In this research, a model is designed to assess the effect of banking facilities over private sector investment. In this model, private investment is a function of non-oil GDP, and with a time lag, of import of capital goods, investment of public sector and the real facilities granted by the banking system to the private sector. The effects of the model indicate a meaningful effect of the ...

The rapid technological change and uncertain future evolutions have a large impact on investment projects in the telecommunication sector. When new infrastructure networks are rolled out, the initial assumptions can prove to be untrue in the future, severely impacting the payoff. It is therefore extremely important that projects offer flexibility to allow the management to react to unforeseen c...

Chinese ports investment theory and practice are still in infant, have been unable to adapt to the future port of the actual needs of sustainable development.The managerial flexibility involved in the contingent investment can be described and valued by expansive real options, the port investment in the expansion of the integrated value function model is established. The model is set up to calc...

In recent years, the world’s mobile market is transformed by E-3G UMTS and 4G mobile networks. Typically, infrastructure costs and revenue are two critical factors of any decision-making in regard to investment in 4G mobile network industry. The objectives of the study are categorized as follows: (1) to introduce real option theory and to discuss its applicability as a decision support tool, (2...

The paper discusses a theory of FDI, which captures a unique feature: hands-on management standards to react in real time to a changing economic environment in the firms that FDI investors gain control. Equipped with superior managerial skills, foreign direct investors outbid portfolio investors for the top productivity firms in a particular industry in which they have specialized in the source...

Most of the literature on real options considers the optimal decision of a firm in isolation from competitors. In reality, however, the actions of competing firms often affect each other’s investment opportunities. We develop a game model where many firms compete for a single investment opportunity. When one of the firms triggers the investment the opportunity is completely lost for the other f...