scholarly journals Preview of BPM6 Methodology and Analysis of Foreign Direct Investment in 2015 in Croatia

2017 ◽  
Vol 3 (1) ◽  
pp. 67-77
Author(s):  
Helena Šlogar ◽  
Krešimir Jerin ◽  
Milan Papić
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Foreign Debt ◽  
Relevant Information ◽  
International Investment ◽  
Equity Capital ◽  
Balance Of Payments ◽  
Foreign Direct Investments ◽  
Sixth Edition ◽  
The Republic

Abstract Foreign direct investments include equity capital, reinvested earnings and debt relations between ownership-related residents and non-residents. Since 31 October 2014, the Croatian National Bank has started to publish information in the field of statistics Relations (balance of payments, foreign debt and the IIP) in accordance with the methodology prescribed by the sixth edition of the Manual on Balance of Payments (Eng. Balance of Payments and International Investment Position Manual, BPM6), thus changing the presentational form of direct investment. Direct investments are not classified according to the so-called direction of investments (Eng. directional principle) on direct investment in Croatia and direct investment abroad anymore, but according to BPM6 apply the socalled principle of assets and liabilities (Eng. Assets / Liabilities principle). The aim is to point out the differences between the standards BPM5 and BPM6 and determine which activities and which countries are the most represented in the structure of direct investments in Croatia. By identifying relevant activities and countries in the structure of foreign direct investment, relevant information is obtained about the macroeconomic state of the Republic of Croatia and about the opportunities and potential dangers that certain activities and countries provide.

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 Influence of external factors on foreign direct investment flows using the example of the Visegrad Group and Serbia

2021 ◽  
Vol 69 (3-4) ◽  
pp. 80-94
Author(s):  
Aleksandar Kemiveš ◽  
Lidija Barjaktarović
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Regional Cooperation ◽  
Business Environment ◽  
External Factors ◽  
Foreign Direct Investments ◽  
Political Risks ◽  
The Republic ◽  
The Impact ◽  
Visegrad Group

This research paper examines the impact of external factors on the dynamics of foreign direct investment (FDI) trends in specific economies. The same subject will be analyzed through the examples of the Visegrad Group and the Republic of Serbia. The aim of the research is to determine the existence of a link between the impact of foreign direct investments on the growth and development of the economy observed through gross domestic product (GDP) in the 1990-2018 period. The results of the research indicate that Poland was the most successful in attracting and keeping FDI, compared to other countries. Further, the volume of FDI has been dependent on several external factors, such as overall business environment, economic crisis, political risks, positions in relevant institutions, pandemic, etc. Moreover, for the Republic of Serbia, it will be important that all stakeholders in the country have a proactive approach in order to keep FDI in the country. Finally, representatives of the authorities should be committed to fulfilling promised deals related to the regional cooperation and EU (European Union) accession and integration.

scholarly journals Just Look behind the Data! Czech and Hungarian Outward Foreign Direct Investment and Multinationals

2019 ◽  
Vol 69 (S2) ◽  
pp. 73-105 ◽  
Author(s):  
Magdolna Sass ◽  
Jana Vlčková
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Transition Process ◽  
Balance Of Payments ◽  
Foreign Direct Investments ◽  
Outward Foreign Direct Investment ◽  
Outward Fdi ◽  
Foreign Investors ◽  
The Czech Republic ◽  
Main Factors

There has been an increase in outward foreign direct investment (FDI) and in the number of locally-owned or controlled multinationals in the Czech Republic and Hungary. However, data problems hinder to determine accurately the underlying trends and the main factors behind the changes. Data on outward FDI contain investment realised by all locally operational firms, regardless of their ownership. We rely on newly available balance of payments manual 6 (BPM) data and on company case studies. We show that outward investment by Czech firms must be much higher than what balance of payments data show. Hungary's case is the opposite. The leading Czech and Hungarian foreign investor firms can be categorised as “virtual indirect” foreign investors: they are in majority foreign ownership, but under domestic control. The reason for this special type of firms dominating in outward foreign direct investments can be found in the privatisation technique applied in these countries during the transition process.

scholarly journals INTERNATIONAL INVESTMENT RESOURCES MARKET: STRUCTURE AND CURRENT TRENDS

2021 ◽  
Vol 71 (4) ◽  
Author(s):  
Ihor Shmorhun ◽  
Oksana Bulkot
Keyword(s):  
Foreign Direct Investment ◽  
Stock Market ◽  
Direct Investment ◽  
Industrial Revolution ◽  
International Investment ◽  
Bond Market ◽  
Foreign Direct Investments ◽  
Investment Strategies ◽  
Current Trends ◽  
The Impact

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.

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 IMPACT OF FOREIGN DIRECT INVESTMENTS ON EMPLOYMENT IN THE REPUBLIC OF CROATIA

2018 ◽  
pp. 356-371
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Foreign Direct Investments ◽  
International Capital ◽  
Global Village ◽  
Neoclassical Theory ◽  
Advantages And Disadvantages ◽  
Ruling Elites ◽  
The Republic ◽  
National Economies

Globalization has enabled "joining" the rest of the modernity project. Expressive values such as knowledge, information, symbols and communication have become an imperative. Planetary power has encouraged the movement of free international capital in the global village. Digital economy and networked politics are responsible for the freedom of movement of capital that has become the part of financial globalization. From the range of stimulating factors to the free movement of international capital, the thrust of foreign investment plays an important role. The intricacy of neoclassical theory and the neoliberal political economy have enabled stronger interconnectedness and deeper integration of national economies. Consequently, there have been changes in the way of thinking of the ruling elites in terms of importance of foreign direct investment (FDI). Such awareness has also come through to the ruling elites of the Republic of Croatia who apply the strategy of attracting FDI based on pragmatic nationalism. FDIs are incorporated into the "national box" in the Republic of Croatia as one of the tools to gain advantages. In the perspective of advantages and disadvantages, the work is focused on the employment category from the perspective of the Republic of Croatia as the recipient of FDI or political foreign direct investment (PFDI). Given the importance of attracting FDI in the Republic of Croatia, the subject of the research includes consideration of the essence of Croatian FDI and employment in the Republic of Croatia in terms of identifying the attracted investments and the correlation with the growth or decline in employment. The aim of the research is to identify and deepen the topic of FDI in Croatia and its impact on employment in the Republic of Croatia. In addition, the aim is to explore and identify key FDI providers and employment impacts.

scholarly journals FOREIGN DIRECT INVESTMENTS IN THE REPUBLIC OF SERBIA WITH A SPECIAL FOUNDATION ON BROWNFIELD INVESTMENTS

2019 ◽  
Vol 31 (5) ◽  
pp. 1373-1380
Author(s):  
Srecko Bacevac ◽  
Nebojsa Pusara
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Foreign Direct Investments ◽  
Significant Development ◽  
Economic Progress ◽  
Development Factor ◽  
Economic Climate ◽  
The Republic ◽  
Development And Management ◽  
Management Capabilities

Foreign direct investment (FDI) in developing countries is a significant development factor. The Republic of Serbia, as a country in the transition phase, considers FDI as one of the most important factors for economic development. FDIs from the aspect of investors are also of great importance, especially in the sphere of building confidence of other countries and a favorable economic climate in our country, and in connection with future profitable investments. The benefits of increasing foreign direct investment in Serbia include: initiating technological transfers and spilling into the domestic economy, helping human resources development and management capabilities, contributing to inclusion in international trade and increasing exports, helping to create a more competitive environment, developing a culture of entrepreneurship, for the purpose of economic progress.

scholarly journals The Impact of Foreign Debt and Foreign Investments on Total Output: Kyrgyzstan Case

2017 ◽  
Author(s):  
Junus Ganiev ◽  
Damira Baigonushova ◽  
Mairam Baigonusheva
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Resource Selection ◽  
Foreign Debt ◽  
External Debt ◽  
Total Output ◽  
Annual Data ◽  
Foreign Direct Investments ◽  
The Government ◽  
The Impact

This paper aims to investigate the impact of foreign debt and foreign direct investments on GDP in Kyrgyzstan. Annual data for the period 1995-2016 and the ARDL cointegration approach were used in the study to analyze the relationship between foreign debt, foreign direct investment and gross domestic product. As a result, it was found a cointegration relation between foreign direct investment and GDP. According to the coefficient value, a $1 increase in foreign direct investments leads to a $4.4 increase in total output in the long run. That is, the increase in foreign direct investments makes a significant contribution to the country’s economy and welfare level. On the other hand, we could not find any statistically significant effect of external debt on total output. From the results obtained in the study, it is proposed that the government should give more importance to foreign direct investments than external debt in foreign resource selection. It is obvious that more effective steps should be taken in attracting domestic and foreign private capital to infrastructure investments such as roads and dams, especially by using “public private cooperation” methods.

scholarly journals Foreign direct investment of Polish enterprises in Ukraine – its conditions and structure

Management ◽  
2017 ◽  
Vol 21 (2) ◽  
pp. 109-123
Author(s):  
Bogusław Kaczmarek
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Foreign Direct Investments ◽  
The Third ◽  
Business Conditions ◽  
The Republic ◽  
Definition Of ◽  
Academy Of Sciences ◽  
Polish Foreign ◽  
Made In

Summary The aim of the article is analysis (structure and direction of development) of Polish foreign direct investments in the Ukraine. The article consists of four parts: first shows the definition of FDI and some aspects and economic conceptions explaining the conditions of their undertaking by companies. The second part presents the economic situation of Ukraine as a country for FDI localization; the third part presents the legal and administrative conditions of business conditions in this country, and fourth shows the characteristics of FDI made in Ukraine by Polish entrepreneurs. Materials for the preparation of this article were collected at the State Statistics Committee of Ukraine and at the Faculty of Industry and Trade of the Embassy of the Republic of Poland in Kiev. The data included also the elaboration of O.W. Polowin posted by Academy of Sciences of Ukraine.

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