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This article presents a discussion on several topics including asset growth, abandonment value, and the replacement decision of like-for-like capital assets. Discussed is the abandonment and replacement decision in the analysis of investment projects and the Robichek and Van Horne (RVH) and Dyl and Long (DL) models regarding the year of abandonment. This paper does not suggest that one model is better than another, only that an alternative may be more suitable and applicable to certain types of business assets. Examined is the present value approach to the single cycle decision, the rate of return solution, the like-for-like replacement decision, and the discount rate in the abandonment and asset replacement problems.

It is shown, using a vintage model of education which is developed in this paper, that given the assumptions of the model, the optimal path of investment in education is to keep the level of investment per student constant and the optimal path of investment in physical capital is to keep the capital-labor ratio constant over time. The pressure to reduce current consumption caused by population ageing is partly mitigated by the fact that a younger population, in the current time, is relatively more efficient in producing utility than an older one, in the future. [ABSTRACT FROM AUTHOR]

This paper use both single period cross-section data as well as panel data for the period 1970 to 1990 (largely obtained from version 6.1 of the Penn World Tables) to identify the determinants of Africa's growth in per capita GDP, as well as to evaluate the empirical relevance of recent contributions that stresses the potential importance of geographical vs institutional factors in Africa's growth. The paper further contributes by making use of recent cross-country data on institutional quality and geographical characteristics of African countries. To address the danger of using an inappropriate estimation method, a number of estimation methods was used, namely OLS, LAD, GLS-random effects, fixed effects as well as a dynamic GMM-estimator. The results confirmed that the more efficient and dynamic GMM-estimator is superior and that controlling for unobserved heterogeneity, dynamic effects and endogeneity of the regressors is important. It is concluded that there is conditional convergence in Africa, and that literacy, investment, FDI and urban agglomeration have a significant positive effect on GDP per capita growth in Africa. Growth is negatively affected by government expenditure, settler mortality, malaria, landlockedness and landarea. These results support Acemoglu et al.'s (2001) ‘reversal of fortune’ thesis, namely that settler mortality is inversely related to economic growth. It further suggests that it is not one of either institutions or geography that are more important than the other, but rather that geography may have an important impact on institutions. The robust finding that the incidence of malaria has a particularly large impact on economic growth in Africa supports this conclusion. Copyright © 2004 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

This paper integrates investments in health to a standard growth model where physical and human capital investments are the combined engines of growth. It shows the existence of two distinct health regimes separated by an “epidemiological transition.’’ The various patterns of this transition identified in the epidemiological literature can be mapped into the model. The model also leads to the important hypothesis that the epidemiological transition may induce an economy to switch to a modern growth regime. [ABSTRACT FROM AUTHOR]

The main purpose of this paper is to analyze the technological impact, financial impact and political stability on the economic development of the Republic of Northern Macedonia. Based on the analysis of the study, for the period from 2008 to 2019 we notice that there are positive and negative impacts which we have analyzed. Where, a clear picture was provided on the impact of macroeconomic determinants on economic development. Political and financial stability also represent statistically significant variables which means that they have an impact on economic development. Economic science constantly deals with models of economic development, as well as with the factors that influence the acceleration or slowdown of economic growth. The purpose of this research is to gather as much information as possible about the factors that affect economic development, to clarify their importance and to present the results obtained as an integral part of the research. For the same purpose, to measure the importance between economic determinants and economic development in the Republic of Northern Macedonia. Technological progress can be a study that contributes to economic development, political and financial stability. For this reason as a hypothesis to analyze we have taken the relationship between technological progress and economic development as well as political and financial stability. The literature focuses more on the relationship between financial and political stability within economic development, on the other hand the studies that are done establish the concept of technological progress as the basis of economic growth. In this context, this study acknowledges that technological progress is a significant impact on economic growth and takes into account the factors with which this relationship interacts in the context of stability. International trade, at the core of the concept of globalization, is essential to ensure competitive advantage in global markets and to support core capital investments in developing countries where capital is scarce. [ABSTRACT FROM AUTHOR]

The process of committing time, resources and money in order to produce useful things in the future is, from an economic point of view a defining part of what business, governments and individuals do. Over the last few decades, the nature of investment has been changing to large extent. The type of investment that has risen dramatically is intangible: investment in ideas, in knowledge, in aesthetic content, in software, in brands, in networks and relationship. The paper describes this change and why has happened. Any investments, tangible or intangible, is a step into the unknown. No businesses know for sure what the return will be. First of all, owing to its invisibility, intangible investments tend to be worth less if they fail. It’s harder to recover their value by simply selling them. The upside of an intangible investment is potentially much higher, since it is more likely to benefit from scale (so a modest investment can reap a big return) or synergies (increasing its value directly). So when things go wrong, intangibles tend to be worth less, and when they go well, they tend to be worth much more. The tendency of intangible investments to generate spillovers makes radically harder to estimate the future returns to the company. And the absence of markets for many intangibles (which contributes to their sunkenness) makes it harder to form a realistic estimate of their value. Intangibles also tend to be contested. People and businesses will often vie to see who control them, own them, or benefit from them. This is partly a function of spillovers. Intangibles have four unusual economic properties. These properties can exist with tangible investments, but on the whole intangible assets exhibit them to a greater degree. The numerous reasons for the growth of intangible investment, including the changing balance of services and manufacturing in the economy, globalization, the increased liberalization of markets, development in IT and management technologies, and the changing input costs of services(which play a greater role in intangible investment). This paper looks at the role of intangibles in secular stagnation, the puzzling fall in investment and productivity growth seen in major economy in recent years. We argue the increasing importance of intangible investment may have an important role to play in this troubling phenomenon. [ABSTRACT FROM AUTHOR]

This paper analysis the macroeconomic components that influenced macroeconomic growth in a country, more concretely, the focus will be on the measurement of components that affected economic growth under nominal GDP, in Kosovo. We intend to found out which component of nominal GDP has the biggest and the lowest influence on economic growth. Thus, in order to measure it, GDP components must be analysed: consumption measurement, investments measurement, government expenditures measurement and export measurement. These parameters will be measured by analysing their importance in relation to one another, and the major influence on the growth of nominal GDP. The paper includes a graphic analysis of nominal GDP in relation to consumption, investments, governmental expenses and export. [ABSTRACT FROM AUTHOR]

This paper is devoted to explore the relationship between trade, growth and poverty for South Asian Region. Panel data for seven south Asian countries is incorporated for the period of 1960-2014. This time period is further divided into pre and post 1980 periods. Result shows that trade openness raise growth and lowers poverty of the South Asian region during both periods. Increase in Gini worsens average income growth and poverty. Growth of the economies during both periods lowers poverty of the region insignificantly. Increase in unemployment reduces both growth of incomes and poverty. Other variables like government consumption, investment, infrastructure development and indexes of human capital play effective role in promoting growth and reducing poverty of the South Asian region. The results show a significant impact but weak relationship of trade and other factors with economic growth and poverty of the region. It signifies the importance of complementary policies along with openness policies in South Asian economies to improve trade impact over economic growth and poverty of the region to help the South Asian economies in facing the competitive world markets efficiently. Otherwise open market competition may destabilize the economies of the region. [ABSTRACT FROM AUTHOR]

Energy efficiency is an effective strategy to reduce household energy consumption. Investments in energy efficiency measures (EEMs) result in reduced energy bills and increased comfort for households, while also contributing to national environmental targets. This article examines an energy efficiency scheme in Ireland and investigates the factors that determine investments in energy efficiency measures and the motivations of Irish households to participate in energy saving programs and adopt EEMs. The paper investigates three key research questions: the determination of investments in EEMs, with special focus on motivations and their relative importance; the consistency of motivations over the course of the decision-making process; and the consistency of determinants and motivations for investments in EEMs across different measures. The paper studies the implementation of seven energy efficiency measures in residential houses throughout Ireland. Results indicate that the decision to ultimately apply and invest in EEMs is mainly driven by monetary or economic factors such as gains in energy savings and the private cost of the measures. Comfort gains are found to be a secondary factor and environmental benefits of EEMs are found to be of little concern when making investment decisions. Finally, we suggest focusing on providing information about the benefits of the EEMs on energy savings and improvements in comfort in order to increase the adoption of EEMs by households in Ireland. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Economic Policy Researches / İktisat Politikası Araştırmaları Dergisi is the property of Journal of Economic Policy Researches / Iktisat Politikasi Arastirmalari Dergisi and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The rapid growth in China's domestic investment in recent decades has generated a large appetite for global goods, including from sub-Saharan Africa (SSA). This paper estimates the impact of changes in China's investment growth on SSA's exports. Although rising trading links with China have allowed African countries to diversify their export base across countries away from advanced economies, they have also led SSA countries to become more susceptible to spillovers from China. Based on panel data analysis, a one percentage point increase (decline) in China's domestic investment growth is associated with an average 0.6 percentage point increase (decline) in SSA countries' export growth. This impact is larger for resource-rich countries, especially oil exporters. These effects could be mitigated, however, to the extent that countries can reorient their exports. [ABSTRACT FROM AUTHOR]

This paper seeks to analyse the relationship between the functional distribution of income, aggregate demand and growth in the Chinese reform economy. For this purpose, the Bhaduri-Marglin Model is used to indicate the theoretical possibility of both profit-led and wage-led growth regimes. Previously, the principal literature on the evolution of factor shares in China was reviewed. The statistical series for the period 1978–2007 are reconstructed to carry out our analysis of the relations between capital share and investment, on one hand, and labour share and consumption, on the other. Supported by empirical analysis and the model estimations, it is argued that Chinese growth has been profit-driven. Finally, the implications are presented concerning Chinese economic prospects. [ABSTRACT FROM AUTHOR]

This paper seeks to provide a theoretical explanation for the weak association between measures of financial structure—as defined by the mixture of bank-based and market-based financial systems in an economy—and economic development. Lenders fund risky investment projects of firms by drawing up loan contracts in the presence of an informational asymmetry. An optimal contract entails the issue of debt, equity, or a mix of the two. The equilibrium choice of contract and the financial structure depend on the state of the economy, which in turn depends on the contracting regime. Based on this analysis, the paper provides a theory that can explain the wide diversity of financial structure among middle-income countries. [ABSTRACT FROM PUBLISHER]

Purpose -- The purpose of this paper is to contribute to existing literature by examining whether development aid has any measurable impact on food security, whether the impact is conditioned on the quality of governance and whether it differs based on the type of aid provided. Design/methodology/approach -- Panel-data analysis of 85 developing countries between 1994 and 2011, using generalized method of moments and two-stage least squares estimators. Findings -- The paper finds that aid in general has a small positive impact on food security; that multilateral aid, grants and social and economic aid have a positive effect on food security in their own right, and that bilateral aid, loans and agricultural aid are more conditioned on the quality of governance that other aid. Research limitations/implications -- The main limitations rest with the imperfect nature of cross-country data on food security and governance, which I have tried to overcome through a series of robustness tests. Practical implications -- The findings suggest that aid, despite its many deficiencies, can play a positive role in strengthening food security. Furthermore, they indicate that concessional loans, bilateral aid and agricultural aid are likely to foster food security only in countries with better governance. Originality/value -- The paper constitutes a novel contribution to existing literature because it is one of the first to use cross-country data to explore the impact of aid on food security and because it utilizes a relatively complex aid categorization, which allows its conclusions to be more nuanced. [ABSTRACT FROM AUTHOR]

Copyright of Industry / Industrija is the property of Economics Institute and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper highlights the economic situation of Romania's West Region for a period of five years, based on some specific indicators. The most relevant indicators which are part of the analysis of the regional economic evolution are as following: gross domestic product per capita; the turnover; the number of employees in active local units; gross and net investments. Within this scientific paper there was presented a prognosis of gross domestic product per capita, from 2015 to 2017. This macroeconomic indicator gives wide information over the economy in a region. The indicators analyzed in this study recorded oscillations from an year to another which demonstrates that the economy in the West Region is able to develop, but recording different growth rates. In comparison with other regions in Romania, the West Region will distinguish by an industrial branch that gathers almost all the areas. The development of this area is both due to direct foreign investments and qualified employees. An economic leader of the region is Timis country, followed by Arad country. West Region has a big potential of development given to the existent resources, geographic settlement and an entrepreneurial environment that is capable to transform the opportunities in profitable business. [ABSTRACT FROM AUTHOR]

This paper presents challenges to mainstream regional science that stem from the fact that regional economies are subsumed within larger social, economic and environmental systems. The constraints imposed by these systems are systematically overlooked or misidentified. The challenges that arise for regional science are of conceptual, methodological and empirical nature and have far-reaching implications for the uses and usefulness of regional science analysis in support of investment and policy making. The paper attends to both the challenges and ways they can be overcome. [ABSTRACT FROM AUTHOR]

The main objective of this paper is to examine how the structures of the global political economy have influenced and are still influencing Africa's past and present quest for sustainable development by employing a political economy perspective (i.e., aid, trade, and investment). The paper argues that Africa's integration and marginalized position in the global economy has made it and would make it very difficult for the continent to implement and achieve sustainable development initiatives, as its development agenda and destiny has been dictated from afar by its old and new external patrons. Europeans have been influencing Africa's development initiatives through like Structural Adjustment Programs (SAPs), the Poverty Reduction Strategy Paper (PRSP), and Preferential trade agreements (PTAs). Similarity, the emerging cooperation between Africa and the global south is based on diplomatic interest and economic imperative that is based on the principles of neo-liberalism. Hence, the way forward is that African statesmen should bear in mind the fact that there is no short cut to sustainable development and must work hard and bring substantive changes at how things run at national, regional, and global levels. [ABSTRACT FROM AUTHOR]

This paper assesses international remittance services in Lesotho. It finds that only a small portion of inward remittances are processed via formal remittance services, with the bulk going through informal channels, which are unsafe and inefficient. Existing commercial bank channels are rarely used, and international money transfer operators have a limited presence in Lesotho. Innovative channels, such as the mobile money services and Shoprite cashto-cash services, have the potential to substantially formalise inward remittances and encourage the move towards digital payments and broader financial inclusion. However, the market faces numerous challenges, including: a high preference for cash; the limited number of access points and agent networks outside of urban areas; and inefficient interoperability between the commercial banks and mobile network operators, as well as between mobile network operators themselves. This paper argues that the authorities in Lesotho should enhance the payment systems infrastructure, harmonise the legal and regulatory framework, enhance financial literacy and encourage remittance service providers to be more active in the remittance market. In addition, the authorities should clarify the consumer protection and dispute resolution framework for remittance services as well as other financial services. [ABSTRACT FROM AUTHOR]

Abstract: This paper explores the matrix demand multiplier in Sraffian frameworks and shows that it involves an autonomous demand‐transfer payments curve, which exhibits formal similarities with the well‐known consumption (wage)‐growth (profit) curve in steady‐state capital and growth theory. [ABSTRACT FROM AUTHOR]

This paper formulates a model of economic growth to study the effects of broad capital taxation (of profits, dividends, and capital gains) on macroeconomic outcomes in small open economies. A framework of exogenous growth permits modeling countries in transition to a country-specific steady state and to discern steady-state and transitory effects of shocks on economic outcomes. The chosen framework is amenable to structural estimation and, in view of the parsimony of the model, fits data on 79 countries over the period 1996-2011 well. The counterfactual analysis based on the estimated model suggests that capital-tax reductions induce positive effects on output and the capital stock (per unit of effective labor) that are economically significant and are accommodated within time windows of 5 years without much further economic response after that. The responses of economic aggregates are found to be relatively strongest to changes in corporate-profit-tax rates and weaker for dividend and capital-gains taxes. [ABSTRACT FROM AUTHOR]

Purpose Owing to the importance of the investment behavior in China, the purpose of this paper is to find the influence of executive network and government governance on investment efficiency.Design/methodology/approach The paper use China’s listed companies as sample to make an investment efficiency determinant model.Findings In this article, the authors find that larger executive network and higher government governance will lead to more corporate investment efficient. Furthermore, the informal institution – executive network, is not only an effective way to alleviate financing constraints, but also can solve underinvestment problem. While the improvement of local government governance can provide institutional protection, it will also be more conducive to restrain overinvestment behavior.Research limitations/implications The authors have not explored conduction path. Especially, the authors have not examined whether information spillover effect or the release of resources constraints in executive network plays a more important role to ease investment insufficient.Originality/value Under the Chinese circumstance, relationship governance can not only promote companies to improve investment efficiency, but also provide an important guarantee for sustained macroeconomic growth. [ABSTRACT FROM AUTHOR]

The EU cohesion policy has been a major driver of change in the Member States, leading to positive effects as growth in employment, economic development and modern infrastructure. Since its EU accession in 2007, Bulgaria has been benefiting from the Union's investment and structural funds at an increasing speed. Research shows that not only these funds contribute significantly to the Bulgarian economy, but they seem to be its major driver. Without them, the country would have recorded a zero growth in the EU's financial framework 2007-2013, and could be dumped in an economic and social crisis. This paper explores the informational sources that assess the influence of the EU cohesion policy and its effects on Bulgaria. The goal of the paper is to make objective conclusions about the impact of the EU cohesion policy on the Bulgarian economy and how it has affected the level of economic and social cohesion between the country's regions and the most advanced EU regions. For that purpose, the method of comparative analysis is applied, as well as a historical analysis. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to explain differences in the productivity of investment across 84 rich and poor countries over the period 1980-2011, and to test the orthodox neoclassical assumption of diminishing returns to capital. The productivity of investment is measured as the ratio of the long-run growth of GDP to a country's gross investment ratio. Twenty potential determinants are considered using a general-to-specific model selection algorithm. Education, government consumption, geography, export growth, openness, political rights and macroeconomic instability are the most important variables. The data also suggest constant returns to capital, so investment and the determinants of productivity of investment differences matter for long-run growth. [ABSTRACT FROM AUTHOR]

Government debt is an ordinary phenomenon in the world economy. Government debt can be a source of investment and can influence the economic development. However, at the same time it can be a burden for the economy. It is proved that in case of financial instability, countries are forced to borrow on the internal and external financial markets, which can influence the economic stability. What is the case for Ukraine? This paper considers the current tendencies of the government debt of Ukraine. It examines the indicators of government indebtedness and their impact on the economy. The state and structure of the government debt of Ukraine have been analyzed. The results show the existence of a range of risks that can influence the economic development in Ukraine. The risks of high amounts of external government borrowings, the increase of state-guaranteed debt, ineffective usage of borrowed resources, and lack of control have been analyzed. The article presents propositions for the debt management improvement in Ukraine. The importance of government debt of Ukraine decrease has been proved. The propositions to cut the official level of government indebtedness has been expressed. Government borrowings can be an effective instrument for the development of the economy and the infrastructure development, but only on condition of effective usage and maintenance of a limited amount of government indebtedness. [ABSTRACT FROM AUTHOR]

Purpose The purpose of this paper is to investigate how the venture capital industry evolves in Korea. The paper also compares the venture capital industry growth of Korea with that of the USA.Design/methodology/approach This paper forecasts the growth of the Korean venture capital industry using the Bass Model. The authors apply the Bass Model to both Korean and US data to compare the model estimates of Korean and US data, and to make use of the US case by taking the “guess by similarity” approach to analyze Korean venture capital industry growth.Findings The authors find that the innovative fund inflows in Korea are stronger than those in the USA, while inertial reinvestments are weak. The study forecasts that new investments in Korea grow at a 5-7 percent rate each year for the next five years, and the growth rate slows down over time. Peak investment is predicted around the year 2030.Practical implications Based on the forecasted venture capital investment schedule each year, this study derives the fundraising schedule and the implications for Korea fund-of-funds management to match the investment schedule.Originality/value The model estimates provide a guideline for forecasting venture capital industry development in countries with brief histories of venture capital, which lack data. The analysis can also be applied to cases when developing countries and emerging financial markets assess the impact of government interventions on venture capital industry growth, especially when they provide fund-of-funds. [ABSTRACT FROM AUTHOR]

This paper examines the impact of economic policy uncertainty on economic growth due to its effects on firms' investment decisions, which subsequently justify firms' financial constraints. Using a sample of Chinese listed firms, the study documents that economic policy uncertainty reduce firms' financial constraints. The reduction in financial constraints stems mainly from the decrease in investments which increases the firm's cash holding. Additional tests reveal that the reduction in firms' financial constraints is pronounced more among non-politically connected firms compared to their counterparts. Further tests reveal that a reduction in a firms' financial constraints is of a short-term nature. In the long run, economic policy uncertainty increase firms' financial constraints. The study recommends that changes in policies must be done carefully to avoid turbulence and friction in firms' investment decisions. [ABSTRACT FROM AUTHOR]

Copyright of Socioloski Pregled is the property of Srpsko Sociolosko Drustvo and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Among the economies in the Eastern coastal area of mainland China, Jiangsu has stood out in terms of its rapid and sustained economic growth since 2000. The province has done exceptionally well in terms of competitiveness indicators, catching up quickly with the leading Greater China economy of Taiwan. Such convergence has triggered much academic and policy interest in terms of understanding the driving factors that have enabled Jiangsu to catch up with Taiwan. In this context, this paper empirically analyzes the factors that have caused the convergence between the two economies from 2000 to 2011 by employing Geweke Causality analysis. By decomposing and examining the linear feedback between economic growth and vectors of variables capturing investments in infrastructure, human capital, science, technology and innovation activities, this paper confirms the important role played by those factors in the convergence between Jiangsu and Taiwan in recent years. [ABSTRACT FROM AUTHOR]

Natural resources endowment is expected to boost wealth and purchasing power in resource endowed economies. It is expected that resource availability should be able to drive investment and consequently boost growth in these economies. However, experiences with some resource - rich economies suggest that resource endowment may not be a blessing and can actually be categorized as a curse. To this end therefore, this study investigates the relationship between resource endowment and economic growth using nine resource-rich African countries as a case study. The study used the fixed effect model with cross section as well as time dummy variables. The study did not establish the significant positive impact of resource extraction on economic growth in these economies and therefore concludes that resource curse is indeed true in countries under the study. This paper recommends that as resources' booms are occurring, governments of resource rich economies can channel the surplus funds into the development of other sectors of the economy to enhance their competitiveness and capacity and boost their productivity so that when resources rents becomes low, other sector can cushion the effect. This is a form of diversification for a resource rich economy among others. [ABSTRACT FROM AUTHOR]

This article presents the author's comments on the paper A Tale of Two Cities: Factor Accumulation and Technical Change in Hong Kong and Singapore, by Alwyn Young. The economies of Hong Kong, China and Singapore show similarities and differences. The economies of the two countries are highly open to international trade and have remarkably high ratios of exports and imports to gross domestic product (GDP). Both countries have been peaceful and politically stable for some time, although Singapore had difficulties in the 1960s and Hong Kong's prospects for 1997 are uncertain. They are nearly identical in age-adjusted fertility and mortality rates, although Hong Kong has somewhat higher average population growth because of great in-migration. Sharp contrasts show up for investment rates, the related behavior of consumption, the current-account balance, direct foreign investment and the role of government. Hong Kong's ratio of real gross investment to real GDP from 1960 to 1985 has been reasonably stable at around 21 percent. Singapore, in contrast, began at about 13 percent in the early 1960s, reached 21 percent between 1965 and 1969, and then soared to an average of 37 percent from 1970 to 1985.

The article presents replies to a comment made by R.C.O. Matthews on the article of E.S. Phelps "The New View of Investment." It states that Matthews is excessively generous to offer his constructive paper. It informs that Phelps contains some results, which show that there are significant differences between the behavior of growth models which differ (in the postulates) only in respect to whether technical progress is of the embodied or disembodied type. These results are that normally the economy will make the tradition from one golden age to another (corresponding to a given change of the saving ratio) faster if technical progress is embodied and, second, the rate of return to saving is normally greater when technical progress is embodied, keeping the appropriate set of other things equal. Matthews's paper is concerned with another result, which may, unfortunately, be more striking. This is that the responsiveness of golden age or balance-growth output to a change of the saving ratio is the same whether progress is embodied or disembodied.

This paper examines strategic investment subsidies in an international oligopoly. A general oligopoly model is constructed in which firms compete in two stages and governments commit to investment subsidies prior to firms' actions. The paper considers asymmetry among firms that arises from the nature of goods they produce rather than their cost structures. When firms produce asymmetrically differentiated goods, it is found that a change in the number of foreign competitors may alter the sign of the optimal unilateral investment subsidy. An example of policy reversal is provided in the case of strategic research and development subsidies for a quality-differentiated industry. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to present an innovative model to evaluate the fair price of a subset of structured products for a hypothetical US structured bond. Design/methodology/approach – The authors assume that interest rates dynamics are described by the Cox–Ingersoll–Ross process. They conduct robustness checks by stress testing against parameter and model uncertainty. Findings – The fair value of the bond is robust under any parameter or model misspecification. In addition, a change in the price seems to be more sensitive to long-term yields rather than short-or mid-term yields. The authors provide a better understanding of the relationship between bond prices and business cycles: a slight change in the current structure would have a significant effect on the bond price only during economic expansions. Social implications – The recent global financial crisis has led policymakers and the financial press to blame financial innovation through accusations of structured products being highly complex. Much of the criticism is based on the fact that investors were not able to properly price and fully understand the risks of their investments. Regulators should ensure proper pricing of these products to protect both the investors and the system. Fair pricing is important for bond issuers, governments or corporations to design their product at an attractive price for investors. Originality/value – This paper fills a gap in the extant literature by providing an innovative model based on an Euler–Maruyama Monte Carlo scheme to price structured products. [ABSTRACT FROM AUTHOR]

Copyright of Organizacija is the property of Sciendo and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The education is essential for the future of the young generation and the development of the countries. The paper emphasizes the consequences of investments in higher education, and its effectiveness, in correlation with the labour market requirements and perspectives. It is also proposed a few options regarding the appropriateness and effectiveness of the use of investment resources between the attending the university courses, starting a business or employing in a company in the context of post-crisis economic recession. At the same time, the paper emphasizes the role of higher education in the formation of new opinions, solutions and leaders should guide future societies in beneficial directions. [ABSTRACT FROM AUTHOR]

This paper provides evidence on how adverse health conditions affect the transfer of human capital from one generation to the next. We explore the differential exposure to HIV/AIDS epidemic in sub-Saharan Africa as a substantial health shock to both household and community environment. We utilize the recent rounds of the Demographic and Health Surveys for 11 countries in sub-Saharan Africa. First, we find that an additional year of maternal education leads to a 0.37-year increase in children's years of schooling in the developing economies in sub-Saharan Africa. Second, our results show that mother's HIV status has substantial detrimental effects on inheritability of human capital. We find that the association between infected mothers' and their children's human capital is 30 % less than the general population. Finally, focusing only on noninfected mothers and their children, we show that HIV prevalence in the community also impairs the intergenerational human capital transfers even if mother is HIV negative. The findings of this paper are particularly distressing for these already poor, HIV-torn countries as in the future they will have even lower overall level of human capital due to the epidemic. [ABSTRACT FROM AUTHOR]

High levels of private investment are correlated with higher economic growth and development across countries, but questions remain whether this relationship is sustainable given the high levels of exchange rate uncertainty in developing economies albeit other macroeconomic instabilities. This paper examines empirically the impact of real exchange rate uncertainty on private investment in Ghana. We, thus, apply the accelerator theory to investigate the contributing effect of real exchange rate uncertainty on the movement of private investment from the economic standpoint of an import‐dependent economy such as Ghana. The study employs annual time series data from 1980 to 2016. Moreover, we adopt the autoregressive distributed lag model of cointegration where we find evidence of a long‐run positive relationship between positive private investment and real exchange rate uncertainty as well as trade openness. The short‐run evidence provides a confirmation of the impact of inflation, trade, and real exchange rate uncertainty on private investment. Specifically, our results show that there is a positive pass‐through effect from real exchange rate uncertainty to private investment decision in resource allocation. Shocks from lending rate and terms of trade were found to exhibit negative effects on private investment in the short and long run. As a matter of policy, it is imperative for policymakers in developing economies to consider the effect of exchange rate and terms of trade associated with bilateral trade and investment‐related agreements to minimize the effects of contemporaneous shocks from uncertainties. [ABSTRACT FROM AUTHOR]

Copyright of Intercathedra is the property of Poznan University of Life Sciences Press and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The larger context of our research is the impact of the Romanian transportation infrastructure development on the nation’s economy. In this paper we focus on presenting the inland waterways, canals and maritime transportation infrastructure, the volume of goods transported and some economic implications. The scope of the present study is to analyze data regarding the volume of goods transported on the inland waterways and maritime transportation infrastructure. The considered time-frame for this paper is from 1990 to 2019 and the data was collected from sources such as annual reports of Governmental Agencies, Eurostat and the National Institute of Statistics. We found that there is severe lack of reported data or even data inconsistency between authorities. As economic policy implications we mention the need for investments in maintenance, development, and modernization of infrastructure to stimulate the positive trend in volumes of goods transported.

Mauritius's economic performance since its independence has been called "the Mauritian miracle" and the "success of Africa" (Romer, 1992; Frankel, 2010; Stiglitz, 2011). However, the future growth potential is more uncertain. In this paper, we use growth accounting to analyze the sources of past growth and project potential ranges of future growth through 2033 under various policies. Growth averaged 4 1/2 percent over the past 20 years. Our baseline suggests future growth rates around 3 1/4 percent, but growth could reach 4-5 percent with strong pro-active policies including (i) improving investment and savings rates; (ii) improving the efficiency of social spending and public enterprise reforms; (iii) investment in education and education reforms; (iii) labor market reforms; and (iv) further measures to reduce bottlenecks and increase productivity. With policies capable of generating 5 percent growth, Mauritius could reach high-income status in 2021, 4 years earlier than under the baseline. [ABSTRACT FROM AUTHOR]