Effect of Public Investment on Private Investment: Evidence from Ethiopia

This study examined the effect of public investment on private investment and their relative effects on Ethiopia economic growth. The study employed the ARDL bounds testing approach. The empirical results revealed that public investment has a crowding-in effect on private investment in the long run which means, public investment stimulates private investment in the long run. However, the study revealed that public investment has a crowding out effect on private investment. In the other word, public investment has no direct impact on economic growth in the long run. However, private investment has a significant positive impact on economic growth in the long run while it is negatively related to economic growth in the short run. This suggests that private investment positively contributes to economic growth more than public investment. In addition, economic growth is positively associated with private investment although it is statistically insignificant in the long run. This implies that it is prudent for policy makers not to cut back on the efficient component of public investment and increase infrastructural public investment to a level that promotes private investment in the long run thereby indirectly fostering economic growth.

Russian corporate recovery varies by company profile

Significance Recovery in the corporate sector is unevenly divided between large and smaller companies. More robust global demand and rising commodity prices boosted the profitability of large exporters, whereas the recovery of small and medium-sized enterprises (SMEs) was delayed by pandemic restrictions and falling real disposable incomes. Impacts High metals prices will constrain investment in infrastructure. Rising interest rates will limit capital market borrowing by medium-sized companies. Government price controls threaten to undermine private investment in agriculture, metallurgy and chemical production. A deterioration in banks' corporate portfolio will be adequately offset by high earnings and previous provisioning.

Integrating ecosystem markets to co-ordinate landscape-scale public benefits from nature

Ecosystem markets are proliferating around the world in response to increasing demand for climate change mitigation and provision of other public goods. However, this may lead to perverse outcomes, for example where public funding crowds out private investment or different schemes create trade-offs between the ecosystem services they each target. The integration of ecosystem markets could address some of these issues but to date there have been few attempts to do this, and there is limited understanding of either the opportunities or barriers to such integration. This paper reports on a comparative analysis of eleven ecosystem markets in operation or close to market in Europe, based on qualitative analysis of 25 interviews, scheme documentation and two focus groups. Our results indicate three distinct types of markets operating from the regional to national scale, with different modes of operation, funding and outcomes: regional ecosystem markets, national carbon markets and green finance. The typology provides new insights into the operation of ecosystem markets in practice, which may challenge traditionally held notions of Payment for Ecosystem Services. Regional ecosystem markets, in particular, represent a departure from traditional models, by using a risk-based funding model and aggregating both supply and demand to overcome issues of free-riding, ecosystem service trade-offs and land manager engagement. Central to all types of market were trusted intermediaries, brokers and platforms to aggregate supply and demand, build trust and lower transaction costs. The paper outlines six options for blending public and private funding for the provision of ecosystem services and proposes a framework for integrating national carbon markets and green finance with regional ecosystem markets. Such integration may significantly increase funding for regenerative agriculture and conservation across multiple habitats and services, whilst addressing issues of additionality and ecosystem service trade-offs between multiple schemes.

Government domestic debt arrears and private investment in Sub-Saharan Africa

PurposeThis study investigates the effect of government domestic payment arrears on private investment. The authors argue that an increase in government domestic arrears can reduce private sector investment owing to the competition for credit.Design/methodology/approachThe prediction is empirically tested using data for 33 Sub-Saharan Africa (SSA) countries for the period 2007–2018 using a panel general methods of moment estimation technique. This is also complemented with impulse responses derived from the standard vector autoregressive model.FindingsThe results show that an increase in government domestic arrears adversely affects private investment in SSA and most subregional communities within SSA. It also revealed that private investment negatively responds to shocks in government domestic arrears.Originality/valueThis is the first study that attempts to investigate the effect of government domestic borrowing arrears on private investment. It seeks to serve as a guide to governments in their domestic borrowing decisions to ensure timely servicing.

Remittances and Private Investment: Evidence in Asia and The Pacific Developing Countries

Although remittances have increased rapidly in recent decades, however. most previous studies have been done using micro-level data but there is no article employed data at the macro-level in Asia-Pacific. Our paper tries to fill the empirecal gap related to the impact of remittances on private investment in recipient countries with the panel data of 30 Asia and the Pacific developing countries in the period of 1985 – 2014. The results confirmed that remittances lead to an increase in private investment in these countries but the quantitative analysis showed that this promoting impact is only a quite weak. Further more, our Granger causality test explored that there is only one-way causality from remittance to private investment existing in research period.