Tag: R11

ANALYSIS OF THE IMPACT OF FOREIGN INVESTMENT ON THE COMPETITIVENESS OF RUSSIAN COMPANIES

Anna A. KHRYSEVA

Ph.D. in Economics, associate professor at the department of «World economy and the economic theory», Volgograd state technical university, Volgograd, the Russian Federation

inpro-mba@mail.ru

Olga E. AKIMOVA

Ph.D. in Economics, associate professor at the department of «World economy and the economic theory», Volgograd state technical university, Volgograd, the Russian Federation

akimovann25@mail.ru

Olga A. SAVCHENKO

master of science in economics at the department of «World economy and the economic theory», Volgograd state technical university, Volgograd, the Russian Federation

holga.ales@gmail.com

Abstract

The article analyzes the impact of foreign investment on the competitiveness of Russian companies. Capital mobility is growing rapidly in the 21st century owing to the processes in the world economy, such as globalization, internationalization, and also due to the established single market of goods and services. The enhancement in the competitiveness of companies becomes an essential requirement of the world market. Unfortunately, it is often impossible for many companies to reach a technological progress and increase the efficiency of corporate social responsibility using only its own funding without attracting a foreign capital. Based on the analysis, conclusions are reached and practical recommendations are offered.

Keywords: competitiveness, net outflows, FDI (foreign direct investment), portfolio investment, and volatility

JEL classification: M21, O11, R11
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A NOTE ON LOCAL PUBLIC GOOD INDUCED SPILLOVERS BETWEEN A LEADING AND A LAGGING REGION

Amitrajeet A. BATABYAL

Department of Economics, Rochester Institute of Technology, 92 Lomb Memorial Drive, Rochester, NY 14623-5604, USA.

aabgsh@rit.edu

Abstract

We analyze spatial spillovers in an aggregate economy consisting of a leading and a lagging region where the spillovers stem from the provision of a local public good. Specifically, if the leading region provides the public good then the lagging region obtains some spillover benefits and vice versa. We first solve for the Nash equilibrium levels of the local public goods in the two regions when public investment decisions are simultaneous; next, we determine the equilibrium welfare levels in each region. Second, on the assumption that the public investment decisions are centralized, we compute the levels of the local public goods that maximize aggregate welfare. Finally, we describe an interregional transfer scheme that leads each region to choose non-cooperatively in a Nash equilibrium the same public investment levels as those that arise when aggregate welfare is maximized.

Keywords: Lagging Region, Leading Region, Local Public Good, Spatial Spillover

JEL classification: R11, O18

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REGIONAL ECONOMIC DISPARITIES IN EASTERN INDONESIA AND DETERMINANTS: COMPARATIVE ANALYSIS OF ORIGIN DISTRICT AND NEW DISTRICT

Jihad LUKIS PANJAWA

Magister Dept. Of Economics and Development Studies, Graduate School, University of Sebelas Maret (UNS), Indonesia

jihadpanjawa@gmail.com

Bhimo RIZKY SAMUDRO

Dept. Of Economy Development, University of Sebelas Maret (UNS), Indonesia

bhimosamudro@staff.uns.ac.id

Albertus MAQNUS SOESILO

Dept. Of Economy Development, University of Sebelas Maret (UNS), Indonesia

albertussoesilo@staff.uns.ac.id

Abstract

The objective of this research is to know specifically the difference of regional economic disparity and expansion in districts / cities in eastern Indonesia, as well as determinant of disparity base on development indicators covering economic growth, decentralization policy and quality of human resources. This is a quantitative study using econometric methodology. In this methodology, regression with the dummy variable is used to estimate the data. The results showed differences between origin district and new district, where new district showed higher disparities than origin district. Thus, according to Myrdall Theory, regional economic development disparities are caused by larger backwash effects than spread effects occur in Eastern Indonesia. Another important contribution is that fiscal decentralization plays an important role in reducing regional income disparities in new district, while economic growth and human development index have no significant effect on disparities. In the origin district shows different impacts related to fiscal decentralization in which the policy has a significant positive effect on the disparity, while the human development index has a significant negative effect and economic growth has no significant effect on the disparity.

Keywords: Regional Disparity, Development Indicator, Regional Status

JEL classification: P25, R11
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