EU will fund most Greek infrastructure investment

2019 ◽  
Keyword(s):  
Private Investment ◽  
Transport Infrastructure ◽  
Infrastructure Investment ◽  
Construction Sector ◽  
Transport Costs ◽  
Fdi Inflows ◽  
Content Type ◽  
Urban Rail ◽  
Slow Progress ◽  
New Infrastructure

Subject Infrastructure investment. Significance Investment in infrastructure has high economic multiplier and is a potential driver of growth. Foreign direct investment (FDI) inflows remain limited, manufacturing and services failing to attract investor interest; domestic privatisation is making slow progress. Yet transport infrastructure has improved tangibly over the last few years, especially roads, airports and seaports. Impacts New infrastructure works will provide a strong boost to the construction sector. They facilitate related investments, such as Aegean Airlines ordering 42 new aircraft from Airbus, Greece’s largest private investment. Greek tourism will benefit from the planned modernisation of local airports and urban rail. Reduced transport costs will render Greek exports more cost competitive and improve the supply chains of Greek exporters.

Does public investment crowd-out private investment in India

2017 ◽  
Vol 9 (1) ◽  
pp. 50-69 ◽  
Author(s):  
Shanmugam Muthu
Keyword(s):  
Public Investment ◽  
Private Investment ◽  
Infrastructure Investment ◽  
Public Infrastructure ◽  
Public And Private ◽  
Content Type ◽  
Macroeconomic Uncertainty ◽  
Long Run ◽  
Short Run

Purpose The purpose of this paper is to examine the crowding-in or crowding-out relationship between public and private investment in India. Design/methodology/approach The autoregressive distributed lag (ARDL) bounds testing approach is used to estimate the long run relationship between public and private investment using annual data from 1971-1972 to 2009-2010. Findings Based on the empirical findings, it is observed that aggregate public investment has a positive effect on private investment both in the long run and the short run. In contrast to the findings of previous studies, no significant impact of public infrastructure investment on private investments is found in the long run, while non-infrastructure investment has a positive impact on private investment in the short run. Among the various categories of infrastructure sector, a positive and significant impact in the case of electricity, gas and water supply is observed. Similarly, the result indicates that public investment in machinery and equipment and construction have substantially influenced the private sector machinery and equipment in the long run and the short run. In the case of the role of macroeconomic uncertainty, the results find a negative and significant impact on private investment and the impact is higher in the short run than in the long run. Originality/value The present study extends the literature in three important ways: First, the study attempts to capture heterogeneity of public investment as well as disaggregate effects of two different categories of public infrastructure on private investment. The extent to which two different types of public assets impact the private investment in machinery and equipment investment is also examined. Second, ARDL model is used to examine the long-run relationship between public and private investment. Third, the study incorporates macroeconomic uncertainty into the empirical analysis to examine the role of macroeconomic volatility in determining private investment decision.

West Africa power pool makes slow progress

2015 ◽  
Keyword(s):  
West Africa ◽  
Private Investment ◽  
Regional Power ◽  
Renewable Electricity ◽  
Content Type ◽  
Power Pool ◽  
Energy Fund ◽  
Slow Progress ◽  
Renewable Electricity Generation ◽  
Power Shortages

Subject Regional power outlook for West Africa. Significance The West African Power Pool (WAPP), institutionalised in 2001, aimed to create a regional power market large enough to attract private investment. Among its 14 member states, WAPP boasts considerable energy resources. Progress has been slow, with chronic power shortages reflecting decades of under-investment in national sectors. Impacts With the exception of hydroelectricity, renewable energy will likely augment not replace traditional power, eg, coal and gas-based. However, 'off grid' renewable electricity generation and transmission systems may be increasingly used for powering remote locations. Facilities such the Sustainable Energy Fund for Africa will need to fund many renewables projects initially for them to be viable.

Colombia’s infrastructure expansion faces major delays

2017 ◽  
Keyword(s):  
Growth Rates ◽  
Infrastructure Investment ◽  
Gdp Growth ◽  
Election Campaign ◽  
Infrastructure Projects ◽  
Caribbean Coast ◽  
Content Type ◽  
Investment Opportunities ◽  
The Caribbean ◽  
New Infrastructure

Significance The claims follow the ANI’s announcement on February 22 that it would cancel the contract of an Odebrecht-led consortium to build the Ruta del Sol 2 highway, linking central Colombia to the Caribbean coast. Impacts The risk of potentially intrusive investigations will remain high for firms with commercial or contractual links to Odebrecht. Delays in completion of infrastructure projects could bring Colombia’s GDP growth rates for 2017 below the current forecasts of 2.7%. Later in the year, new infrastructure investment opportunities will open as corruptly awarded contracts are resubmitted for tender. Allegations that Santos’s 2014 election campaign received Odebrecht funding could harm his Party of the U in the 2018 election.

Infrastructure spending may pick up in Central Europe

2016 ◽  
Keyword(s):  
Central Europe ◽  
Growth Rates ◽  
Financial Services ◽  
Public Investment ◽  
Private Investment ◽  
Infrastructure Investment ◽  
Economic Forecast ◽  
Infrastructure Projects ◽  
Content Type ◽  
Political Landscapes

Subject The expected rebound from declining infrastructure investment in Central Europe in 2016-17. Significance In its latest Economic Forecast, the European Commission expects a short-lived decline in public investment in three Central European (CE) countries. This is due to a 'one-off effect', as absorption rates for EU structural and cohesion funds dip across the region, with the closure of the 2007-13 programme period. This will weigh on headline GDP, with the Commission forecasting relatively low 2016 growth rates of 2.1% for Hungary, 2.3% for the Czech Republic and 3.5% for Poland. Impacts Solid growth rates in CE will attract private investment to infrastructure projects, particularly once GDP expands faster in 2017. Infrastructure investment will focus on such traditional sectors as transport and industry rather than financial services in 2016-17. Low borrowing costs and private companies' strong demand for short- and long-term loans will facilitate an upturn in projects in 2017. Given the diverse fiscal and political landscapes across CE, divergence in deals and mixed funding schemes are expected after 2016. CE governments may introduce lending schemes designed to shield new infrastructure projects from financial volatility.

Graft scandal undermines Dominican re-election plans

2018 ◽  
Keyword(s):  
Constitutional Reform ◽  
Construction Sector ◽  
Content Type ◽  
Slow Progress ◽  
The Government ◽  
Protest Activity

Subject Anti-corruption protests. Significance Major anti-corruption marches in August underlined ongoing popular frustration with the slow progress of official investigations into the Odebrecht corruption scandal. While President Daniel Medina has pledged to investigate all wrongdoing and bring culprits to justice, few formal prosecutions have yet been launched. Popular disillusionment with the government could therefore threaten Medina’s plans for a constitutional reform to permit unlimited presidential re-election. Impacts Marcha Verde is likely to step up its protest activity as pre-campaigning begins for the 2020 elections. Ongoing political noise about corruption could deter some investment, particularly in the construction sector. US relations may suffer due to the OFAC action against Bautista, and the cutting of diplomatic ties with Taiwan.

Growing Russian over-regulation may deter investors

2019 ◽  
Keyword(s):  
Foreign Investment ◽  
Far East ◽  
Transport Infrastructure ◽  
Advanced Technology ◽  
Domestic Investment ◽  
Business Climate ◽  
Fdi Inflows ◽  
Content Type ◽  
Production Value ◽  
The Government

Subject The business climate in Russia. Significance Russia's hydrocarbon resources and large consumer market have to date attracted the bulk of foreign direct investment (FDI). The government actively promotes foreign investment to fund production and bring in advanced technology. Low economic growth and Western sanctions -- current and possible -- discourage both foreign and domestic investment. A legal battle around the Baring Vostok investment company and the arrest of founder Michael Calvey further dented investor confidence this year. Impacts Russia's geography makes inclusion in global production value chains a challenge, except in locations near East Asian markets. Plans for government spending on transport infrastructure could reduce logistics costs and stimulate FDI inflows into Russia's far east. More stringent data handling and protection rules will discourage foreign investment in the IT sector.

scholarly journals Opportunities and challenges of foreign direct investment utilisation and its impact on construction sector in developing countries

2018 ◽  
Vol 23 (2) ◽  
pp. 239-256 ◽  
Author(s):  
Solomon Olusola Babatunde ◽  
Oluwaseyi Alabi Awodele ◽  
Onaopepo Adeniyi
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Knowledge Spillovers ◽  
Archival Data ◽  
Construction Sector ◽  
Fdi Inflows ◽  
Content Type ◽  
Scant Attention ◽  
Major Factors

Purpose Foreign direct investment (FDI) inflows to both developed and developing countries have increased over the past three decades. However, investigation of opportunities and challenges associated with FDI on the host economy and its impact, especially on the construction sector through empirical assessment, have received scant attention. The purpose of this study is to address this gap in knowledge within the Nigerian context and examine the trend of FDI inflows to the construction sector for the period 2000-2013 inclusive. Relationships between contributions of the construction sector to Nigeria’s gross domestic product (GDP) are also studied. Design/methodology/approach The study adopted a literature review, a questionnaire survey and archival data culminated in data analysis. The survey targeted financial experts in Nigerian financial institutions/local banks. Archival data included the annualised data extracted from the Central Bank of Nigeria statistical bulletins. The period examined witnessed stable economic conditions. Data collected were analysed using mean score, factor analysis and correlation. Findings Eight identified opportunities of using FDI were grouped into three principal factors: knowledge spillovers, capital for new investment and resilience during financial crises. The ten identified FDI challenges were grouped into three major factors: loss of ownership advantage and additional costs, crowding-out of-national firms and administrative bottleneck and overdependence. Based on the hypotheses tested, the study found a significant relationship between the contributions of FDI inflows in the construction sector and the total GDP of the host country. Practical implications This study provides greater insight on the effects of FDI on a host economy in developing countries, which would help policymakers to examine existing policies and look for new ways of increasing foreign investment flow, especially in the area of Construction Facility Investment. Originality/value This study is important because it would enable policymakers in developing countries at large to promote FDI with special considerations for the construction sector of the economy.

Greece will seek to profit from pent-up tourist demand

2021 ◽  
Keyword(s):  
Infrastructure Investment ◽  
Construction Sector ◽  
Content Type ◽  
Tourism Sector ◽  
Expected Performance ◽  
Hospitality Sector ◽  
The Government ◽  
Tourist Demand ◽  
High Level ◽  
Tourism Services

Significance Despite a stronger-than-expected performance by the Greek hospitality sector during the summer months, 2021 will be a challenging year. The government hopes that it will return to pre-pandemic levels ahead of its competitors as early as next year, when the season will be officially extended to March-November. Impacts A high level of uncertainty will delay new private investments in the Greek tourism sector. The rising number of tourists will necessitate additional infrastructure investment in 2022-23. An increased demand for tourism services will support the construction sector next year.

Power Africa could provide long-term electricity boost

2015 ◽  
Keyword(s):  
Power Plants ◽  
Large Scale ◽  
Thermal Power ◽  
Private Investment ◽  
Private Capital ◽  
Content Type ◽  
The Us ◽  
Slow Progress ◽  
Gas Supply

Subject Tracking progress on Power Africa. Significance US President Barack Obama's five-year Power Africa initiative announced in June 2013 faces growing criticism for slow progress as it approaches its halfway point in December. The US Overseas Private Investment Corporation (OPIC) announced 'critical milestones' for commitments only last month for four flagship projects, two large-scale wind schemes in Kenya and thermal power plants in Senegal and Ghana. Impacts Power Africa will stand as a test of whether infrastructure deficits can be plugged by combining private capital with public guarantees. Private investment will not materialise in sufficient quantities so long as it operates within inefficient state-monopolised sectors. Inefficiencies such as gas-supply problems and subsidies will further undermine the effect of private investment operating on the margins.

Ethiopian apparel parks will drive industrialisation

2017 ◽  
Keyword(s):  
Transport Infrastructure ◽  
Free Access ◽  
Cotton Production ◽  
Transport Costs ◽  
Textile Production ◽  
Content Type ◽  
Goods And Services ◽  
Labour Costs ◽  
Key Driver ◽  
European Markets

Subject Ethiopia is targeting apparel and textile production as a key driver of industrialisation. Significance Foreign direct investment in Ethiopia’s apparel and textile industries is accelerating, based on low labour costs; social and environmental compliance; and proximity and duty-free access to US and European markets. Significant government investments in transport infrastructure to facilitate imports and exports through Djibouti are taking place in parallel, reducing transport costs and improving viability. Impacts Increased exports may help ease Ethiopia’s foreign exchange constraints. Ethiopia will target expanded domestic cotton production to reduce dependence on imports. Success in textiles will encourage planning for new parks targeting sectors such as pharmaceuticals, agro-processing and heavy industry. Specialisation will drive urbanisation and clustering, with firms co-locating for proximity to suppliers and buyers of goods and services.

Sign in / Sign up

Export Citation Format

Share Document