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Rice is a staple food for vast population of China and it remarkably contributes toward China's food security. Several fiscal programs have been implemented by Chinese central government for sustainable agriculture production. In this study, we examine the long‐run influence of agricultural public investment (API) and (agro)chemical inputs use (i.e., fertilizer and pesticide) on rice yield in main rice‐producing provinces of China. Second‐generation panel unit root tests, Westerlund error correction model cointegration test, Augmented‐Mean Group (AMG) and Common Correlated Effect Mean Group (CCEMG) estimation techniques have been used in this article. The co‐integration test results reveal strong evidence of the existence of the long‐run co‐integrating link between the considered series. The results of the AMG and CCEMG methods show that (i) API, (ii) fertilizer use, and (iii) power consumption for agricultural machinery positively and significantly impact rice productivity, whereas pesticide usage affects it negatively. Panel quantile regression showed that API, fertilizer use, power consumption, and sown area are significant and positive at 0.10–0.90 quantiles. The results also indicate that pesticide usage increases rice production at 0.10–0.30 quantiles but decreases rice production at 0.40–0.90 quantile levels. Based on these findings, we derive pertinent implications for China's food security. [ABSTRACT FROM AUTHOR]

The UK's fusion energy approach has developed over the past 5 years to include government policy initiatives and a range of public sector investments designed to be delivered in partnership with the private sector. These have aimed to create an environment that stimulates innovation and investment to deliver economic as well as scientific and environmental benefits throughout the lifetime of the public sector fusion energy programme. The Spherical Tokamak for Energy Production acts as a focus and anchor for both public and private sector efforts to develop fusion energy, developing the supply chain and potential for Intellectual Property development and export opportunities well ahead of the anticipated STEP completion date of 2040. This is maximized by the UK's approach to a holistic research and innovation programme backed up by a regulatory and skills programme. This article is part of the theme issue 'Delivering Fusion Energy – The Spherical Tokamak for Energy Production (STEP)'. [ABSTRACT FROM AUTHOR]

Copyright of Environmental & Social Management Journal / Revista de Gestão Social e Ambiental is the property of Environmental & Social Management Journal 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 study examines Vietnam’s state management of public investment in road construction. The development of road transport infrastructure is in extremely high demand as Vietnam undergoes an economic transition. Despite the fact that the effects of the COVID-19 pandemic have caused the economy to grow more slowly recently, public investment in the transport industry has increased significantly. Several modern, large-scale road works that have been finished and put into operation are having a significant positive impact on urbanization, connecting regions, and socioeconomic development. However, public investment in road transport construction still has a lot of issues that need to be fixed. The state’s weakness is one of the primary issues that reduces investment efficiency. This study analyzes the state management of public investment in road construction, according to the following contents: legal system and policies; formulation and implementation of public investment plans; inspection and supervision by state management agencies. The method of collecting secondary data and primary data (through sociological investigation) is used and combined with Statistical Package for the Social Sciences (SPSS) software to determine the influencing factors and find out the problems and their causes. Therefore, this study proposes a number of urgent and practical solutions to improve the state management of public investment in road construction and develop a synchronized road transport network. [ABSTRACT FROM AUTHOR]

The aim of this paper to evaluate the relationship between public and private capital formation in 16 economies from Central Eastern and South Eastern Europe by applying panel-cointegration methods to 2000–2017 data. We find a positive public-private capital formation nexus both in the short and the long-run, with pro-cyclicality of private capital formation and negative relevance of the user costs of capital. The results imply that expansionary public investment policy may be effective in boosting private investment both in the short and the long-run, if fit into a financially sustainable framework that limits negative impact of the user cost of capital. [ABSTRACT FROM AUTHOR]

A general conception is that investment induces economic growth, but there is still debate over which type of investment contributes more to economic growth. The disaggregation of investment into public and private components allows estimation of the impact of the two types of investments on economic growth. This research, therefore, empirically estimates the relationship between each investment component against economic growth by constructing panel data for Ghana and Kenya from 1991 to 2O22. The empirical strategy adopted in this study can be divided into three major stages. First, the LLC unit root test in the panel series is undertaken. Second, if integrated in the same order, a Kao co-integration test is conducted. Finally, if the series is co-integrated, the vector of cointegration in the long run is estimated using the dynamic ordinary least squares (DOLS) method. Our estimation results, based on the panel cointegration approach confirm a long-run relationship between the study variables. Further analysis shows that public investment can promote economic growth in the long run. In contrast, the results indicate that private investment can obstruct growth. The study has shown that private investment did not always increase economic growth in Ghana and Kenya. The study findings indicate that public investment is more efficiently allocated in Ghana and Kenya than private investment, suggesting the best economic strategy is for private investment to be complementary and promote higher public investment to improve public sector productivity. Therefore, policymakers should focus on creating a favourable investment climate, providing fiscal stimulus and promoting public-private partnerships to enhance infrastructure development and stimulate private -sector investment, which can sustain long-term economic growth. [ABSTRACT FROM AUTHOR]

Purpose – Our study aims to evaluate the impact of infrastructure and public investment on private investment in machinery and equipment in Brazil from 1947 to 2017. The contribution of our article to the existing literature lies in providing a more comprehensive understanding of the presence or absence of the crowding effect in the Brazilian economy by leveraging an extensive historical database. Our central argument posits that the recent decline in private capital accumulation over the last few decades can be attributed to shifts in economic policies – moving from a developmentalist orientation to nondevelopmental guidance since the early 1990s, which is reflected in the diminished levels of public investment and infrastructure since the 1980s. Design/methodology/approach – We conducted a series of econometric regressions utilizing the autoregressive distributed lag (ARDL) model as our chosen econometric methodology. Findings – Employing two different variables to measure public investment and infrastructure, our results – robust across various specifications – have substantiated the existence of a crowding-in effect in Brazil over the examined period. Thus, we have empirical evidence indicating that the state has influenced private capital accumulation in the Brazilian economy over the past decades. Originality/value – Our article contributes to the existing literature by offering a more comprehensive understanding of the crowding effect in the Brazilian economy, utilizing an extensive historical database.

Research Question: What impact has the implementation of International Public Sector Accounting Standards (IPSAS) had on gross domestic product (GDP) growth in countries that have fully adopted these standards? Motivation: The results of prior research are inconclusive, and more research is needed to understand the potential impact of IPSAS on the economic growth of adopting countries. Despite the abundance of empirical studies on the determinants of economic growth, much remains to be done to achieve a conclusive understanding of this complex issue, as noted by Owusu et al. (2017). The existing literature is mainly concerned with standard economic factors and does not consider the critical role played by the national accounting framework, in particular the underlying accounting rules. As a result, research on economic growth has tended to focus on global and macroeconomic trade issues rather than accounting issues. These criticisms highlight the need for more rigorous studies to assess the impact of the adoption of IPSAS especially in different socio-economic and political contexts. Idea: This study tests the impact of IPSAS adoption and experience on the economic growth rate, controlling for variables that may influence economic development, such as foreign direct investment (FDI), public investment (INV), trade openness (OPEN), capital expenditure (EXPEND) and COVID pandemic (COV19). Data: The data was collected from 18 countries that were engaged in the process of international adoption between the years 2009 and 2022. Tools: Multivariate analysis on panel data was applied. Findings: Our results show that adopting IPSAS and the country’s experience with the new standards set, positively and significantly affect economic growth. Furthermore, public investment and trade openness are significant positive determinants of economic growth. On the other hand, the COVID 19 pandemic and public expenditure negatively affect GDP growth. Contribution: The paper results could be of practical interest to governments in their decision to move to IPSAS and to standard setters and international institutions, which encourage countries to reform their public accounting systems through coercive isomorphism. Adopting IPSAS can also have macroeconomic benefits through a better reputation with international donors.

A general conception is that investment induces economic growth, but there is still debate over which type of investment contributes more to economic growth. The disaggregation of investment into public and private components allows estimation of the impact of the two types of investments on economic growth. This research, therefore, empirically estimates the relationship between each investment component against economic growth by constructing panel data for Ghana and Kenya from 1991 to 2022. The empirical strategy adopted in this study can be divided into three major stages. First, the LLC unit root test in the panel series is undertaken. Second, if integrated in the same order, a Kao co-integration test is conducted. Finally, if the series is co-integrated, the vector of cointegration in the long run is estimated using the dynamic ordinary least squares (DOLS) method. Our estimation results, based on the panel cointegration approach confirm a long-run relationship between the study variables. Further analysis shows that public investment can promote economic growth in the long run. In contrast, the results indicate that private investment can obstruct growth. The study has shown that private investment did not always increase economic growth in Ghana and Kenya. The study findings indicate that public investment is more efficiently allocated in Ghana and Kenya than private investment, suggesting the best economic strategy is for private investment to be complementary and promote higher public investment to improve public sector productivity. Therefore, policymakers should focus on creating a favourable investment climate, providing fiscal stimulus and promoting public-private partnerships to enhance infrastructure development and stimulate private -sector investment, which can sustain long-term economic growth.

In the past, for urban governance issues, local governments tended to only focus on the economic development of cities, but in recent years, in the context of the global pursuit of sustainable goals, how to propose public investment policies that can attract more people willing to relocate to cities has become more important. This paper explores the impact of public investment with different goals (types) on urban development to illustrate that public investment only in pursuit of economic development (income growth) may result in cities deviating from achieving their sustainable goals. Excessive housing prices and pollution may reduce people's willingness to move there. Only investing in both economic development and infrastructure that can improve the living environment may enable cities' housing prices and populations to grow moderately. By constructing a theoretical model and numerical simulation analysis, this paper not only explains the positive and negative externalities of public investment but also proposes what factors affect cities' housing prices, population, and the benefits of public investment. The results of this paper can help local governments formulate urban governance policies and supplement the literature on sustainable cities. [ABSTRACT FROM AUTHOR]

The study examined the crowding in or out effect of public investment on private investment in Botswana from 1980 to 2018 using the autoregressive distributed lag bounds testing approach. The findings of the study indicate that infrastructure public investment negatively affects private investment while non-infrastructure public investment has a positive impact on private investment in the short run. The study concluded that infrastructure public investment crowd out private investment while non-infrastructure public investment crowds in private investment only in the short run. The recommendation emanating from the study is that the government should spend more on non-infrastructure public investment in order to crowd in private investment, especially in the short run, and introduce more initiatives to promote the role of the private sector in growing the economy. [ABSTRACT FROM AUTHOR]

This paper examines intergenerational welfare effects of public investment financed by factor income taxes in a perpetual-youth overlapping generations model. With elastic labor supply, our analysis shows that long-run employment increases as the tax rate on capital income increases. The positive long-run effect of capital income taxation on employment weakens the negative growth effect of tax distortion. In contrast, the long-run employment might decrease as the tax rate on labor income increases. Hence, the negative long-run effect of labor income taxation on employment strengthens the negative growth effect due to the tax distortion. Finally, this paper reveals that older people with more financial wealth suffer more significant welfare loss from the increased tax on each capital and labor income than younger people if the increased tax impedes economic growth. Furthermore, the increased tax harms the younger generations more than the older generations at the aggregate level because they have a larger population than the older people. However, the negative welfare effects of labor income taxation are stronger than those of capital income taxation because of the negative effect of labor income taxation on employment, which leads to a lower equilibrium growth rate. [ABSTRACT FROM AUTHOR]

Recent empirical research has highlighted the role played by public investment in stimulating economic activity, while addressing a variety of systemic challenges such as climate change and supply chain resilience. However, theoretical considerations regarding the capacity-building effect of public capital formation have been often overlooked in the demand-led growth literature. The paper addresses this gap by introducing a public investment component within a supermultiplier model, treating government investment and consumption spending as two separate components of autonomous demand, growing at different rates over the long run. The model is proven to be stable as long as the non-capacity-creating component of demand grows faster than public investment. Even though the latter does not have long-term growth effects in the steady state, it does affect economic activity during the traverse. The model is then calibrated and simulated, showing that movements between steady-state positions are extremely long-lasting, thus reinforcing the idea that supermultiplier models are better suited to describe out-of-equilibrium dynamics, while pointing out the potential role of public investment in shaping macroeconomic outcomes in the short, medium, and long run. [ABSTRACT FROM AUTHOR]

Copyright of Environmental & Social Management Journal / Revista de Gestão Social e Ambiental is the property of Environmental & Social Management Journal 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 investigation aims to determine the impact of public investment in the digital economy on de-urbanization in Pakistan. Using secondary data, the researcher employed a quantitative research design to analyze various data related to the variables of interest, most notably the digital infrastructure score, internet penetration rate, GDP growth rate, employment rate, education level, and health index score. The process begins with brief descriptive findings indicating substantial investment discrepancies and digital infrastructure quality differences between rural and urban populations, with the urban population receiving much more investment on average. The comparative findings underscore the significant investment disparity, while the regression results demonstrate a positive correlation between the rate of internet penetration and GDP growth. The other variables, such as the digital infrastructure score, the afore-mentioned employment and education variables, and the health index, are all non-significant in the model. More investment appears necessary to reap such economic benefits, and the aforementioned complementary policies will be required to facilitate rural broadband access. Collectively, the results of this research will help policymakers further a more inclusive approach to economic policy and create conditions for sustainable development regardless of population density. [ABSTRACT FROM AUTHOR]

Copyright of Revista de Ciencias Sociales (13159518) is the property of Revista de Ciencias Sociales de la Universidad del Zulia Venezuela 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 study aims to determine the impact of government and private investment on poverty rates in Indonesia’s nickel-producing provinces (South Sulawesi, Central Sulawesi, Southeast Sulawesi, and North Maluku). By utilizing the panel data analysis approach from 2013 to 2022, we can observe how the realization of Foreign Investment (PMA), Domestic Investment (PMDN), and Government Investment (BM) affects poverty reduction. The study’s findings suggest that Domestic Investment (PMDN) has considerable impact on poverty reduction. Meanwhile, the realization of Foreign Investment (PMA) and Government Investment (BM) had no substantial impact on poverty reduction in nickel-producing provinces. Along with the increase in the amount of foreign investment and government investment in nickel-producing provinces in Indonesia, research shows that the results do not have a significant effect on alleviating poverty in these nickel-producing provinces. So investment must be encouraged to be more inclusive or encourage labor-intensive investment. The government and corporate sector can utilize this information to help determine the direction of investment in Indonesia’s nickel-producing provinces. [ABSTRACT FROM AUTHOR]

Across the EU sectoral policies, a variety of instruments are used to foster investments and to transform Europe's productive capacities. Reading beyond the traditional bureaucratic and policy silos, this paper shows how such a composite repertoire of instruments crystalised, taking advantage of two complementary historical fieldworks. Using the sociological concept of 'age', we show how a European policy for productive investments emerged, supported by specific rationales and staff, to address episodes of budgetary constraints over investment policies. We first distinguish an 'age of infrastructure' (from the 1950s), where the first EEC bureaucrats in charge of these policies – mainly lawyers and engineers – designed loans strategies to continue reconstruction efforts, targeting heavy infrastructural investments in energy or transportation. Then, we show how in the 1970s context of rising budgetary tensions, economists urged their colleagues to take advantage of the Common Market to create European champions, through grants and co-financing, and by promoting SMEs as growth drivers: this marks the 'integrative age'. Finally, from the 1990s, bureaucrats with a background in finance reoriented PI policies to overcome so-called 'markets failures' through loans, guarantees and equity, initiating an 'age of leverage' in EU public action. Here, the global access to (publicly subsidized) finance and the rise of derisking activities became a new standard. By capturing the way these successive policy ages concatenated and gave the EU Investor State its current shape, our approach accounts for both stability and change in EU policies. [ABSTRACT FROM AUTHOR]

This article delves into the paradoxical nature of post-2008 fiscal policies, where there is a simultaneous emphasis on valuing public investment on the one hand, and maintaining austerity on the other. It sheds light on this paradox through the concept of "Investor State," which refers to contemporary states' ambition to redefine their role in the economy by no longer limiting themselves to a regulatory role but rather seeking an active role as "investor." We argue that this redefinition of the state's role is of piece with the elevation of investment as a new standard for legitimizing state actions. On the flipside, by making investment the main criteria of public policy legitimacy, it simultaneously delegitimizes spending that is not deemed an investment. Because the adopted economic definition of investment is limited to traditional "productive investment" related to industrial policy, other policy sectors—that is the majority of state intervention—are subject to spending cuts. Thus the Investor State suggests an evolution of the fiscal order that Streeck described as the "consolidation state": the primary goal is no longer to reduce public debt and deficits. But the neoliberal objective to reduce the "size" of the public sector in the economy absolutely remains. Drawing on the case of France, the article shows how the right-wing government started placing investment at the core of its fiscal policy after 2008. The article then highlights the continuation of this dual fiscal policy discourse to date despite changes in government leadership and the pandemic crisis. [ABSTRACT FROM AUTHOR]

Alzheimer's disease (AD), breast cancer (BC) and prostate cancer (PC) continue to be high in the research and innovation agenda of the European Commission (EC). This is due to their exceptionally large burden to the national health systems, the profound economic effects of opportunity costs attributable to decreased working ability, premature mortality and the ever-increasing demand for both hospital and home-based medical care. Over the last two decades, the EC has been steadily increasing both the number of proposals being funded and the amounts of financial resources being allocated to these fields of research. This trend has continued throughout four consecutive science funding cycles, namely framework programme (FP)5, FP6, FP7 and Horizon 2020 (H2020). We performed a retrospective assessment of the outputs and outcomes of EC funding in AD, BC and PC research over the 1999–2019 period by means of selected indicators. These indicators were assessed for their ability to screen the past, present and future for an array of causal relationships and long-term trends in clinical, epidemiological and public health sphere, while considering also the broader socioeconomic impact of funded research on the society at large. This analysis shows that public–private partnerships with large industry and university-based consortia have led to some of the most impactful proposals being funded over the analysed time period. New pharmaceuticals, small molecules and monoclonal antibodies alike, along with screening and prevention, have been the most prominent sources of innovation in BC and PC, extending patients' survival and enhancing their quality of life. Unlike oncology, dementia drug development has been way less successful, with only minor improvements related to the quality of supportive medical care for symptoms and more sensitive diagnostics, without any ground-breaking disease-modifying treatment(s). Significant progresses in imaging diagnostics and nanotechnology have been largely driven by the participation of medical device industry multinational companies. Clinical trials funded by the EC were conducted, leading to the development of brand-new drug molecules featuring novel mechanisms of action. Some prominent cases of breakthrough discoveries serve as evidence for the European capability to generate cutting-edge technological innovation in biomedicine. Less productive areas of research may be reconsidered as priorities when shaping the new agenda for forthcoming science funding programmes. [ABSTRACT FROM AUTHOR]

Expansion of care services is a long-standing priority demand in advocacy for gender equality, framed dominantly from a labour supply side perspective. The gender distribution of unpaid care work imposes time constraints on women's labour supply and serves as a source of gender economic gaps. Access to quality care services alleviate women's time constraints, enabling their improved participation in labour markets and the public sphere. In recent years, an emerging genre of applied policy simulations shift the focus to labour demand outcomes of care services expansion, pointing out to its substantial jobs generation potential given the sectors' high employment multipliers. This paper traces the evolution of the feminist economics discourse on care from an exclusive focus on alleviation of women's unpaid work for gender equality, to an expanded framing that also includes investing in care for employment creation, inclusive and sustainable growth. It provides an overview of the so-called "invest in care" studies, their analytical and methodological approaches, and select empirical findings. The assessment that public investment in care services serves as a powerful policy strategy for employment creation and inclusive growth, contributes to macroeconomics debates on full employment. [ABSTRACT FROM AUTHOR]

In this article, I explore the need for reform of the German debt brake to incentivize public investment. I approach the issue from multiple angles: assessing elite support for debt brake reform among policymakers and economists, examining empirical evidence on the impact of fiscal rules on public investment, exploring the conceptual basis for prioritizing public investment within fiscal rules, and presenting a reform proposal put forth by the Scientific Advisory Board of the German Ministry of Economic Affairs and Climate Action. [ABSTRACT FROM AUTHOR]

This study aims to empirically analyze the contribution of public basic infrastructure to local entrepreneurship in Cameroon. Applying iterative least squares to a multilevel random coefficients Logit model, we find that public investment in basic infrastructure generates positive multiplier effects on entrepreneurship at the local level. Specifically, investment in basic economic infrastructure leads to multiplier effects on business creation at the local level. Based on these results, local public authorities are encouraged to improve the supply of infrastructure, especially regarding the quality, accessibility and availability of basic economic infrastructure. Our findings further suggest that municipalities that offer a business environment that encourages public investment in infrastructure are more attractive to entrepreneurs and can provide existing or new firms with access to the resources and skills they need to take their business to the next level. [ABSTRACT FROM AUTHOR]

This paper provides both theoretical and empirical evidence on the need to consider institutions in human capital development in Sub-Saharan African (SSA) countries. In a model of human capital accumulation with public expenditure where we include a corruption parameter, it is found that when a bureaucrat or any other agent takes away part of the amount allocated to education or health, he reduces the quantity and quality of public services. Moreover, an estimation with the generalized moment method in system on panel data of 35 countries covering the period 1996–2018, the results show on the one hand that corruption manages to reduce the output of education and the average duration of studies and life expectancy of citizens through its negative effect on public spending in the education and health sector. On the other hand, corruption has a direct and negative impact on the performance of education. Indeed, it creates a lack of motivation in learning and in plans to pursue higher education because the return is very low, as is access to health and education services. In addition, corruption also distorts the allocation of public expenditure in favor of military, transport, mining, energy, and fuel expenditure as opposed to health and education expenditure. The effectiveness of governments in combating corruption is fundamental to human capital accumulation in Sub-Saharan African countries. [ABSTRACT FROM AUTHOR]

The issue of improving the multi-level coordination of the management of public investments to ensure their efficiency is especially relevant for Ukraine, as its effective mechanisms maximize the return on investment for regional development. Ukraine will need significant public investment to recover from the destruction caused during the Russian-Ukrainian war, and these investments are (and will be) the driving force behind the recovery of the domestic economy. In conditions when investment opportunities and investment funds are limited, the question arises of their rational use and direction to achieve prioritized tasks. Taking into account the fact that the implementation of public investments is a long process with a wide range of persons involved, the issue of the efficiency of multi-level coordination of public investment management becomes especially acute. The experience of different countries, and especially the members of the Organization for Economic Cooperation and Development (OECD) in the field of establishing effective multi-level coordination of authorities at different levels, needs to be highlighted and taken into account in domestic practice. The theoretical and methodological basis of the study is a number of OECD materials, as well as scientific works of foreign and Ukrainian scholars. The article summarizes the experience of OECD member countries (both positive and negative) in the field of multilevel management. Emphasis is placed on the first pillar of the OECD Recommendation and the three principles it incorporates, in particular, the use of an integrated strategy adapted to local characteristics, the introduction of effective coordination instruments and horizontal coordination. Among the best implementation practices are the examples of the European Union, Japan, New Zealand, Australia, Austria, Canada, France, the United Kingdom, Turkey, Luxembourg and Switzerland. A number of steps towards improving the multi-level coordination of the management of public investments in Ukraine to ensure their efficiency have been proposed.

The study presents a solution to maximize public investment as a growth driver for commodity-exporting economies. The solution is to compensate for the low efficiency of public investment by drawing on internal and external factors within an active fiscal and monetary policy framework. For this, the paper introduces a quantitative model that implements a golden rule of public finance in a resource boom backed by a sovereign wealth fund under an active monetary policy stance. The modeling results show that mobilizing windfall resource revenues to finance increased public investment can limit a crowding-out effect through proper resource allocation and change the sectoral structure in favor of the final goods sector. As confirmed by the sensitivity analysis, the low efficiency of public investment can be partially offset by a less restrictive monetary policy response to fiscal dominance, but this leads to excessive volatility in financial indicators. However, if the public debt burden is an issue due to a more robust fiscal dominance regime, a higher tax rate on exported raw materials can be used to maintain sustainability. By developing a policy goals domain, the paper initiates a discussion that can direct policy recommendations toward a promising growth path by maximizing the public investment driver in the complex policy environment of fiscal-monetary interaction.

We evaluate the direct employment effect of the public investment in key infrastructure ‒ electricity, roads, schools and hospitals, and water and sanitation. Using rich firm-level panel data from 41 countries over 19 years, we estimate that US$1 million of public spending on infrastructure creates 3–7 jobs in advanced economies, 10–17 jobs in emerging market economies, and 16–30 jobs in low-income developing countries. As a comparison, US$1 million in public spending on R&D yields 5–11 jobs in R&D in OECD countries. Green investment and investment with a larger R&D component deliver a higher employment effect. Overall, we estimate that 1% of global GDP in public investment can create more than seven million jobs worldwide through its direct employment effects alone.

We study the impacts of public investment, notably in construction and in R&D on economic growth and of crowding-out effects on private investment. For this purpose, we use Panel Vector Autoregression (PVAR) models and the Generalized Method of Moments (GMM) approach for 40 advanced and emerging countries from 1995 to 2019. Our findings are as follows: i) innovations in public investment have more positive effects on GDP growth and private investment in emerging economies; ii) the positive impulse of public investment on private sector is pronounced and significant in emerging economies; iii) government construction investment has a more positive effect on economic growth in emerging economies; iv) innovations in public construction crowd-out private investment spending in advanced countries; v) emerging economies benefit from public R&D investment; vi) the public investment multiplier of the full sample is 1.67, while it is 0.87 for advanced economies and 2.29 for emerging economies. [ABSTRACT FROM AUTHOR]

Copyright of European Policy Analysis is the property of Wiley-Blackwell 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.)

Leading countries have made official green commitments on environmental issues. Previous studies show that the government can influence energy use by formulating public policies or changing public expenditure, but it is not clear whether the Government's Green Commitment (GGC) could promote energy conservation. Therefore, this paper uses the provincial data of China from 2006 to 2019 to test the role of GGC in energy saving. Our research results show that the GGC alone cannot reduce energy use unless it is supported by public spending. Further, we divide public expenditure into public investment and public services, and the results show that public investment helps to achieve GGC's goals, while public service does not. We conclude that the GGC is a valuable tool in energy governance, but it does work with public investment, which can turn the GGC into a credible commitment and thereby serve as a green-oriented guide to sustainable development. [ABSTRACT FROM AUTHOR]

This article attempts to estimate trends in the levels of public and private investment, and national government surpluses and deficits from accumulated capital income, taxation, and rents estimated by different economic historians for England and the UK by utilizing the concept of Paul Baran and Paul Sweezy's economic surplus. The data support historical accounts that income per capita growth begins to increase around the 1600s in Britain, perhaps due to the level of capital, tax, and land income achieving an adequate threshold amount. According to some historians, this would also be about the time of capitalism's ascent as the dominant economic system in Britain. Even then, dramatic increases in investment and economic growth do not appear until the late eighteenth century when investment and deficits reach even higher levels. The new estimates developed in this article are offered as additional macroeconomic data supplements to works created by other authors and researchers and submitted as a demonstration of the concept of economic surplus and the power of threshold levels of private and public investment. Most of all they also give some support to Baran and Sweezy's notion of a society's economic surplus coming from labor exploitation and being used to further investment and government expenditures. [ABSTRACT FROM AUTHOR]

Abstract This paper highlights the need to fight corruption in developing economies to ensure a better allocation of public resources in a context of institutional failure with the discretionary power of budgetary authorities. The study uses a panel of 48 Sub-Saharan African countries by combining several databases (WDI, WGI, SPEED BASE DATA and PWT), estimate by generalized moment method in system, the bias-corrected estimation linear dynamic panel data [6] and the type of error correction (Driscoll–Kraay). The results indicate that the phenomenon of corruption in the form of rent capture has two effects on public resources. One effect is linked to the level of public spending and the other to the distribution of public resources. Thus, corruption leads to an increase in the overall level of public spending. Corruption reduces spending on education, mining and communications, but increases spending on the military, health and transport. The study recommends that political leaders in developing countries strengthen and rigorously enforce anti-corruption laws, and raise public awareness of the underground economy.

The aim of the article is to substantiate the principles of conceptualization of public investment on the basis of foreign experience. The principles of conceptualization of public investment are defined. The tools of management at all levels within the framework of the principles of public investment are substantiated: investing, using an integrated strategy adapted to different places; implementing efficient tools for coordination between levels of management; coordinating the investment between all levels of government in order to invest at the appropriate scale; assessing the long-term consequences and risks of public investments in advance; engaging with stakeholders throughout the investment cycle; mobilizing private actors and financial institutions to diversify funding sources and build capacity; improving the skills of civil servants and representatives of institutions involved in the field of public investment; focusing on outcomes and promoting experiential learning; developing the fiscal policies adapted to investment objectives; requiring the sound and transparent financial management at all levels of government; promoting transparency and strategic use of public procurement at all levels of government; striving for the quality and consistency of regulatory systems between levels of management. For the implementation of effective governance, the Government of Ukraine is working on the following tasks: to form an effective public administration system capable of implementing a holistic and consistent policy aimed at adequately responding to internal and external challenges and sustainable social development; to create a modern system of local self-government that contributes to the dynamic development of regions and transfers the maximum possible amount of powers to the level closest to citizens – communities; to change the approach to public finance management for transparent and efficient use of budget funds; to introduce elements of e-government to improve the efficiency and quality of public services and minimize the petty corruption occurrences.

Theoretical background: Public capital goods can directly boost the productivity of private capital equipment, thus, increasing the profitability of private investment. In addition, in developing countries, public capital has an indirect effect on the rate of return on private capital because it facilitates the accumulation of human capital. Through these channels, the negative consequences of an increase in interest rates associated with fiscal expansion can be offset, and the crowding-out effect of public investment can be reversed. Purpose of the article: The aim of this paper is to reassess the extent to which public investment crowds in or crowds out private fixed capital expenditure in developing economies. Research methods: Panel data on 89 developing countries from the period 1970–2015 and several estimation methods are used. Care of the endogeneity problem was taken, slope heterogeneity assumption was relaxed and several measures of educational attainment were used. Main findings: The crowding-in phenomenon is found to be stronger in countries with low levels of education and health. It seems that the positive productivity enhancing effect of public investment on private investment is partially offset by the decrease in the income share of physical capital in countries that witness improvements in human capital. Public capital accumulation in countries which have achieved high human development is less effective, meaning that public investment should precede non-investment spending on education and health.

Australia, like many other housing systems in Western Europe and the US, increasingly relies on private financing arrangements for social housing. It is spending more than ever before on demand side assistance, yet both the production of dedicated social housing and housing affordability are declining. From the perspective of needs-based social infrastructure, this paper presents the outcomes of research into the development of a more productive investment pathway. Multi-criteria evaluation and financial modelling compares and assesses the cost to government of five investment scenarios involving a range of debt, efficient financing and capital investment strategies. This research finds that, while current governments tend to favour private financing and facility lease arrangements, paying down private financing during operations is the least cost effective means for governments to subsidise social housing. Capital grant funding and land valuation policies are more cost effective in the medium and long term but require more active government involvement in needs based planning, strategic investment and regulation. [ABSTRACT FROM AUTHOR]

Interventions to maximize food production and improve households' welfare and job creation are key targets of governments' policies in implementing the national development plans of most developing countries, including Togo. We assess the impact of public agricultural investment (PAI) on crop production, employment generation, and households' welfare in Togo using a computable general equilibrium model, given its appropriateness in handling economy wide and the welfare effect of specific policies. We consider three scenarios: a 10% and 25% increase in PAI as engaged by the African heads of state in 2003 in the Maputo Declaration on Agriculture and Food Security in Africa and re-engaged in Malabo in 2014, and the recommendation of the Food and Agriculture Organization of the United Nations, respectively, while 5% increase in PAI is used as the optimist scenario. We find that PAI positively affects food and cash crop production, breeding and hunting, fishing, silviculture, and lumbering. Increasing PAI by 10% boosts annual food and cash crop production by 81.17 million US$ and 14.75 million US$, respectively, while a 5% annual increase improves households' welfare (8.71%) and job creation (5.96%). Fishing and food crop production are the most promising sub-sectors with significant impacts on job creation and households' welfare. These findings have important policy implications and serve as a benchmark in decision making in considering the importance of PAI in households' welfare in developing countries, where agriculture is still seen as a cornerstone of countries' economies. We recommend investment reallocation at 10% or at least 5% of the national budget to agriculture to boost food production and improve households' welfare while generating decent jobs in the economy. [ABSTRACT FROM AUTHOR]

The considerable similarity in the growth paths of the Chinese and Indian economies since their respective reforms has changed after the 2008 crisis. This article tries to understand the trajectories of different parameters of economic growth in the two countries, and how these changed after the crisis. Growth has declined in both the economies, more consistently in China, compared to India. The share of exports in GDP has also declined in both economies. The dependence of the Chinese economy on exports has decreased; however, its dependence on investment has increased. Investment's share in GDP in China has increased, whereas it has decreased in India. The structure of the manufacturing sector in China has undergone changes, which is not the case for India. The increase in the share of services and decline in the share of manufacturing in China implies that the production structure is becoming less unbalanced. JEL classification: E58, E62, F32, F41 [ABSTRACT FROM AUTHOR]

Policy adjustments can help strike a balance between economic growth and environmental sustainability, which has increasingly been the heart to nations and regions throughout the World. This paper examines how public investment affects economic growth, energy consumption, and CO2 emissions in eight ASEAN countries: Cambodia, Myanmar, Malaysia, Indonesia, the Philippines, Singapore, Thailand, and Vietnam. Extension of a Cobb–Douglas production function and application of panel cointegration techniques reveal bidirectional Granger causation between public investment and both private development and CO2 emissions from 1980 to 2019. Public investment Granger causes energy usage, the opposite does not hold statistically. More findings from pooled mean group estimations show a mean-reversion dynamic that corrects disequilibria by 14% yearly. State investment crowds in private sector growth, energy use, and carbon footprint. It also finds an inverted U-shaped relationship between public investment and energy consumption, and a U-shaped relationship between public investment and CO2 emissions, indicating complex regional interactions. It is suggested the implementation of public investment policies that enrich green infrastructure projects to foster growth while minimizing environmental impacts, and encourage a strategic approach to public investment for prioritizing environmental sustainability and thus, achieving Sustainable Development Goals 7 to 9 and 11 to 13 in this region. [ABSTRACT FROM AUTHOR]

This paper highlights the need to fight corruption in developing economies to ensure a better allocation of public resources in a context of institutional failure with the discretionary power of budgetary authorities. The study uses a panel of 48 Sub-Saharan African countries by combining several databases (WDI, WGI, SPEED BASE DATA and PWT), estimate by generalized moment method in system, the bias-corrected estimation linear dynamic panel data [6] and the type of error correction (Driscoll–Kraay). The results indicate that the phenomenon of corruption in the form of rent capture has two effects on public resources. One effect is linked to the level of public spending and the other to the distribution of public resources. Thus, corruption leads to an increase in the overall level of public spending. Corruption reduces spending on education, mining and communications, but increases spending on the military, health and transport. The study recommends that political leaders in developing countries strengthen and rigorously enforce anti-corruption laws, and raise public awareness of the underground economy. [ABSTRACT FROM AUTHOR]

The present study applies Game Theory to study public investment at tourist destinations to determine the 'best action' for tourist destinations in competitive scenarios. This study proves that the higher the probability that the public sector of the destination will invest in tourism promotion, the greater the expected financial benefits for the destination. Furthermore, the research results show that the higher the probability of tourists traveling to the destination, the greater the expected financial return for the Destination's Public Sector (DPS) investing. Notably, the findings prove the positive impact of reducing information asymmetry between tourists and destinations. Results from applying Game Theory to the tourist industry show that spending on advertising may be motivated by more than just increasing visitor numbers. Finally, this article's main contribution is offering a theoretical-mathematical framework applicable to any tourist destination. [ABSTRACT FROM AUTHOR]

The objective of the research is to analyze the incidence of public investment on property tax collection in provincial local governments of the southern macro region of Peru during the period 2010 to 2020. The type of study is applied, under the quantitative approach, design non-experimental, longitudinal panel type, descriptive and explanatory. The data for each provincial municipality were extracted from the information portal of the Ministry of Economy and Finance (MEF) segmented through cluster analysis. The econometric estimation method takes into account the methodology for longitudinal panel data. Taking into account the cluster analysis and econometric estimates, the results show that a 1% increase in public investment in transportation, sanitation, and culture and sports, caused an increase in property tax collection of approximately 0.3182%, 0.1208%. and 0.0923% respectively (first cluster), a 1% increase in public investment in transport, culture and sports, caused an increase in property tax collection of approximately 0.2588% and 0.1434% respectively (second cluster) and an increase in the 1% in public investment in transportation and sanitation, caused an increase in property tax collection of approximately 0.2923% and 0.1377% respectively (third cluster). [ABSTRACT FROM AUTHOR]

The aim of the article is to compare the effects of public investment and public consumption in the Indian economy. This issue is particularly relevant in the context of the unprecedented increase in public investment in India, which is becoming one of the biggest economies globally. The empirical research is based on a New Keynesian model. The novelty of the applied methodology lies both in the inclusion of public capital as a factor of production, and the partial substitution between public and private consumption in the model. The results show that government gross capital formation in the short run is a slightly more effective method of stimulating the Indian economy than government final consumption expenditure. However, the biggest differences between the effects of public investment and public consumption are evident in the long term. The impact of public consumption on GDP fades out quickly, while public investment raises the level of output for a long period. Government gross capital formation also affects employment and consumption more strongly than government final consumption expenditure does. Thus, the main implication of the study is to recommend increasing public investment in emerging markets, to boost their economies. [ABSTRACT FROM AUTHOR]

The study presents a solution to maximize public investment as a growth driver for commodity-exporting economies. The solution is to compensate for the low efficiency of public investment by drawing on internal and external factors within an active fiscal and monetary policy framework. For this, the paper introduces a quantitative model that implements a golden rule of public finance in a resource boom backed by a sovereign wealth fund under an active monetary policy stance. The modeling results show that mobilizing windfall resource revenues to finance increased public investment can limit a crowding-out effect through proper resource allocation and change the sectoral structure in favor of the final goods sector. As confirmed by the sensitivity analysis, the low efficiency of public investment can be partially offset by a less restrictive monetary policy response to fiscal dominance, but this leads to excessive volatility in financial indicators. However, if the public debt burden is an issue due to a more robust fiscal dominance regime, a higher tax rate on exported raw materials can be used to maintain sustainability. By developing a policy goals domain, the paper initiates a discussion that can direct policy recommendations toward a promising growth path by maximizing the public investment driver in the complex policy environment of fiscal-monetary interaction. [ABSTRACT FROM AUTHOR]

This paper explores whether public investment crowds out or crowds in private investment. To this aim, we build a database of about half a million firms from 49 countries. We find that the effect of public investment on corporate investment depends on leverage, liquidity constraint, and firm's operating (labor) efficiency. In line with theory, public investment boosts private investment for firms with low leverage, but not for firms with high leverage, for firms that are financially constrained or that have low operating efficiency. [ABSTRACT FROM AUTHOR]

Many consider research and development (R&D) a crucial pillar of decarbonization, yet few have investigated what actually drives investment. What drives public investment in renewable energy R&D in wealthy democracies? Using OECD data, this research note tests a number of hypotheses from the literature and finds that public investment in renewable energy R&D is most closely associated with growth regimes and their related characteristics. Furthermore, the 'most invested' are dynamic services export‐led growth regimes who are deindustrializing and moving towards knowledge‐based sectors like information and communications technology and finance. In short, economies investing the most in renewable energy R&D have the least structurally carbon‐intensive growth regime. As international economic integration locks many countries into specific path‐dependent roles, these findings suggest that there is a comparative advantage to the green transition. It concludes with a discussion of the asymmetric green capacities between core and periphery countries in the European Union. [ABSTRACT FROM AUTHOR]