argue that a new solution is needed to provide utilities serving the poorest with sufficient subsidies to cover their operational costs, stabilize service, and make performance improvements to advance towards sustainable operation. This article presents a potential solution which blends funding from global philanthropy, solidarity levies, and local matching funds. Such a fund, if structured to reflect the principles of results-based funding, transparency, sustainability, and performance improvement, can make a meaningful impact on water access.