THE ESSENCE OF INVESTMENT POLICY, ITS ROLE AND PLACE IN THE SYSTEM OF INVESTMENT ACTIVITY

The article investigates the essence of investment policy, morphological analysis of the definition of "public investment policy". The study determined that the state's investment policy should be considered from the standpoint of a systematic approach. Following the position of the system approach, it was proposed to apply an improved model of investment policy concept formation and the place of investment policy in the economic policy of the state was determined. Also, based on the application of the methodological approach, the components of the mechanism of formation and implementation of investment policy were identified and presented in the form of a diagram.

Methodological Issues Of Managing The Investment Potential Of The Region

The article examines the methodological issues of managing the investment potential of the region, analyzes the existing system of methodologies in this area, summarizes the views of experts and economists, describes their controversial aspects and highlights the importance and objectives of effective management of investment potential in modern public investment policy.

Fiscal decentralization and local public investment policy in the Republic of Serbia

This paper analyses the level of fiscal decentralization and structural characteristics of local public finances in Republic of Serbia with focus on local public investments. Share of central government expenditures in consolidated government spending of 83%, indicates relatively high degree of fiscal centralization. In spite of significant rise in local public revenues in the last decade public investments remained low - amounting to 1% of GDP, which is significantly below EU and Central and Eastern Europe average (1.4 and 1.5% GDP, respectively). Our results indicate large variation in relative size of public investments across LSGs. Most local public investments are focused on roads maintenance administrative infrastructure, while investments in environment and education are low. To tackle local disparities in terms of quality of local infrastructure and to foster economic convergence, development of planning and implementation capacities and introduction of systemic incentives for local public investments should be considered.

Doing Taxes Better: Analysing the PSDP

The Pakistan Institute of Development Economics (PIDE) organised a conference on the development policy of Pakistan with a focus on planning and public investment policy. At the Conference, a PIDE study entitled, Doing Development Better1 was launched and discussed. The key findings of the conference are listed below:

Determinants of variation in public investment in emerging Europe

PurposeThis paper evaluates the economic, political and institutional determinants of variation in public investment in emerging Europe.Design/methodology/approachPanel econometrics (panel-corrected standard error, generalized least squares and the two-stage least squares) methods have been applied using annual data from 2000 to 2017 for 16 countries from Central and Eastern Europe (CEE).FindingsPublic investment was procyclical in relation to output and negatively associated with the level of public debt. Austerity episodes triggered a significant drop in public investment. Positive drifts in public investment during election periods and the negative impact of the number of cabinet seats held by left-wing parties have been captured. While no firm evidence on the impact of EU membership was found, the results show that arrangements with the IMF were strongly associated with lower public investment. Political factors were of greater importance in Central Europe and the Baltics, while institutional factors had a more significant impact in South Eastern Europe.Practical implicationsTo foster public capital formation, it is necessary to: 1) strengthen the countercyclicality of public investment policy and to keep public debt at a low level; 2) adjust the fiscal criteria for EU membership in a manner that would enable countries to use the EU structural fund more effectively, while maintaining fiscal sustainability; 3) put a stronger emphasis on structural features of fiscal policy when designing country-level arrangements with the IMF.Originality/valueThe paper contributes to the literature on determinants of public investment policy by adding empirical evidence for emerging Europe countries.

Long-term challenges will slow Germany’s economy

Subject German economy outlook. Significance Somewhat surprisingly, Germany is suddenly facing strong economic and political headwinds. In addition to near-term challenges such as the potential economic damage from Brexit, further afield loom even larger potential problems. They include: China’s economic slowdown; the persistent troubles in the euro-area; structural trends toward AI-based product lines and processes and a turn towards ‘green’ industries; as well as political fragmentation. Impacts Germany will be sharply affected if US President Donald Trump hikes the tariff rate on car imports. Germany will come under increasing pressure to take in migrants to compensate for the tightening labour market. Germany will be under pressure to adopt a public investment policy to prepare for a rapid acceleration of the knowledge economy.