Hasil untuk "Capital. Capital investments"

Kunpeng Wang, Jiahui Hu

The rapid integration of Artificial Intelligence (AI) into China's economy presents a classic governance challenge: how to harness its growth potential while managing its disruptive effects on traditional capital and labor markets. This study addresses this policy dilemma by modeling the dynamic interactions between AI capital, physical capital, and labor within a Lotka-Volterra predator-prey framework. Using annual Chinese data (2016-2023), we quantify the interaction strengths, identify stable equilibria, and perform a global sensitivity analysis. Our results reveal a consistent pattern where AI capital acts as the 'prey', stimulating both physical capital accumulation and labor compensation (wage bill), while facing only weak constraining feedback. The equilibrium points are stable nodes, indicating a policy-mediated convergence path rather than volatile cycles. Critically, the sensitivity analysis shows that the labor market equilibrium is overwhelmingly driven by AI-related parameters, whereas the physical capital equilibrium is also influenced by its own saturation dynamics. These findings provide a systemic, quantitative basis for policymakers: (1) to calibrate AI promotion policies by recognizing the asymmetric leverage points in capital vs. labor markets; (2) to anticipate and mitigate structural rigidities that may arise from current regulatory settings; and (3) to prioritize interventions that foster complementary growth between AI and traditional economic structures while ensuring broad-base distribution of technological gains.

Rennie Bakashaba, Dedrix Stephenson Bindeeba

Abstract Digital commerce activation (DCA) has enabled SMEs to broaden market reach, yet market penetration (MP) alone often fails to create sustainable competitive advantage (CA). Drawing on the Resource-Based View and Dynamic Capabilities Theory, this study examines how brand capital (BC) mediates the relationship between DCA and CA while assessing MP’s parallel role. Survey data were collected from 405 digitally active SMEs in Kampala and Wakiso, Uganda, and analyzed through structural equation modeling. Findings indicate that DCA significantly enhances both BC and MP; however, MP neither directly influences CA nor transmits DCA’s effects into CA. In contrast, BC demonstrates a strong positive influence on CA and fully mediates the DCA–CA relationship. These results confirm that BC, encompassing brand awareness, perceived quality, loyalty, and associations, functions as a valuable, rare, inimitable, and non-substitutable (VRIN) resource that converts digital investments into enduring advantage. The study contributes by (1) extending RBV to position BC as the primary intangible conduit for digital strategy, (2) clarifying the micro-foundations of BC formation via dynamic digital routines, and (3) offering context-specific insights for resource-constrained SMEs. Practically, managers should prioritize brand-building routines over reach-seeking, and policymakers should support digital branding initiatives to strengthen SME competitiveness.

Çağın Ararat, Zachary Feinstein

Systemic risk measures aggregate the risks from multiple financial institutions to find system-wide capital requirements. Though much attention has been given to assessing the level of systemic risk, less has been given to allocating that risk to the constituent institutions. Within this work, we propose a Nash allocation rule that is inspired by game theory. Intuitively, to construct these capital allocations, the banks compete in a game to reduce their own capital requirements while, simultaneously, maintaining system-level acceptability. We provide sufficient conditions for the existence and uniqueness of Nash allocation rules, and apply our results to the prominent structures used for systemic risk measures in the literature. We demonstrate the efficacy of Nash allocations with numerical case studies using the Eisenberg-Noe aggregation mechanism.

Nguyễn Văn Bổn, Lê Đặng Tuyết Nhi, Nguyễn Thị Thiên Hương et al.

Inflation is a controversial topic among economists because, on the one hand, it increases the cost of living, leading to social instability, but on the other hand, it increases savings - investments and improves capital accumulation for the development of the private sector, leading to economic growth and development. Meanwhile, income inequality is one of the eight-millennium goals that most developing economies are facing because severe inequality can lead to political instability. Does inflation enhance income inequality? This paper looks for the answer by employing the difference GMM Arellano-Bond estimators to study the effect of inflation on income inequality for a balanced panel dataset of 35 developing economies between 2002 and 2021. The results show that inflation increases income inequality. Furthermore, public spending, economic growth, and unemployment are significant determinants of income inequality in these economies. The findings in this paper suggest some crucial implications for developing economies in controlling inflation to limit the increase in income inequality.

Fariba Rashnoo, Ahmad Sarlak

In an era of economic complexity, where goods and services are produced using advanced technologies and with significant diversity, achieving economic growth without environmental pollution has become one of the primary goals for nations worldwide. This objective necessitates measures such as investment in knowledge-based production, which in turn relies heavily on investment in research and development.  The present study aimed to examine the relationship between multidimensional economic complexity and inclusive green economic growth. Given the geographic proximity of some developed and developing countries, the research employed a spatial panel econometric method using data from these nations. The results indicated a significant relationship between inclusive green growth and economic complexity in both developed and developing countries. However, this relationship is relatively weaker in developing countries.IntroductionThe most crucial factor influencing the level of economic development in any country is the extent to which knowledge is generated and applied in its production processes (Kazemi, 2013). Moreover, the integration of knowledge into production significantly reduces greenhouse gas emissions (Barbieri, 2012). Economic complexity, through the knowledge channel, promotes resource efficiency, enhances the quality of production institutions, and facilitates the establishment of green productive structures (Hassan et al., 2022). Since developing countries often rely on the production of a limited range of goods, it is essential to examine their level of economic complexity. Furthermore, given the strong link between economic complexity and the technology required for renewable energy production, it is critical to examine the relationship between multidimensional economic complexity and economic growth through the technology production channel. In this context, countries like Iran must be analyzed in terms of economic complexity and compared with developed nations. Despite the importance of this issue, no study to date has explored the relationship between economic complexity and inclusive green economic growth across both developed and developing countries. The present research tried to address the following question: What is the relationship between economic complexity and green economic growth in developed and developing countries? To answer the question, the study first reviewed the theoretical foundations of green economic growth and economic complexity, followed by a discussion of the methods and models.Materials and MethodsThe present study relied on the model built upon the work of Mohammadi et al. (2023), who investigated the impact of economic complexity and renewable energy consumption on environmental pollution in developing countries. Spatial econometrics in Stata software was used to analyze the relationship between economic complexity and inclusive green economic growth from 2000 to 2022. This approach not only examines the relationship between independent and dependent variables but also incorporates the spatial characteristics of the locations involved, as highlighted in studies such as AbuGhunmi et al. (2023). Additionally, data from both developed and developing counties was used to conduct a comparative analysis. The first step in estimating the spatial panel model is to create the adjacency matrix. In this research, the proximity matrix for the seven OPEC member countries with common borders of spatial heterogeneity refers to the deviations in relationships between observations at different geographical locations. In this matrix, neighboring and non-neighboring countries are assigned a value of 1 and 0, respectively. Next, autocorrelation is tested through methods such as the Moran and Gray tests. Once autocorrelation is confirmed, the model type is determined through parent, multiple parent, and Akaike and Schwartz tests. Finally, the model is estimated.Results and DiscussionThe results of estimating the relationship between multidimensional economic complexity and green economic growth in developing countries are presented in Table 1, and those for developed countries are shown in Table 2.Table 1. Model Estimation Results With the Dependent Variable in Developing CountriesEffectsVariablesCoefficientProbabilityDirect effectsINF-0.080.000CO2-0.090.000R&D0.30.000TECHEX0.210.000EC0.120.000Indirect effectsINF-0.10.000CO20.110.000R&D0.240.000R&D(-1)0.210.000TECHEX0.200.000EC0.20.000Total effectsINF-0.110.000CO20.190.000R&D0.130.000TECHEX0.120.000EC0.210.000Spatial correlation coefficient-0.2360.039Hausman test7.110.81Source: Research findingsTable 2. Model Estimation Results With the Dependent Variable in Developed CountriesEffectsVariablesCoefficientProbabilityDirect effectsINF-0.060.000CO2-0.040.000R&D0.410.000TECHEX0.330.000EC0.240.000Indirect effectsINF-0.050.000CO2-0.060.000R&D0.360.000TECHEX0.210.000EC0.290.000Total effectsINF-0.030.000CO2-0.060.000R&D0.290.000TECHEX0.210.000EC0.390.000Spatial correlation coefficient-0.2490.029Hausman test6.990.78Source: Research findingsAs observed in the calculations, both the direct and indirect effects, as well as the total economic complexity, have a direct and significant impact on green economic growth. As expected, this effect is stronger in developed countries than in developing ones. The effect coefficient for total economic complexity in developing and developed countries is 0.21 and 0.39, respectively. These figures indicate that the overall impact of economic complexity on economic growth is greater in developed countries. This relationship can be explained using the Kuznets curve. According to the results, economic complexity fosters green economic growth by increasing the use of technology in production and reducing emissions.ConclusionThe results indicated that the impact of economic complexity on green growth is smaller in developing countries compared to developed countries. Additionally, since economic complexity reflects the use of advanced technologies and increased costs in the production process, the rise in technology use and in research and development expenditures will not only drive the production process towards greener, pollution-free methods but will also help reduce production costs over time. The coefficients presented in the table for both developed and developing countries showed the positive effect of economic complexity on green production and growth.

Masoud Taherinia, Mehrdad Matin, Jamal Valipour et al.

Shareholders' expectations of stock returns and fluctuations are constantly changing due to restrictions in financial status and undesirable capital structure, which constrain managers to limit the changes in price trends in order to cover the risk instigated and infused by the unfavorable situation. The present research examines the moderating impact of information asymmetry on the relationship between capital structure adjustment and expected returns. The data from 120 companies approved in the Tehran Stock Exchange were extracted, and a hybrid data regression model was used to test the research hypotheses. Findings indicate that the capital structure adjustment speed correlates with the expected returns. Moreover, the information asymmetry positively affects the relationship between capital structure adjustment speed and expected returns.

Arman Abgaryan, Utkarsh Sharma, Joshua Tobkin

The Proof of Efficient Liquidity (PoEL) protocol, designed for specialised Proof of Stake (PoS) consensus-based blockchains that incorporate intrinsic DeFi applications, aims to support sustainable liquidity bootstrapping and network security. This concept seeks to efficiently utilise budgeted staking rewards to attract and sustain liquidity through a risk-structuring engine and incentive allocation strategy, both of which are designed to maximise capital efficiency. The proposed protocol serves the dual objective of: (i) capital creation by attracting risk capital efficiently and maximising its operational utility for intrinsic DeFi applications, thereby asserting sustainability; and (ii) enhancing the adopting blockchain network's economic security by augmenting their staking (PoS) mechanism with a harmonious layer seeking to attract a diversity of digital assets. Finally, the protocol's conceptual framework, as detailed in the appendix, is extended to encompass service fee credits. This extension capitalises on the network's auxiliary services to disperse incentives and attract liquidity, ensuring the network achieves and maintains the critical usage threshold essential for its sustained operational viability and progressive growth.

Anthony William Donald Anastasi

This paper attempts to explain the middle-income trap from the lens of an amended world-systems theory, in which capitalists within the semi-periphery are taken into account. It rejects that developing countries should pursue an import-substitution industrialization strategy, and instead argues developing countries should pursue a strategy similar to South Korea’s. An export-oriented industrialization strategy, with tight limits on foreign direct investment (FDI) and multinational corporations (MNCs) operating within the economy, building up state capacity in order to form a close collaborative, not corrupting relationship between private businesses and the state, and calls for heavy investments in human capital and industrial upgrading. This would ensure that surplus value does not leave the country nor does it lay idle in the hands of domestic capitalists. It also calls for changes to the global economic governance regime, such as common rules for FDI and taxes on MNCs, on the part of developing countries in order to create a more development friendly international economic system.

Dylan Kneale, Mukdarut Bangpan, Kathryn Hartley et al.

Abstract The COVID-19 pandemic represented a rise in ‘people power’ globally, expressed through manifold acts of kindness, solidarity and mutualism as communities organised and came together where governments could or would not. In this study we were interested in the mechanisms through which communities and agencies extended existing practices and structures to respond to the pandemic or adopted new ways of organising. We undertook a rapid realist systematic review, following established steps and drawing on the Volunteer Process Model as our core theory. We worked with 59 studies to identify the mechanisms through which individuals, agencies and organisations, and communities mobilised and we identified six mechanisms. Gaining experience and developing role identity were key in mobilising volunteers to undertake activities and also resulted in positive outcomes for the volunteers themselves. Adaptability ensured that individuals, groups and local agencies and organisations were able to respond to the changing needs of beneficiary groups. Co-ordination helped communities, agencies and mutual aid groups to work together rather than in competition. Emotional support, support in the form of social and material recognition, and support through training were important in sustaining a volunteer workforce and protecting the wellbeing of the volunteer workforce. Altruism was a key motivator for stepping up during the pandemic and becoming a volunteer while greater trust was linked with the extent to which groups and communities were able to scale up efforts to respond to higher demands during the pandemic. While the COVID-19 pandemic represented a period of great social upheaval, it illuminated the ‘power of people’ working together. Our findings identify six key mechanisms that supported this mobilisation, which may be critical to activate in future health emergencies, but are also largely reflective of investments made before the pandemic to support the development of social capital and the development of volunteering infrastructure.

Gabriel da Silva Medina, Rommel Bernardes da Costa

<i>Background:</i> This study aims to explore how domestic entrepreneurs can benefit from the thriving global agribusiness by establishing themselves in agro-industrial segments that can best remunerate capital and labour. The ways in which domestic entrepreneurs in Brazil enter different segments of the agribusiness industry were assessed with specific attention to implications for the development of local agro-industrial capabilities. <i>Methods:</i> We assessed the current market share of domestic companies in relation to foreign multinationals in various segments of the sugar and ethanol supply chain in Brazil. <i>Results:</i> Foreign multinationals are market leaders in the fertilizers, machinery and trading segments (domestic companies market share is 20.3%, 33.3% and 42.9% in those segments respectively). However, Brazilian companies have achieved higher market share in segments such as plant breeding, sugarcane processing and farming (domestic market share is 93.2%, 67.4% and 75.5% respectively). Plant breeding, farming and trading benefit from governmental support in research, subsidized credits and market policies respectively. <i>Conclusions:</i> By investing in agro-industrial sectors developing countries can benefit from agribusiness expansion for their economic growth. Investments in science and technology and domestic regulatory actions can help to build country capabilities, although the impacts are sometimes limited to the agro-industrial sectors where domestic companies are more competitive. These lessons can help other developing countries to assess their opportunities and challenges for agro-industrial development.

Md Shah Naoaj, Mir Md Moyazzem Hosen

This paper assesses whether the higher capital maintenance drives up banks cost of equity. We investigate the hypothesis using fixed effect panel estimation with the data from a sample of 28 publicly listed commercial banks over the 2013 to 2019 periods. We find a significant negative relationship between banks capital and cost of equity. Empirically our baseline estimates entail that a 10 percent increase in capital would reduce the cost of equity by 4.39 percent.

Kurada T S S Satyanarayana, Addada Narasimha Rao, Kumpatla jaya surya

This research investigates the multifaceted relationship underlying capital structure dynamics along with financial performance as a result of mergers and acquisitions, or M&As, in Indian banks. In the face of increasing competition, banks have deliberately embraced M&A as a strategy of improving commercial prospects and maintaining financial stability. The primary goal of this study is to examine the changes in the capital framework and financial results of banks before and after M&A transactions. The investigation, which employs a paired t-test as a method of statistical analysis, is based on a review of annual reports from selected banks over a two-year period before and after M&A transactions. The paired t-test approach allows for a thorough statistical analysis of interconnected datasets, revealing the subtle influence of M&A attempts on both bank financial performance as well as capital structure dynamics. The study's findings have the potential to add to the current body of knowledge on organisational planning, managing finances, and capital structure optimisation. The research has practical significance for financial companies, legislators, and scholars interested in understanding the profound effects of M&A inside the arena of financial institutions that operate within fiercely competitive landscapes because it provides comprehensive insights regarding the complex consequences of banking merger and acquisition (M&A) deals on capital structure as well as financial performance. Finally, the goal of this research is to provide the banking sector with educated decision-making capabilities and strategic guidance to businesses facing heightened competition while coping with the complexities of capital structure.

Maryam Shahlaee, Mehdi Pedram, Narges Hajimoladarvish

Acquiring information about expectations is difficult as individuals' beliefs are unobservable. Thus, how expectation forms and how to model expectation is an open question in economic modelling that has been addressed recently by experimental economics. In this article, in order to identify expectations, we examine the behaviour of subjects when encountering new exchange rates in an experiment.  Furthermore, in this experiment, differences of expectation formation among participants and their relation to cognitive abilities are analysed. To motivate people, incentive payments are used. In our setting, while the rational expectation hypothesis is not supported, the adaptive expectation is not rejected. Agents form their expectations in the same way regardless of their cognitive ability. In this context, individuals overreact to the new quantity of exchange rate which is assumed as a noisy perception.  This finding is considered as evidence of emotional behaviours in the exchange market.

Liudmyla Saher, Ihor Vakulenko, Kateryna Shevchenko et al.

The article provides a bibliometric analysis of existing publications on the market participants' behavior(manufacturers, trading companies, and other intermediaries and consumers). The basis for the study is the Scopus database, which presents publications on this topic for over thirty years. The article aims to study the research directions on behavioral models of economic entities and the factors that influence their formation. Such analysis can be used to determine the place of behavioral economics in the system of modern views of economists on its impact on the further global development of the economic system. By selecting the most relevant articles on the economic behavior of market participants in the context of an inclusive economy, 1198 scientific articles were selected, published in periodicals from 1989 to 2021. The clustering and retrospective analysis were chosen as a methodological study tool, performed using VOSviewer 1.6.16 software. It made it possible to obtain a clear visualization of research clusters on economic entities' behavioral aspects, including individual periods of the enormous publication activity from 2011 to 2021. In addition, the article identifies the largest regional research networks of behavioral models in an inclusive economy. Based on the analysis of the scientific publications from the Scopus database, three periods of research on the behavioral aspects of economic entities were identified. The study of the first stage focused on e-commerce development as a significant factor in market changes, accompanied by the transition of competition from local to global. The next phase of the economic behavior study was accompanied by the sustainable development concept and changes in consumer values, which influenced the choice of suppliers and service providers and the growing importance of decision criteria that previously could not be considered purely economic. Considerable attention in this period of publishing activity was paid to social responsibility and sustainable consumption. The last research defined in the article stages is aimed at using modern research methods and information technologies for a deeper analysis of the subject area. It makes it possible to identify relevant factors influencing the formation of economic entities' behavior patterns, which could not be determined before.

Marcos Faundez-Zanuy, Enric Sesa-Nogueras

In this paper we present some experiments to automatically classify online handwritten text based on capital letters. Although handwritten text is not as discriminative as face or voice, we still found some chance for gender classification based on handwritten text. Accuracies are up to 74%, even in the most challenging case of capital letters.

Alida Cantor, Alida Cantor, Alida Cantor et al.

Evidence-based environmental management requires data that are sufficient, accessible, useful and used. A mismatch between data, data systems, and data needs for decision making can result in inefficient and inequitable capital investments, resource allocations, environmental protection, hazard mitigation, and quality of life. In this paper, we examine the relationship between data and decision making in environmental management, with a focus on water management. We focus on the concept of decision-driven data systems—data systems that incorporate an assessment of decision-makers' data needs into their design. The aim of the research was to examine the process of translating data into effective decision making by engaging stakeholders in the development of a water data system. Using California's legislative mandate for state agencies to integrate existing water and other environmental data as a case study, we developed and applied a participatory approach to inform data-system design and identify unmet data needs. Using workshops and focused stakeholder meetings, we developed 20 diverse use cases to assess data sources, availability, characteristics, gaps, and other attributes of data used for representative decisions. Federal and state agencies made up about 90% of the data sources, and could readily adapt to a federated data system, our recommended model for the state. The remaining 10% of more-specialized data, central to important decisions across multiple use cases, would require additional investment or incentives to achieve data consistency, interoperability, and compatibility with a federated system. Based on this assessment, we propose a typology of different types of data limitations and gaps described by stakeholders. We also propose technical, governance, and stakeholder engagement evaluation criteria to guide planning and building environmental data systems. Data-system governance involving both producers and users of data was seen as essential to achieving workable standards, stable funding, convenient data availability, resilience to institutional change, and long-term buy-in by stakeholders. Our work provides a replicable lesson for using decision-maker and stakeholder engagement to shape the design of an environmental data system, and inform a technical design that addresses both user and producer needs.

Marcos Escobar-Anel, Yevhen Havrylenko, Michel Kschonnek et al.

We analyze the potential of reinsurance for reversing the current trend of decreasing capital guarantees in life insurance products. Providing an insurer with an opportunity to shift part of the financial risk to a reinsurer, we solve the insurer's dynamic investment-reinsurance optimization problem under simultaneous Value-at-Risk and no-short-selling constraints. We introduce the concept of guarantee-equivalent utility gain and use it to compare life insurance products with and without reinsurance. Our numerical studies indicate that the optimally managed reinsurance allows the insurer to offer significantly higher capital guarantees to clients without any loss in the insurer's expected utility. The longer the investment horizon and the less risk-averse the insurer, the more prominent the reinsurance benefit.

Christopher Boudreaux, George Clarke, Anand Jha

How does an entrepreneur's social capital improve small informal business productivity? Although studies have investigated this relationship, we still know little about the underlying theoretical mechanisms driving these findings. Using a unique Zambian Business Survey of 1,971 entrepreneurs administered by the World Bank, we find an entrepreneur's social capital facilitates small business productivity through the mediating channels of firm financing and customer relationships. Our findings identify specific mechanisms that channel social capital toward an informal business' productivity, which prior studies have overlooked.

Rachel M. Glicksman, MD, MSc, Audrey Wong, BSc, MPH, Jonathan Wang, BASc, MASc et al.

Purpose: Ontario Health (Cancer Care Ontario), formerly known as CCO, is the provincial governmental agency in Ontario, Canada responsible for developing radiation therapy-specific capital investment strategies, updated every 5 years, to ensure equitable access and to gain the highest value from these investments in infrastructure. These plans are informed by the changing landscape of health care delivery, technologic advancements affecting radiation therapy care, patient desire for care closer to home, and expected increases in utilization of radiation therapy services. In this article, we describe the development, model, and final recommendations of CCO’s fifth radiation therapy capital investment strategy. Methods and Materials: A panel of multidisciplinary provincial experts, in combination with 2 patient and family advisors, developed planning principles to guide the development of a patient-centered strategy. Adaption of the previously used model for radiation therapy planning was used. Results: The development of the capital investment strategy took place from fall 2017 to fall 2018. The model included 3 main factors: patient demand (including utilization targets), machine throughput, and machine demand and supply. The final recommendation is for an investment of 26 new radiation therapy machines in the province by 2028. Conclusions: The strategy plans for continued province-wide access to quality radiation therapy care and ensures machines are added to the system at the right place and in the right time. Ongoing data collection throughout this period is necessary to ensure the strategy achieves its goals and to allow for planning of future strategies.

Budhi Surya, Wenyuan Wang, Xianghua Zhao et al.

This paper discusses Parisian ruin problem with capital injection for Levy insurance risk process. Capital injection takes place at the draw-down time of the surplus process when it drops below a pre-specified function of its last record maximum. The capital is continuously paid to keep the surplus above the draw-down level until either the surplus process goes above the record high or a Parisian type ruin occurs, which is announced at the first instance the surplus process has undergone an excursion below the record for an independent exponential period of time consecutively since the time the capital was first injected. Some distributional identities concerning the excursion are presented. Firstly, we give the Parisian ruin probability and the joint Laplace transform (possibly killed at the first passage time above a fixed level of the surplus process) of the ruin time, surplus position at ruin, and the total capital injection at ruin. Secondly, we obtain the $q$-potential measure of the surplus process killed at Parisian ruin. Finally, we give expected present value of the total discounted capital payments up to the Parisian ruin time. The results are derived using recent developments in fluctuation and excursion theory of spectrally negative Levy process and are presented semi explicitly in terms of the scale function of the Levy process. Some numerical examples are given to facilitate the analysis of the impact of initial surplus and frequency of observation period to the ruin probability and to the expected total capital injection.