Hasil untuk "Capital. Capital investments"

B. Becker

Lirong Wang, Jinnan Zhou, C. James Hueng

ABSTRACT Chinaʼs comprehensive administrative system for capital controls and ongoing capital liberalisation are unique features compared with other emerging economies. These allow us to investigate the effects of Chinaʼs capital controls and subsequent liberalisation policies, along with various global‐push and domestic‐pull factors, on its gross capital flows in a time series analysis. We collect various sources of information on Chinaʼs capital control policies from 2005 to 2022 and construct quarterly time series of Chinaʼs capital control indices for different types of gross flows. Using the bounds tests of cointegration and a conditional error‐correction model, we show that Chinaʼs capital account liberalisation successfully encourages foreignersʼ investments aiming at production to maintain a long‐term relationship with China, as well as their short‐term financial investments to China. On the other hand, Chinese residents increase their long‐term investments overseas during the liberalisation process. However, their portfolio investments abroad are not responsive to the relaxation of capital controls.

Vladislav B. Belov

This article analyzes Germany’s economic developments in 2024, which largely determine the prospects for 2025. The German economy has been in a recession for the second consecutive year. The author examines the key macroeconomic indicators as well as the internal and external causes of GDP decline. Particular attention is given to industrial production, inflation – including the dynamics of electricity prices - investments in fixed capital, labor market conditions, foreign trade. Furthermore, the article reviews the actions of the German federal government in 2024 regarding economic legislation. In particular, it addresses the escalating contradictions within «the traffic light» coalition, which were driven by its compromise-based nature. These conflicts ultimately led to the coalition’s collapse in early November 2024, followed by a vote of no confidence against the chancellor and the decision of the federal president to schedule early parliamentary elections for February 23, 2025. In the course of the election campaign, the established parties entered into an intensive debate about the economic future of one of the leading members of the European Union. The author assesses this debate, identifies the key external and internal challenges facing Germany as a business location, and forecasts the country’s economic development, which is likely to experience yet another year of recession.

Viktoras Kulionis, Erik Dietzenbacher

Global efforts are needed to reduce CO _2 emissions and guarantee a safe climate system that supports global sustainable development and wellbeing. Understanding drivers of global CO _2 emissions is of great importance as the world strives to achieve global climate mitigation goals. Using structural decomposition analysis (SDA) we identify the key drivers behind changes in global and regional CO _2 emissions from 2000 to 2014. We find that growth in global CO _2 (+10.8 GtCO2) emissions was driven by increasing affluence (+14.3GtCO2) which outpaced the downward influence of changes in technology (−9.2GtCO2). Global results, however, mask considerable regional heterogeneity and different dynamics at the country level. The affluence effect was predominantly driven by capital investments in developing and emerging economies. In high income regions, technological improvements were strong enough to offset the positive pressures from increasing affluence. In these countries changes in population and trade structure were more important drivers than affluence. Although some countries/regions (e.g. EUR) demonstrate continuous and consistent emissions reductions these efforts need to increase considerably to reach climate goals.

Paula Stoicea, Irina-Adriana Chiurciu, Elena Cofas

At the European level, potato cultivation is highly polarized. In Western Europe (Germany, France, the Netherlands, Belgium, Denmark), yields are high, agricultural technology is advanced, and production systems ensure stability and competitiveness. In contrast, in Eastern and Southern Europe (including Romania, Poland, Italy, and Spain), yields are considerably lower due to the use of outdated agricultural practices, a low degree of mechanization, and increased exposure to adverse climatic factors. In Romania, potato cultivation is marked by significant territorial disparities and structural imbalances, influenced by land fragmentation, agro-pedoclimatic variability, and the lack of capital necessary for investments in modern technologies and irrigation systems. This study analyzes these regional disparities in relation to the country’s real agricultural potential and quantifies the economic impact of its failure to realize it. The methodology applied is based on descriptive statistical analysis of data at the county and regional level for the period 2003–2024, including minimum, maximum, average, and standard deviations of yields. These were integrated into a production function that correlates cultivated areas with average prices, highlighting major intra-regional differences and significant economic consequences at the national level. The results indicate a double crisis: a drastic reduction in the areas cultivated with potatoes (from 196,000 ha in 2017 to 76,000 ha in 2024) and consistently low yields (12,000–18,000 kg/ha), which led to the collapse of total production (from 3.1 million tons in 2017 to under 1 million tons in 2024). As a result, Romania registers a productivity three to four times lower than the reference Western European countries. Moreover, Romania has moved from being a net exporter to a net importer of potatoes, with the food self-sufficiency indicator decreasing from 100.3% in 2017 to 48.1% in 2023. Although domestic production could theoretically cover consumption needs, structural problems regarding yields, the sharp reduction in cultivated areas, and distribution deficiencies have seriously affected the balance of the domestic market. While per capita consumption has remained relatively constant, the decline in production has led, after 2021, to an increasing dependence on imports. These trends highlight the need for urgent structural reforms, technological modernization, and targeted agricultural policies to increase productivity and restore food security in the Romanian potato crop system.

Gyan Mani Adhikari, Nabin Sapkota, Devendra Parajuli et al.

Green banking practices have emerged as a pivotal strategy in fostering sustainability within the financial sector. This study examines the influence of green banking practices on customer loyalty in Nepal's banking industry, emphasizing key determinants that shape environmentally responsible consumer behavior. Grounded in the literature, the study conceptualizes green banking practices through three primary dimensions: electronic banking, green investment, and sustainable (green) product development. Their impact on green loyalty is assessed alongside the mediating effects of green image and green trust. A structured questionnaire was administered to 393 banking customers, employing a descriptive and explanatory research design. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) via SmartPLS 4. The findings reveal that green banking practices significantly enhance green image, which, in turn, strengthens green loyalty. Although green banking practices also foster green trust, green trust does not exhibit a direct effect on green loyalty. Mediation analysis confirms that green image mediates the relationship between green banking practices and green loyalty, whereas green trust does not serve as a significant mediator. These insights highlight the critical role of sustainability-oriented banking strategies in shaping customer preferences and fostering long-term loyalty. The findings offer valuable implications for policymakers, financial institutions, and researchers seeking to advance green banking initiatives and drive sustainable consumer engagement in the financial sector.

Oleksii Lyulyov, Tetyana Pimonenko

Given the intersecting challenges of climate instability, resource constraints, and digital transformation, there is an urgent need for scholarly inquiry into the evolving patterns of green economic growth to inform evidence-based strategies for fostering sustainable and inclusive development across the European region. This study explores green growth trajectories in European Union (EU) countries and Ukraine, focusing on convergence patterns, eco-productivity clustering, and the influence of digitalisation and institutional quality. Using the Malmquist–Luenberger productivity index (TFPCH) and σ- and β-convergence approaches, the analysis reveals evidence of long-term β-convergence, while short-term convergence remains weak due to institutional and technological disparities. Conditional convergence results highlight the positive role of institutional quality, whereas digitalisation, proxied by AI investments, shows a limited uniform impact. Cluster analysis identifies three eco-productivity groups, with Ukraine forming a distinct cluster marked by weaker institutions and declining green productivity. The findings suggest that convergence is not automatic, requiring strong governance and regionally adaptive policies. Recommendations include strengthening institutional capacity, addressing the digital divide, supporting knowledge transfer, and investing in green-oriented human capital. The study acknowledges limitations related to timeframe, digital proxies, and data coverage, and calls for future research incorporating broader digital and social indicators and spatial econometric analysis to better understand regional spillovers.

Pierre Gosselin, Aïleen Lotz

In a previous work, we applied a field formalism to analyze capital allocation and accumulation within a network of investors and firms. In that framework, financial agents could invest in firms or in other investors, and banks-introduced as investors with a credit multiplier-could play a stabilizing or destabilizing role. Collective states emerged from these interactions, reflecting different configurations of capital distribution and stability in the financial system. However, these results relied on the assumption that financial connections were exogenous. The present paper removes this assumption by modeling financial connections as dynamic endogenous variables. Specifically, we extend the framework by introducing a field representation of the network of financial connections. The collective states previously identified are now embedded in a broader class of states, characterized by the structure of investment stakes among investors. We show that these collective states consist of inter-connected groups of agents, along with their returns and disposable capital. The model reveals the emergence of two investor classes: high- and low-return (and capital) agents. High-return investors, in particular, act as a source of instability within the system, enabling transitions between configurations. In each collective state, some sectors may experience defaults. When the collective state exhibits specific structural conditions, defaults may spread across a significant share of the group.

Carmen Berta C. De Saituma Cagiza, Ilidio Cagiza

This study investigates the dynamic relationship between development finance institutions (DFIs), foreign direct investment (FDI), and economic development in Sub-Saharan Africa (SSA) from 1990 to 2018, using a quantitative panel dataset of annual data for five SSA countries (Nigeria, Ghana, Kenya, South Africa, and Zimbabwe) and a fixed-effects model estimated in STATA. Specifically, the analysis examines whether DFIs enhance FDI inflows, thereby promoting economic growth and contributing to the achievement of the Sustainable Development Goals (SDGs). The findings indicate that although DFIs have a theoretically positive impact on FDI, this relationship is not statistically significant across the sample, suggesting contextual dependencies influenced by regional economic variations. The study also analyzes how economic growth, trade openness, inflation, political stability, and the rule of law influence this nexus, elucidating their roles in shaping investment climates. A sectoral analysis indicates that DFI investments in infrastructure, agribusiness, and finance significantly affect FDI, with infrastructure having the greatest impact owing to its foundational role in economic systems. This research contributes by linking DFIs with FDI in SSA in a panel setting, thus providing a framework for policymakers to strengthen institutional and macroeconomic conditions to optimize the impact of DFIs on FDI and, ultimately, on sustainable development. The findings underscore the need for targeted policies to address regional disparities and enhance DFI effectiveness in fostering sustainable growth.

Mehdi Davoudi, Junjie Qin, Xiaojun Lin

This study investigates long-term investment decisions in distributed photovoltaic panels by individual investors. We consider a setting where investment decisions are driven by expected revenue from participating in short-term electricity markets over the panel lifespan. These revenues depend on short-term market equilibria, i.e., prices and allocations, which are influenced by aggregate invested panel capacity participating in the markets. We model the interactions among investors by a non-atomic game and develop a framework that links short-term market equilibria to the resulting long-term investment equilibrium. Then, within this framework, we analyze three market mechanisms: (a) a single-product real-time energy market, (b) a product-differentiated real-time energy market that treats solar energy and grid energy as different products, and (c) a contract-based panel market that trades claims/rights to the production of certain panel capacity ex-ante, rather than the realized solar production ex-post. For each, we derive expressions for short-term equilibria and the associated expected revenues, and analytically characterize the corresponding long-term Nash equilibrium aggregate capacity. We compare the solutions of these characterizing equations under different conditions and theoretically establish that the product-differentiated market always supports socially optimal investment, while the single-product market consistently results in under-investment. We also establish that the contract-based market leads to over-investment when the extra valuations of users for solar energy are small. Finally, we validate our theoretical results through numerical experiments.

Halilibrahim Gökgöz, Arif Arifoğlu, Tuğrul Kandemir

Integration in financial markets offers opportunities for free flow of information and capital for international investments. However, this also poses challenges for maintaining effective international portfolio diversification due to heightened market correlations. This study aims to analyze the diversifying potential of Islamic financial assets and undertake a dynamic analysis of their correlation with volatility indices. In this context, the study explores the interaction between the Dow Jones Islamic Market Developed Markets Quality and Low Volatility Index (DJIDVI) and such volatility indices including the CBOE Volatility Index (VIX), CBOE Oil Volatility Index (OVX), CBOE Gold Volatility Index (GVZ), and Euro Currency Volatility Index (EVZ). The Dynamic Correlation-Multivariate Stochastic Volatility (DC-MSV) model is employed to assess of how volatility shocks in one asset influence the volatility of others. The findings reveal that DJIDVI demonstrates the highest volatility clustering among the considered series. Moreover, DJIDVI exhibits mutual interactions with VIX and EVZ, and shocks increasing DJIDVI volatility also contribute to heightened volatility in VIX and OVX. Notably, the correlation between DJIDVI and volatility indices is influenced by global events. The study emphasizes the enhanced predictability of DJIDVI and its negative correlation with other series establishing its potential as a diversifier. The findings of this study contribute to advancing the understanding of international portfolio diversification emphasizing the importance of incorporating Islamic financial assets.

Azizbek Kamolov, Zafar Turakulov, Toshtemir Avezov et al.

With the increasing global concern regarding climate change and the need to reduce greenhouse gas emissions, carbon capture and utilization (CCU) technologies are seen as one of the primary steps toward large-scale decarbonization prospects. In this context, a thorough assessment of each CCU pathway is required from both the techno-economic and environmental perspectives. In this work, the potential of carbon biofixation through microalgae cultivation is evaluated through the preliminary technical design and calculation of plant economics in the case of the Turakurgan natural gas-fired combined cycle power plant located in the eastern part of Uzbekistan. The primary data used in this study are obtained from the open access project report of the targeted power station, along with recently published literature sources. According to the results, although the purchase and installation costs of photobioreactors require significant investments in the capital costs, the technology would still be cost competitive as long as there is a carbon tax imposition of around USD 50 per ton of CO₂ emissions. However, CO₂ biofixation can be relatively more suitable compared to benchmark absorption, particularly in low-CO₂-concentration conditions. Future research will involve a more comprehensive examination of CO₂-based microalgae cultivation and its comparison with chemical absorption and membrane-assisted separation techniques.

Bingzheng Chen, Zongxia Liang, Shunzhi Pang

This paper analyzes the equilibrium of insurance market in a dynamic setting, focusing on the interaction between insurers' underwriting and investment strategies. Three possible equilibrium outcomes are identified: a positive insurance market, a zero insurance market, and market failure. Our findings reveal why insurers may rationally accept underwriting losses by setting a negative safety loading while relying on investment profits, particularly when there is a negative correlation between insurance gains and financial returns. Additionally, we explore the impact of regulatory frictions, showing that while imposing a cost on investment can enhance social welfare under certain conditions, it may not always be necessary.

Johnson Adelakun, Kanayo Ogujiuba

Through mechanisms including knowledge transfer and productivity spillovers, foreign direct investment (FDI) is viewed as a critical driver of growth in developing economies. However, the majority of African nations require capital inflows, particularly foreign direct investment (FDI), as a result of insufficient capital accumulation. The capacity of African governments to deliver top-notch infrastructure and social services has been diminished as a result. However, there has not been any independent research on how FDI inflows have affected Africa’s top 10 nations between 1970 and 2021. Most studies on the subject overlooked the impact of institutional quality on FDI inflows and omitted pertinent indicators of infrastructure development. The purpose of this article is to present a comparative analysis of the factors influencing the top ten beneficiaries of FDI in Africa. The ARDL bound test was employed to confirm the co-integration of the variables over the long term. The major goal is to confirm the relationship between the short- and long-term determinants of foreign direct investment in the top ten African recipients. This estimation was performed based on the unique characteristics of each country to make comparisons and inferences easier. The results of the limit test demonstrated the existence of a long-term connection between the examined determinants. The study found that infrastructure gaps, poor domestic savings, and price inflation were some of the mitigating factors preventing FDI from entering these countries. Additionally, the study found poor governance, which may impede the growth of effective institutions and capital inflows. It is crucial that these nations undertake both fiscal and monetary policies in order to address these issues, draw in private investments that allow for significant economic activity, and boost their economies’ prosperity.

Diego Vallarino

Using as a central instrument a new database, resulting from a compilation of historical administrative records, which covers the period 1974-2010, we can have new evidence on how industrial companies used tax benefits, and claim that these are decisive for the investment decision of the Uruguayan industrial companies during that period. The aforementioned findings served as a raw material to also affirm that the incentives to increase investment are factors that positively influence the level of economic activity and exports, and negatively on the unemployment rate.

Marjan Petreski, Jaakko Pehkonen

The objective of the paper is to understand if the minimum wage plays a role for the labor share of manufacturing workers in North Macedonia. We decompose labor share movements on those along a share-capital curve, shifts of this locus, and deviations from it. We use the capital-output ratio, total factor productivity and prices of inputs to capture these factors, while the minimum wage is introduced as an element that moves the curve off. We estimate a panel of 20 manufacturing branches over the 2012-2019 period with FE, IV and system-GMM estimators. We find that the role of the minimum wage for the labor share is industry-specific. For industrial branches which are labor-intensive and low-pay, it increases workers' labor share, along a complementarity between capital and labor. For capital-intensive branches, it reduces labor share, likely through the job loss channel and along a substitutability between labor and capital. This applies to both branches where foreign investment and heavy industry are nested.

Mercedeh Pahlavanian, Meysam Shirkhodaie, Sepehr Ghazinoory,

Wealthtech or financialtechnology of wealth management helps investors to make better decisions about when and how to invest; and seeks to shift savings and investments to the capital market and balanced the money and capital markets. This study examines the transition of wealthtech in Iran. Transition refers to the process of creating and replacing a new technology and its acceptance by the community. For the analysis of the transition, the multi-level perspective analytical framework was used and the interactions of actors and institutions with technology at different levels are analyzed. The transition to wealthtech has been studied through a qualitative and narrative research method, and data have been collected through the study of regulations and policy documents, as well as press interviews and press reports published in fintech media. 252 reports were reviewed, of which 118 reports were related to the discussion and the opinions of 36 experts were analyzed. With the studies, the functions of the financial system of wealth management were identified. By analyzing the behavior of actors who performing the functions against technological developments and institutional changes, the typology of the transition was determined as reconfiguration path. The reconfiguration path follows the innovation overflow pattern and caused changing the architecture of the regime. In the end, the public release of information and informing to citizens should also be followed Simultaneously with the provision of conditions for providing innovative services. Through the simultaneous reinforcement of the supply side and the demand side, the optimal transition will be possible.

Ruoxin Xiao

CRRA utility where the risk aversion coefficient is a constant is commonly seen in various economics models. But wealth-driven risk aversion rarely shows up in investor's investment problems. This paper mainly focus on numerical solutions to the optimal consumption-investment choices under wealth-driven aversion done by neural network. A jump-diffusion model is used to simulate the artificial data that is needed for the neural network training. The WDRA Model is set up for describing the investment problem and there are two parameters that require to be optimized, which are the investment rate of the wealth on the risky assets and the consumption during the investment time horizon. Under this model, neural network LSTM with one objective function is implemented and shows promising results.

Iryna Didenko, Natalia Sidelnyk

This paper summarizes the arguments and counterarguments within the scientific discussion on the insurance market issue. The research’s primary purpose is to identify critical vectors and trends inherent in the modern insurance market. Systematization of literary sources and approaches for solving the problem of development and formation of the current insurance market indicates that it is necessary to use the best countries’ experience, adapting it to the domestic market. This concerns the issues of targeted financing of investment projects, the creation of funds to support policyholders’ protection, tax benefits for long-term insurance instruments, the possibility of opening a foreign insurance market for insurance institutions. The relevance of the decision of this scientific problem caused by the lack of standard definition of the concept of insurance by the academic community drives limited ability to assess the impact of insurance on social and economic aspects of society. Investigation of the topic of theoretical principles of insurance in the paper is carried out in the following logical sequence: analysis of the relationship between different types of insurance, analysis of publication activity in terms of years, countries, subject industries; research of keywords that occur when considering the topic of insurance. The research methods’ methodological tools were analytical tools of the Scopus database and VOSviewer software years of research 1832 – 2021. According to the international Scopus database results, the object of study is the chosen countries, regions, and universities. The paper presents empirical bibliographic analysis results, which showed that today the vast majority of research is conducted by experts from the United States and the European Union. Still, many Asian countries (China, Singapore, Taiwan, Thailand), which demonstrate rapid economic development, are beginning to take a leading position among insurance research gradually. The research empirically confirms and theoretically proves that the insurance market is an integral and important part of the financial sector as a whole. The results of the research can be useful for further scientific work.

Halil D. Kaya

This paper examines the impact of the 2008-2009 Global Crisis on the banking systems of the countries around the world. Nine variables are examined which include bank concentration, bank deposits, 5-bank asset concentration, liquid liabilities, net loans from non-resident banks, outstanding loans from non-resident banks, offshore bank deposits, remittances, and consolidated foreign claims. The paper looks at how each of these banking system variables had changed before the crisis, during the crisis, and after the crisis. The results show that during the run-up to the crisis, 8 out of the 9 variables had not changed significantly (only net loans from non-resident banks had declined significantly), therefore we argue that there was almost no sign of an upcoming crisis during the run-up period. Still, policymakers may use such a sudden significant decline in loans from non-resident banks as a warning sign. The results show that, during the crisis period, the net loans from non-resident banks continued to decline. Also, during the crisis period, offshore deposits significantly declined. During this period, there was no significant change in the other variables. Therefore, we conclude that the crisis mainly affected the loans from non-resident banks and the offshore deposits. When the post-crisis period is examined, the results show that bank deposits and loans from non-resident banks had increased significantly. There was no significant change in the other variables. We suggest policymakers to use these findings when developing strategies to protect their country’s banking system in the face of an economic crisis.