Search results

The primary objective of the present study is to figure out the relative effectiveness of alternate public expenditure with regard to agricultural development particularly in the context of input subsidies vis-a-vis investment. Besides, the authors also endeavour to test the applicability of crowding-out hypothesis in the present context.

Initially, unit root tests are applied for checking stationarity of the underlying data using Augmented Dickey-Fuller (ADF) and Kwiatkowski–Phillips–Schmidt–Shin (KPSS) tests. Further, the highly celebrated autoregressive distributive lag (ARDL) model is applied on annual time series data for the period 1991–2020 to investigate the long-run and short-run impact of the said relationship.

The authors observe that public investment is more productive than input subsidies for overall agricultural development. Besides, the findings document the existence of crowding-in hypothesis, i.e. complementarity between public investment and private investment in case of the agricultural sector in India.

The outcome of the research recommends to reprioritize state expenditure and reformulate agricultural policy regarding the public financing of agriculture. More to invest and less to subsidize seems a better policy intervention to achieve desirable outcomes from the Indian agriculture in the long run.

This study is novel in the sense that the subsidies vs investment debate is revisited in the current scenario of agricultural development so that resource allocation be optimized. To ensure robustness of the study, the authors specifically took four proxies of agricultural development, namely, productivity growth, private investment, food security and farmers’ income.

The purpose of this paper is to analyze the recently enacted Regulation (EU) 2022/2560 of the European Parliament and of the Council of December 14, 2022, on foreign subsidies distorting the internal market (foreign subsidies regulation [FSR]) and its repercussions on the European Union (EU) public procurement marketplace and corporations from third countries. The purpose of this paper is to analyze the geopolitical and economic backgrounds for the Regulation and its efficiency.

In this study, the authors used doctrinal and analytical legal methodologies, meticulously examining pertinent EU law sources. The authors systematically collated and scrutinized applicable literature and legislative process materials to discern the essence and substance of the norms enshrined in the law. In this study, the authors also applied a socio-legal methodology when focusing on the economic and geopolitical context surrounding the adoption of the FSR. The contextual analysis traces the evolution of changes in international cooperation and recent political shifts.

Implementing the FSR should pave the way for a more equitable competitive landscape within the EU public procurement market, bolstering EU values. However, its potential to prolong public procurement procedures and create uncertainties regarding their outcomes could pose challenges, possibly affecting the effectiveness of public procurement regulations. Only time will reveal the extent of the EU’s interventionist approach and how necessary adjustments must be made to align with market demands.

This study highlights socially relevant aspects of the implementation of EU policies – European New Green Deal and European Industrial Policy in the context of public procurement. The analysis contained in this study concerns issues directly related to meeting the collective needs of the citizens.

To the best of the authors’ knowledge, this study is the first in-depth analysis of the solutions contained in the FSR in terms of geopolitical and economic aspects. Furthermore, there have been no studies so far, which have analyzed the FSR in detail from the point of view of its effectiveness. The effectiveness concept contained in this study is the authors’ own solution.

This study aims to develop a Stackelberg Game Model for seeking the optimal subsidy plans with varying levels of government financial capability (GFC). Furthermore, the scenario-based analysis is conducted and will enable governments to identify a comprehensive subsidy plan as follows: improve project performance and optimise social welfare.

A Stackelberg Game Model is developed to optimise the effectiveness of subsidies on the performance of public-private partnerships (PPPs).

According to the scenarios that are generated from the model, governments that are confronting with limited public budgets could reduce the intensity of performance incentives and increase the participation-oriented subsidy. Whilst a participation-oriented subsidy can stimulate private organisations’ willingness to participate in infrastructure PPPs, a performance-oriented subsidy is capable of facilitating the projects’ performances. Intuitively, the performance-oriented subsidy enables the private entities of PPPs to improve their efforts on the projects to realise higher profits. However, the participation-oriented subsidy is unable to affect the level of their effort spent on the projects. To satisfy both parties’ expectations in a PPP, the performance-oriented subsidy needs to be prioritised for a purpose of enabling higher quality outputs.

The game model developed in this study contributes to the literature by offering new insight into the underlying mechanism of governments and private entities, in terms of their decision-making for subsidy planning and contributions (i.e. resource allocation and spending) during the life-cycle of PPPs. This research enriches the government subsidy model by revealing the effects of the GFC and clarifies the impacts of two different schemes of subsidy on the performance of PPPs.

The government has been conventionally viewed as being omnipotent to provide PPPs with a wide range of subsidies. However, the subsidies are not unlimited, due to GFC. In addressing this void, this study has modelled the impacts of government subsidy plans with a consideration of GFC-related constraints. The combined effects of the participation- and performance-oriented subsidies on the project performance of PPPs have been examined.

The study examines the impacts of debt financing on infrastructure development, investment, creation of new business entities, subsidies to private sector and GDP growth.

The methodology is based on five simultaneous equations which have been estimated through panel least square.

The most important conclusion of this study is the significant role of sovereign bonds in determination of subsidies to private sector. The role of domestic credit is important in South Asian context because of its significant role in creation of new businesses.

This study supports the enhancement in credit financing to private sector for creation of new business activities in the economy.

The improvement in liquidity position by enhancing domestic credit facilities may ensure the sustainability and continuity of business activities. Such activities may improve GDP growth in future.

The most important aspect of the study is to identify the role of debt financing in subsidies and creation of new businesses which are important elements of social economics.

Usually the impacts of sovereign bonds and external debts on infrastructure development and GDP growth are examined. But, to relate these debts to creation of business entities and subsidies is a new dimension.

Emotions, understood as evolving mental states, are pivotal in shaping individuals“' decision-making, especially in ambiguous information evaluation, probability estimation of events, and causality analysis. Public–private partnership (PPP) projects represent a confluence of “economic–environmental–social” dimensions, wherein stakeholder behavior follows the sequential progression of “cognition–emotion–action.” Consequently, comprehending the effects of emotional shifts on stakeholder's decision-making processes is vital to fostering the sustainability of PPP projects.

The paper utilizes rank-dependent expected utility and evolutionary game theory to systematically examine the influence of emotional factors on stakeholders' behavior and decision-making processes within PPP projects. The paper integrates three emotional state functions—optimism, pessimism and rationality—into the PPP framework, highlighting the intricate interactions among the government, private sector, surrounding public and the media. Furthermore, the paper amalgamates the evolutionary pathways of environmental rights incidents with the media's role. Through equilibrium analysis and numerical simulation, the paper delves into the diverse interplay of emotions across different phases of the environmental rights incident, assessing the impact of these emotions on the evolutionary game's equilibrium results.

Emotions significantly influence the microlevel decisions of PPP stakeholders, adapting continually based on event dynamics and media influences. When the private sector demonstrates optimism and the surrounding public leans toward rationality or pessimism, the likelihood of the private sector engaging in speculative behavior escalates, while the surrounding public refrains from adopting a supervisory strategy. Conversely, when the private sector is pessimistic and the public is optimistic, the system fails to evolve a stable strategy. However, when government regulation intensifies, the private sector opts for a nonspeculative strategy, and the surrounding public adopts a supervisory strategy. Under these conditions, the system attains a relatively optimal state of equilibrium.

The paper develops a game model to examine the evolutionary dynamics between the surrounding public and private sectors concerning environmental rights protection in waste incineration PPP projects. It illuminates the nature of the conflicting interests among project participants, delves into the impact of emotional factors on their decision-making processes and offers crucial perspectives for the governance of such partnerships. Furthermore, this paper provides substantive recommendations for emotional oversight to enhance governance efficacy.

After completion of the case study, the students will be able to gain knowledge on public–private partnerships (PPPs) in emerging markets; understand how to apply the sensing element of the dynamic capabilities framework in analysing context, especially in emerging market context; and understand how to apply the dynamic capabilities framework to the process of developing brand equity.

On 20 March 2020, in Johannesburg South Africa, Dr Barbara Jensen Vorster, the head of corporate communications and marketing at the Gautrain Management Agency, was considering her dilemma of how to manage stakeholders at a time when the patronage guarantee was under question. The nature of the Gautrain PPP transport contract entailed a revenue guarantee that was called a patronage guarantee. How did they build their Gautrain brand equity during the Gautrain PPP patronage guarantee controversy? This case study highlights the perspectives of multiple stakeholders which places the Gautrain brand equity under strain. The Gautrain brand identity was created to project an integrated, overarching brand position for the construction project and later the operating company. The logo illustrated Africanisation, and the slogan “For People on the Move” represented a modern collaborative approach. Upholding the status of the brand is an important quest for the corporate communications and marketing team, and therefore the issue around the patronage guarantee must be addressed. This case study illustrates contrasting views about the Gautrain being elitist versus the rapid rail train enabling economic prosperity. The pro-prosperity versus pro-economic development values were at the heart of the different opinions around the patronage guarantee. Students are therefore confronted with their own values while the case study aims to drive an awareness or consciousness around these issues in an emerging market.

This case study is appropriate for advanced undergraduate and Master of Business Administration courses focused on marketing, communications and/or stakeholder management, such as in business and society courses. At both levels, the case study will be valuable in generating discussion on communications models and how to manage stakeholders ranging from government to community representatives. In courses where dynamic capabilities theory is taught, this case study will offer a specific application of this model in the context of brand communications and building brand equity in times of controversy.

Teaching notes are available for educators only.

CSS 3: Entrepreneurship.

France is the third country in Europe after Italy and Spain for the number of employee-owned firms, with some 2,600 worker cooperatives (SCOPs). The authors propose a comprehensive review of SCOPs and any barriers to their expansion.

The authors analyse relevant legislation; review the rich empirical economic literature on SCOPs; and offer new descriptive empirical evidence comparing SCOPs and other French firms.

SCOPs benefit from a consistent legal framework and a well-structured and supportive cooperative movement. Cooperative laws allow attracting external capital, provide barriers against degeneration and encourage profit allocations that favour investment and labour. SCOPs are distributed across a wide range of industries; are larger than conventional firms, as capital intensive, more productive and survive better. Despite this good performance their number remains modest, perhaps because of information barriers.

An examination of the Italian and Spanish experiences and the relationship between SCOPs and the French labour movement might contribute to explaining the modest number of SCOPs.

The first comprehensive review of French worker cooperatives in four decades and the first with extensive comparative data on SCOPs and conventional French firms. With some of the best data on worker cooperatives in the world, findings have international relevance.

The aim of this research is to understand how government incentives (financial and non-financial) influence the relationship between green innovation and Sustainable Development Goals (SDGs) in SMEs.

To contribute to the literature, this research uses empirical evidence of 204 Pakistani small and medium-sized enterprises (SMEs) and tests the moderating role of government support between green innovation and SDGs.

The findings indicate that green innovation has a significant influence on SDGs, community development and environmental activities. The government support significantly strengthens the relationship between green innovation and environmental practices, while it does not moderate the path between green innovation and community development.

The research recommends SMEs focus on the adoption of green innovation and green technology to protect the environment and facilitate the community. Moreover, the research advises the government to assist SMEs financially and nonfinancially, so they will in turn help in the attainment of SDGs.

This research is the first attempt to assess the importance of green innovation in SDGs with a moderating role of government incentives in emerging SMEs. It provides several useful implications for policymaking.

This paper aims to review the existing practices of public–private partnerships (PPPs) in the building sectors in European countries, to be able to assess its suitability for housing provision while focussing on the social impact.

Based on the sectoral spread of PPP, nine European countries were included in this study. Formative evaluation is used to structure the review based on four key attributes of PPPs to develop a comprehensive understanding of the existing PPP procedures and guidelines amongst these countries. Data were gathered through public and governmental reports, consultant reports, country guidelines, standards and procedures, and cases, in order to identify the prevalent practices and trends in these countries.

The review identified the need to calibrate the PPP approach towards other stakeholders, particularly the end-users. It further highlighted the need to focus on social integration and social sustainability and establish set procedures for PPPs in housing to create a credible and trustworthy environment for the investors. Joint support from private and public partners and community participation has a diverse impact on the success of PPP in housing.

This review shall enable governments, industry and stakeholders to make provisions and policies for overcoming the challenges identified with regard to PPPs and pave the way for its application in the housing sector ensuring a positive social impact.

This review shall facilitate greater involvement of end-users and enhancing social integration in housing through PPP, and pave the way towards creating cohesive communities by focussing on the concept of togetherness and social sustainability.

This study provides a holistic summation of the prevalent PPP practices and broadens the adaptations for the housing sector. The novelty of this paper specifically lies in learning from PPP practices across other building sectors for adapting its utilisation for housing and thereby extending the state of art for PPP housing.

The article investigates whether variety of democracy affects the probability to employ public subsidies for credit support by small- and medium-sized enterprises (SMEs) led by female entrepreneurs.

Building on the literature on democracy and on gender differences, it leverages a large firm- and country-level dataset (SAFE) of 31 democracies in Europe (EU and non-EU) over the 2009–2014 period by using probit models and instrumental variable approaches.

Results from the different econometric techniques and samples suggest that variety of democracy affects female-led SMEs in using public subsidies for credit support. The evidence is robust to endogeneity concerns.

The empirical evidence presents a time frame limitation. At the same time, SAFE is the only database that supplies information about the gender of firms and public subsidies for credit support, rendering it the only resource that allows the test of the hypothesis proposed. The article therefore offers insights for scholars to revisit our results in future studies that make use of datasets with a longer time span – when they will become available.

To the best of the authors' knowledge, the article is the first to study the effect of democracy on female entrepreneurial behavior in the use of public subsidies for credit support.