Academic literature on the topic 'Numbers of fixed capital investment'

In general business activities, fixed asset investment capital, long-term investment, capital put into business operation yearly, and the number of enterprises which are operating in the industry that they are major influence on the business development. The objective of this paper is to measure the impact of these factors to the development of logistics transport industry, the case in Ho Chi Minh, Vietnam (HCM). The main findings are (1) While total number of enterprises and fixed assets & long-term investment capital impact, total capital for yearly business operation does not impact on goods productivity which calculates on labour. (2) While total number of enterprises and total capital for yearly business operation impact, fixed assets & long-term investment capital does not impact on passenger productivity which calculates on labour. (3) While total number of enterprises and fixed assets & long-term investment capital impact, total capital for yearly business operation does not impact on goods productivity which calculates on total capital. (4) While total number of enterprises and fixed assets & long-term investment capital impact, total capital for yearly business operation does not impact on passenger productivity which calculates on total capital. (5) total number of enterprises, total capital for yearly business operation and fixedassets & long-term investment capital impact on Gross domestic products.

In general business activities, fixed asset investment capital, long-term investment, capital put into business operation yearly, and the number of enterprises which are operating in the industry that they are major influence on the business development. The objective of this paper is to measure the impact of these factors to the development of logistics transport industry, the case in Ho Chi Minh, Vietnam (HCM). The main findings are (1) While total number of enterprises and fixed assets & long-term investment capital impact, total capital for yearly business operation does not impact on goods productivity which calculates on labour. (2) While total number of enterprises and total capital for yearly business operation impact, fixed assets & long-term investment capital does not impact on passenger productivity which calculates on labour. (3) While total number of enterprises and fixed assets & long-term investment capital impact, total capital for yearly business operation does not impact on goods productivity which calculates on total capital. (4) While total number of enterprises and fixed assets & long-term investment capital impact, total capital for yearly business operation does not impact on passenger productivity which calculates on total capital. (5) total number of enterprises, total capital for yearly business operation and fixedassets & long-term investment capital impact on Gross domestic products

Capital budgeting involves planning and controlling long-term and short-term investments in fixed assets. It requires investing cash now with the expectation of recovering it over more than a year. Evaluating these decisions means assessing the investment and its future cash flows, which come from added revenues, cost savings, or cost reductions. Most numbers used in these analyses are estimates. Capital investment decisions are crucial for organizations' strategic goals. This study explores the capital budgeting practices of MSMEs in Malawi by surveying ten manufacturing companies. Results show that 70.3% of these MSMEs use capital budgeting for short- and medium-term investments, often employing forecasting analyses, and some use cost-benefit analysis and executive decision-making. Most MSMEs struggle with capital budgeting due to limited knowledge, time constraints, and data issues. While 50.9% understand the "Decision Rule" in capital budgeting, 40% cite lack of knowledge as their biggest challenge, followed by time, manpower, and data availability. Capital budgeting in Malawian MSMEs is developing as they adapt to globalization's opportunities and challenges. It is therefore suggested that the Malawian government, non-governmental organizations, and business development providers should offer training in capital budgeting and proper business record-keeping to Malawian Micro, Small, and Medium Enterprises.

The aim of this research is to conduct a capital budgeting analysis of the feasibility of permanent activation investment at UD. Syam Jaya Jember Regency. The research variables to be analyzed are grouped into four variables, namely Payback period, Net present value, Profitability Index and Fixed Asset Investment. This research method is based on exploratory descriptive, with qualitative research using a case study approach. The data is in the form of quantitative data (numbers), but the approach uses qualitative analysis because this research will produce descriptive data. In accordance with the problems and objectives to be achieved in this research, it can be concluded from the calculation results that they are as follows: 1) The payback period for the old investment is 2 years 7 months, while the new investment produces a payback period of 1 year 10 months. And this is illustrates that new investments are more feasible because they have a faster return on investment than old investments. 2) The Net Present Value of the new investment is IDR 280,981,859 and the Net Present Value of the old investment is IDR 116,157,732, which means that if you look at the NPV value itself, the NPV of the new investment is greater than the NPV of the old investment . 3) The Profitability Index (PI) of the old investment is 1.2 and the Profitability Index of the new investment is 1.5. This implies that both investments generate profits for the company. So the new investment that the company will make is worthy of replacing the old investment.


 The decision and the conviction to keep the capital markets functioning amidst the uncertainty of COVID-19 lockdown, proved to be a game changer for the Indian economy. The robust systems put in place over decades and reinforced with measures to strengthen systemic integrity during COVID, revived the inherent trust in the Indian markets, especially at the retail level. The buoyant numbers of new trading and demat accounts opened, new investors in Mutual Funds etc. are a reflection of this trust. At a structural level, apart from decreasing dependence on FPI investments, the retail segment has witnessed a secular shift from savings to investment. Additionally, within investments, there is a shift from fixed income to equities. This deepening of the investor base has moved the Indian capital market to a higher orbit igniting a structural shift in the economy. 

Technical staff employment at fish farms is regulated by legislations and circulars in Turkey. However, it is frequently observed that those rules are not followed. This study deals with the resources of aquaculture production in Turkey and the actual employment situation in this area. Besides, current and ideal employees’ numbers were compared and current and ideal aquaculture engineers’ numbers in aquaculture industry were quoted. In this context, actual production, costs and fixed capital investment and sales over the last decade were assessed in relation to employment. The conclusion is that the employment problems related to the qualified workers will continue to increase in the coming years.

A mathematical model of micro-finance investment using profit-loss sharing scheme are made and implemented to simulated data. Here profits from the venture will be shared in a portion between the investor and the entity running the business. The scheme can be classified as Musharaka type of investment in Sharia economy. The proposed model is theoretically implemented with data from small-scale traders at a local traditional market who have small turnover. They are common target of usurers who lend money with high interest rate and penalties. If the traders are in unfortunate conditions, they are potentially in poorer condition than before committing themselves to the usurer. In the conventional practices of the profit sharing scheme, the investor will get a fixed portion of the trader’s income, which is applied for all kind of small-scale traders. If the traders are diligent and hard worker and have very high turnover, then the investor will gain much more profit whether the contributed capital is small or large. In this paper, the scheme is implemented using Semi-Fuzzy Logic Approach so that the profit-loss sharing scheme can achieve its intended goal, which is to make a profitable investment not only for the investor but also for traders. The approach is not fully using Fuzzy Logic because some variables are still in crisp numbers and the optimization problem is regular in the form of crisp numbers. Based on the existing data, the results show that the optimal profit share is depended on the income of the traders. The higher the income coming from the venture, the lesser the profit share for the investor which is reasonable with the fixed initial contributed capital. Keywords: Profit-Loss Sharing, Fuzzy logic, Musharaka, Optimization, Mathematical modelJEL Classification: C61, D60

В статье проведен корреляционно-регрессионный анализ факторов, влияющих на количество безработных на сельскохозяйственных территориях Российской Федерации за период 2023 года. Рассмотрены показатели, характеризующие уровень безработицы, занятость в сельском хозяйстве, инвестиции в основной капитал и производство сельскохозяйственной продукции. На основе корреляционно-регрессионного анализа установлено, что наибольшее влияние на количество безработных оказывают объемы инвестиций в основной капитал и производство сельскохозяйственной продукции. Результаты исследования могут быть использованы при разработке мер по снижению безработицы на сельскохозяйственных территориях и повышению эффективности сельскохозяйственного производства. The article contains a correlation and regression analysis of factors influencing the number of unemployed in the agricultural territories of the Russian Federation for the period of 2023. Indicators characterizing the level of unemployment, employment in agriculture, investment in fixed capital and agricultural production are considered. Based on correlation and regression analysis, it was established that the volume of investment in fixed capital and agricultural production has the greatest impact on the number of unemployed. The results of the study can be used in developing measures to reduce unemployment in agricultural areas and increase the efficiency of agricultural production.

This paper utilizes the production function model as analysis model, selects gross product of construction industry of China as output (Q), the sum of fixed assets and current assets of construction industry of China as capital input (K), and the numbers of construction workers of China as labor input (L). The comparable prices of ‘Q’ and ‘K’ from 1993-2009 are calculated by using the deflator index of gross domestic product and the price indices of investment in fixed assets, and the base year is 1991. The result of regression analysis shows the labor elasticity factor is 0.42 by using the software of ‘EVIEWS’, then the contribution rate of construction workers is calculated as 33.2%, and the sharing rate of construction economic gain is 15.69%. Comparing with the contribution of the construction workers, their sharing is less. This paper also finds the construction industry of China is the period of decreasing return to scale, this demonstrates the management level of construction industry shall be improved.

An important strategic task of the region's development is to create a favorable investment environment, its implementation depends on socio-economic dynamics, the efficiency of involvement in the international division of labor, and the possibilities of modernizing the regional economy on an innovative basis. In general, investment attractiveness can be defined as a set of objective and subjective conditions that facilitate or hinder the investment process of the national economy at the macro, meso, and micro levels.

The theme of this thesis is to analyze the development of the investment cycle in the Czech Republic in the years 2000-2012 and clarify the impact of defined development determinants of the investment. In the thesis, the investment environment in, which investors make decisions, is described and which the economic policy of the state affects. After the contribution analysis of individual growth components of GDP, the following statistically oriented section examines the level of investment, investment determinants and their mutual connection with GFCF. The work also contains an alternative view on the investment in the production sector, with the help of G. Reisman's GDR indicator. Finally, there are introduced others, not so well quantifiable factors that may also influence the formation and development of the investment cycle.

Submitted by Renata Lopes (renatasil82@gmail.com) on 2016-09-09T13:45:42Z No. of bitstreams: 1 claudiamariagomesdefigueiredo.pdf: 1164525 bytes, checksum: 722454798723fa2707ca1d6da51dd599 (MD5)<br>Approved for entry into archive by Diamantino Mayra (mayra.diamantino@ufjf.edu.br) on 2016-09-13T14:24:43Z (GMT) No. of bitstreams: 1 claudiamariagomesdefigueiredo.pdf: 1164525 bytes, checksum: 722454798723fa2707ca1d6da51dd599 (MD5)<br>Made available in DSpace on 2016-09-13T14:24:43Z (GMT). No. of bitstreams: 1 claudiamariagomesdefigueiredo.pdf: 1164525 bytes, checksum: 722454798723fa2707ca1d6da51dd599 (MD5) Previous issue date: 2011-12-13<br>CAPES - Coordenação de Aperfeiçoamento de Pessoal de Nível Superior<br>O objetivo desta dissertação é examinar os fatores que influenciam a qualidade da educação fundamental no Brasil, com destaque para os gastos públicos com educação e para o programa de transferência de renda Bolsa Família (BF). Tendo em vista as disparidades econômicas e sociais do Brasil e a importância do capital humano para o crescimento e desenvolvimento do país, analisar a qualidade da educação fundamental torna-se relevante. Tendo em vista o recente aumento das matrículas decorrente do BF, este processo deveria estar acompanhado por melhorias na qualidade da educação. Com uma boa qualidade educacional, os alunos poderão aumentar seu capital humano e contribuir para o desenvolvimento econômico e social ao retirar suas famílias da pobreza de maneira sustentável. Neste sentido, este trabalho é composto por dois ensaios que buscam examinar se os recursos do BF e dos gastos públicos em educação destinados aos municípios estão sendo acompanhados por melhorias na qualidade da educação fundamental no Brasil. As hipóteses a serem testadas nestes ensaios são: 1) os municípios com elevados recursos alocados pelo BF são acompanhados por notas mais baixas na Prova Brasil (PB); 2) os municípios caracterizados por maiores proficiências na PB deveriam receber maiores gastos do governo com educação fundamental; 3) os gastos públicos com educação e com o programa BF apresentam, respectivamente, uma relação positiva e negativa com a qualidade da educação nas escolas públicas brasileiras; e 4) os resultados podem ser alterados ao se examinar efeitos específicos das escolas ao invés de efeitos específicos dos municípios. A qualidade da educação é medida pelas proficiências de matemática e português da PB para 4ª série e 8ª série do ensino fundamental. A análise utiliza um painel de dados composto por variáveis educacionais, macroeconômicas, e de políticas sociais dos municípios. O primeiro ensaio, que testa as duas primeiras hipóteses, utiliza como unidade de análise os municípios brasileiros. O segundo ensaio, que testa as duas últimas hipóteses, utiliza como unidade de análise as escolas públicas brasileiras. Os resultados encontrados para o BF ora corroboram com as hipóteses testadas ora contrariam estas hipóteses. Os resultados para o BF mostram que, em conformidade com as hipóteses testadas, este programa apresenta uma relação negativa com português 4ª série e matemática 8ª série e mais significativa ao examinar efeitos específicos das escolas. No entanto, os resultados também mostram uma relação positiva entre o programa BF e as proficiências de matemática 4ª série e português 8ª série, contrariando as hipóteses acima. Os resultados para gastos com educação fundamental, em conformidade com as hipóteses testadas, mostram que as escolas localizadas em municípios que recebem maiores investimentos em educação apresentam proficiências médias mais elevadas para matemática 4ª série, português 4ª série e português 8ª série. No entanto, os coeficientes tanto do BF quanto dos gastos educacionais apresentam magnitudes muito pequenas. Estes resultados mostram que há necessidade de coordenação entre as gestões públicas e entre as diversas políticas sociais no Brasil de maneira que os investimentos públicos se tornem mais eficientes e gerem de fato benefícios para a população.<br>The aim of this study is to examine the factors that influence the quality of basic education in Brazil, with emphasis on public spending for education and income transfer program named Bolsa Família (BF). The analysis on the quality of basic education in Brazil becomes relevant due to the historical economic and social disparities in Brazil, and to the importance of human capital for growth and development of the country.. As a result of the recent increase in enrollment due to the BF, this process should be followed by improvements in quality of education. Students can increase their human capital and contribute to the economic and social development to take their families out of poverty in a sustainable manner with a good quality education. Thus, this study is composed of two empirical works that examine whether the features of BF and public spending on education for the municipalities are being accompanied by improvements in the quality of basic education in Brazil. The hypotheses to be tested in these works are: 1) municipalities with high resources allocated by the BF are followed by lower scores in Prova Brasil (PB); 2) municipalities characterized by higher proficiencies in PB should receive more government spending on basic education; 3) public spending on education and the program BF, respectively, show a positive and a negative correlation with the quality of education in public schools, and 4) the results can be changed by examining specific effects of schools instead of specific effects of municipalities. The quality of education is measured by proficiency in Mathematics and Portuguese for 4th grade and 8th grade. This analysis uses a panel data with educational variables, and macroeconomic and social policies of the municipalities. The first test considers the first two hypotheses, and the municipalities as the unit of analysis. The second test considers the last two hypotheses, and uses the Brazilian public schools as the unit of analysis. The results for BF either corroborate the hypotheses tested or sometimes contradict these hypotheses. In accordance with the tested hypotheses, the BF program presents a negative relationship with Portuguese 4th grade and Math 8th grade, and it is even more significant when examining specific effects of schools. However, the results also show a positive relationship between the BF program and Math 4th grade and 8th grade Portuguese proficiencies, contradicting the hypothesis above. The results for spending on basic education, in accordance with the tested hypotheses, show that schools located in counties that receive greater investments in education have higher average proficiency for Math 4th grade, 4th grade Portuguese and Portuguese 8th grade. However, the coefficients of both BF and educational expenses have a very small magnitude. These results show that there is need for coordination between public administration and different social policies in Brazil so that public investments become more efficient and generate benefits for the population.

Nigeria, Africa’s most populous country, has been portrayed in scholarly literature as a prominent case of postcolonial African ‘growth failure’. Between 1960 and 2000 oil reserves were exploited resulting in revenues of more than $300 billion to the Nigerian government, while real per capita income fell over the same period. This thesis, by focusing on building and construction in Nigeria from 1960 to 2000, explains how and why Nigeria failed to invest its oil revenues to create long-term economic growth. Its findings have important implications for investment analyses of other commodity-rich countries in Africa and across the developing world. It draws on a wide range of primary quantitative and qualitative sources including government surveys, construction-related company financial data and project lists, industry publications, newspapers, and the correspondence files of a major Nigerian architecture firm. These are used to present a picture of historical building activity which includes a 40-year dataset of cement price and consumption, and a construction supply curve for both the oil boom and bust periods. By quantifying for the first time the long-observed ‘ghost construction’ of the oil boom, this thesis finds that annually about two thirds of what scholars and national accounts statistics had estimated was being invested in construction was never actually invested, implying that what was invested offered a greater return than has previously been acknowledged. Although investment in construction was overstated during the oil boom, during the oil bust construction was understated as major government projects were funded off-budget and away from public scrutiny. This thesis demonstrates that the most productive area of public investment has been infrastructure, and further that the private sector construction industry was a valuable asset which greatly enhanced the government’s ability to implement investment programmes, when it had the political will to do so.

У дисертаційній роботі досліджено теоретичні та практичні питання організаційно-методичного забезпечення обліку основних засобів за стадіями життєвого циклу. Упорядковано понятійний апарат і змістовне наповнення категорій «життєвий цикл основних засобів», «балансова (залишкова) вартість» та «одиниця, яка генерує грошові кошти». Розроблено класифікаційну модель основних засобів у статичному та динамічному стані. Визнано теоретичне підґрунтя, передумови і практичні наслідки процесу впровадження МСФЗ в Україні як чинника інвестиційної привабливості. Систематизовано теоретичні підходи до оцінки основних засобів, на базі яких побудовано матрицю взаємозв’язку оцінок за стадіями життєвого циклу. Визначено склад елементів облікової політики основних засобів. Обґрунтовано заходи вдосконалення синтетичного та аналітичного обліку відповідних необоротних активів та їх документального оформлення. Розроблено модель процедури зменшення корисності основних засобів, яка розкриває організаційні та методичні аспекти її проведення, з формалізацією етапів, інформаційних джерел, відображення результатів в обліку і звітності.<br>В диссертационной работе исследованы теоретические и практические вопросы организационно-методического обеспечения учета основных средств по стадиям жизненного цикла. Исследован генезис теоретических подходов к трактовке экономической сущности основного капитала и уточнена его учетная интерпретация с выделением составляющих – основные средства, прочие необоротные активы, нематериальные активы и долгосрочные биологические активы, что обусловлено характером движения их стоимости. Определена подчиненность понятия «жизненный цикл основных средств» жизненному циклу инвестиционного проекта, что позволило раскрыть содержание и дать авторское определение данной категории. Доказано, что жизненный цикл основных средств следует рассматривать как период времени, в течение которого реализуются инвестиционная, эксплуатационная и ликвидационная фазы инвестиционного проекта. Разработана классификационная модель основных средств по стадиям жизненного цикла, уточнено и дополнено содержание существующих группировок и предложены новые классификационные признаки: по моделям учета (учетной политике) в отношении дальнейшей оценки, по необходимости улучшения качественных характеристик, по направлению получения будущих экономических выгод и уровню агрегирования объектов, что позволяет углубить систему аналитического учета и повысить качество учетной информации. Обоснованы теоретические основы и предпосылки процесса внедрения Международных стандартов финансовой отчетности (далее МСФО) в Украине на основании использования институциональной теории, теории ресурсной зависимости и экономической теории сетей, и разработана модель оценки влияния внедрения МСФО на инвестиционную привлекательность субъектов экономики, которая позволила выявить тенденцию к установлению прямой связи между долей предприятий, внедривших МСФО, и размером инвестиций в регионы Украины. Определена целесообразность применения трех теоретических подходов к оценке основных средств, на основании которых построена матрица взаимосвязи оценок со стадиями жизненного цикла. Усовершенствовано содержательное наполнение дефиниций «балансовая (остаточная) стоимость» основных средств и «единица, генерирующая денежные средства». Предложен организационно-методический подход к признанию единицы, генерирующей денежные средства, в рамках которого она рассматривается как инвестиционный проект и включает подчиненные ему объекты основных средств. Определен и обоснован состав элементов учетной политики предприятия относительно основных средств по стадиям жизненного цикла. Дополнена типовая корреспонденция счетов по созданию обеспеченный на сумму обязательств по выбытию объектов и восстановлению окружающей среды как составляющих первоначальной стоимости, их корректировки и использованию; отражению порчи объектов основных средств и получению компенсации от третьих лиц. Улучшена система первичной учетной документации по операциям движения основных средств в части уточнения действующих и разработки новых форм. Для целей осуществления процедуры уменьшения полезности основных средств предложена модель, которая раскрывает организационные и методические аспекты проведения тестирования активов на предмет обесценения с формализацией этапов, процедур, информационных источников, отражения в учете и финансовой отчетности. Внедрение данной модели позволит повысить качество и транспарентность отчетной информации и обеспечит соблюдение требований национальных и международных стандартов финансовой отчетности.<br>The theoretical, methodological and practical issues of organizational and methodological support of fixed assets accounting by stages of the life cycle were investigated in the dissertation. Conceptual apparatus and content of such categories as "life cycle of fixed assets", "residual value" and "a cash-generating unit" were arranged. The classification model of fixed assets in static and dynamic state was developed. The theoretical background, prerequisites and practical implications of the IFRS adoption in Ukraine as a factor of investment attractiveness were determined. The theoretical approaches to the fixed assets valuation were systematized, and according to them the correlation matrix of estimates with the stages of the life cycle was constructed. The composition of the elements of fixed assets accounting policy was defined. The improvement measures for synthetic and analytical accounting of relevant fixed assets and their documenting were justified. The model of realizing the procedure of the impairment of fixed assets, that uncovers the organizational and methodological aspects of testing assets for impairment with formalization of stages, procedures, information sources, displaying the results in accounting and reporting, was developed.

This diploma work assess the financial health of the company in the years 2002–2006 on the basis of selected methods of the financial analysis. It includes proposals of possible solutions of identified problems which should result in the improvement of financial situation of the firm in the following years.

Thesis (Ph. D.)--University of Wisconsin--Madison, 1986.<br>Typescript. Vita. eContent provider-neutral record in process. Description based on print version record. Includes bibliographical references (leaves 119-125).

Relative used capital price, the measure of irreversibility, is fixed in almost all the investment literature. This dissertation introduces investment models with state-dependent irreversibility and tests whether these models outperform fixed irreversibility cases, at both the macro and micro levels. Since there is currently no historical data available on the issue of used capital prices, the first chapter uses an indirect inference procedure to estimate the cyclical property of irreversibility at the micro-level. In the second chapter, I propose a dynamic investment model with endogenous irreversibility arising from the lemons problem in the used capital market and examine the cyclical implication of irreversibility. Data evidence shows that capital reallocation, or used capital expenditure, is pro-cyclical. In a general equilibrium framework, the third chapter reveals that the investment model with state-dependent irreversibility explains this phenomenon while the model with fixed irreversibility does not.<br>text

With the dawn of financial markets, several behaviours of economic agents were disrupted and traversed a metamorphosis. Financialization, the process through which economic activities became increasingly tied to a web of artificial revenues, expenditures, and decisions of financial nature, is one of those disruptive elements of the late 20 and 21st century world economy. Evidence of its impact, particularly a negative one on the investment in fixed capital through practices such as shareholder value-oriented management, has been gathered for several western economies but the Portuguese case remains largely marginal. It is the aim of this dissertation to conduct an exploratory investigation on how a set of indicators of financialization and shareholder value have their impact felt on the investment in fixed capital in Portugal, specifically the one carried out by manufacturing industries. Analysing a panel data dataset comprised between 2010 and 2015 with statistical information gathered by the national bureau of statistics, INE, the results are mixed. Through a linear regression model and a pooled OLS with robust estimators estimation method, I conclude that there’s indeed a negative impact in fixed capital stocks produced by dividend distribution and firms receiving interest and similar revenues. On the other hand, there’s a surprising positive impact of financial investments conducted by firms and the amount of interest they pay, alongside similar expenditures. Given some data limitations, particularly the small number of observations, the econometric procedure is sensitive and these results require future inquiry to further strengthen the conclusions.<br>Com o surgir dos mercados financeiros, vários comportamentos dos agentes económicos sofreram mudanças. A financeirização, processo pelo qual as actividades económicas se tornaram crescentemente interligadas e movidas por elementos de natureza financeira, é um desses elementos disruptivos da economia mundial do final do século 20 até aos dias de hoje. Vários estudos para as economias ocidentais confirmam uma influência negativa da financeirização no investimento em capital fixo através de práticas típicas do seu espectro, como uma gestão das empresas vocacionada para a remuneração dos detentores do capital. Contudo, o caso Português continua pouco explorado. Esta dissertação tem como objectivo levar a cabo uma investigação sobre como indicadores representativos da financeirização e da gestão vocacionada para os detentores do capital impactam o investimento em capital fixo levado a cabo pelas indústrias transformadoras em Portugual. Através da análise de dados de painel relativos ao periodo temporal 2010-2015 com informação estatística recolhida pelo INE, os resultados da investigação são mistos. Através de um modelo de regressão linear e um método de estimação pooled OLS com estimadores robustos, é possível concluir que existe um impacto negativo da distribuição de dividendos e dos juros e rendimentos similares obtidos no stock de ativos fixos. No sentido inverso, o impacto dos investimentos financeiros e dos juros e despesas similares suportadas é positivo. Devido a algumas limitações, nomeadamente a escassez de observações, a análise econométrica é sensível a outros métodos de estimação e os resultados obtidos requerem uma análise futura para efeitos de fortalecimento/refutação das conclusões retiradas.

碩士<br>東海大學<br>財務金融學系<br>103<br>After the 2007-08 global financial crisis, corporations changed their cash holdings and investment policies in response to a tightening of market liquidity. This paper use a sample of listed firms in Taiwan and China, to investigate the effect of the source and application of funds by examining changes in corporate cash holdings after financial crisis. Next, we analyze the changes in firms’ cash holdings and inspect whether firms’ operating investment and fixed investment influence firms’ cash holdings. And examining the change in each firms’ investment-cash flow sensitivity pre and post-crisis periods. Finally, investigate whether there are significant differences of changes in cash-holdings and investment-cash flow sensitivity between financially constrained firms and unconstrained before and after the crisis. The contributions of this paper are following: first, based on precautionary motive, we find that firms increase their cash holdings after the financial crisis. Firms in Taiwan build up cash holdings by increasing equity issuance and decreasing capital investment; firms in China enlarge cash holdings by adding profit and equity issuance and reducing fixed investment and payout. We also find the firms which have more cash holding in Taiwan, firms’ fixed investment and operating investment would become conserved. But firms’ operating investment would become positive in China. Second, after the crisis, operating investment-cash flow sensitivity increases and fixed investment-cash flow sensitivity decreases significantly in Taiwan. Last, investigating the effect of financial constraint on cash holding, the finding indicates that no matter in Taiwan or China, small-size firms hold more cash due to higher external financing costs. In addition, the extent of increasing cash holding becomes greater in small-size firms after the financial crisis. More financially constrained firms exhibit significantly smaller fixed investment-cash holding sensitivity and greater operating investment-cash flow sensitivity than less financially constrained firms.

The current study is an attempt to evaluate a relationship of Government Investment in Higher education on a country's national growth, accompanied by effect of factors like Gross Fixed Capital Formation, the Expenditure on R&amp;D, Number of Researchers, Population using the internet, YNEET (youth not in education, employment or any training) and Tertiary Education Attainment. Both short and long run effect of the variables was studied, by using the data collected from World bank databases and UNDP databases, belonging to a period of 2000 to 2021, as on availability. From Panel ARDL method, we found that fixed capital flows, research expenditure, internet utilization, attainment of higher/ tertiary education and expenditure on education causes growth, in the long term. While past GDP rates, fixed capital and tertiary education attainment are responsible for short term growth. It is noteworthy, that even though inactive youth and researchers do not affect the growth, they shall still be focused upon for an overall expansion of fields of any nation.

Abstract As explained in Chapter 4, actuaries working in life insurance and pension have been using projected life tables for some decades. But the problem confronting actuaries is that people have been living much longer than they were expected to according to the life tables being used for actuarial computations. What was missing was an accurate estimation of the speed of the mortality improvement: thus, most of the mortality projections performed during the second half of the 20th century have underestimated the gains in longevity. The mortality improvements seen in practice have quite consistently exceeded the projected improvements. As a result, insurers have, from time to time, been forced to allocate more capital to support their inforce annuity business, withadverse effects on free reserves and profitability. From the point of view of the actuarial approach to risk management, the major problem is that mortality improvement is not a diversifiable risk. Traditional diversifiable mortality risk is the random variation around a fixed, known life table. Mortality improvement risk, though, affects the whole portfolio and can thus not be managed using the law of large numbers (see Chapter 7 for a detailed discussion of systematic and non-systematic risks). In this respect, longevity resembles investment risk, in that it is non-diversifiable: it cannot be controlled by the usual insurance mechanism of selling large numbers of policies, because they are not independent in respect of that source of uncertainty.

Abstract The Indian economy witnessed a real GDP growth rate of 8.4% in Q2FY22 as against a contraction of 7.4% in Q2FY21. On the demand side, amongst the four growth engines, private final consumption expenditure, which constitutes 54.5% of total GDP, exhibited a growth rate of 8.6%, gross fixed capital formation, commonly referred to as investments, rose by 11%, while government expenditure increased by 8.7%. An improved macroeconomic scenario that had set the Indian economy back on the recovery track was an outcome of the abatement of the second virus wave in Q2, resulting in easing the state-wise and regional lockdowns coupled with increased vaccination coverage. The moot point is with steady progress in covid-19 vaccinations leading to an improved business scenario and consumer confidence levels slowly and steadily reviving, it had resulted in rating agencies, brokerage, and financial institutions revising their forecast numbers for India’s GDP growth rate for FY22. The chapter discusses in detail the macroeconomic scenario that was prevalent on Q2FY22 which had helped the country achieve a real GDP growth rate of 8.4%.

Abstract Risk Based Inspection (RBI) results using the API RBI software are presented for calculating a risk value for each piece of plant fixed-equipment. Usually RBI implementation results in fixed-equipment inspection program modification. Inspection is specified for equipment items that exceed Owner acceptable risk criteria while it is waived for equipment that is below acceptable risk levels. In RBI analysis, equipment risk value consists of a Likelihood-of-Failure (LOF) and a Consequence-of-Failure (COF) element. The sum of different equipment damage mechanisms (internal corrosion, external corrosion, cracking mechanisms and mechanical damage) is the LOF value. The COF value is the sum of the damage to the specific equipment item, damage to surrounding equipment, lost production, serious injury to personnel and environmental clean-up. This paper describes benefits realized from applying RBI in gas plants as a reliability-engineering tool for guiding decisions in optimizing fixed-equipment mechanical integrity. Utilizing the calculated LOF, COF and Risk values for each piece of fixed-equipment allows for extracting maximum value from a RBI database. Based on RBI calculated risk values, fixed-equipment relative risk ranking is established to: –set priorities and focus attention on the critical areas–justify capital investment for Lifetime Extension projects–proactively address Loss of Primary Containment and Process Safety issues

An indicator of balanced and proportional agriculture development is the efficient functioning of capital at the sectoral level. It is established that, unlike other branches of the economy, agricultural production deals with living organisms of the plant and animal world, which encourages the continuity of biological reproduction processes of the fixed capital; the determining factor of production and the main means of production is land, therefore the economic process of capital reproduction is organically interconnected with natural. It is proven that to ensure an effective process of capital formation in agriculture, there is a need for production capital and reliable sources of financing the industry; it is emphasized that long-term sources of financing should be the basis for the development of capital investment policies aimed at solving promising strategic tasks. It is determined that lending as a component of the financial and credit mechanism should be adequate to the specific conditions of agricultural production; the timely involvement of capital in the production process in agriculture eliminates the danger of its suspension and makes it possible to cover the temporary lack of financial resources for the purchase of fixed and circulating assets. A number of factors are established to optimize the process of capital formation in agriculture: the formation of a comprehensive system of state support for agricultural producers, taking into account the experience of leading European countries; to increase the level of capital liquidity, it is necessary to ensure equivalent market pricing for agricultural products; to ensure the effective functioning of capital in agriculture, it is necessary to use scientifically based financial and economic methods that take into account the specific sectoral features of the agricultural sector.

Abstract An optimized workflow was undertaken to inform the optimal field development plan (FDP) of a representative complex, liquids rich unconventional gas field comprising four resource windows. Three alternative field development options were studied, coupled with two alternative disposition arrangements for associated condensate. Key objectives of the workflow were to deliver an economically robust project with a low sales gas break-even price, strong cash flows, and optimized to avoid fixed capital assets with poor capacity utilization. Extensive economic evaluation was undertaken utilizing in-house tools to evaluate the three field development strategies and two condensate disposition options. A typical unconventional gas field can have a number of distinctive fluid windows ranging from lean gas to liquid-rich areas, complicating the development strategy. The field development start-up strategies examined include leading with lean gas, leading with rich gas, and leading with a hybrid strategy. Thorough assessment of expected production profiles from all three start-up strategies were completed to evaluate the impact on project feasibility and attractiveness. The two condensate disposition options examined include (1) investing capital to upgrade an existing facility network for export, and (2) blending condensate with crude. The workflow delivered clear visibility on the preferred field development strategy though the key target economic metric, the gas breakeven price. The study also provided an understanding on relationship and dependency factors of various key economic metrics. This workflow is aimed at supporting decision-making by providing clear visibility on value creation in multiple development strategies. Common economic parameters and assumptions were applied to all strategies and sensitivities to ensure a like-to-like comparison of results. Risk mitigation was also considered in determining the preferred development option, as the preferred option showed the lowest risk with the best economic outcome. The study concluded that rich gas and hybrid start up strategies yield improved economics compared to a lean gas start-up option. The hybrid start-up strategy significantly improved the project's ability to ramp-up and manage sub-surface risk while also optimizing investment and realizing the financial benefit from higher liquids production. The study also established a clear relationship between gas breakeven prices and upfront capital investment required in both the hybrid and liquid-rich start-up cases with a condensate export option. Multi development strategy analysis requires comprehensive economic workflow that supports the decision-making process. In most capital-intensive resource projects, the primary objective is to select the development scheme which provides the best return on capital investment for a given level of risk. Having a well-established economic evaluation workflow enables companies to complete economic evaluations both effectively and efficiently

Abstract Due to the promising potential for environmental sustain-ability, there has been a significant increase of electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEV) in the market. To support this increasing demand for EVs and PHEVs, challenges related to capacity planning and investment costs of public charging infrastructure must be addressed. Hence, in this paper, a capacity planning problem for EV charging stations is developed and aims to balance current capital investment costs and future operational revenue. The charging station considered in this work is assumed to be equipped with solar photovoltaic panel (PV) and an energy storage system which could be electric battery or the recently invented hydro-pneumatic energy storage (GLIDES, Ground-Level Integrated Diverse Energy Storage) system. A co-optimization model that minimizes investment and operation cost is established to determine the global optimal solution while combining the capacity and operational decision making. The operational decision making considers EV mobility which is modeled as an Erlang-loss system. Meanwhile, stochastic programming is adopted to capture uncertainties from solar radiation and charging demand of the EV fleet. To provide a more general and computationally efficient model, main configuration parameters are sampled in the design space and then fixed in solving the co-optimization model. The model can be used to provide insights for charging station placement in different practical situations. The sampled parameters include: the total number of EV charging slots, the PV area, the maximum capacity of the energy storage system, and daily mean EV arrival number in the Erlang-loss system. Based on the sampled parameter combinations and its responses, black-box mappings are then constructed using surrogate models (RBF, Kriging etc). The effectiveness of proposed surrogate modeling approach is demonstrated in the numerical experiments.

Abstract This paper describes two aspects of a polymer flooding project in a multilayer low-dipping, heavy oil reservoir (100 to 250 cp): reservoir numerical simulation and field development strategy. The field is produced only by discovery and delineation wells. The proposed development plan consists in applying EOR without a preceding water flooding. The Upper Centenario formation lies completely within a water-oil transition zone due to its low structural dip and high oil viscosity. In order to simulate reservoir behavior, end point scaling was necessary. The simulation was used to perform production forecasts, defining the optimal development plan, and performing sensitivity analyses to different uncertain parameters. A modular field development plan was proposed to reduce the capital exposure and facilities investment. The plan consists of developing the field with a fixed number of polymer injection units (hereafter, PIU), that is related to the fluid treatment capacity. The field is at an early stage of development, thus having a relatively short production history and rather long well spacing. Therefore, simulation history matching process has multiple degrees of freedom. Sensitivities to static and dynamic parameters were performed such as: net to gross ratio, oil-water contact, relative permeabilities, etc. Also, sand displacement was detected during the well completion, producing reservoir self-stimulation. Additional sensitivity was considered to evaluate its impact. Due to high water-oil mobility ratio, EOR development without a water flooding stage was decided. A modular EOR development in three stages using 5 PIU with 10 polymer injection wells each one, was proposed, starting from zones with the highest expected recovery. The pattern array is 5-spot with 200-250 m well spacing. Injection time/volume is decided to optimize the project NPV, moving the PIU afterwards to a new zone. The modular development reduces the maximum capital exposure (maximum downside exposure, hereafter, MDE) and facilities investment, thus improving the project economics in comparison to full field simultaneous development. Also, modular strategy will allow us to perform better risk management. The present work shows a methodology to simulate a complex reservoir in an early development stage and perform several forecast scenarios. The paper demonstrates how the modular strategy approach reduces the MDE and helps to mitigate risk.

The dual adjustment approach enables us to consider separate dual co-movements of permanent and transitory components of time series variables and hence the possibility of dual adjustment. The common {filtered} trend concept is developed within the framework of dual adjustment approach and a simple test for the existence of such relationship is suggested for nonstationary macroeconomic variables. This paper investigates the dual adjustment with an application to the private sector fixed capital investment function by using the Turkish data over the 1963-2017 period. Our results indicated that private sector fixed capital investment and income, public sector fixed capital investment and macroeconomic instability are not cointegrated and hence they have spurious relationship. In contrast, according to the dual adjustment approach, these variables have a long run relationship. Additionally, it is shown that there are dual relationships between permanent and temporary components of private sector fixed capital investment and income. Furthermore, it is shown that there is no long run relationship between private sector fixed capital investments and public sector fixed capital investments but they are negatively related in the short run. In addition, it is concluded that macroeconomic instability is detrimental for private sector fixed capital investments only in the long run.

The article discusses the degree of influence of various factors on investment in fixed assets of the Rostov region during the period from 2010 to 2017 by means of the econometric models.Based on the received model, the forecast has been made.

The article examines the views of one of the founders of classical economics, David Ricardo, on the issues of investment, capital and profit. The need for this study is caused by the lack of a single definition of investment in the regulatory acts of investment legislation, as well as in the scientific community. Thus, there is a problem of regulatory regulation of one of the most important concepts of the economy. Given that the concepts of investment, capital, and capital investment are primarily economic categories, it seems quite reasonable to consider the emergence and development of these concepts in the retrospect of economic theories, in order to understand the essence of the phenomenon and finally solve the issue of its legal regulation. The scientific novelty of the study is that despite a large number of works on the work of David Ricardo «The Beginnings of Political Economy and Taxation», no special work was carried out on the contribution of the great economist to the theory of investment. Conclusions. The main achievements of Ricardo in the field of capital and investment include the author's definitions of capital, free capital, the creation of a theory of comparative advantages of trade, the division of capital into fixed and circulating capital depending on strength, as well as the description of the reasons that stimulate and hinder foreign investment.

This paper describes the share of investment in fixed capital and working capital financed by retained earnings using a harmonized dataset from the World Bank Enterprise Survey. The sample includes firms across countries in Latin America and the Caribbean. Descriptive statistics are presented for the share of purchases of fixed assets financed with internal funds or retained earnings, the share of working capital financed with internal funds, the ratio between internal funds used for purchasing fixed assets and sales, and annual purchases of fixed assets (as a proportion of annual sales). Also presented are stylized facts exploring how these variables differ by country, firm size, firm age, registration, sector of activity, and ownership. It is found that internal funds are extensively used to finance both purchases of fixed assets and working capital, particularly by smaller firms located in countries with less developed financial markets. Investment in fixed assets represents about 7. 5 percent of sales in the region and is significantly higher among larger and registered firms.

D. Ricardo is one of the founders of classical economy. The most significant discoveries of the outstanding scientist in the field of capital can be called the definition of capital and free capital, the creation of a theory of comparative advantages of trade, the division of capital into fixed and circulating capital depending on strength, as well as the description of the reasons that stimulate and hinder foreign investment. Given that capital is primarily an economic category, it seems quite reasonable to consider the emergence and development of these concepts in the retrospect of economic theories, in order to understand the essence of the phenomenon and finally solve the issue of its legal regulation.

This paper evaluates the effectiveness of easing credit constraints for rural producers in Mexico through loans provided by a national public development finance institution. In contrast to most of the existing literature, the study focuses on the effect of medium-sized loans over a two- to four-year time horizon. This paper looks at the effects of such loans on production and investment decisions, input use, and yields. Using a multiple treatment methodology, it explores the differential impacts of providing liquidity for working capital versus providing credit for investments in fixed assets. It finds that loans increased the likelihood that producers grow and sell certain key annual crops, in particular among recipients of working capital loans. It also finds significant effects on production value and sales (per hectare), with similar impacts for recipients of both types of loans, with gains in yields driven by changes in labor quality and more intensive use of key inputs. There is no evidence of significant effects on the purchase of large machinery, but there are impacts on the acquisition of cattle. Overall, the results reported in this paper suggest that lack of liquidity is at least as important as lack of funding for new investment in capital for rural producers in Mexico. Producers benefit from easing their credit constraints, regardless of the type of loan used for that purpose.

Methodology: This report was developed through the co-design process of Mōhio’s Climate Innovation Lab, a fixed-term initiative which works with stakeholders to envision financial instruments to mobilise capital for climate-aligned projects and activities. A working paper was prepared through international market scanning and a review of primary and secondary literature on climate adaptation. This working paper became the basis for a workshop with local experts and stakeholders to test the viability of potential instruments in light of Aotearoa New Zealand’s unique cultural, biophysical and regulatory context. The workshop included participants from finance services, insurance, institutional investment, academia and local and central government observers. These insights were reincorporated into this final concept paper. Mōhio would like to thank the workshop participants for their time and expertise.

This paper studies for the first time the impact on various measures of economic efficiency of regulatory complexity by sector in Spain. We base our analysis on an innovative database that classifies 206,777 regulations by economic sector and region, which highlights the growing volume of regulation, as well as its diversity by sector, region and business cycle stage. This analysis first looks at the aggregate impacts of sectoral regulatory complexity on the employment-to-population ratio, total working hours, sectoral GDP shares, labour intensity and capital intensity. Secondly it delves into the heterogeneous impacts observed across firms of different sizes and ages, drawing on the MCVL (Continuous Work History Sample), a rich database at the enterprise level. On the first front, we estimate a set of multiple fixed-effects model specifications across 13 economic sectors, 23 regulatory sectors and 17 Spanish regions over the period 1995-2020. Our results suggest that greater regulatory complexity has a negative impact on the employment rate and on value added. The effect on employment is consistent with previous findings for the United States. In particular, ceteris paribus, each additional increase in the regulatory complexity index is associated with a 0.7 percent drop in the sector-level employment share. Furthermore, our findings suggest that several distortionary sector-level effects of increasing regulatory complexity are taking place. For instance, markedly lower labour intensity and decreased sector-level investment rates, which confirm that greater regulatory complexity entails non-trivial sector-level costs. Distortionary effects of regulatory complexity materialise through compositional differences, mainly in the form of reduced wages and a lower investment rate.

Evidence from this assessment indicates that, without deliberate support from impact investors, banks and development finance institutions (DFIs), large numbers of agricultural small and medium enterprises (agri-SMEs) will not be able to continue operations following the lockdowns imposed in response to Coronavirus Disease 2019 (COVID-19). The COVID-19 pandemic has had significant negative effects on the operations of agri-SMEs. It has made capital less available, as impact investors and financial institutions take a more cautious approach to extending credit and making investment decisions. Supply chains have been disrupted, resulting in delayed access to inputs (such as seed and fertiliser for smallholder farmers) and in fewer or no deliveries for agri-SMEs. The closure of restaurants and schools has decreased consumer demand. Some agri-SMEs have experienced labour shortages due to restrictions in the movement of people, although some have benefited from family labour as people moved back to their rural homes. The disruptions have created uncertainty for impact investors and financial institutions, which have been compounded by their inability to conduct in-person due diligence assessments for new investments. This evidence report seeks to assess the impact of COVID-19 on agri-SME operations by analysing emerging global evidence and insights from six countries. These are Commercial Agriculture for Smallholders and Agribusiness (CASA)'s three focus countries (Malawi, Nepal and Uganda), as well as Ethiopia, Ghana and Nigeria, which (along with Malawi) formed part of a rapid market assessment (RMA) between April and May 2020. This was carried out by Agricultural Policy Research in Africa (APRA), a research programme funded by the Foreign, Commonwealth and Development Office (FCDO). APRA seeks to understand which pathways to agricultural commercialisation are the most effective at empowering women, reducing rural poverty and improving food and nutrition security in Sub-Saharan Africa. The report uses a market system lens to analyse impacts and craft recommendations for intervention, as agri-SMEs are linked to other value chain actors - such as farmers, impact investors and regulatory authorities - that govern the functioning of the system. The report focuses on the effects of COVID-19 on impact investment and especially on agribusiness impact investors, given their key role in supporting the growth of these enterprises. While the profit motive is paramount for impact investors, the current consolidation and recovery phase calls for investors to take a longer view on returns: they should shore up their investees and build a robust pipeline for after the recovery. A business-as-usual approach to activities such as due diligence will not work given current travel restrictions. Digital and drone technologies, however, offer alternatives and could be ramped up to close the face-to-face gap created by the pandemic.

In 2024, the macroeconomic adjustment process continued, characterized by a sustained reduction in inflation that began in 2023 and a decline in the current account deficit of the balance of payments. This adjustment took place in the context of a contractionary monetary policy, with a gradual reduction in the monetary policy interest rate. GDP grew by 1.7%, driven by investment and consumption, while employment increased by 2.2%. Foreign reserves remained at adequate levels, and Banco de la República recorded a profit of COP 10,041 billion, benefiting from the returns on foreign reserves. Macroeconomic environment The International Monetary Fund (IMF) and the World Bank estimate that the global economy grew by 3.2% in 2024, a rate similar to that observed in 2023 (3.3%). This occurred in a context of moderating inflation and declining monetary policy interest rates in most countries. Global inflation moderated over the course of 2024. However, inflation rebounded toward the end of the year in some advanced economies, mainly due to rising energy costs. In Latin America, inflation trends were mixed. While some economies experienced sustained price stability, in most cases, inflation remained above the targets set by their respective central banks. Monetary policy interest rates in most Latin American economies continued to decline, reflecting a moderation in inflation and inflation expectations. However, some countries in the region recently raised interest rates in response to renewed inflationary pressures. Oil production increased in 2024, leading to a 3% decrease in oil prices, with Brent crude averaging around USD 80 per barrel. However, geopolitical tensions prevented a more pronounced decline. The U.S. dollar appreciated against most currencies, driven by expectations that the Federal Reserve (Fed) would implement more gradual policy rate cuts. In 2025, global economic growth is projected to be similar to that of 2024, supported by declining inflation, wage recovery, sustained employment growth, and a less restrictive monetary policy stance. However, geopolitical tensions and U.S. trade policies introduce uncertainty. More gradual reductions in the Fed’s interest rate are expected, with the possibility of pauses if inflationary pressures resurface. In Latin America, central banks are expected to continue cutting interest rates, although monetary policy may remain contractionary where inflation has not yet reached target levels. Domestic economic activity Colombia’s GDP grew by 1.7% in 2024, reflecting a moderate recovery compared to the previous year. This occurred in an environment of lower interest rates, improved domestic demand, and an increase in remittances and exports. Private consumption and fixed capital investment—particularly in infrastructure projects such as the Bogotá metro—contributed to economic growth. However, investment in housing declined. Agricultural and services sectors led economic growth, while mining and manufacturing contracted. The loan portfolio experienced low nominal growth, though some segments showed signs of recovery toward the end of the year. For 2025, economic activity is expected to continue recovering, approaching its productive capacity and aligning with the convergence of inflation toward its target. Employment Employment grew by 2.2% in 2024, resulting in the creation of 508,000 jobs. This expansion was driven by rural areas, where employment increased by 3.2%, surpassing the 1.4% growth in urban areas. The commerce, accommodation, manufacturing, public administration, health, and education sectors were the primary contributors to job creation. Wage employment grew by 2.7%, exceeding pre-pandemic levels, while non-wage employment increased by 1.8%, leading to a decline in informality to 55.6%. The national unemployment rate fell by 0.6 percentage points, reaching 9.7%, with a more pronounced reduction in rural areas. For 2025, the unemployment rate is expected to remain stable, supported by a positive economic outlook. Inflation and Monetary Policy Headline inflation in Colombia fell significantly from 9.3% in 2023 to 5.2% in 2024, primarily due to a restrictive monetary policy that moderated domestic demand and contributed to a reduction in the current account deficit. Core inflation (excluding food and regulated products) declined from 8.4% to 5.2%, reflecting the effectiveness of contractionary monetary policy. Inflation of goods dropped sharply, from 7.1% to 0.6%, due in part to the resolution of logistical disruptions and the appreciation of the peso. In contrast, services inflation declined more moderately, from 9% to 7%, influenced by indexation to past inflation and the increase in the minimum wage. Prices of food decreased from 5.0% to 3.3%, driven by lower pressures on processed food prices, benefiting from reduced costs of imported raw materials and a favorable exchange rate. Prices of regulated items dropped to 7.3%, following smaller adjustments in gasoline prices (after the required increases in 2023) and lower electricity and public service tariff increases, except for gas prices, which continued to rise. Inflation is expected to continue converging toward the 3% target in 2025, with headline inflation projected to close the year at around 4.1%, continuing its downward path into 2026. However, new risks have emerged, including a recent rise in producer costs, a significant increase in the minimum wage, and a rebound in inflation expectations. Balance of payments Colombia’s current account deficit narrowed to 1.7% of GDP between January and September 2024, down from 2.5% in the same period in 2023. This improvement was driven by higher remittance inflows, an improved services trade balance, and lower factor income outflows. Remittances reached a record USD 11,848 million, with the United States and Spain as the main sources of these inflows. A decline in the profits of foreign direct investment (FDI) companies, particularly in the oil and coal sectors, also contributed to reducing external imbalances. The trade deficit widened due to a greater imbalance in the trade of goods within a context of lower commodity prices. However, this was partially offset by strong agricultural and industrial exports. Additionally, the good performance of service exports, supported by higher international tourist arrivals, helped contain a larger trade imbalance. The financial account recorded net capital inflows equivalent to 1.1% of GDP, lower than the 2.5% recorded in 2023, primarily due to a decline in foreign direct investment in mining, transportation, and oil. This was partially offset by growth in financial and business services investment. The current account deficit is estimated to have closed 2024 at 1.8% of GDP, with a projected widening to 2.5% in 2025, in line with higher expected economic growth and stronger domestic demand. Public finances According to preliminary figures from the 2025 Financial Plan (PF-25) presented by the Ministry of Finance and Public Credit (MHCP), Colombia’s General Government deficit reached 4.8% of GDP in 2024, marking a 2.1 percentage-point increase compared to 2023. This deterioration was mainly driven by a worsening in the balances of the Central National Government (GNC) (2.6 pp) and the Social Security subsector (0.4 pp), partially offset by a 0.8 pp improvement in Regional and Local Government balances. The reduction in the deficit position of the Fuel Price Stabilization Fund (FEPC for its acronym in Spanish) was notable, following gasoline price adjustments, which closed the gap between the reference price and local market prices. However, fiscal pressures persist due to ongoing subsidies for ACPM (diesel fuel). The total and primary deficits of the Central Government stood at 6.8% and 2.4% of GDP, respectively, driven by a decline in tax revenue—particularly from income and external taxes—alongside increased government spending. The net debt of the Central Government increased to 60% of GDP, exceeding previous forecasts. For 2025, a total and primary deficit of 5.1% and 0.2% of GDP is projected, with tax revenue expected to grow by 22.6%. Compliance with the fiscal rule and the stabilization of public finances will be critical in 2025, given the potential impact of fiscal slippage on the country’s risk premiums. Failure to meet fiscal targets could raise interest rates for both the Government and the broader economy. Maintaining credibility in fiscal policy will be key to preventing macroeconomic adjustments from exerting additional pressure on interest rates. International Reserves As of December 31, 2024, Colombia’s net international reserves stood at USD 62,481 million, reflecting an increase of USD 2,873 million during the year. This growth was primarily driven by returns on reserves, which reached 3.65%, benefiting from higher global interest rates, and Banco de la República's reserve accumulation program, which added USD 1,479.4 million to reserves. According to the IMF’s reserve adequacy methodology, Colombia maintains a reserve ratio of 1.29. This falls within the adequate range (1.0 – 1.5), indicating that Colombia’s reserves are sufficient to withstand extreme external shocks and balance of payments risks. Profits obtained by Banco de la República The Bank's profits reached a record COP 10,041 billion in 2024, resulting from revenues of COP 13,948 billion and expenses of COP 3,907 billion. Profits increased by COP 815 billion compared to 2023, primarily due to lower expenses, although partially offset by a decline in revenues. For 2025, profits are projected at COP 10,512 billion, supported by the high expected profitability of foreign reserves. However, this projection is subject to uncertainty related to reserve performance and monetary base growth.

1.1 Macroeconomic summary Economic recovery has consistently outperformed the technical staff’s expectations following a steep decline in activity in the second quarter of 2020. At the same time, total and core inflation rates have fallen and remain at low levels, suggesting that a significant element of the reactivation of Colombia’s economy has been related to recovery in potential GDP. This would support the technical staff’s diagnosis of weak aggregate demand and ample excess capacity. The most recently available data on 2020 growth suggests a contraction in economic activity of 6.8%, lower than estimates from January’s Monetary Policy Report (-7.2%). High-frequency indicators suggest that economic performance was significantly more dynamic than expected in January, despite mobility restrictions and quarantine measures. This has also come amid declines in total and core inflation, the latter of which was below January projections if controlling for certain relative price changes. This suggests that the unexpected strength of recent growth contains elements of demand, and that excess capacity, while significant, could be lower than previously estimated. Nevertheless, uncertainty over the measurement of excess capacity continues to be unusually high and marked both by variations in the way different economic sectors and spending components have been affected by the pandemic, and by uneven price behavior. The size of excess capacity, and in particular the evolution of the pandemic in forthcoming quarters, constitute substantial risks to the macroeconomic forecast presented in this report. Despite the unexpected strength of the recovery, the technical staff continues to project ample excess capacity that is expected to remain on the forecast horizon, alongside core inflation that will likely remain below the target. Domestic demand remains below 2019 levels amid unusually significant uncertainty over the size of excess capacity in the economy. High national unemployment (14.6% for February 2021) reflects a loose labor market, while observed total and core inflation continue to be below 2%. Inflationary pressures from the exchange rate are expected to continue to be low, with relatively little pass-through on inflation. This would be compatible with a negative output gap. Excess productive capacity and the expectation of core inflation below the 3% target on the forecast horizon provide a basis for an expansive monetary policy posture. The technical staff’s assessment of certain shocks and their expected effects on the economy, as well as the presence of several sources of uncertainty and related assumptions about their potential macroeconomic impacts, remain a feature of this report. The coronavirus pandemic, in particular, continues to affect the public health environment, and the reopening of Colombia’s economy remains incomplete. The technical staff’s assessment is that the COVID-19 shock has affected both aggregate demand and supply, but that the impact on demand has been deeper and more persistent. Given this persistence, the central forecast accounts for a gradual tightening of the output gap in the absence of new waves of contagion, and as vaccination campaigns progress. The central forecast continues to include an expected increase of total and core inflation rates in the second quarter of 2021, alongside the lapse of the temporary price relief measures put in place in 2020. Additional COVID-19 outbreaks (of uncertain duration and intensity) represent a significant risk factor that could affect these projections. Additionally, the forecast continues to include an upward trend in sovereign risk premiums, reflected by higher levels of public debt that in the wake of the pandemic are likely to persist on the forecast horizon, even in the context of a fiscal adjustment. At the same time, the projection accounts for the shortterm effects on private domestic demand from a fiscal adjustment along the lines of the one currently being proposed by the national government. This would be compatible with a gradual recovery of private domestic demand in 2022. The size and characteristics of the fiscal adjustment that is ultimately implemented, as well as the corresponding market response, represent another source of forecast uncertainty. Newly available information offers evidence of the potential for significant changes to the macroeconomic scenario, though without altering the general diagnosis described above. The most recent data on inflation, growth, fiscal policy, and international financial conditions suggests a more dynamic economy than previously expected. However, a third wave of the pandemic has delayed the re-opening of Colombia’s economy and brought with it a deceleration in economic activity. Detailed descriptions of these considerations and subsequent changes to the macroeconomic forecast are presented below. The expected annual decline in GDP (-0.3%) in the first quarter of 2021 appears to have been less pronounced than projected in January (-4.8%). Partial closures in January to address a second wave of COVID-19 appear to have had a less significant negative impact on the economy than previously estimated. This is reflected in figures related to mobility, energy demand, industry and retail sales, foreign trade, commercial transactions from selected banks, and the national statistics agency’s (DANE) economic tracking indicator (ISE). Output is now expected to have declined annually in the first quarter by 0.3%. Private consumption likely continued to recover, registering levels somewhat above those from the previous year, while public consumption likely increased significantly. While a recovery in investment in both housing and in other buildings and structures is expected, overall investment levels in this case likely continued to be low, and gross fixed capital formation is expected to continue to show significant annual declines. Imports likely recovered to again outpace exports, though both are expected to register significant annual declines. Economic activity that outpaced projections, an increase in oil prices and other export products, and an expected increase in public spending this year account for the upward revision to the 2021 growth forecast (from 4.6% with a range between 2% and 6% in January, to 6.0% with a range between 3% and 7% in April). As a result, the output gap is expected to be smaller and to tighten more rapidly than projected in the previous report, though it is still expected to remain in negative territory on the forecast horizon. Wide forecast intervals reflect the fact that the future evolution of the COVID-19 pandemic remains a significant source of uncertainty on these projections. The delay in the recovery of economic activity as a result of the resurgence of COVID-19 in the first quarter appears to have been less significant than projected in the January report. The central forecast scenario expects this improved performance to continue in 2021 alongside increased consumer and business confidence. Low real interest rates and an active credit supply would also support this dynamic, and the overall conditions would be expected to spur a recovery in consumption and investment. Increased growth in public spending and public works based on the national government’s spending plan (Plan Financiero del Gobierno) are other factors to consider. Additionally, an expected recovery in global demand and higher projected prices for oil and coffee would further contribute to improved external revenues and would favor investment, in particular in the oil sector. Given the above, the technical staff’s 2021 growth forecast has been revised upward from 4.6% in January (range from 2% to 6%) to 6.0% in April (range from 3% to 7%). These projections account for the potential for the third wave of COVID-19 to have a larger and more persistent effect on the economy than the previous wave, while also supposing that there will not be any additional significant waves of the pandemic and that mobility restrictions will be relaxed as a result. Economic growth in 2022 is expected to be 3%, with a range between 1% and 5%. This figure would be lower than projected in the January report (3.6% with a range between 2% and 6%), due to a higher base of comparison given the upward revision to expected GDP in 2021. This forecast also takes into account the likely effects on private demand of a fiscal adjustment of the size currently being proposed by the national government, and which would come into effect in 2022. Excess in productive capacity is now expected to be lower than estimated in January but continues to be significant and affected by high levels of uncertainty, as reflected in the wide forecast intervals. The possibility of new waves of the virus (of uncertain intensity and duration) represents a significant downward risk to projected GDP growth, and is signaled by the lower limits of the ranges provided in this report. Inflation (1.51%) and inflation excluding food and regulated items (0.94%) declined in March compared to December, continuing below the 3% target. The decline in inflation in this period was below projections, explained in large part by unanticipated increases in the costs of certain foods (3.92%) and regulated items (1.52%). An increase in international food and shipping prices, increased foreign demand for beef, and specific upward pressures on perishable food supplies appear to explain a lower-than-expected deceleration in the consumer price index (CPI) for foods. An unexpected increase in regulated items prices came amid unanticipated increases in international fuel prices, on some utilities rates, and for regulated education prices. The decline in annual inflation excluding food and regulated items between December and March was in line with projections from January, though this included downward pressure from a significant reduction in telecommunications rates due to the imminent entry of a new operator. When controlling for the effects of this relative price change, inflation excluding food and regulated items exceeds levels forecast in the previous report. Within this indicator of core inflation, the CPI for goods (1.05%) accelerated due to a reversion of the effects of the VAT-free day in November, which was largely accounted for in February, and possibly by the transmission of a recent depreciation of the peso on domestic prices for certain items (electric and household appliances). For their part, services prices decelerated and showed the lowest rate of annual growth (0.89%) among the large consumer baskets in the CPI. Within the services basket, the annual change in rental prices continued to decline, while those services that continue to experience the most significant restrictions on returning to normal operations (tourism, cinemas, nightlife, etc.) continued to register significant price declines. As previously mentioned, telephone rates also fell significantly due to increased competition in the market. Total inflation is expected to continue to be affected by ample excesses in productive capacity for the remainder of 2021 and 2022, though less so than projected in January. As a result, convergence to the inflation target is now expected to be somewhat faster than estimated in the previous report, assuming the absence of significant additional outbreaks of COVID-19. The technical staff’s year-end inflation projections for 2021 and 2022 have increased, suggesting figures around 3% due largely to variation in food and regulated items prices. The projection for inflation excluding food and regulated items also increased, but remains below 3%. Price relief measures on indirect taxes implemented in 2020 are expected to lapse in the second quarter of 2021, generating a one-off effect on prices and temporarily affecting inflation excluding food and regulated items. However, indexation to low levels of past inflation, weak demand, and ample excess productive capacity are expected to keep core inflation below the target, near 2.3% at the end of 2021 (previously 2.1%). The reversion in 2021 of the effects of some price relief measures on utility rates from 2020 should lead to an increase in the CPI for regulated items in the second half of this year. Annual price changes are now expected to be higher than estimated in the January report due to an increased expected path for fuel prices and unanticipated increases in regulated education prices. The projection for the CPI for foods has increased compared to the previous report, taking into account certain factors that were not anticipated in January (a less favorable agricultural cycle, increased pressure from international prices, and transport costs). Given the above, year-end annual inflation for 2021 and 2022 is now expected to be 3% and 2.8%, respectively, which would be above projections from January (2.3% and 2,7%). For its part, expected inflation based on analyst surveys suggests year-end inflation in 2021 and 2022 of 2.8% and 3.1%, respectively. There remains significant uncertainty surrounding the inflation forecasts included in this report due to several factors: 1) the evolution of the pandemic; 2) the difficulty in evaluating the size and persistence of excess productive capacity; 3) the timing and manner in which price relief measures will lapse; and 4) the future behavior of food prices. Projected 2021 growth in foreign demand (4.4% to 5.2%) and the supposed average oil price (USD 53 to USD 61 per Brent benchmark barrel) were both revised upward. An increase in long-term international interest rates has been reflected in a depreciation of the peso and could result in relatively tighter external financial conditions for emerging market economies, including Colombia. Average growth among Colombia’s trade partners was greater than expected in the fourth quarter of 2020. This, together with a sizable fiscal stimulus approved in the United States and the onset of a massive global vaccination campaign, largely explains the projected increase in foreign demand growth in 2021. The resilience of the goods market in the face of global crisis and an expected normalization in international trade are additional factors. These considerations and the expected continuation of a gradual reduction of mobility restrictions abroad suggest that Colombia’s trade partners could grow on average by 5.2% in 2021 and around 3.4% in 2022. The improved prospects for global economic growth have led to an increase in current and expected oil prices. Production interruptions due to a heavy winter, reduced inventories, and increased supply restrictions instituted by producing countries have also contributed to the increase. Meanwhile, market forecasts and recent Federal Reserve pronouncements suggest that the benchmark interest rate in the U.S. will remain stable for the next two years. Nevertheless, a significant increase in public spending in the country has fostered expectations for greater growth and inflation, as well as increased uncertainty over the moment in which a normalization of monetary policy might begin. This has been reflected in an increase in long-term interest rates. In this context, emerging market economies in the region, including Colombia, have registered increases in sovereign risk premiums and long-term domestic interest rates, and a depreciation of local currencies against the dollar. Recent outbreaks of COVID-19 in several of these economies; limits on vaccine supply and the slow pace of immunization campaigns in some countries; a significant increase in public debt; and tensions between the United States and China, among other factors, all add to a high level of uncertainty surrounding interest rate spreads, external financing conditions, and the future performance of risk premiums. The impact that this environment could have on the exchange rate and on domestic financing conditions represent risks to the macroeconomic and monetary policy forecasts. Domestic financial conditions continue to favor recovery in economic activity. The transmission of reductions to the policy interest rate on credit rates has been significant. The banking portfolio continues to recover amid circumstances that have affected both the supply and demand for loans, and in which some credit risks have materialized. Preferential and ordinary commercial interest rates have fallen to a similar degree as the benchmark interest rate. As is generally the case, this transmission has come at a slower pace for consumer credit rates, and has been further delayed in the case of mortgage rates. Commercial credit levels stabilized above pre-pandemic levels in March, following an increase resulting from significant liquidity requirements for businesses in the second quarter of 2020. The consumer credit portfolio continued to recover and has now surpassed February 2020 levels, though overall growth in the portfolio remains low. At the same time, portfolio projections and default indicators have increased, and credit establishment earnings have come down. Despite this, credit disbursements continue to recover and solvency indicators remain well above regulatory minimums. 1.2 Monetary policy decision In its meetings in March and April the BDBR left the benchmark interest rate unchanged at 1.75%.

In the IDB Group, diversity is in the cornerstone of everything we do in Latin America and the Caribbean. We strongly believe that an active investment in Diversity, Equity, and Inclusion (DEI) entails many institutional benefits including more innovative solutions for our clients, and a stronger position in capital markets, and an overall perception as a preferred place to work. Recognizing our diversity and our commitment to making our organization more inclusive and equitable is what makes our institution the premier development finance institution for Latin America and the Caribbean, and the reason why we have included DEI in our Institutional Strategy and the Vision 2025. In 2021, we achieved significant milestones including becoming the first multilateral development bank in the Americas, and the second worldwide, to achieve the EDGE Move certification, the second level in a three level globally recognized gender certification, and the integration of equity as a core principle of our strategy thus ensuring a focus on the individual needs of our employees and provide fair opportunities and an equal outcome for all. Our institution still has much work to do in DEI, and we intend to be the standard-bearer in the Region and a source of inspiration and guidance for our clients. What is being highlighted in this DEI 2021 Report are the crucial steps taken to lay a path to better results within the IDB Group. For example, we continue to complete a gender pay gap analysis annually. In 2021, the analysis results for the IDB estimated an unexplained wage differential for base salaries of 0.8% in favor of men. While for IDB Invest, the analysis results estimated the unexplained wage differential for base salaries of 2.8% in favor of men. Putting this into context, our differential is less than /- 5% which is considered statistically insignificant by the Economic Dividends for Gender Equality (EDGE) standards. This report describes our efforts to advance this DEI agenda during 2021. We highlight our best practices to develop an organizational culture that encourages diverse experiences, measure our progress in numbers, and share the initiatives, actions, and targets we have set up for the upcoming years.