top of page
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute

Economics and Business

Quarterly Reviews

ISSN 2775-9237 (Online)

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
crossref
doi
open access

Published: 16 September 2019

Appraisal of Capital-Intensive Investments Upon Effectiveness to Business Ecosystem

Maria F. Sartzetaki

Democritus University of Thrace, Greece

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, management journal

Download Full-Text Pdf

doi

10.31014/aior.1992.02.03.137

Pages: 900-909

Keywords: Business Ecosystem, Capital Intensive Investments, Investment Management, Effective Management

Abstract

The complexity of decision-making for capital intensive investments addressed to a variety of stakeholders with different expectations and to many business and financial risks and uncertainties. There are many cases where decision-makers and governmental authorities do not clearly distinguish between the investment likelihood alternative scenarios and the effectiveness of the investment to the business ecosystem. This especially applies to decisions regarding the implementation of capital-intensive projects where large amounts of capital are reserved, which is a major concern in the planning and business development process. Therefore, the appraisal of the investment effectiveness to business ecosystem into the project lifetime is very critical to support decision-makers. The key objective of the paper is to define and quantify the overall contribution of the capital-intensive project to a business ecosystem during its lifecycle. The paper provides a compact and applicable methodological framework providing quantitative results in terms of the overall income generated into the project life cycle. According to a deterministic approach, the key variables based on the project financial viability and likelihood scenarios are presented. The numerical application deals with the development of a new logistic center in Greece, stimulating new business opportunities by establishing a new freight transportation corridor from Black Sea to Southeast Mediterranean.

References

  1. Calderón César , Enrique Moral-Benito, Luis Servén (2015). Is Infrastructure capital productive? A dynamic heterogeneous approach, J. Appl. Econ., 30 (2) (2015), pp. 177-198

  2. Cascetta E. (2015). A new look at planning and designing transportation systems: A decision-making model based on cognitive rationality, stakeholder engagement and quantitative methods Transp. Policy, 38 (2015), pp. 27–39

  3. Dimitriou D., Mourmouris J., Sartzetaki M., (2017). Quantification of the air transport industry socio-economic impact on regions heavily depended on tourism, Transportation Research Procedia, 2017. 25: 5242-5254

  4. Dimitriou D., Sartzetaki M. (2018). Assessing air transport socioeconomic footprint, International Journal of Transportation Science and Technology,7(4), pp. 283-290

  5. Dimitriou D., Mourmouris J., Sartzetaki M., (2018). Maritime ports economic effect on regional development: Estimations for the major maritime ports in Greece, International Journal of Decision Support Systems, 2(4), pp.210 – 220

  6. Dimitriou D. and Sartzetaki M., (2017a). Evaluation framework for investments in rail infrastructure projects, International Journal of Transport and Vehicle Engineering (IJTVE), 11 (5), pp. 1308-1312.

  7. Dimitriou D. and Sartzetaki M., (2017b). Decision Framework for developing transport logistics hub, International Journal of Engineering Sciences &Research Technology (IJERT), Vol 6(1), pp 314-322.

  8. Dimitriou D., Mourmouris J., Sartzetaki M., (2015). Economic impact assessment of mega infrastructure projects, International Journal of Applied Economics (RAEC), Vol. 47(40), pp. 4310-4322.

  9. Dimitriou D., Sartzetaki M. (2019). ''Appraisal of the effects, on regional economy by investments in transportation projects'', Transportation Research Board (TRB) 98th Annual Meeting, January 13-17, Washington, DC, TRB Annual Meeting proceeding online.

  10. Dimitriou D. (2017) 'Quantitative evaluation taxonomy for transport infrastructure projects,   International Journal of Research Science and Management, 2017. 4(3): 2349-5197.

  11. Farhad M. (2015). Transport infrastructure and long-run economic growth in OECD countries, Journal of Transportation Research Part A: Policy & Practice, 74, 73-90.

  12. Hong Junjie (2007), Transport and the location of foreign logistics firms: the Chinese experience, Transport. Res. Part A: Policy Pract., 41 (6) (2007), pp. 597-609, 10.1016/j.tra.2006.11.004

  13. Mackie Peter, Tom Worsley, Jonas Eliasson, (2014). Transport appraisal revisited, Research in Transportation Economics, 47, pp. 3–18

  14. Miller Michael and Eckhard Szim, (2015). How to avoid unrealistic appraisal results? A concept to reflect the occurrence of risk in the appraisal of transport infrastructure projects, Research in Transportation Economics 49, pp. 65-75

  15. Owyong, D. T. and Thangavelu, S. M. An Empirical Study on Public Capital Spillovers from the USA to Canada. Applied Economics, 2001. 33(11): 1493-1499.

  16. Romp Ward, Jakob De Haan (2007), Public capital and economic growth: a critical survey, Perspektiven Der Wirtschaftspolitik, 8 (S1) (2007), pp. 6-52

  17. Reisa Η. & Rua A. An Input–Output Analysis: Linkages versus Leakages, International Economic Journal, 2009. 23(4): 527-544

  18. Sartzetaki M. (2019). Value Based Management Analysis Framework Towards Transport Enterprises Resilience, International Journal of Economics, Business and Management Research, 3(6), pp.82-96

  19. TRB, (2008). Transportation Research Board Airport economics impact methods and models: A synthesis of airport practice, Airport Cooperative Research Program, ACRP Synthesis 7, Washington D.C., pp. 5-6.

  20. Weisbord Glen (2008), Models to predict the economic development impact of transportation projects: historical experience and new applications, Ann. Reg. Sci., 42 (3) (2008), pp. 519-543

bottom of page