The provision of infrastructure and related services in developing Asia via public–private partnership (PPP) increased rapidly during the late 1990s. Theoretical arguments support the potential economic benefits of PPPs, but empirical evidence is thin. This paper develops a framework identifying channels through which economic gains can be derived from PPP arrangement. The framework helps derive an empirically tractable specification that examines how PPPs affect the aggregate economy. Empirical results suggest that increasing the ratio of PPP investment to GDP improves access to and quality of infrastructure services, and economic growth will potentially be higher. But this optimism is conditional, especially on the region’s efforts to further upgrade its technical and institutional capacity to handle complex PPP contracts.
This study analyzes the impact of a high-speed rail line on tax revenues and on the economy of affected regions within the country. The economic impact of infrastructure investment can be induced by changes in tax revenues when the infrastructure is in operation. Accurate regional GDP data are not necessarily available in many Asian countries. However, tax data can be collected. Therefore, this study uses tax revenue dates in order to estimate spillover effects of infrastructure investment. The Kyushu high-speed rail line was constructed in 1991 and was completed in 2003. In 2004, the rail line started operating from Kagoshima to Kumamoto. The entire line was opened in 2011. We estimated its impact in the Kyushu region of Japan by using the differencein- difference method, and compared the tax revenues of regions along the high-speed railway line with other regions that were not affected by the railway line. Our findings show a positive impact on the region’s tax revenue following the connection of the Kyushu rapid train with large cities, such as Osaka and Tokyo. Tax revenue in the region significantly increased during construction in 1991–2003, and dropped after the start of operations in 2004–2010. The rapid train’s impact on the neighboring prefectures of Kyushu is positive. However, in 2004–2013, its impact on tax revenue in places farther from the rapid train was observed to be lower. When the Kyushu railway line was connected to the existing high-speed railway line of Sanyo, the situation changed. The study finds statistically significant and economically growing impact on tax revenue after it was completed and connected to other large cities, such as Osaka and Tokyo. Tax revenues in the regions close to the high-speed train is higher than in adjacent regions. The difference-in-difference coefficient methods reveal that corporate tax revenue was lower than personal income tax revenue during construction. However, the difference in corporate tax revenues rose after connectivity with large cities was completed. Public–private partnership (PPP) has been promoted in many Asian countries. However, PPP-infrastructure in India failed in many cases due to the low rate of return from infrastructure investment. This study shows that an increase of tax revenues is significant in the case of the Kyushu rapid train in Japan. If half of the incremental tax revenues were returned to private investors in infrastructure, the rate of return from infrastructure investment would significantly rise for long period of time. It would attract stable and long-term private investors, such as pension funds and insurance funds into infrastructure investment. The last section of the paper will address how incremental tax revenues created by the spillover effects of infrastructure will improve the performance of private investors in infrastructure investment.
As urbanisation increases, questions arise about the desirability of further urban growth, as it was not accompanied by corresponding economic growth, and social and environmental problems began to grow in the largest cities in the world. The objective of the article is to substantiate the limits of urbanization growth in Kazakhstan based on the study of theoretical views on this process, analysis of the dependence of social and economic parameters of 134 countries on the urbanisation level and calculation of the urbanisation level that contributes most to economic growth and social well-being. To achieve the goal, the following tasks have been set and solved: theoretical views on the process of urbanization have been generalized; a hypothesis has been put forward about the emergence of an “urbanization trap” in which the growth of large cities is not accompanied by economic growth and improvement of social well-being; an analysis of the dependence of socio-economic indicators on the level of urbanization has been carried out on the example of 134 countries of the world; the level of urbanization that maximizes economic growth and social well-being is calculated; the necessity of the development of small towns in Kazakhstan is substantiated. To solve the problems, the methods of logical analysis, analogies and generalizations, economic statistics, index, graphical, Pearson correlation analysis, Spearman and Kendall rank regression based on models in SPSS were used. As a result, the following conclusions are made: the hypothesis of a possible deterioration of socio-economic indicators in large cities is confirmed; the best positive result is demonstrated by the level of urbanization of 50%–59%. The recommendations are justified: in Kazakhstan, it is necessary to adhere to the level of urbanization no higher than 59%; the growth of urbanization should be ensured through the development of small towns; it is necessary to improve the methods of managing the process of urbanization and develop individual city plans.
The use of saline water in agriculture is a viable alternative, considering the increased demand for fresh water. The objective of this study was to evaluate the growth and phytomass production of sugar beet under irrigation with water of different saline concentrations in a field experiment on the campus of the Federal University of Alagoas in Arapiraca. The treatments were five levels of electrical conductivity (1.0, 2.0, 3.0, 4.0 and 5.0 dS m-1). The design was in randomized blocks, with four repetitions. The maximum yield of sugar beet at 27 days after the application of saline treatments was obtained with a salinity of 3.0 dS m-1, for the variables plant height (PA), stem diameter (CD), root length (RC), aboveground dry phytomass (FSPA) and total dry phytomass (FST). At 42 days after the application of saline treatments, the variables aboveground fresh phytomass (FFPA), root fresh phytomass (FFR), total fresh phytomass (FFT), aboveground dry phytomass (FSPA) and total dry phytomass (FST) increased with increasing water salinity. Rain may have influenced the results obtained for the evaluations, performed at 42 days after the application of the saline treatments.
Humic substances are used in agriculture as promoters of plant growth, especially of the root system. The objective of the work was to evaluate the effect of the application of different doses of fulvic acid on the growth and productivity of American lettuce, Raider Plus cultivar. The experimental design used was entirely randomized, with five treatments of fulvic acid 0, 1, 2, 4, 8 mL·L-1 and four repetitions, applied at the time of transplanting. Two experiments were conducted simultaneously: one in the greenhouse, where fresh and dry mass of the aboveground and root parts, length and volume of the roots were evaluated; and the other in the field, where, at the end of the cycle, fresh and dry mass of the aboveground parts, number of leaves, stem length and average head circumference were evaluated. The application of different doses of fulvic acid promoted the growth of lettuce plants, especially the root system. The emission of roots, with predominance, of those of smaller diameter, was found in the higher concentrations of fulvic acid. The number of leaves and the average circumference of the head expressed responses in the concentrations of fulvic acid.
To analyze the effect of an increase in the quantity or quality of public investment on growth, this paper extends the World Bank’s Long-Term Growth Model (LTGM), by separating the total capital stock into public and private portions, with the former adjusted for its quality. The paper presents the LTGM public capital extension and accompanying freely downloadable Excel-based tool. It also constructs a new infrastructure efficiency index, by combining quality indicators for power, roads, and water as a cardinal measure of the quality of public capital in each country. In the model, public investment generates a larger boost to growth if existing stocks of public capital are low, or if public capital is particularly important in the production function. Through the lens of the model and utilizing newly-collated cross-country data, the paper presents three stylized facts and some related policy implications. First, the measured public capital stock is roughly constant as a share of gross domestic product (GDP) across income groups, which implies that the returns to new public investment, and its effect on growth, are roughly constant across development levels. Second, developing countries are relatively short of private capital, which means that private investment provides the largest boost to growth in low-income countries. Third, low-income countries have the lowest quality of public capital and the lowest efficient public capital stock as a share of GDP. Although this does not affect the returns to public investment, it means that improving the efficiency of public investment has a sizable effect on growth in low-income countries. Quantitatively, a permanent 1 ppt GDP increase in public investment boosts growth by around 0.1–0.2 ppts over the following few years (depending on the parameters), with the effect declining over time.
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