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 ◽  
...  

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.  

Author(s):  
Анастасія Говеля ◽  
Ірина Чекмасова

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.


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.


Author(s):  
Nataliia Sytnyk ◽  
Veronika Ishchenko

In modern conditions of functioning of the market economy, in the era of development of globalization and globalization processes, the prevalence of international relations, the spread of various forms of international capital movement, in particular foreign direct investment, an important place is occupied by investment activities and policies implemented by the state within the framework of the latter. It is difficult to overestimate the importance and role of investment, because world experience shows that the effective development of business entities, and therefore the country's economy as a whole, cannot be imagined without making investments. Therefore, the government of almost any country in the world is focused on creating a favorable investment climate. The article defines the theoretical foundations of investment security of the state: the essence of the concept is outlined, the principles on which investment security is based, its place and role in the state's economic security system are justified. Qualitative and quantitative criteria for a comprehensive assessment of the state's investment security are presented. The calculation and analysis of the main indicators – quantitative criteria of investment security: gross accumulation of fixed capital; the degree of accumulation of fixed capital; the ratio of the cost of newly introduced fixed assets to the volume of capital investments is carried out; the ratio of net growth of foreign direct investment to GDP; the size of the Ukrainian economy as a percentage of global GDP. The dynamics of the total volume of foreign direct investment in the Ukrainian economy in the context of world countries is analyzed. The main investor countries that ensure the receipt of the largest volumes of investment flows to the Ukrainian economy are identified. Ukraine's place in the World Bank's “Doing Business” rating over the past ten years has been demonstrated. The positive dynamics regarding Ukraine's place in the World Bank's “Doing Business” rating and the main factors that influenced such positive changes were noted. The investment climate of the state is assessed and possible measures are proposed to improve the mechanism of managing the state's investment security.


Author(s):  
Larisa Germanovna Chuvakhina

The article highlights the current problems of investments in the development of the world economy, when international investment needs are significantly high. The priority is given to the issues of investment resources for achieving the goals of sustainable development of the world economy. It has been stated that for creating the effective economic policy, the countries need to attract foreign investment. The current trends in the development of global market for foreign direct investment flows are examined. The flows of global foreign direct investment in 2017-2018 are analyzed. Special attention is given to the study of the US investment policy. The reduction in US investments into the Russian economy in terms of the sanctions policy against Russia is marked. The changes in the investment policy of the administration of D. Trump in terms of strengthening American protectionism are underlined. The issues of US-EU investment cooperation are considered. The role of the US Federal Reserve in regulating the activities of foreign companies in the US market is defined. The main decisions taken at the X World Investment Forum of the United Nations Conference on Trade and Development in October, 2018 are considered. The role of investment promotion agencies is defined as one of the tools to attract foreign investments into the country's economy. The decrease in the level of international investment and increased competition between countries for attracting foreign investment is stated. The study confirms that the investment attractiveness of the country, stability of the national financial system, and legal security of business play a decisive role in attracting foreign direct investment.


2018 ◽  
Vol 26 (4) ◽  
pp. 760-772
Author(s):  
Yury K Zaytsev

The economic and political sanctions had a significant impact on the behavior of foreign investors in the real sector of the Russian economy in the period 2014-2017. Despite a significant outflow of foreign direct investment (FDI) in 2015, in 2016-2017, there was an increase in investment activity associated with a steady inflow of FDI, which could be explained by the change in investment strategies of foreign business in Russia. The purpose of the study. The article assesses the impact of Western sanctions and Russian countersanctions on the influx of foreign direct investment into Russia. Methods. The work is based on methods of statistical analysis of the behavior of foreign investors in Russia on the basis of macroeconomic data of the Central Bank of Russia and microeconomic data of the “Ruslana” database. Results. The author gives various assessments of sanctions and counter-sanctions impact on the Russian and European economies, and compares the effects of sanctions policies in Russia and Iran. The stylized facts, identified by the author at the micro level, allow to interpret the macro statistics provided by the Central Bank of Russia at a qualitative level. The conclusion . In conclusion, the author gives recommendations on the possibilities of using new mechanisms of interaction with international institutions to overcome the investment crisis as a consequence of the sanctions regime.


Author(s):  
Ihor Shmorhun ◽  
Oksana Bulkot

The article is devoted to the study of the dynamics of the market of international investment resources. A comprehensive analysis of current trends in the market of international investment resources in terms of its structural division into the market of foreign direct investment, the market of basic investment instruments - stocks and bonds, and the market of financial derivatives. Based on the analyzed statistical information, the authors draw conclusions about current trends in the international market of investment resources. The analysis of the foreign direct investment market revealed a tendency to decrease the volume of direct investment capital in all regions of the world. It is shown that foreign direct investment market is suffering severely from the crisis caused by the COVID-19 pandemic, as well as from the impact of other factors such as the new industrial revolution, the transition of many world policies to greater economic nationalism, and the trend of sustainable development. In particular, countries with transition economies, developed and developing countries are suffered from decline of about 40% of foreign direct investments most of all. The market of basic investment instruments demonstrates a tendency to recover: the global stock market and the bond market also suffered significantly at the beginning of the pandemic in March 2020, but by the end of 2020 these markets had almost fully recovered and the bond market in general began to show record volumes and values. The derivatives and hybrid financial instruments market is showing a steady positive upward trend in 2020: trading in instruments such as currency futures, stock market futures, ETF options, etc. is showing significant growth. Such trends indicate that investors have become more active in portfolio investment strategies.


Author(s):  
Ivan Pirozhnik

The spatial structure of the world economy is divided into countries of economic center,semi-periphery and periphery. Changes of the spatial structure of the world economy and globalizationtrends are marked. A key element of the growing of globalization process is foreign direct investment(FDI) and activities of transnational corporations. Declining trend in foreign direct investmentis marked in conditions of instability of world economic development, shifts in FDI regional structureand their impact on countries with developing market economies. On the basis of the regional monitoringof the foreign direct investment the CIS market is described, in particular of the countries ofthe Customs Union and Belarus. The volumes of the Belarusian direct investment abroad are outlined,the forms of presence in foreign markets are indicated, the development of the commodity distributionnetworks, created by Belarusian enterprises and geography of inflow and outflow of FDI, is analyzed.The directions of improving the investment climate in Belarus and improve its position in the worldrankings are marked.


1970 ◽  
Vol 20 (1) ◽  
pp. 1-6
Author(s):  
Balasundram Maniam ◽  
William Hadley Leavell

FDI continues to play a crucial role around the world and its importance to theglobal economy cannot be understated. Researchers from different disciplinesare pursuing their work in FDI to better understand, explain and report the mostrecent findings. Hence, with that in mind, we, the guest editors, put a Call forPapers in the early part of Fall 2002 for a special issue of the Journal of BusinessStrategies on Foreign Direct Investments with a submission deadline of November15, 2002. We present in this issue four articles that were accepted from thatCall. These papers reflect the diverse work done in area of foreign direct investment.


2021 ◽  
Vol 11 (1) ◽  
pp. 32
Author(s):  
Demir Limaj

This paper focuses on foreign direct investments in Kosovo, based on a comparative statistical analysis of different sectors of economic activity and different countries of the world that have invested in Kosovo during the reporting period under study. We make use of the comparative analysis expressed in (%) by sorts of economic activity and aim to conclude which sector is more invested by foreign direct investment in Kosovo according to its economic activity. Whereas, through comparative analysis by different countries of the world that have invested in Kosovo, we aim to determine which are the countries that have mostly invested in foreign direct investment in Kosovo, and the level of performance of foreign direct investments during the reported period under study. The data were provided by the Central Bank of Kosovo for the period 2007-2019. In this paper we reflect the performance of foreign direct investments by years based on different sectors of economic activities and by different countries that have invested in Kosovo by applying the comparative analysis. It is of particular importance here to mention some of the options we suggest regarding to some of the government policies that should be undertaken in attracting and increasing foreign direct investments in Kosovo.   Received: 7 August 2020 / Accepted: 17 December 2020 / Published: 17 January 2021


Author(s):  
L. M Buiak ◽  
N Harmatii ◽  
I Fedyshyn

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.


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