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This paper aims to analyze the effectiveness of aid in stimulating investment using different measures of aid and up-to-date panel time-series techniques. This study controls for endogeneity by using dynamic ordinary least squares (DOLS) and minimizes the risk of running a spurious long-run relationship by using series that are cointegrated. This paper finds evidence that aid promotes investment in countries with good institutional quality and gain interesting insights on the influence of country characteristics and the amount of aid received. Aid is ineffective in countries with unfavorable country characteristics such as a colonial past, being landlocked and with large distances to markets. Aid can boost investment in regions that receive high (above-median) amounts of aid such as Africa and the Middle East but not in regions that receive low amounts of aid. Investment-targeted aid is effective but non-investment-related aid can also enhance investment.

Regressions on the aid-investment nexus are based on either a rather simple (115 countries) or an extended/augmented investment model (91 countries). The data covers the period of 1973–2011 and 1985–2011 if the institutional quality is included. This study estimates the relationship between aid and investment by applying the DOLS/dynamic feasible generalized least squares technique which is based on a long-run relationship of the regression variables (cointegration). In this framework, this paper incorporates country-fixed effects, control for endogeneity, autocorrelation and take heteroscedasticity and cross-country correlation of the residuals into account.

This study finds empirical evidence that aid promotes investment in countries with good institutional quality and gain interesting insights on the role played by country characteristics and the amount of aid received. Aid is ineffective in countries with unfavorable country characteristics such as the colonial past, being landlocked, distant from markets. Aid can boost investment in regions that receive high (above-median) amounts of aid such as Africa and the Middle East. Investment-targeted aid is effective but non-investment-related aid also able to enhance investment.

The study looks at the investment to gross domestic product (GDP) ratio (including domestic investment and foreign direct investment (FDI)) and, hence does not disentangle these factors. It looks at the net effect (positive and negative impact together) and, therefore does not allow to identify the direct crowding out the impact of aid. Of course, if this paper finds that aid has a negative impact on investment, it is clear that aid must have crowded out either domestic investment or FDI or both.

The authors think that it is relevant to have identified the circumstances and settings in which foreign aid can be particularly effective and in which foreign aid needs accompanying measures that improve the effectiveness of aid. Also, it is relevant that the relative amount of aid received (aid-to-GDP ratio) must be quite high so that aid can increase investment.

This study sees that the least developed, low-income countries and (in terms of regions) the sub-Saharan Africa countries benefit from aid. This is very desirable. This paper further sees that higher relative amounts of aid do help more and that it is helpful to care about a better institutional quality in developing countries. Hence, this study provides some support for the desirability of aid.

The paper was done very diligently, and this study is very confident that the results are robust. This paper is also confident that this study has studied the long-run (which is of special importance) nexus between aid and investment. The estimation technique used is original, as it combines regular DOLS with corrections for autocorrelation and cross-section dependence.

The nexus between sustainable agri-food production and food security outcomes of farm households in sub-Saharan Africa is attracting policy attention. This study analyzes the effects of crop diversity on the incidence of food scarcity, dietary diversity, and the sale and consumption of own crops.

The study uses panel data collected in 2015 and 2018 on a randomly selected sample of 2553 households from 49 villages in northern Ghana. The study employed a fixed effects modeling approach in the empirical analysis.

The study finds that crop diversity is positively associated with better dietary diversity, reduced hunger, lower food expenditure, and higher consumption of own produce. The results show positive effects of crop diversity on the total harvested output and sale of agricultural production. Whilst sales improved sustainable food and nutrition security by providing purchasing power to buy nutritional inputs in the market, consumption of own produce rather improved food availability by reducing food scarcity and malnutrition.

Crop diversity is one of the pathways for promoting sustainable agri-food production systems to ensure the food and nutritional security of vulnerable populations and promote biodiversity to achieve environmental goals in sub-Saharan Africa. Crop diversity reduces food expenditure and raises rural incomes through improved outputs and sales, which empowers farm households to diversify their dietary options to be able to overcome incidences of hunger and malnutrition in periods of food scarcity.

The present study improves the understanding of sustainable agri-food production through crop diversity and its implications on food and nutrition security outcomes. The panel data and fixed effects modelling approach address the endogeneity problem between crop diversity and household tastes and preferences.

Business Model Analysis is acquiring increasing visibility in the European banking regulatory framework, following the European Banking Authority guidelines on common procedures and methodologies for the supervisory review and evaluation process (SREP), developed to assess business and strategic risks (EBA, 2014, 2015a, 2015b, 2015c). Starting from a selected literature review, in the paper, the authors analyse business models set up by financial intermediaries, bank and non-banks, for the distribution of investment services, first by comparing European niche players with European banking global players, and second, comparing European niche players among themselves to understand the evolution of business models for the distribution of investment services at European level. The research is supported by the Baffi–Carefin Research Centre at the Bocconi University (Italy), in collaboration with ANASF, the Italian Association of Financial Advisors (Italy).

The authors consider a sample of European financial players from 2009 to 2014. The authors’ focus is on France, Germany, Italy, The Netherlands, Spain and the UK; overall the authors’ handmade data set is based on 162 annual reports. The authors follow two main questions: Do the niche players, as they are focused on the distribution of investment services, have an upper limit to profitability, compared to the global players, as risk-takers in many financial areas? How is the business model of niche players changing, facing increasing competition and regulatory pressures?

Answering the first research question, the highest net profitability is found in the niche players group; the global players, as risk-takers, achieve lower remuneration, in contrast with the risk premium theory. The results were assessed over a limited period, however, deemed in line with the company’s strategic planning horizon. Answering the second research question, the authors focus on the case of niche players, using a cluster analysis. The authors identify three different business models: most dynamic niche players, which combine investment services, insurance and welfare services, achieving the highest margins and stability; players mainly focused on asset management, whose key vulnerability is the degree of open architecture, especially in light of future MiFID 2 implementation; and players mainly focused on the creation of well-structured on-line platforms, which offer also brokerage services, thereby reducing their marginality and potentially increasing their business risk.

Despite the limited time series, the authors’ research gives some inputs for those interested in deepening the business model analysis focus on the distribution of investment services and the business and strategic risk assessment, both for the global banks and the niche players (banks and non-banks).

The authors’ results could be of some interest during the strategic assessment of global banks and niche players, both adopting an internal perspective or an external one, as regulator.

By giving some specific insights into the assessment and comparison of business and strategic risks among global and niche players, the authors’ research provides the basis for further research in the field of the distribution of investment services.

The originality mainly regards the business model risk perspective and the focus of the authors’ analysis: the distribution of investment services. This sector, unlike the asset management, does not have an easily recognisable group of comparables at European level, all the European countries analysed have very different business models. This research avails of an original database, that is unique to Europe.

This chapter elaborates on entrepreneurship in developed and developing countries and focuses on the optimization of entrepreneurial activities. Various scenarios are considered: independent functioning of the market, integration in the form of reorganization (mergers and acquisitions), integration in the form of clustering, and integration in the form of innovational networks and technological parks. The optimal structure of the integration processes and best-case scenarios for its implementation to accelerate the rate and increase the quality of economic growth are substantiated. The potential for uptake of integration processes in stimulating economic growth through entrepreneurship is determined by the level of institutionalization in an economy. In developed countries, all forms of company integration are characterized by the high level of institutionalization, which allows for their effective use for economic growth. Independent companies, mergers, and acquisitions restrain economic growth and reduce its quality, while clusters, technological parks, and innovational networks accelerate the rate of economic growth and increase its quality. In developing countries, integration processes in entrepreneurship have a different influence on economic growth and require further institutionalization.

The purpose of this paper is to analyze the changes in higher education under the new configuration of resources based on the income structure of universities located in the Central Federal District (CFD). Particular focus is given to the changes in the structure of public financing of higher education, considering the explicit priorities of increasing teaching staff salaries and promoting research. The study also assesses regional differentiation in financial resources for the maintenance of university property and the accumulation of funds from extra-budgetary sources.

Using statistical and economic analysis methods, the research reveals the main trends of structural changes in public funding of higher education in Russia as a whole, and the regional peculiarities of financial support in the universities of the CFD.

The results of this investigation of universities in the CFD point to inertia in the development of universities in the regions, and problems transitioning to new business models. Groups of universities in the region often lobby for the “previous rules of the game.” The results evidence a change in financial support from different income sources and in cost structures at the university level. These are the result of higher education reform and university support programs aimed at enhancing the academic and research capacity of the leading Russian universities and developing a competitive national education system.

A costs optimization policy has led to polarization of universities and reduced development opportunities for a significant proportion of regional universities. In order to maintain their properties in good condition, they have to make active efforts to seek non-budgetary funding sources against a fall in effective demand from the population.

The study aims to study the socio-economic features of the impact of the COVID-19 pandemic on the economic systems of the OECD countries, as well as to analyze the measures taken by states for their subsequent adaptation in the economies affected by the crisis. The authors identified the OECD countries with the highest number of cases of coronavirus, which demonstrated positive dynamics of socio-economic indicators after a significant recession due to the pandemic (USA, France, Germany, Italy, Great Britain, Spain). The article analyzes the dynamics of key socio-economic indicators that characterize the development of the OECD countries under study in 2020 compared to the same period in 2019 (unemployment rate, inflation rate, gross national savings, exports and imports of goods and services). The measures implemented by states to stabilize economic activity and maintain social well-being during the pandemic are studied. The authors concluded that the economic and social measures taken by the OECD countries under study are common and that the results of their implementation differ significantly. It is proved that Germany is the country that has most successfully implemented a package of anti-crisis measures based on an effective monetary policy and direct state support for the real sector, which allowed it to maintain the volume of export–import operations and gross savings at the pre-crisis level, prevent an inflationary jump in the country and not exacerbate the problems with increasing unemployment. Germany's experience in creating a basis for overcoming the global economic crisis can be adapted to the conditions of the countries most affected by the pandemic.

The purpose of this paper is to examine the section of the Jumpstart Our Business Startups (JOBS) Act related to information dissemination by sell-side security analysts. The paper analyzes how the abolishment of the quiet period requirements for emerging growth companies (EGCs) changes the analyst initiation timing and market expectation of and reaction to the issuance of the analyst recommendations.

This paper considers the effect of the abolishment of the quiet period requirements on analyst coverage initiations for EGCs with IPOs between January 2006 and December 2015 using regression analyses and probability models.

The results confirm the current anecdotal and empirical evidence that a shorter, de facto, quiet period exists. Analyst issue stronger average ratings for EGCs than for similar firms with IPOs before the JOBS Act. EGCs with initiations from multiple analysts also experience stronger positive market reaction than the firms with initial offerings before the JOBS Act. The market seems to anticipate which EGCs will have initiations and particularly which EGCs will have initiations from multiple analysts. The investors, however, do not fully anticipate the strength of actual recommendations.

This paper is important for researchers, practitioners and policy-makers to understand how analysts impact the financial markets, how timing of analyst initiations affects stock prices of EGCs and what firm characteristics play a role in securing analyst coverage shortly after initial offerings.

This paper adds to the emerging literature on consequences of and changes brought by the JOBS Act. Specifically, this paper extends the limited literature on analyst initiations issued for firms with IPOs following the JOBS Act, timing of those initiations and magnitude of the market’s response to the initiations.

Alice Handy, an investment professional with 30 years' experience as head of the University of Virginia Investment Management Company, has opened a new asset management firm targeted at midsize endowments and nonprofit institutions in January 2004. Her business, Investure, LLC, offered outsourced investment services to institutions with $150 million to $1 billion in assets and access to top-performing managers at lower cost than a fund of funds (FoF). Smith College, a prestigious liberal arts college with a nearly $1 billion endowment, is interested in increasing its current allocation to private equity. Handy and her partner are preparing to meet with Smith's trustees in an attempt to win Smith College as Investure's first client. The case presents three different approaches to private equity investing: direct investment through a traditional limited partnership, investment through a FoF, or investment through Investure's outsourced model. The class discussion presents an opportunity to evaluate advantages and shortcomings of each approach, introduce key terminology, and discuss the current trends in the private equity market. Students are given the cash inflows and outflows for a representative investment in a venture capital fund of the type Handy hopes to invest in on behalf of Smith College. The main analytical task requires students to evaluate the expected gross and net returns generated by the representative investment under each of the different approaches and fee structures.

This case was written for an early class in courses on entrepreneurial finance, venture capital, or private equity. It can also be used in specialized courses for fund trustees interested in alternative assets.

The purpose of the paper is to develop a risk-oriented approach to managing the social market economy.

The first task is to determine the differences in susceptibility to the risk of the social market economy as compared to “pure” market economy. The authors use comparative analysis, variation analysis and correlation analysis for determining the dependence between quality of life in 2020 and variation of quality of life in 2012–2020, as well as variation of gross domestic product per capita in 2012–2020. The second task is to determine the perspectives of risk management of the social market economy in view of the specifics of the risk component of its functioning and development. Regression analysis is used for determining the dependence of quality of life in top ten countries with the social market economy in 2020 in the key risk factors that are peculiar for market economy and that lead to its destabilization: globalization, innovations and digitization.

It is substantiated that the unique economic and social environment predetermines the specific influence of the factors that are peculiar for the modern market economy. It is proved – by the example of top ten social market economies in 2020 – that social factors are more important for provision of stability of the social market economy than economic factors.

A risk-oriented approach to managing the social market economy is developed; it takes into account the specifics of the risk component of its functioning and development. The offered approach showed that the social market economy requires indirect regulation of risks through correction of institutions.

Globalization has been an important factor in many parts of the world economically in the last century. To see this effect numerically, the globalization index is used and it contains many variables in itself. One of these variables consists of R&D concepts. At the same time, while intellectual property, which is an important element of the world economy, plays a major role in the rapidly globalizing world, the patent structure, which is the most concrete usage area of intellectual property, also shows its effect on globalization day by day.

The purpose of this study is to evaluate the debate about whether R&D expenditures handled by the public are more efficient within the framework of comparative data analysis. The revised version of the patent and R&D analysis can be regarded as a composite index that measures economic, intellectual property and social dimensions as well as globalization for every country in the world. For this, Turkey and Germany in 2008–2018 the share of annual government expenditure, we use the total expenditure and GDP figures for R&D. Research and development expenditures made by the public sector are accepted to include the patent institutions and expenditures made by the public. At the same time, this index in Germany and made by the state exactly how much of their R&D spending gap between Turkey is to show that globalization is connected.