State Investment Research Articles

War Reparations, Structural Change, and Intergenerational Mobility

Abstract From 1944 to 1952, largely agrarian Finland had to export, on average, 4% of its yearly GDP in industrial products to the Soviet Union as war reparations. To meet the reparation demands, the Finnish state needed to provide extensive but temporary support to Soviet-assigned industries with insufficient production capacity. This paper documents the long-term impacts of this extensive and temporary industrial policy on industrial and local development and on individual outcomes. Using newly digitized datasets, I show in a difference-in-differences setup that the short-term nonmarket production persistently and significantly increased the employment and production of the manufacturing industries exposed to the policy. These industries plausibly benefited from large initial investments and exposure to export markets associated with the war reparations. The episode further led to local development and structural change, as the more exposed regions became persistently more industrialized. I substantiate these within-Finland results with triple-difference setups employing comparable Norwegian data. I further use Finnish administrative data to study the long-term individual impacts of the episode. Tracking individuals over 30 years, I show that the initial state investments and the persistent change in the local industrial structure increased long-term incomes, led to more educational attainment, and promoted the upward mobility of children and young adults living in the more exposed regions prior to the war reparations period. The observed effects are driven by the more advanced heavy industry, which received the majority of state assistance.

Study on the Dilemma of Rural Women’s Access to Education in China and its Legal Protection

This paper explores the multidimensional challenges faced by rural women in China in accessing education, revealing the root causes of the intersection between urban-rural educational inequality and gender discrimination. While legal and policy reforms have led to some improvements—particularly in the realm of compulsory education, where enrollment rates for rural girls have increased—significant barriers remain, especially in higher education and vocational training. These challenges are rooted in various structural issues, including disparities in educational resources, cultural capital deficiencies, and the persistence of traditional gender roles, all of which disproportionately affect rural women. The paper offers an in-depth analysis of these factors, highlighting the inadequacies of current legal frameworks and the practical difficulties in their implementation. It proposes strategies to improve the situation, such as enhancing legal enforcement, increasing state investment in rural education, addressing societal and cultural biases through gender equality education, and expanding vocational and lifelong learning opportunities tailored to rural women’s needs. The findings suggest that only through a comprehensive approach—integrating legal, policy, and cultural initiatives—can rural women’s educational rights be effectively protected, leading to more equitable educational outcomes, reduced gender disparities, and fostering overall social progress in China.

The Health and Economic Benefits of United States Investments in Measles and Rubella Control and Elimination

Background: Prior to measles vaccine introduction in 1963, measles virus caused hundreds of thousands of annual reported cases, which led to substantial US morbidity, mortality, and costs. Similarly, congenital rubella syndrome (CRS) led to highly visible and tragic lifelong disability for thousands of Americans, before rubella vaccine introduction in 1969. The US certified national virus transmission elimination of indigenous measles in 2000 and rubella in 2004. Methods: Applying an existing integrated transmission and economic model, this analysis characterizes the net benefits of US investments in measles (1963–2030) and rubella (1969–2030) immunization assuming continued high routine immunization coverage. Due to importation risks, the US maintains two doses of both vaccines in its routine immunization schedule. Results: This analysis estimates total US costs of 8.1 billion (economics reported in 2023 US dollars) for measles immunization for 1963–2023 and 14.1 billion for rubella immunization for 1969–2023. The analysis estimates an additional approximately 1.2 billion for measles immunization and 1.5 billion for rubella immunization expected for 2024–2030. Historical and future US investments prevented an estimated approximately 237 million measles infections, 228,000 measles deaths, 193 million rubella infections, and 166,000 CRS cases. These investments imply net benefits (from avoided treatment costs minus immunization costs) of approximately 310 billion for measles and 430 billion for rubella and CRS, even without incorporating avoided productivity losses and intangible costs. Conclusions: US investments in measles and rubella immunization continue to provide enormous savings of human and financial costs and to prevent substantial mortality and morbidity.

IMPLIKASI INSTRUMEN NON ZAKAT DALAM PEREKONOMIAN

This study analyzes the implications of non-zakat instruments such as infaq, sadaqah, and waqf on Indonesia’s economy. These three instruments are regarded as alternatives to address economic issues such as poverty and social inequality, as well as to support community welfare. Employing a qualitative method with a descriptive approach, the research data were collected through literature review and documentation of relevant regulations and practices of Islamic philanthropy. The findings indicate that infaq, sadaqah, and waqf can contribute to state revenue and investment if managed professionally and transparently. Moreover, the optimization of waqf has the potential to become a productive funding source capable of supporting development and improving the quality of life for the community. However, challenges related to policy implementation, management issues, and low public awareness remain significant obstacles. This study recommends enhancing the role of the government and philanthropic institutions in managing infaq, sadaqah, and waqf funds more effectively, integrating them with the Islamic financial system. Collaboration between institutions and consistent regulatory enforcement are essential to maximizing the potential of Islamic philanthropy as a sustainable economic instrument.

Dynamics assessment of free economic zones development in Russia in the system of the state investment strategy

Dynamics assessment of free economic zones development in Russia in the system of the state investment strategy

The Huaca of Qollmay, Chinchaypujio, Cusco, Peru

This article reviews archival documents and results from a large-scale excavation at the site of Qollmay, providing new insights into Inca huaca worship and the significance of this particular huaca in the Cusco region. Specifically, it examines the establishment of the Qollmay huaca, the activities conducted within it, and its destruction by Spanish clergy during an early anti-idolatry campaign. By detailing the Qollmay huaca, we gain a deeper understanding of the Inca state's investments in sacred sites and how these places were used to legitimize state rule.

Assessment of Property Taxes and their Impact on Real Estate Investment in Plateau State, Nigeria

Taxes imposed on property in the country are characterised by intricate and complex interactions of both traditional, colonial, and modern-day circumstances, and the revenue generated from these taxes is often an important source of finance for the government. In most developing countries, these taxes have led to multiple taxation due to complex, diverse, inadequate, and imperfect information. Thus, this study aims to assess the various property taxes in practice and their impact on real estate investment in Plateau State, Nigeria. The objectives pursued include identifying the various property taxes along with their administering agencies and assessing the impact of these taxes on property investment. The researchers targeted 90 respondents from an estimated population of one million five hundred in the Greater Jos area, and successfully recovered 68 responses through simple random sampling based on the survey conducted among residents. A questionnaire was used to gather the views of taxpayers on multiple taxation and its effects on land and buildings, and the collected data was analysed descriptively. The results revealed that almost all taxpayers in Plateau State pay taxes to the government consistently and to more than two agencies. Furthermore, all tiers of government have their own forms of taxes collected, which have a direct effect on investment. It is therefore recommended, among other measures, that tax collection should be clearly defined and streamlined with respect to which tier of government is responsible for collecting specific taxes on property occupation. This could help reduce, if not eliminate, the issue of taxing the same property multiple times.

«ЗЕЛЕНА» ЕНЕРГЕТИКА: ПРОБЛЕМИ РОЗВИТКУ ТА ТАРИФОУТВОРЕННЯ В УМОВАХ НЕВИЗНАЧЕНОСТІ

A study of approaches to the development of renewable energy sources (RES) in economically developed countries of the world and in Ukraine was conducted with the aim of identifying the most effective and acceptable tools for stimulating the development of "green" energy as an alternative to traditional energy sources in the post-war period. The problems of the development of the use of renewable energy sources are of particular importance, as they are related not only to the energy sphere, but also to environmental problems, global climate changes, etc. Ukraine, as a member of the world community, cannot stand aside from theese problems even in the difficult and uncertain conditions of the ongoing war. On the basis of a systemic approach, the prospects for the further development of renewable energy sources (RES) are considered, as well as the main problems for the state economy related to tariff formation in "green" energy. The conducted research showed that there are practically no alternatives to the development of RES in Ukraine during the post-war recovery period, therefore the state should already review and improve the strategy of recovery and development of the economy, taking into account that RES will become the main source of energy in the coming decade. At the same time, the state must take the place of a key player in this market, show by its own example the expediency and effectiveness of investments in RES and create a favorable investment climate in this area by all possible means, in particular, high-quality tariff formation, to ensure the population's access to clean energy and the timely fulfillment of climate obligations and restoration and development of the country's economy. ays to solve this problem are proposed, based on the foreign experience of stimulating tariff formation and approaches to state investments in the field of RES.

Negotiated Federalism: Intergovernmental Relations on the Maritime Frontier, 1789–1815

Abstract: The U.S. Constitution was designed to produce a profound alteration in the structure of the American federal polity by giving the U.S. government the power to raise its own money and enforce its own laws within the states. But when federal officials began to implement the new constitutional order across the union in 1789, they realized that this process required the participation and consent of state governments, whose legislation, investment, and manpower were needed to allow federal laws to take effect. Because of the power that state governments continued to wield, the successful institution of federal authority within the states relied on intergovernmental negotiation. The Atlantic port cities presented a crucial test case for this negotiated federalism, as the federal government sought to exercise power in spaces where state authority was already entrenched. In the course of setting up the customs and lighthouse services, rebuilding coastal fortifications, and enforcing neutrality and embargo regulations, early federal officials encountered the limits of federal power within the states, and developed intergovernmental negotiation strategies that allowed them to execute federal law in the ports. This negotiated federalism would become fundamental to the governance of the American union.

Issues of efficiency of financing the agricultural sector

In many economically developed countries, state support, financial investments in the agricultural industry, increasing productivity and profitability, ensuring the availability of food are the main factors of economic growth, first of all, employment of the population. Purpose - the main problems of financing the agro-industrial complex of the republic and scientific approaches to their solution are considered. Methods - comparative analysis, synthesis, monographic, logical evaluation to determine the mechanisms affecting the effectiveness of state aid and investment. Results - the article analyzes the sources of budgetary allocation of the agrarian sector. The significance of the implementation of targeted programs aimed at improving the quality of life of rural residents through price, tax, leasing mechanisms, soft loans and subsidies is shown. The study presents information for 2018-2022, supplemented by the data of the National Project on the development of agro-industrial complex of the Republic of Kazakhstan for 2021-2025, including the total volume of agro-industrial production and the size of capital investments. The study notes the need to increase the volume of domestic processing industry, allowing agricultural producers to expand the market for products, create conditions for new jobs, attract investment, and contribute to economic and social stability. Conclusions - specialization of rural areas, development of technical map and related organization of production in promising villages and district centers, increase in exports, distribution of online services are strategic directions of development of food complex, economic activity of agroformations. The use of external resources gives an opportunity to improve financial results, and farms - to increase income from core activities. When planning large investments in agricultural projects, one of the key criteria is the choice of capital structure to support the investment process.

Structural and dynamic analysis of green investments in Russia

«Green» investments are an important tool for solving environmental problems, increasing the competitiveness of the economy and improving the quality of life. One of the key aspects in the study of «green» investments is structural and dynamic analysis, which allows you to get a description of the space-time aspect of «green» investments. The findings play an important role in shaping the targeted state investment policy. This aspect determines the relevance of this study, which purpose is to conduct a structural and dynamic analysis of green investments in Russia. The practical significance of the findings is determined by a comprehensive approach to assessing the homogeneity of the green investments’ distribution in Russia. The article studied the concentration of «green» investments in federal districts and by areas of their use in order to identify the causes of inequality in the distribution of «green» investments. Analysis of structural differences in the volume of «green» investments in dynamics for the period from 2013 to 2022 was carried out in the article. Special statistical methods are used in the article, such as typological groupings, index method, construction and analysis of structural series, analysis of dynamic series, comparison of parallel series, etc. The results obtained during the study are also significant in matters of international cooperation in the field of ecology and sustainable development of the country. Managing a green investment structure allows a country to meet international standards and requirements.

Innovation Success in the European Union: Aggregate Demand Analysis

In the current period of uncertainty in the European Union, innovation is becoming a key factor for maintaining not only economic stability but also competitiveness in the globalised environment. Following the financial crisis that hit Europe, aggregate demand indicators slowly started to stabilise, mostly reaching their peak in 2019. However, in the following year, due to the pandemic crisis, these indicators fell again, posing a new challenge for researchers around the world. This study examines the relationship between macroeconomic indicators of aggregate demand and innovation performance in 25 EU countries. Using data for the period 2013-2021 as input for the regression analysis, the research identifies firm investment and exports as important innovation support factors and highlights their key role. On the other hand, the research shows that household consumption and imports are barriers to innovation. Somewhat surprisingly, government spending on goods and services does not have a significant impact on innovation success, underlining the need to rethink government investment policies. This finding highlights the need for a more thorough analysis of the effectiveness of state investment in innovation and possible adjustments to state policies to maximise the promotion of innovation activities in the state. The study also highlights the importance of comprehensive strategies that promote investment and exports, while emphasising the removal of barriers to innovation in the form of household consumption and imports.

A building block approach to retirement income design

Abstract This paper addresses the retirement income planning problem from the perspective of the four main building blocks of retirement income: state pension, mortality credits, investment strategies, and drawdown schedules. We detail how these building blocks interact to form a retiree's overall retirement income portfolio, and what trade-offs and interactions must be considered. We find that while access to each building block increases the retiree's certainty equivalent consumption, the most substantial contributor to this increase is from utilization of the mortality credit building block (i.e., annuities).

Fiscal legibility and state development: Theory and evidence from colonial Mexico

AbstractWe examine how fiscal legibility, the ability of central authorities to observe local conditions for the purposes of taxation, shapes political centralization and state development. When rulers lack information about the periphery, they may benefit from ceding autonomy to tax‐collecting intermediaries to encourage fiscal performance. As information quality improves, rulers become better able to monitor and sanction local officials, allowing them to tighten control over taxation and establish more direct state presence. Centralization, in turn, encourages investment in improving fiscal legibility, leading to long‐term divergence in state development. We study the consequences of a technological innovation that dramatically improved the Spanish Crown's fiscal legibility in colonial Mexico: the discovery of the patio process to refine silver. We show that political centralization differentially accelerated in affected districts and that these areas subsequently saw disproportionate state investment in informational capacity, altering the trajectory of state development.

Poverty, Inequality, and Social Protection in Ethiopia: A Policy Brief

In this brief commentary the author argues that social protection is not a useful approach to addressing poverty and inequality in low-income countries like Ethiopia. Instead, the author suggests focusing on wealth creation and the capability development approach to poverty reduction. To achieve this, the author proposes targeted state investment expenditure to enhance the productive capabilities of the economically vulnerable population. Besides, the social protection system should prioritize the design and implementation of livelihood improving investment programs, as in-kind or cash transfer support is not sustainable given the elevated level of economic vulnerability. The effectiveness of Ethiopia’s social protection system lies on improving coverage, targeting deserving individuals, and sustainable financing solutions.

Paying for School Finance Reforms: How States Raise Revenues to Fund Increases in Elementary-Secondary Education Expenditures

This study investigates how individual states raise revenue to pay for elementary-secondary education spending following school finance reforms (SFRs). We identify states that increased and sustained education expenditures after reform, search for legislative statutes that appropriated more education spending, and assess how policymakers funded the SFRs. Our results show that state legislatures increase investments in education by increasing tax revenue streams, such as sales and excise taxes, and by taking over property tax collections. Considering these results, we discuss that increased state investment in education should be accompanied by a policy mechanism to distribute state aid equitably to districts. Moreover, policymakers should consider local voters’ preferences when implementing SFR policies, as tax increases may reduce local fiscal effort for education.

Chinese and US Overseas Foreign Direct Investment and Democracy in the Developing World

This paper integrates the political influence and foreign capital literatures and examines the association between United States and Chinese overseas foreign direct investment (FDI) and host states’ political institutions. Using up to 109 developing countries from 2003 to 2019, and employing two-stage least squares selection modeling, we find negative and significant relationships between Chinese FDI and host states’ democracy while US FDI has positive and significant associations. Our study suggests Chinese FDI and host state leaders may mutually benefit from increasing authoritarianism, producing closer political and economic ties between China and the developing world.

State-Level Education Quality and Trajectories of Cognitive Function by Race and Educational Attainment.

Although educational attainment is consistently associated with better cognitive function among older adults, we know little about how education quality is related to cognitive function. This is a key gap in the literature given that the quality of US education improved considerably during the early to mid-20th century as state and federal investment increased. We posit that growing up in states with higher-quality education systems may protect against poor cognitive function, particularly among Black adults and adults who completed fewer years of school. We used prospective data on cognitive function from the Health and Retirement Study linked to historical data on state investment in public schools, restricting our sample to non-Hispanic White and Black adults born between 1914 and 1959 (19,096 White adults and 4,625 Black adults). Using race-stratified linear mixed models, we considered if state-level education quality was associated with level and decline in cognitive function and if these patterns differed by years of schooling and race. Residing in states with higher-resourced education systems during childhood was associated with better cognitive function, particularly among those who completed less than 12 years of schooling, regardless of race. For White adults, higher-resourced state education systems were associated with higher scores of total cognitive function and episodic memory, but there were diminishing returns as resources increased to very high levels. For Black adults, the relationship between state education resources and cognitive function varied by age with positive associations in midlife and generally null or negative associations at the oldest ages. Federal and state investment in public schools may provide students with opportunities to develop important cognitive resources during schooling that translate into better cognitive function in later life, especially among marginalized populations.

Pengaruh Boikot Besar-besaran Produk Amerika terhadap Peningkatan Jumlah Pengangguran di Indonesia

This research aims to analyze the impact of a large-scale boycott of United States products on the increase in unemployment in Indonesia. The boycott was driven by political tensions and controversial trade policies. Using quantitative analysis with secondary data from the Central Statistics Agency (BPS), company financial reports, and labor market surveys, the research shows a significant impact on sectors dependent on United States products and investments. Declines in sales and production in affected companies led to layoffs and higher unemployment rates. The impact was more pronounced in regions with concentrated industries related to American products. The study concludes that the boycott contributed to higher unemployment in Indonesia, with varying impacts across sectors and regions. These findings suggest important implications for policymakers in mitigating the economic effects of boycotts and highlight the need for economic diversification to reduce reliance on specific imported products.

Is obedience rewarding? State investment in response to CSR reporting in China

Is obedience rewarding? State investment in response to CSR reporting in China