The aim of this paper is to investigate the extent to which local budget spending composition reacts to fiscal rules variations. I consider the budget of Italian municipalities and exploit specific changes in the Domestic Stability Pact's rules, to perform a difference-in-discontinuities analysis. The results show that not all rules are equally effective: imposing a cap on the total amount of consumption and investment is not as binding as two caps, one specific for consumption and a different one for investment spending. More specifically, the consumption variation is triggered by changes in the level of wages and services spending, while investment relies on infrastructure movements. In addition, there is evidence that when an increase in investment is achieved, there is also a higher budget deficit level.
The delivery of health care is a capital-intensive industry, and thus, hospital investment strategy continues to be an important area of interest for both health policy and research. Much attention has been given to hospitals' capital investment policies with relatively little attention to investments in financial assets, which serve an important role in not-for-profit (NFP) hospitals. This study describes and analyzes trends in aggregate asset structure between NFP and investor-owned (IO) hospitals during the post-capital-based prospective payment system implementation period, providing the first documentation of long-term trends in hospital investment. The authors find hospitals' aggregate asset structure differs significantly based on ownership, size, and profitability. For both NFP and IO hospitals, financial securities have remained consistent over time, while fixed asset representation has declined in IO hospitals.
AbstractThis article investigates how company taxation affects German foreign direct investment (FDI) in European Union (EU) accession countries. In 2004 and 2007, 10 former socialist eastern European countries joined the EU. Although the EU integration is associated with increasingly favourable investment conditions, accession countries also pursue active strategies to attract foreign firms. In particular, taxes on corporate income have been significantly reduced during the last decade. We analyse whether corporate tax policies of eastern European countries affect three aspects of multinational activity: the location decision, the investment decision and the capital structure choice. The results suggest that local taxes are negatively related to both location and investment decisions. The analysis of the capital structure confirms that higher local taxes imply higher debt‐to‐capital ratios.
This study quantifies the tangible, economic benefits of a nongovernmental organization's social forestry project to local people and analyzes the potential return from this investment in natural capital. The analysis was conducted in the Kumaun hill region of Uttaranchal, India, using participatory rapid appraisal, household survey, avoided cost method, and present value investment analysis. The annual value (based on the ecosystem service of goods provision) of the forest resource to local people was estimated at 903,337 rupees, and the total return on 8 years of investment through 2021 was projected to be 883%. Quantitative and qualitative results show that social forestry is a solid investment in natural and human capital. Overall, this study serves as one example of how ecosystem service valuation can be employed to achieve conservation and development goals.
The clean development mechanism (CDM) requires developing countries to set up designated national authorities (DNAs). The DNA should be designed to both attract investment and to establish an effective regulatory framework for project approval—including assessment to ensure that CDM projects contribute to national sustainable development objectives. Since CDM investment flows to Africa are uncertain, however, countries cannot risk large investments in institutional infrastructure and need to build on existing institutions. This article examines the critical functions that a DNA has to fulfil, and outlines several institutional models. It concludes that models that minimize institutional cost by drawing on existing institutions for environmental impact assessment and promotion of foreign direct investment are likely to be the best starting-point for DNAs in many African countries.
Recognizing the political need to show that transnational investors should shoulder "responsibilities" in addition to the international "rights" to which they are granted access under investment protection treaties, this Article proposes a sort of "counterclaim" mechanism for use in future treaties. The mechanism would permit individuals who live in countries receiving foreign investment to bring claims against foreign investors for the violation of serious international rules by their agents or employees operating in the host country. Such rules would include safeguards for international human rights that might be violated in the operation of an investment, as has been documented recently before U.S. courts operating under the Alien Tort Claims Act. The Article concludes by providing an appendix with draft text that could be adopted by the negotiators of future bilateral investment treaties.
In: National Institute economic review: journal of the National Institute of Economic and Social Research, Band 186, S. 18-22
ISSN: 1741-3036
Our upward revision to growth in the US in 2003 and 2004 since July reflects a stronger than expected outcome for investment in the first half of 2003 and a surge in government spending associated with the Iraq war. Private sector investment rose by 1.7 per cent in the second quarter of 2003, pointing to consolidation of the investment recovery that set in towards the end of last year. Investment in computers and peripheral equipment registered particularly strong growth of 4.4 per cent. Federal defence spending rose by 9.9 per cent in the second quarter and government expenditure projections for the second half of the year and 2004 include the $79 billion supplemental budget approved in the summer to fund the war in Iraq, but do not include the additional $87 billion request currently under negotiation.
In Germany, unemployment is higher & more enduring while economic growth is lower than in other rich countries. German experts tend to explain this miserable performance by pointing to labor market failures induced by generous welfare state provisions. Against this, it is argued that German unemployment is due to low investments; & investments did not decline because wages depressed capital earnings. Rather, profits grew, but were drawn into capital exports. 2 Tables, 3 Diagrams, 38 References. Adapted from the source document.
Purpose – the purpose of this paper is to provide a general review of One Belt One Road initiative, the changing attitude of Europe towards China's FDI and potential effects of recently adopted Regulation (EU) 2019/452 of the European Parliament and of the Council of 19 March 2019 establishing a framework for the screening of foreign direct investments into the Union. Design/methodology/approach – this analysis is based on material gathered from academic papers and other publications, media reports, as well as data from official sources and independent research centres. Systematic analysis, generalisation, secondary data analysis, as well as linguistic methods were used in this research paper. Finding – as Peoples' Republic of China (China) became one of the most important trade and investment partners of the EU, its rapid growth in economic and political influence and use of development policies, such as OBOR initiative, made the EU to label China as 'economic competitor' and 'strategic rival'. As around half of the EU members do not have investment screening mechanisms, the EU decided to adopt regulation for this matter – the Framework Regulation. It will become applicable from 11 October 2020 and will allow the EU and its Member States to raise concerns about effect of China's FDI on national security and public policy grounds and provides framework for screening of FDIs. Moreover, as the Framework Regulation establishes the list of projects of Union interest, which includes Trans-European Networks for Transport, whereas OBOR initiative is aiming at connecting China and Europe through land and sea route infrastructure, the European Commission will have an instrument to express its opinion regarding Chinese FDI, which are connected to OBOR initiative and related to transport infrastructure. Although such opinion will not binding, the member state will not be able to simply ignore but will have to provide explanation to the Commission if its opinion was not followed. Research limitations/implications – there are several research limitations: firstly, there is a lack of comprehensive information on implementation of OBOR initiative, as even the official webpage of Belt and Road does not provide such information; secondly the Framework Regulation will become applicable from 11 October 2020. As the latest data indicates a substantial decrease of China's investment in EU (in 2017 and 2018), the flows of China's capital under OBOR initiative in general and FDI in particular might further decline before the Framework Regulation comes into force in 2020. Furthermore, without the actual practice of the Commission or EU Member States in the use of Framework Regulation regarding the China's FDI, this analysis serves as an early and theoretical assessment of potential impact of such investment screening on projects under China's OBOR initiative. Finally, this general review paper does not seek to analyse problematic aspects of the Framework Regulation or procedural issues on implementation of screening mechanisms. Practical implications – as the OBOR initiative is broad in scope and vague in terms, this analysis allows to better understand its contents, China's rising importance in field of EU FDIs and provides introduction into the Framework Regulation, indicating its potential use by the EU or member states in regards to China's FDI related to OBOR initiative. Originality/Value – this analysis provides explanation on changing EU-China economic policy and serves as a sound starting point for further research on China's investments in Europe, OBOR initiative or the impact of Framework Regulation to China's FDI.
In accordance with the Regional Autonomy Policy, the Regional Government will not be able to perform its functions properly, effectively and efficiently without adequate funding support to provide services to the community and implement development programs. The financing of development in the area other than sourced from the government itself also exists that comes from the private sector through Domestic Investment with Mining Investment which is certainly enough to contribute in the formation of Gross Regional Domestic Product and Human Development Index in West Kutai Regency. So the role of mining investment is very large in order to support and optimize the success of development in the region. Therefore developing and optimizing Investment Cultivation becomes very important, in an effort to increase the growth of GDP and future HDI. The purpose of this study was to examine the influence of investment and labor on Gross Regional Domestic Product and Human Development Index in West Kutai District. Data used secondary data sourced from the Mining Service of West Kutai Regency and Central Bureau of Statistics Office of West Kutai Regency, Bappeda of West Kutai Regency and related Office.The method of data collection with direct observation. Further data is processed and analyzed by Path Analysis (Path Analysis). The result of statistical test shows that partially Mining Investment has positive but not significant effect to PDRB and HDI, whereas the amount of Labor has positive and significant effect to the increasing of PDRB revenue in West Kutai Regency. While PDRB has a positive and significant impact on HDI in West Kutai Regency.Keywords: Human Development Index, Gross Regional DomesticProduct, Manpower, Mining Investment
Ускоренное развитие рынка структурированных инвестиционных продуктов в России сопровождается развитием технологий применения структурированных инвестиционных продуктов. Важным направлением появления инноваций на рассматриваемом рынке является использования средств, привлеченных в процессе эмиссии структурированных инвестиционных продуктов. Одной из заслуживающих научного изучения форм использования средств, привлеченных посредством структурированных инвестиционных продуктов является инновация, заключающаяся в применении долговых нот (англ. CLN Credit linked note) для привлечения капитала банков. Тем не менее, CLN, являясь достаточно оригинальной формой привлечения длинных денег на рынке для эмитентов продуктов, несут существенные риски для инвесторов структурированных инвестиционных продуктов. В результате, риски структурированных инвестиционных продуктов главным образом следует относить к инвестору. Таким образом, конфликт интересов инвесторов и эмитентов структурированных инвестиционных продуктов требует законодательного разграничения правил игры на рассматриваемом рынке. ; Accelerated development of structured investment products market in Russia is accompanied by the development of technology applications of structured investment products. An important area of the emergence of innovations on the market in question is the use of funds raised in the issue of structured investment products. One worthy of scientific study uses of funds raised through structured investment products is innovation, which consists in the use of promissory notes ( Eng. CLN Credit linked note) to raise capital banks. Nevertheless, CLN, being quite original form of attracting long-term money market for issuers of products are significant risks for investors structured investment products. As a result, the risks of structured investment products mainly be attributed to the investor. Thus, the conflict of interests of investors and issuers of structured investment products requires legislative differentiation rules of the game on the market in question.
Einer der wesentlichen Streitpunkte zwischen den USA und der EU bei der Aushandlung des Transatlantischen Freihandelsabkommens sind die Regelungen zum Investitionsschutz. Dies soll eigentlich Investoren davor schützen, durch veränderte rechtliche Rahmenbedingungen Verluste zu erleiden. Es zielt aber auf die Wirtschaftsverfassung von Nationalstaaten, denn die Profitabilität der Investitionen ist vor allem durch Änderungen des Arbeits-, Verbraucher- und Umweltschutzes betroffen. Sollte es hier zu Klagen kommen, könnte dies die politische Souveränität von Staaten gefährden. ; Bilateral investment treaties (BITs) and investor-state dispute settlements (ISDS) have become highly controversial. The authors review the evidence and discuss the pros and cons of BITs and other investment agreements. Many observers are concerned that Transatlantic Trade and Investment Partnership (TTIP) regulations on investment protection could be abused by international corporations to obtain unjustified compensation from EU member states. These concerns are to some extent legitimate and should be considered more seriously in the EU negotiation strategy. International investment agreements (IIA) are necessary when host countries of FDI do not have reliable and independent judicial systems. To avoid abuse and to account for the increasing role of global production chains, agreements require more precise definitions, and ISDS needs to be more transparent and independent. With the EU developing its own new approach independently (and differently) from the one taken in the past by its member states, the current negotiations of 'mega-regionals', as well as the first standalone EU IIA with China, offer the unique possibility to answer current critique around international investment law. Is there, in the current documents, an IIA2.0 that strengthens the right to regulate and holds up high protection standards for investors? The exclusion of ISDS from TTIP negotiations risks missing a unique chance to improve the current less than perfect international investment regime.
