Family Office Considerations to the Direct Investment Process

2021 ◽  
Vol 25 (4) ◽  
pp. 110-120
Author(s):  
E. A. Zvonova ◽  
V. Ya. Pishchik ◽  
P. V. Alekseevc

The article examines and assesses the problem of the investment deficit in the Russian economy, which has acquired particular relevance due to the coronavirus crisis caused by the pandemic. The study aims to develop practical recommendations for Russian state bodies to stimulate the investment process in the Russian economy and improve the efficiency of measures taken by the state to ensure the country’s socio-economic development. The objectives of this paper are to analyze the directions of optimization and prioritization of investment of resources during the economic recession caused by the coronavirus crisis using investment lending and project financing instruments, as well as to analyze and assess the ongoing reform of development institutions based on the state corporation “VEB.RF”. The research methodology includes an analysis of the regulatory legal framework, statistical information, official reports of state bodies, development institutions, scientific monographs and publications of Russian scientists, periodicals. The authors analyzed the trends and problems of the investment process in the Russian economy, including in the field of attracting foreign direct investment. Attention is paid to the ongoing reform of development institutions aimed at enhancing the role of the state development corporation “VEB.RF” in stimulating investment. The authors conclude that it is necessary to take a set of functional, instrumental, and institutional measures aimed at stimulating investment and ensuring sustainable socio-economic development of Russia. In particular, in the context of a shortage of domestic sources of financing for long-term investments, it is important to provide regulatory macroeconomic support for the inflow of foreign direct investment into the Russian economy. In this regard, the authors propose to change the monetary policy strategy to increase the stimulating role of refinancing of credit institutions and the projected exchange rate in attracting domestic and foreign long-term investments and ensuring sustainable development of the Russian economy. The authors also propose to increase the role of foreign exchange regulation and foreign exchange control in stimulating investment and ensuring sustainable socio-economic development of Russia.


Author(s):  
Oleksandr A. Zadoia ◽  
◽  
Valerii S. Fomenko ◽  

The paper reviews the processes of direct and portfolio investment, outlines the differences and the main directions of implementation of ways to achieve economic goals using these tools at both international and national levels. The arguments and reasons for the growing popularity of portfolio investing in the modern world are given, given the wider range of sources of primary information on the state of the stock market in global trading platforms and the ever-increasing tools for managing investors’ assets. Based on the systematization of the work of foreign and domestic scientists, the assessment of the role of investment activity in the formation and further successful development of the national economy is given. Taking into account the experience of developed countries, the need to develop the stock market of Ukraine, identify problems and, taking into account the specifics of the domestic economic and geopolitical space, proposed effective steps to improve the investment climate in our country. In order to detail and classify possible areas of investment activity, the study analyzes the types of investment instruments and identifies their likely target use in modern realities. The analysis of investment activity of Ukraine in the period 2014-2020 provided an opportunity to find out the main trends in the dynamics of changes in direct and portfolio investment. From the point of view of the root causes of the low level of investment activity in this period, gaps in the legislation, the presence of corruption schemes, inconsistencies in the strategies of regulatory financial institutions, a large share of the shadow economy, military action in industrial regions were highlighted. Therefore, despite the high level of return on capital in Ukraine, our country has found itself on the sidelines of global investment flows. The study of the ratio of direct and portfolio investments and their dynamics shows a certain pattern. First, Ukraine is characterized by a constant excess of direct investment over portfolio investment. Secondly, the gap between these types of international capital movements in our country is narrowing due to the increase in portfolio investment. This situation makes it possible to state the invariability of the negative level of investment attractiveness of the domestic economy in the real sector, and the problems of economic imbalance are covered by external borrowing through the use of one of the portfolio instruments, namely placement of foreign and domestic government bonds. The main emphasis is on the inadmissibility of such a state of affairs, which makes it possible only temporarily to maintain Ukraine’s economy in a stable state. A review of the dynamics of the country’s debt growth and the decline in the competitiveness of domestic production in the context of a very high degree of depreciation of production capacity, only confirms the need for urgent measures to stimulate the process of direct investment. Regarding the development of the portfolio investment process, it is proposed to bring the regulatory framework to international standards in the first place. Combining the stimulation of direct investment, especially in the real sector of the economy, in the presence of relevant laws and financial institutions, inevitably revival in the stock market, which in turn will change the structure of portfolio investment in Ukraine. The opinion also expresses the need to take into account the external effects of the investment process, namely to pay attention to increasing the indicators of inclusive economic development.


2021 ◽  
Vol 12 (2) ◽  
Author(s):  
Natalia Epova

The problem of offshoring economy is relevant not only for Russia. It is rather difficult to calculate the amounts leaking to offshores. The figures in the press is a very rough estimate. The analysis carried out in this article allows us to draw conclusions about the reasons for the use of offshore jurisdictions and the negative consequences for the economies of the countries facing this problem. The advantage for businessmen in using offshore is the convenience of conducting international transactions, the ability to reduce customs duties, in the case of importing goods or exporting them at low prices through an offshore. Services can also be used as a subject of a contract, but it is difficult to control whether they were actually provided. At the same time, the creation of a company abroad has a positive effect on the reputation of Russian businessmen. The article analyzes Russia's participation in the global investment process, the geographical features of the inflow and outflow of foreign direct investment, summarizes Russian and foreign experience in struggling against capital flight, suggests options for reducing the use of offshore companies in the economy.


Author(s):  
Tural Mammadov

The goal of this article consists in the analysis of investment relations between CIS countries at the current stage, and as well as in development of proposals aimed at attraction of direct foreign investment into economy of the union in the conditions of regional integration. The article examines the peculiarities of investment process in CIS. The author outlines the common factors that delimit the expansion of economic integration within the union. The research is based on the scientific articles, databases of international organizations, analytical materials of CIS partner countries. Methodology includes such approaches as scientific abstraction, logical generalization, economic-statistical and factor analysis, clustering method, and circumstantiation. The essence of direct investment is revealed. The author suggests the original classification of foreign direct investment from the perspective of their role in the modern global economy. The role of direct investment in the development of CIS partner countries is described. The conclusion is made on the key development trends of investment relations in CIS countries. The article substantiates the need to develop agencies for attracting foreign direct investment, establish shared centers in the area of public-private partnership, as well as create joint sovereign funds and enterprises in high-tech sectors of the national economy. It is proposed to form a single specialized center for coordinating monetary policy of CIS member-states.


Author(s):  
Thaksin Phimpamot

In the article the inflow of foreign direct investment (FDI) into the economy of the Lao is examined, in particular, the evolution of the policy, methods and rules of FDI attraction and regulation, as well as the dynamics and sectoral structure of FDI inflows. In result of Lao’s targeted proactive government policy, the FDI inflow since 2005 have risen substantially, owing primarily to domestic and foreign investments in hydropower and mining. Since the 3rd five-year National Plan for 1991-1995, the promotion of FDI has become a priority for the government. Since 2005, the annual rate of economic growth has exceeded 5%, and by 2020, the poverty of the people has dropped significantly. Through continuous, inclusive and sustainable economic growth the country managed to get out of “least developed countries” status by 2020. The Lao PDR government continues to improve the legal framework and law enforcement practice in the field of FDI. China, Thailand and Vietnam lead the investment process among the 10 most active foreign investors. Lao government clearly defined the desirable industries for foreign direct investment, which meet national interests - hydropower, mining, infrastructure facilities, industrial and agricultural enterprises, tourism.  In this article an overview of the most important FDI sectors in Laos is provided. Authors have come to conclusion that the scope, volume and focus of implemented  and ongoing FDI projects has benefited the Laos in terms of socioeconomic growth, foreign exchange earnings, job creation, as well as modern equipment, technology and skills transfer. The attention of the Lao government to practical details of foreign investment in important national projects contributes to successful use of external resources for national goals.


2020 ◽  
Vol 14 (7) ◽  
pp. 133
Author(s):  
Marwan Mohamed Abu Orabi

It's a paper that studying money inflation that is an associated with the investment process and is noted to almost affect both Foreign Direct Investment (FDI) and domestic direct investment (DDI)simultaneously. Industrial development issues are often related to investment process in Jordan. The study highlights how financial inflation affects decisions of investment of most industrial companies in Jordan. Through this study future studies will be conducted with the conceptual structure of investment decisions through monetary inflation as a shape of capital, commodities, and import inflation in Jordanian industrial companies. To acquire the important information that helped to justify the study hypothesis, a question. To confirm the direct investment decisions and inflation relationship, Pearson's Correlation Test formula was used in this analysis. The entire results found: the lowest coefficient was in the overall correlation coefficient for imported inflation and the reserved variables. It was noted that when other variables decrease, the rising in most imported inflation might be compensated. In other hand, the remaining variables' correlation coefficient had a positive value.


2021 ◽  
Vol 4 (5) ◽  
pp. 135-143
Author(s):  
Pingxia Song ◽  
Rui Liu ◽  
Jun Li

This study analyzes IKEA’s localized operation in China through the eclectic theory of international production. Firstly, the development history of IKEA is discussed along with its development in China. Secondly, IKEA’s direct investment in China is analyzed from the perspective of IKEA’s eclectic theory of direct investment in international production, the corporate ownership, internalization, and location advantages of the company, in addition to the challenges of IKEA’s investment and operation in China, hoping to enlighten the process of formulating overseas expansion strategies for foreign direct investment. This study aims to guide students to strengthen their skills in formulating and implementing strategies in regard to the international investment process of multinational companies. On the one hand, they can analyze the strategies used and challenges faced by IKEA in its international investment in China to stimulate their thinking on the international investment of Chinese enterprises; on the other hand, they can also strengthen their understanding of the international investment theory by analyzing IKEA’s international investment in China. This study hopes to enhance students’ understanding and application skills in regard to companies’ transnational operations.


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