scholarly journals Foreign direct investment trends: an analysis of the structure and dynamics in the context of globalization

2021 ◽  
Vol 107 ◽  
pp. 08003
Author(s):  
Liubov Kibalnyk ◽  
Maryna Leshchenko ◽  
Olena Feshchenko ◽  
Haiyu Wang
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Spanning Trees ◽  
Geographical Location ◽  
International Investment ◽  
Foreign Investments ◽  
Investment Environment ◽  
Investment Activity ◽  
Active Involvement ◽  
National Economies

The phenomenon of the international investment activity in the context of globalization is investigated in the article. Foreign direct investment is the most important basis for further analysis of the world economy. The article discusses the current trends of the foreign direct investment flows with an emphasis on their geographical location. In particular, the inflows of FDI by region and national economies are considered. The specific features of modern factors of the foreign investments’ distribution by regions are determined. The study shows that some methodological approaches are useful in determining the level of national economies’ interconnection of the linked processes of international capital flows. The clustering method was used for the analysis of foreign investments and the minimum spanning trees for the selected groups of countries were constructed. From the defined list of countries, one group with similar trends in the FDI movement has been distinguished. The article stipulates that countries should consider the need for their active involvement in globalization processes and contribute to the formation of a favourable investment environment within the country.

scholarly journals Protection of Foreign Investment in Central Asia

2019 ◽  
Vol 7 (4) ◽  
pp. 125-150
Author(s):  
Farruhbek Muminov
Keyword(s):  
Foreign Direct Investment ◽  
Central Asia ◽  
International Organizations ◽  
Foreign Investment ◽  
Direct Investment ◽  
International Investment ◽  
Labor Costs ◽  
Foreign Investors ◽  
Investment Policies ◽  
National Economies

Central Asia, with its abundance of natural resources and low labor costs, is often seen as an attractive destination for foreign investment. The inflow of foreign investment into Central Asia has significantly increased in recent decades, and this phenomenon supports the improvement of both national economies and the welfare of the region. Still, Central Asia is not classified as a low-risk destination for foreign investment because of inadequate protection of foreign investment – particularly a lack of transparency and predictability in Central Asia states’ FDI (Foreign Direct Investment) regimes. Furthermore, international organizations (such as the OECD) indicate that some countries in Central Asia do not have clear investment policies. These points pose problems for foreign investors who desire to invest in the region. From this perspective, this article analyzes the consistency of the general principles of foreign investment in Central Asia with international investment standards.

Investment Attractiveness of the Economy of the World Countries in the Polystructural Space of Foreign Direct Investments

2020 ◽  
Vol 11 (2) ◽  
pp. 645
Author(s):  
Natalia V. TRUSOVA ◽  
Tetiana A. CHERNIAVSKA ◽  
Yurii Y. KYRYLOV ◽  
Viktoriia H. HRANOVSKA ◽  
Svitlana V. SKRYPNYK ◽  
...  
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
International Investment ◽  
Foreign Direct Investments ◽  
Investment Climate ◽  
Safety Level ◽  
Investment Activity ◽  
Boundary Constraints ◽  
Methodical Approach ◽  
The World

The article deals with the theoretical, methodological and practical aspects of ensuring a safety level the investment attractiveness of the world countries economy in the polystructural space of foreign direct investments. In the context of the implementation of investment policy and factors in the field of international investment, an optimization model of the investment attractiveness of the national economy has been developed. The aggregate factors of the investment attractiveness index, which characterize the investment climate, investment activity and the state of economic development of the country, are highlighted. A methodical approach is presented to determine the synergistic impact of foreign direct investment on the country's investment attractiveness indicator. The criteria of normalization of investment attractiveness of the economy of the country by indicators of macroeconomic, monetary and currency status, which are formalized by indicators-stimulators, destimulators and interaction of bilateral boundary constraints are proposed. The criteria of identification of risks and threats of safe and dangerous state of development of the economy of the countries by the methods of prognostic extrapolation of foreign direct investment are taken into account. A comparative assessment of global foreign direct investment flows and global GDP, the value of net sales of cross-border mergers and acquisitions was made. The structure of foreign direct investment by regions of the countries of the world is considered, taking into account their external reserves of investment potential. The indicators of investment attractiveness of the Ukrainian economy and its cooperation with EU countries in terms of the volume of inflow and direct investments are presented. The scenarios for the growth of foreign direct investments in the polystructural space of the world and developing countries are proposed.  

scholarly journals Research on investment process dynamics taking into consideration stochasticity of world and national economies’ crisis phenomena

2020 ◽  
pp. 140-146
Author(s):  
L. M Buiak ◽  
N Harmatii ◽  
I Fedyshyn
Keyword(s):  
Foreign Direct Investment ◽  
Markov Chains ◽  
Direct Investment ◽  
The State ◽  
Government Support ◽  
Domestic Investment ◽  
Investment Activity ◽  
The World ◽  
National Economies ◽  
The Impact

Purpose. To analyze the flows of foreign direct investment (FDI) in Ukraine, countries of the OECD, the G-20, the EU, and the World, as well as the impact of the coronavirus COVID-19 pandemic on investment activity in the World; to identify problems and threats for investment activity in modern conditions, to identify relationship between FDI in Ukraine, the level of exports and imports of goods and services in Ukraine, to forecast these indicators. Methodology. In the process of research, general logical methods and research techniques were applied: analysis, synthesis, generalization, analogy, modeling, probabilistic (statistical) methods. The materials of the official analytical reports of the OECD, the European Commission, and the State Statistics Service of Ukraine were used to achieve the tasks of the investigation. The statistical data for the period 20112019 was analyzed. Forecast of foreign direct investment in Ukraine for the period 20202023 was implemented using the theory of Markov chains. Findings. The study indicates a significant decline in investment activity since the beginning of 2020 due to the coronavirus COVID-19 pandemic. Almost all economies in the world witnessed the impact of the crisis. There was a drop in investment activity in Ukraine output flows tended to decrease during 20092019. Taking into account the stochasticity of the processes taking place in the world economy, on the basis of the theory of Markov chains, forecasting of FDI in Ukraine was carried out. The modeling showed that in 2023 the situation with FDI in Ukraine would stabilize. Taking into account the predicted scenarios, the authors suggested that enterprises must focus on domestic investment and government support to overcome the crisis in the economy caused by the situation with COVID-19. Originality. The scientific novelty is in the use of the theory of Markov chains, which was adapted by the authors for research and forecasting of FDI in Ukraine till 2023. This theory makes it possible to take into account the stochasticity and instability of the processes occurring in the global and national economies. Practical value. The analysis of incoming and outcoming FDI flows and the identified threats to investment activity makes it possible to assess the dynamics of world economic processes and global competitiveness in the period 20112020. Using the tools of economic and mathematical analysis based on the regression influence, the degree of influence of direct investments in Ukraine on the dynamics of the GDP of the national economy and the level of exports and imports of goods were investigated. The forecasting of the dynamics of direct investments in Ukraine in the near future was carried out using the theory of Markov chains, which will allow working out appropriate decisions on the strategic development of the state.

scholarly journals ECONOMIC AND STATISTICAL APPROACH TO THE PROCESS OF INTERNATIONAL INVESTMENT: RISKS AND PROSPECTS

2021 ◽  
Author(s):  
Tetiana Zinchuk ◽  
Tetiana Palamarchuk
Keyword(s):  
Foreign Direct Investment ◽  
Foreign Investment ◽  
National Economy ◽  
Direct Investment ◽  
Structural Changes ◽  
Statistical Approach ◽  
International Investment ◽  
International Investors ◽  
Effective Use ◽  
National Economies

The fact that Ukraine is involved in the worldwide process of globalization and integration intensifies the attraction of overseas capital, which is an important tool for structural changes in national economies, for replenishing the budgets of countries and ensuring their economic growth. The current economic development of Ukraine is a result of the lack of country’s own financial resources, which confirms the need to create a favourable investment environment and intensify international investment. In view of this, the essence of foreign investment has been considered; the main forms and modern approaches to the classification of foreign investment have been described. It has been highlighted that foreign direct investment is the most effective for further development of the national economy in the context of globalization. The main aspects that make Ukraine’s economy attractive for international investors have been identified. An economic and statistical approach has been used to analyze the volume of foreign direct investment in and from Ukraine and from the country in the dynamics as a whole, as well as in terms of individual countries. The orientation of foreign direct investment in certain types of economic activity has been analyzed; and the priority directions for foreign investment in the national economy have been determined. The transformational changes in the way how domestic statistical information related to foreign direct investment is displayed have been identified. It has been emphasized that currently the only body responsible for disseminating information related to international investment is the National Bank of Ukraine. The factors that affect foreign investment have been specified, as well as investment risks associated with the use of overseas capital in the country. It has been noted that the further implementation of Ukraine’s economic policy in the field of foreign investment is associated with the appropriate regulation of both attraction of investment and its effective use. Prospects for international investment in Ukraine have been highlighted.

scholarly journals PROBLEMS AND WAYS TO ACTIVATE INVESTMENT ACTIVITY IN UKRAINE

2021 ◽  
pp. 84-87
Author(s):  
Анастасія Говеля ◽  
Ірина Чекмасова
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Foreign Investment ◽  
Direct Investment ◽  
International Investment ◽  
Investment Climate ◽  
The European Union ◽  
Investment Activity ◽  
Investment Projects ◽  
Social Environmental

The article examines the current state and problems of the development of attracting foreign direct investment. The author determined that the most investments in Ukraine are made by such countries as Cyprus and some countries of the European Union. It is proved that foreign investment is one of the most effective ways to develop economic, social, environmental and other spheres. It is determined that the key problems in attracting foreign investment today are: political instability, legislation, high inflation, and undeveloped infrastructure. The author has identified trends and explored the prospects for the development of attracting foreign direct investment, which allows us to demonstrate the dynamics of investments, which is considered an indicator of changes in the level of trust and rating of the country as a whole. Foreign investment plays a major blow to the economic development of many countries. Raising in the economy largely provides effective investment activity of Ukraine, which works by showing the dynamics invested in the country, so the investment climate in any country stands out from the main factors of socio-economic activity. situation. Thus, projects, innovative investments can be of great benefit for the economic development of the country, help to solve economic problems, so attract investors necessary and justified. In order to increase investment attractiveness, the country needs to implement a set of measures on the part of states and affairs, and as Ukraine has a strong production potential, thus concentrating the enhancement on the realization of its competitive advantages. It is concluded that the main directions of increasing the efficiency of investment activities, now and in the near future, will be: new modern infrastructure, improved investment, attracting foreign investors and improving the tax system. To improve the investment climate in Ukraine and increase the flow of foreign investment, it is necessary to promote the development of science, improve the regulatory framework in the field of investment, participate more actively in international investment projects, and develop small and medium-sized businesses in Ukraine.

scholarly journals Structural Analysis of Inward Foreign Direct Investment in Latvia

2021 ◽  
Vol 29 (1) ◽  
pp. 76-94
Author(s):  
Aleksejs Jurša ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
International Investment ◽  
Investment Environment ◽  
Sixth Edition ◽  
Business Results ◽  
Greenfield Investments ◽  
The Republic ◽  
International Investment Position ◽  
Operating Activities

The aim of this article is to investigate the activity of foreign direct investors in Latvia and find out what is the main source of financing for foreign investors – new investments or reinvested earnings.In order to achieve the set goal and test the hypothesis, the methodology of Sixth Edition of the International Monetary Fund’s Balance of Payments and International Investment Position Manual was used to define the types of foreign direct investment. This methodology was adapted to Latvian data. At the request of the author, Ltd Lursoft IT selected business data on all registered companies with foreign capital in Latvia since 2005 and aggregate data were used in the analysis.Foreign direct investment in Latvia flows mainly in the form of reinvested earnings, due to the profit earned from operating activities in Latvia. While new investments or greenfield investments in equity is lower compared to the amount of reinvested earnings. The results of the study reflect the business results of foreign direct investors in Latvia, as well as their actions in relation to the earned profit from operating activities. These results could be used by the Ministry of Economics of the Republic of Latvia and the Investment and Development Agency of Latvia to improve Latvia’s investment environment and im¬plement a more effective investment attraction strategy.

scholarly journals F�ATURES OF INTERNATIONAL INVESTMENT IN THE ECONOMY OF UKRAINE

2019 ◽  
Vol 21 (3(72)) ◽  
pp. 26-36
Author(s):  
N. VLADYMYRSKA
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
International Investment ◽  
Retail Trade ◽  
Investment Climate ◽  
Investment Environment ◽  
International Investments ◽  
The United Kingdom ◽  
The Russian Federation ◽  
The One

Topicality. In the conditions of the economic crisis, in which the economy of Ukraine has been in recent years, the search for reasons that do not allow developing the economy properly and the intensification of areas for attracting investments, including foreign ones, is one of the priority issues. The article aims to explore the level of the investment climate in Ukraine, as well as to analyze the level of attracting foreign investment in the economy of Ukraine. Aim and tasks. Investment attractiveness is largely shaped by the investment climate; therefore, we analyze the investment climate as a combination of legal, financial, political, and socio-cultural factors that predetermine the expediency of investing in the country. Estimated index of investment attractiveness of the country for 2009-2018 and the place of Ukraine in the rating of investment attractiveness of the countries of the world. The article analyzes the volume of foreign direct investment in Ukraine, the structure of investment in the sectoral context and by investor countries of foreign direct investment over the ten-year period from 2010 to 2019. Research results. Based on the study, it was found that the most attractive for foreign investors in the industry, during the analyzed period, remain the industry, especially processing, financial and insurance activities, wholesale and retail trade, real estate operations, scientific and technical activities, information and telecommunications. It is determined that the main investor countries that invest more than 80% of foreign direct investment are twelve of the one hundred and thirty investment countries. The top five investor countries are Cyprus, the Netherlands, Germany, the United Kingdom and the Russian Federation, these countries form more than 60% of all international investments in the economy of Ukraine. The study revealed that almost a third of the international investment in the Ukrainian economy is Ukrainian capital, previously withdrawn from the country in offshore jurisdictions - round - tripping. These countries, apart from Cyprus, include Switzerland and the British Islands Verginsky. Conclusion. The necessity of further formation of modern approaches to the creation of a favorable investment environment in the Ukrainian economy, based on the experience of countries such as Estonia in the taxation of withdrawn capital and world experience, is substantiated. Ukraine should also continue to cooperate with international institutions such as the OECD and develop areas of cooperation with investors under the MLI Convention, which will help reduce the movement of Ukrainian capital to low-tax countries and, accordingly, will affect the increase in investment in the Ukrainian economy.

scholarly journals International investment activity of Ukraine. Problems and perspectives of its formation

2019 ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
System Analysis ◽  
Direct Foreign Investment ◽  
World Market ◽  
International Investment ◽  
Investment Activity ◽  
International Investments ◽  
Factors Affecting ◽  
The World

The main approaches to the international investment activity of Ukraine, problems and prospects of investment activity are descriptive, therefore the development of international investments in the world economy was analized; defined possibilities of using international investments in connection with ensuring economic growth; the volume of direct foreign investments into the Ukrainian economy from the countries of the world were investigated; defined problems of development of the international investment activity of Ukraine and ways of its solution. The subject of the research is theoretical, methodological and analytical basis of Ukraine's investment activity, prospects for its development. The goal is to invent key obstacles to the development of Ukraine's international investment activity. The purpose of study is to research the international investment activity of Ukraine, the place and role of the country in the world investment market. Common scientific methods are used, such as system analysis, to determine the peculiarities of the development of foreign direct investment in Ukraine, factor analysis, to formalize the causal relationships between the investigated factors of problems. The following results were obtained: based on the analysis of the dynamics of foreign direct investment in Ukraine and the assessment of the obstacles to investing, identified problem aspects and identified components of Ukraine's international investment activity, factors affecting the level of direct foreign investment inflow to Ukraine. Conclusions: the problems and prospects of the development of international investment activity of Ukraine can be effectively used in foreign economic activity as recommendations for determining the strategy of improving the foreign economic situation of the country and competitiveness on the world market.

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