Use Of Public Investment Research Articles

Анализ трансмиссионного механизма государственных инвестиций на основе DSGE-модели

This paper attempts to assess the impact of public investment within the framework of a simple DSGE model calibrated on Russian data. To this end, three versions of the DSGE model were constructed. The first model, referred to as the baseline model, assumes efficient allocation of public investment. The second model considers inefficient use of public investment when it is not fully converted into capital. The third model examines crowding out of private investment by public investment. The primary focus of this paper is to analyze the effects of public investment shock on various components of the economy. Two distinct effects are identified with regard to investment. The first effect relates to a short-term increase in demand due to an increase in investment activity. The size of this effect is strongly influenced by the crowding-out phenomenon, in particular by the ability of the economy to absorb investment effectively. The second effect is a reduction in marginal costs in the medium to long run, which facilitates economic growth even at the expense of increased private investment. This effect depends primarily on the efficiency of transformation of public investment into capital. The study also analyzes the sensitivity of the results to parameterization, including the degree of economic openness. The findings of the study explain the transmission mechanism of public investment, including the factors affecting its efficiency. It is important to note that the main objective of the study was to investigate the transmission mechanism and its determinants, while the next stage of the research is expected to include a comprehensive assessment of the parameters using Russian data.

Legal support of budget investment: directions of improvement

The need to introduce modern financial instruments in the development of Ukraine’s economy requires the organization and legal support of various forms of investment activity. State support for investment activities is based on budget investments and is carried out on the basis of budget legislation, but the practice of budget investment shows inconsistencies and inconsistencies in terminology, forms and tools of legal regulation of investment activities. The Government of Ukraine has determined that strong investment activity in Ukraine requires consideration and implementation of modern regulations.
 It is emphasized that there is no concept of “investment budget” in the current legislation, inconsistencies in the legal mechanism of their implementation, as well as analysis of the economic situation in some countries with different levels of gross product. low-income countries, the efficient use of public investment is problematic. It is established that budget investments have a special financial and legal nature, are regulated by financial and legal norms and a definition is provided. The features of budget investments as a powerful tool of state regulation of investment activities are identified and it is determined that the efficiency of investment depends on the economic justification of budget investment and legal support.
 It is proved that the improvement of public investment activity is possible through the use of modern financial instruments, including budget investment, which is implemented by allocating funds accumulated in budgets for specific purposes. It is noted that the effectiveness of budget investment depends on a clear targeting of budget funds, their sufficient volume, the procedure established by law and the powers of investment entities. It is determined that the introduction of budget investment requires amendments to the Budget Code of Ukraine, in particular Art. 2 “Definition of basic terms”. It is proposed to involve local governments and the public in investment activities. The author’s definition of «budget Investment» is offered.

The spectrum of data sharing policies in neuroimaging data repositories.

Sharing data is a scientific imperative that accelerates scientific discoveries, reinforces open science inquiry, and allows for efficient use of public investment and research resources. Considering these benefits, data sharing has been widely promoted in diverse fields and neuroscience has been no exception to this movement. For all its promise, however, the sharing of human neuroimaging data raises critical ethical and legal issues, such as data privacy. Recently, the heightened risks to data privacy posed by the rapid advances in artificial intelligence and machine learning techniques have made data sharing more challenging; the regulatory landscape around data sharing has also been evolving rapidly. Here we present an in‐depth ethical and regulatory analysis that examines how neuroimaging data are currently shared against the backdrop of the relevant regulations and policies in the United States and how advanced software tools and algorithms might undermine subjects' privacy in neuroimaging data sharing. The implications of these novel technological threats to privacy in neuroimaging data sharing practices and policies will also be discussed. We then conclude with a proposal for a legal prohibition against malicious use of neuroscience data as a regulatory mechanism to address privacy risks associated with the data while maximizing the benefits of data sharing and open science practice in the field of neuroscience.

Smart specialization of regions as an innovative vector of industrial policy

It is proven that the country’s post-war recovery policy should take into account previous development miscalculations, and the recovery itself should be considered as a “window of opportunity” for the formation of a new highly productive and high-tech “smart” and “green” economy, an important component of which should be modern industry. It is substantiated that smart specialization involves not so much the stimulation of innovations as the activation of long-term structural changes in the region’s economy with an orientation to the future, that is, the formation of such a policy that will enable the region to occupy important niches in global markets. The experience of implementing the strategy of smart specialization in the European Union is considered. Together with the development of entrepreneurship and the cluster structure of industry, it is part of the economic decentralization of Ukraine. Attention is focused on the fact that, against the background of a slight increase in the share of high-tech industries in the overall structure of the country’s industry, there is a decrease in the specific weight of medium-tech industries and an increase in the share of low-tech industries. The results of the application of the smart approach to the strategic planning of the development of regions should be the modernization of industry and its transition to a new technological structure, the activation of the innovative technological and “digital” potential of the territories. The necessity of implementing the concept of smart specialization for effective synergistic use of public investments, supporting countries/regions in building their innovation potential while simultaneously focusing limited human and financial resources on several competitive areas in order to promote economic growth has been proven. Ways to achieve and tasks of implementing the smart specialization approach in the national economic strategy are systematized. The strategic vectors of ensuring sustainable development and smart specialization of industry are substantiated.

Building an ANFIS-Based Decision Support System for Regional Growth: The Case of European Regions

This paper proposes an adaptive network fuzzy inference system (ANFIS) based decision support system that can provide European policy makers with systematic guidance in allocating and prioritizing scant public resources, whilst accomplishing the best growth performance at a regional level. We do so by taking the stance of the Smart Specialization Strategies, which aim at consolidating the regional strengths and make effective and efficient use of public investment in R&D. By applying the ANFIS method, we were able to understand how - and to what extent - the competitiveness drivers promoted technological development and how the latter contributes to the economic growth of European regions. We used socio-economic, spatial, and patent-based data to train, test, and validate the models. What emerges is that an increase of R&D investments enhances the regional employment rate and the number of patents per capita; in turn, by taking into account the several combinations of specialization and diversification indicators, this leads to an increase of the regional gross domestic product (GDP).

On the determinants of economic growth: Empirical evidence from the Eurozone countries

This study empirically investigates the causal relationship between economic growth and several factors (investment, human capital, trade openness and public debt) in the Eurozone countries, where imbalances persist several years after the financial crisis. The results reveal a long-run relationship between variables and public debt, as investment, human capital and trade openness positively affect growth. On the other hand, there is a negative long-run effect of public debt on growth. Furthermore, the results indicate that there is long-run unidirectional causality running from investment, trade openness and human capital to growth and bidirectional causality between public debt and growth. The overall results reveal that Eurozone countries should base their growth strategies on fiscal consolidation, increasing exports, correcting the use of public investment and improving the quality of human capital, especially in higher education.

Lessons from Assessing Uncertainty in Agricultural Water Supply Estimation for Sustainable Rice Production

Agricultural water supply (AWS) estimation is one of the first and fundamental steps of developing agricultural management plans, and its accuracy must have substantial impacts on the following decision-making processes. In modeling the AWS for paddy fields, it is still common to determine parameter values, such as infiltration rates and irrigation efficiency, solely based on literature and rough assumptions due to data limitations; however, the impact of parameter uncertainty on the estimation has not been fully discussed. In this context, a relative sensitivity index and the generalized likelihood uncertainty estimation (GLUE) method were applied to quantify the parameter sensitivity and uncertainty in an AWS simulation. A general continuity equation was employed to mathematically represent the paddy water balance, and its six parameters were investigated. The results show that the AWS estimates are sensitive to the irrigation efficiency, drainage outlet height, minimum ponding depth, and infiltration, with the irrigation efficiency appearing to be the most important parameter; thus, they should be carefully selected. Multiple combinations of parameter values were observed to provide similarly good predictions, and such equifinality produced the substantial amount of uncertainty in AWS estimates regardless of the modeling approaches, indicating that the uncertainty should be counted when developing water management plans. We also found that agricultural system simulations using only literature-based parameter values provided poor accuracy, which can lead to flawed decisions in the water resources planning processes, and then the inefficient use of public investment and resources. The results indicate that modelers’ careful parameter selection is required to improve the accuracy of modeling results and estimates from using not only information from the past studies but also modeling practices enhanced with local knowledge and experience.

Supporting hydrogen technologies deployment in EU regions and Member States: The Smart Specialisation Platform on Energy (S3PEnergy)

In order to maximise European, national and regional research and innovation potential the European Union is investing in these fields through different funding mechanisms such as the ESIF or H2020 programme. This investment plan is part of the European 2020 strategy, where the concept of Smart Specialisation is also included.Smart Specialisation is an innovation policy concept designed to promote the efficient and effective use of public investment in regional innovation in order to achieve economic growth. The Smart Specialisation Platform was created to support this concept by assisting regions and Member States in developing, implementing and reviewing their research and innovation Smart Specialisation strategies.The Smart Specialisation Platform comprises several thematic platforms. The thematic Smart Specialisation Platform on energy (S3PEnergy) is a joint initiative of three European Commission services: DG REGIO, DG ENER, and the Joint Research Centre (JRC). The main objective of the S3PEnergy is to support the optimal and effective uptake of the Cohesion Policy funds for energy, and to better align energy innovation activities at national, local and regional level through the identification of the technologies and innovative solutions that support in the most cost-effective way the EU energy policy priorities.In the particular case of hydrogen technologies, the activities of the platform are mainly focused on supporting the new Fuel Cells and Hydrogen Joint Undertaking (FCH JU) initiative involving regions and cities. To date, more than 80 European cities and regions have committed to participate in this initiative through the signature of a Memorandum of Understanding, and more participants are expected to join. S3PEnergy is helping in the identification of potential combination of H2020 funding (provided through FCH JU) and ESIF.To identify potential synergies among these two funding sources, a mapping of the different ESIF opportunities has been performed. In order to map these opportunities, Operational Programmes (OPs) and research and innovation strategies for Smart Specialisation (RIS3) of the different European regions and Member States were analysed. The results of this mapping and analysis are presented in this paper.

The politics of research impact: academic perceptions of the implications for research funding, motivation and quality

There is growing interest in demonstrating the societal and economic value of research around the world with the UK and Australia at the forefront of these developments. Characterised as an ‘impact agenda’, impact policies have incited debate amongst the academic community and beyond. On the one hand, the edifying and reinforcing effects of impact can be seen to provide greater visibility about the use of public investment in research, whilst, on the other concerns about the subsequent and unintended effects on the nature and quality of research and research cultures, have contributed to a discourse which was (in the very beginning at least) one dominated by resistance. We draw on a qualitative analysis of interviews with UK and Australian mid-senior career academics (n = 51) which explored academic perceptions for resisting an impact agenda, to describe a range of perceived effects on research funding, motivation and quality. We find a persistent perception that impact favours and prioritises ‘types’ of research, leading to a concern that this will reduce funding for certain disciplines. We also note how academics perceived deleterious effects on motivation, culture, capacity and the quality of research. Where impact was seen to ‘direct’ or ‘drive’ research, we discuss how some academics suggested they would re-orientate their work, often at the expense of quality. Indeed, misconceptions about the very meaning of ‘impact’ appear to persist alongside varied intepretations of impact policies and mixed perceptions about how impact is considered in practice with respect to funding decisions. In addition, we posit that extrinsic motivations for impact are ‘crowding out’ intrinsic motivations of academics, altering perceptions of self-determination. This is further compounded by the growing politicisation of knowledge which in turn creates an ideological barrier to engagement. If impact is to be embraced and sustained at scale, institutions must target and harness a wider range of intrinsic motivations and epistemic responsibilities, improving academics’ abilities to respond to the impact agenda in addition to working with, not against those who create policy.

SMART SPECIALIZATION, ELEMENT OF REGIONAL DEVELOPMENT

Research-Development and innovation expenditure (conditions of a few high specializations in different fields of science) know an increasing importance, both at countries level and regions, on the background of challenges that occur in economic growth, at European Union level, involving investment increase in knowledge, respectively, education, professional training, research and development. The existence of a good model of territorial development means finding a strategy and governance able to create new economic activities that capitalize the competitive and comparative advantages of territorial potential, in global context. The new strategy of economic transformation at local level, the smart specialization, aims to promote efficient and effective use of public investment in research, based on innovation encouragement, at regional level, that should lead to economic growth and prosperity of regions. The implementation of strategy`s instruments involves an integrated approach, by using own forces and potential of each region, that should meet the requirements of European Agenda, for growth and competitiveness achievement. By identifying the fields with high potential, at regional level, and their strengthening, the smart specialization can concur to regions access on global markets and international value chain. The study briefly expounds the concept of smart specialization and its constituent sizes, principles of action in the field of research-development and innovation. There are also considered the implementation stages of "strategy", in the interventions at regional level, as well as the advantages and risks that it entails.

Orchestrators of Innovation-Driven Regional Development: Experiences from the INNOFOKUS Project and Change2020 Programme

The dawn of the 2014–2020 programme period of the European Union (EU) coincides with the financial crisis facing the European economy. Funding instruments are expected to generate more results with less money. The EU has introduced “smart specialization” strategy for research and innovation (also referred as RIS3) as a new innovation policy concept designed to promote the efficient and effective use of public investment in research. Its goal is to boost regional innovation in order to achieve economic growth and prosperity, by enabling regions to focus on their strengths. In its emphasis and design, the new smart specialization agenda differs from previous regional innovation policies in the respect that universities have a potentially fundamental role to play in its delivery (Kempton et al., 2014). In Finland, European project funding is one of the most important regional development tools for the higher education institutions and their networks, but the new conditions require a new mindset to answer questions such as: What makes a good public development project? and How can higher education institutions contribute more to society with projects? At the same time, the Finnish regions are at different stages in adopting smart specialization – some are pioneering it with participatory processes while laggards are either treating the subject of smart specialization as business as usual or are confused by uncertain expectations.

Critical Factors Affecting the Efficient Use of Public Investments in Infrastructure in Vietnam

This paper examines the critical factors affecting the efficient use of public investments in infrastructure to support trade and economic development. Investments in infrastructure have increasingly been used to improve the infrastructure quality, thus stimulating trade and economic development in developing countries. Nevertheless, a number of infrastructure challenges faced by developing countries remains. This raises the question about the efficiency in the use of public investments in infrastructure. Based on the case of Vietnam, this paper identifies a number of deficiencies in the planning and policymaking process as well as in the implementation of infrastructure plans. This paper aims to show policymakers that the critical challenge faced by developing countries in infrastructure construction is thus not about the funding but should be more about effective planning and implementation for long-term benefits.

The golden rule of public finance and the composition of government expenditures: a growth and welfare analysis

This paper employs an endogenous growth model to study the growth and welfare effects of the golden rule of public finance. Two versions are compared, whereby government deficits are restricted for the use of public investments. It is shown that the growth effect of the golden rule depends on what kind of expenditure is adjusted to meet debt obligations. A transition from a balanced budget to a golden rule is performed to study welfare. The results indicate that a budget rule with detrimental growth effects can still have positive welfare implications, and vice versa, if the composition of government expenditures and transitional dynamics are taken into account.

Science Parks: what they are and how they need to be evaluated

Science Parks have become a popular policy tool to enhance knowledge-based regional development since the early 1980s. Science Parks are found in many places around the globe based on different models of stakeholder involvement and missions. The use of public investment has urged the need for evaluation of Science Parks to improve efficiency and this has led to a steady flow of evaluation studies. These studies have produced outcomes that are either not conclusive or only in part positive. Particularly, the causality question remains unsolved. Despite the rather poor proof of success, Science Parks, paradoxically, have remained extremely popular as a policy tool. This study elucidates both the diversity in Science Park models and the Science Park paradox, and proposes a list of requirements that contributes to a more refined approach to evaluate the impacts of Science Parks.