scholarly journals The Impact of FDI on Economic Development: The Case of Georgia

2020 ◽  
Vol 10 (2) ◽  
pp. 96-116
Author(s):  
Vakhtang Charaia ◽  
Archil Chochia ◽  
Mariam Lashkhi
Keyword(s):  
Economic Development ◽  
Multinational Enterprises ◽  
Point Of View ◽  
Foreign Direct Investments ◽  
Strategic Decisions ◽  
Comprehensive Picture ◽  
Local Host ◽  
The Impact

Abstract From the strategic point of view, not all foreign direct investments (FDI) are always positively benefiting the host economy, i.e. not all multinational enterprises (MnEs) are promoting local host economies. Even more, not all FDIs are equally beneficial to different sectors within the same economy. The fact is that fdi can impact different sectors in various ways, and the impact is not only based on the amount of fdi itself but on MnEs’ motivations and the peculiarities of the host economy, which can differ from country to county. in other words, only fdi numbers aggregated per year are not really giving a comprehensive picture of the situation and in many cases lead to incorrect strategic decisions, as it has happened in many countries, including Georgia.

Is the USSR dead? Experience from the financial and economic crisis of 2008–2009

2013 ◽  
Vol 46 (1) ◽  
pp. 109-122 ◽  
Author(s):  
Mikhail Golovnin ◽  
Alexander Libman ◽  
Daria Ushkalova ◽  
Alexandra Yakusheva
Keyword(s):  
Economic Development ◽  
Soviet Union ◽  
Economic Crisis ◽  
Former Soviet Union ◽  
Point Of View ◽  
The Impact ◽  
Former Soviet Republics ◽  
Economic Linkages

The paper examines the economic linkages between the post-Soviet states from the point of view of the financial and economic crisis of 2008–2009. It aims to find out whether the interdependence between the countries of the former Soviet Union is still large enough that crises in individual countries affect the economic development in the neighboring states, and assesses the impact of the crisis itself on the linkages between the former Soviet republics. The evidence is mixed: while some channels of interdependence deteriorated over the last decade, others became more important, and some were even strengthened by the crisis itself.

scholarly journals Development of innovation and investment potential of the industrial sector

2019 ◽  
pp. 5-11
Author(s):  
Iryna Anatoliivna Markina ◽  
Serhii Mykolaiovych MARCHYSHYNETS
Keyword(s):  
Economic Development ◽  
Manufacturing Sector ◽  
System Development ◽  
Complex Form ◽  
Decisive Role ◽  
Industrial Sector ◽  
Point Of View ◽  
Investment Policy ◽  
Stage Of Development ◽  
The Impact

Introduction. The main catalyst for effective transformations in the industrial sector of the economy is innovation and investment policy, which aims to increase the potential, namely the capacity of the manufacturing sector of the Ukrainian economy. The innovation and investment potential closely reflect the objectively existing possibility of socio-economic development of the human system. The purpose of the article is to clarify the basic principles and approaches that reflect the innovation and investment potential and the essence of innovation and investment development. Results. The state ideology in the field of innovation and investment policy is considered. A generalization of the concept of “development” of the philosophical point of view is presented. The decisive role of development in understanding the essence of everything is proved. The vector of development in terms of its regressive or progressive manifestation is considered. It is determined that the stages of development are the stages of system change, which include: appearance, upward stage of development, maximal development or maturity, regressive changes or downward stage, disintegration and death. The tendency of differentiation in socio-economic systems is determined. The essence of “becoming” as a stage in the system development is considered. The essence of the system's maturity is revealed. External and internal sources of system development are considered. On the basis of the theoretical generalization, the key properties of the concept of “development” are given: it acts as a form of constant movement forward from simple to complex form; the degree of development is determined by the influence of external and internal factors; the way of development of the system is determined by its basic motives, the degree of recognition by the system of objectively existing reality; development is possible if it’s provided by the quantitative parameters of the end goal; the form of its implementation is cyclical or spiral; analysis of development must be carried out in two directions of research: in the material and spiritual worlds. The definition of “innovation” is given. The essence of scientific and technological progress as a basis of economic development is considered and the vision of leading scientists-economists on this phenomenon is presented. Quantitative estimates of the impact of innovative GDP growth are provided. The quantitative contribution of various factors of economic growth of a market economy is given. Key words: management, enterprise, potential, innovations, investments, innovation and investment develop-ment.

scholarly journals Globalized Inclination to Acquire Knowledge and Skills Toward Economic Development

2021 ◽  
Vol 18 ◽  
pp. 1349-1369
Author(s):  
Grigorios L. Kyriakopoulos
Keyword(s):  
Economic Development ◽  
Economic Recession ◽  
Point Of View ◽  
Economic Systems ◽  
Skills Acquisition ◽  
Highly Qualified ◽  
Cultural Characteristics ◽  
Knowledge And Skills ◽  
E Learning ◽  
The Impact

In an era of economic recession and the divulged threats of COVID-19 pandemic in the world a highly impacting socio-economic activity is the education sector. The operational difficulties of companies and organizations, as well as the closure of universities, schools, training courses, are all affecting the entrepreneurial and the learning progress on using workers time and learners facilities to develop their knowledge and to build up their skills. In particular, free time of institutions’ closure can become a golden opportunity for learning and progresses in virtual education while adopting e-learning modes of information technology (IT) and supporting the distribution of knowledge and information for training and education. Since the COVID-19 pandemic outbreak only few studies have been devoted on studying the impact of cultural characteristics, economic situations, skills and knowledge on the development and the wider human wellbeing. At this study the literature production of economic development was investigated in the light of the ignored, but critically important, issue of globalized inclination to acquire knowledge and skills. All essential aspects of economic systems and economic development within the COVID-19 era were approached, quantified, and graphically valuated, in the light of the following fields of literature search: “dynamic economic systems”, “economic development”, “knowledge skills”, and “globalization”. The measurable indicators of comparing these results were that of: chronological, geographical, languages of reports’ written, subject areas, and keywords, accordingly. Besides, the three domains of technology, environment – ecology, and socio-economics were conveyed, while the key-determinants of knowledge and skills acquisition were also analyzed. From a managerial point of view the simultaneous affection of cultural characteristics, economic simulations, skills and knowledge aspects were considered as positive and significant, thus, supporting managers to better understand the necessities of IT development and managing a highly qualified workforce to shift the thread of the COVID-19 era while performing feasible learning management to solidify workers’ education through formal and in-house education.

On the Prospects for Foreign Direct Investments after Russia's WTO accession

2003 ◽  
pp. 27-33
Author(s):  
V. Ivanenko
Keyword(s):  
Economic Development ◽  
The Other ◽  
Foreign Direct Investments ◽  
Investment Climate ◽  
Insufficient Evidence ◽  
Positive Role ◽  
Negative Findings ◽  
Potential Link ◽  
The One ◽  
The Impact

This paper addresses two sets of questions. First, it discusses the claim that foreign direct investments (FDIs) play a positive role in economic development and concludes that there is insufficient evidence to support this claim. Second, the paper investigates a potential link between the volume of FDIs and WTO membership. It finds that the impact of WTO membership on the volume of FDIs is insignificant statistically. In spite of negative findings, the paper supports the continuation of WTO negotiations. It attracts attention to the fact that the negotiations stimulate the creation of favorable investment climate in Russia on the one hand and prevents politically powerful companies from obtaining individual concessions on the other.

scholarly journals The Impact of Foreign Direct Investment on Income Inequality in Vietnam

Economies ◽  
2021 ◽  
Vol 9 (1) ◽  
pp. 27
Author(s):  
Quoc Hoi Le ◽  
Quynh Anh Do ◽  
Hong Chuong Pham ◽  
Thanh Duong Nguyen
Keyword(s):  
Economic Development ◽  
Income Inequality ◽  
Foreign Direct Investments ◽  
Method Of Moment ◽  
Fdi Inflows ◽  
Salary Structure ◽  
Education Levels ◽  
The Government ◽  
The Impact

Foreign direct investments (FDI) is an important determinant of economic growth. FDI does not only contribute to the growth and economic development but also affects income through contributing to economic development and the impact on employment and salary structure of developing countries. The aim of this paper is to analyze the impact of FDI on income inequality in Vietnam. This study is the first attempt to examine the impact of FDI on income inequality under the constraints of the institution and education levels. To address the potential endogeneity problem, this study adopts Genernalized Method of Moment (GMM) model to conduct the estimation. A two-step GMM model with robust standard errors is used in the study. Empirical results show that FDI tends to increase income inequality in Vietnam and the existence of a non-linearity relationship between FDI and income inequality is also validated. Moreover, the study finds that the effects of FDI on income inequality are different depending on the level of education and institutions of the host provinces in Vietnam. The results of this study imply that, in order to ensure sustainable development, Vietnam’s policies should focus on improving the quality of economic governance and the administrative reform efforts of the government of the provinces and cities. Besides, policies should focus on increasing investment in public education and improving human capital, which not only can reduce income inequality but also can attract more FDI inflows.

scholarly journals Quantifying the Economic Development Dynamics of a Country Based on the Lorenz Curve

2021 ◽  
Vol 24 (1) ◽  
pp. 55-65
Author(s):  
Romualdas Ginevičius ◽  
Joanicjusz Nazarko ◽  
Dainora Gedvilaitė ◽  
Zdzisława Dacko-Pikiewicz
Keyword(s):  
Economic Development ◽  
Lorenz Curve ◽  
Essential Feature ◽  
Two Dimensions ◽  
Point Of View ◽  
The Other ◽  
Alternative Methods ◽  
Complex Nature ◽  
The Lorenz Curve ◽  
The Impact

The welfare of a country depends on its economic development. In order to have the impact on it, we should have a possibility to quantitatively assess its situation at the desired point in time. Economic development, as a multifaceted and complex phenomenon, is reflected in two dimensions – intensity and uniformity. These mentioned above can be viewed as partial indicators of dynamics. Two main approaches to measuring development uniformity can be distinguished. In one of the cases, it is measured on the basis of an index that includes the main results of the country's economic development. In the other case, the values of the indicators reflecting all the essential development actions are combined in one appropriate way. From a scientific point of view, the second approach is more accurate as it allows for a better assessment of the complex nature of a country’s economic development. On the other hand, its application today is still problematic due to the fact that the models for this differ in terms of both the number and composition of indicators. For this reason, it is not possible to compare countries. Therefore, in international practice, the economic development of countries is measured by gross domestic product per capita (GDP). Based on GDP indicator, the method for the measurement of uniformity is proposed and the essence of which is the ratio of the length of the ideal trajectory of the development during the period under review to the length of the actual trajectory. Without ruling out the appropriateness of such an approach for assessing development uniformity, it makes sense to look for alternative methods. In this sense, methods that allow assessment of the extent of fluctuations of the phenomenon under consideration as an essential feature of development dynamics are suitable. These include the Gini coefficient, which is determined from the Lorenz curve.

scholarly journals FINANCIAL LEASING IN THE FUNCTION OF ECONOMIC DEVELOPMENT OF BOSNIA AND HERZEGOVINA (STATISTICAL APPROACH)

2020 ◽  
Author(s):  
Slobodan Subotić ◽  
◽  
Goran Mitrović ◽  
Vladimir Marković ◽  
◽  
...  
Keyword(s):  
Economic Development ◽  
Statistical Methods ◽  
Bosnia And Herzegovina ◽  
Small And Medium Enterprises ◽  
Investment Decision ◽  
Transition Process ◽  
Bank Loans ◽  
Foreign Direct Investments ◽  
Financial Leasing ◽  
The Impact

The leasing institution is typical for countries with developed market economies, although it keeps gaining more and more importance in transition countries. Therefore, the research in this paper is focused on the financial leasing market in Bosnia and Herzegovina, as one of the countries undergoing transition process. Its basic features have been assessed, together with determining turnover over the observed ten-year period, both in Bosnia and Herzegovina as a whole and in its respective entities. The research aims to establish to what extent has financial leasing contributed to the development of the small and medium enterprise (SME) sector and the economic development of Bosnia and Herzegovina. Modern statistical methods have been applied to analyze the connection and interdependence of leasing and certain macroeconomic indicators in Bosnia and Herzegovina. For the purpose and in the context of this research, the following indicators, such as the values of leasing, gross domestic product, export, import, and foreign direct investments related to the period from 2009 to 2018 are presented in the respective tables and charts. The analysis is based on the application of descriptive and econometric statistical methods of correlation and regression, as well as on the following statistical packages: IBM SPSS ver. 21, Microsoft XLSTAT. A particular, dedicated segment of the analysis refers to determining the impact of financial leasing on the level of SME investment to classic bank loans. That is, to what extent is financial leasing in the function of investment decision-making of small and medium enterprises in Bosnia and Herzegovina.

scholarly journals Impact of foreign direct investment on lower silesia’s economic development

2013 ◽  
Vol 5 (2) ◽  
pp. 31-62
Author(s):  
Maciej Popławski
Keyword(s):  
Economic Development ◽  
Foreign Capital ◽  
First Year ◽  
Foreign Direct Investments ◽  
Administrative Division ◽  
Macroeconomic Indicators ◽  
Central Statistical ◽  
Central Statistical Office ◽  
The Impact ◽  
Lower Silesia

Abstract The paper presents research results concerning the impact of foreign direct investments on the economic development of Lower Silesia in the years 1999-2011. The first year analysed is 1999 - the year in which the new administrative division was introduced into Poland, where the number of provinces was reduced from 49 to 16, with 314 districts and 65 cities being given district rights (including communes which also accomplish the tasks of the district).1 The research takes into account the most important macroeconomic indicators presenting the region’s development, such as the GDP and investment and employment levels. These indices are based on data from the Statistical Office in Wrocław and the Central Statistical Office of Poland (GUS). Data on companies and entities with foreign capital have been correlated with the above-mentioned indicators to evaluate the foreign investment influence on the region’s economy

Problems in the Interpretation and Revision of Eighteenth-Century Irish Economic History

1967 ◽  
Vol 17 ◽  
pp. 1-22 ◽  
Author(s):  
L. M. Cullen
Keyword(s):  
Eighteenth Century ◽  
Economic Development ◽  
Economic History ◽  
Point Of View ◽  
Early Date ◽  
Political Issues ◽  
Economic Issues ◽  
History Of ◽  
The Impact

The economic history of Ireland in the late seventeenth and eighteenthcenturies unfolded in an age marked by considerable legislative interference by the British parliament in Irish affairs. The impact of this interference was all the greater because the executive in Dublin was, from the point of view of an Irish colonial nationalist, constitutionally irresponsible, answerable to the king's ministers in London rather than to the Irish legislature. It is not surprising that against this background colonial nationalism emerged at an early date. The interpretation of economic issues fell inevitably under the shadow of constitutional controversy and rising colonial nationalism. In the eyes of contemporaries, and subsequent Irish historians who have borrowed largely both their facts and interpretation of events from the writings of the period, economic development was subsidiary to political issues; not only subsidiary but its achievement or negation a product of policy.

scholarly journals Analysis of the Cobb-Douglas Production Function as a Tool to Investigate the Impact of FDI Net Inflows on Gross Domestic Product Value in Poland in the Period 1994–2012

2014 ◽  
Vol 5 (4) ◽  
pp. 169-190 ◽  
Author(s):  
Aneta Kosztowniak
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Production Function ◽  
Point Of View ◽  
Foreign Direct Investments ◽  
Fdi Inflows ◽  
Fixed Capital Formation ◽  
Empirical Point ◽  
The Impact ◽  
Douglas Production Function

The purpose of this paper is to analyse the impact of foreign direct investments net inflows on changes in GDP value in Poland in the period between 1994 and 2012 with the use of the Cobb-Douglas production function. The paper consist of five parts. Parts I and II present some aspects of the FDI influence on economic growth from the theoretical and empirical point of view. Part III defines conditions indispensable for the positive FDI impact on the economy of the host country. Part IV outlines changes of FDI flows in Poland in the period of 1994-2012. Part V includes the main assumptions of the Cobb-Douglas production function and an estimate of changes in GDP value for Poland in the period 1994–2012 with the use of the VECM. The factors significant for economic growth are also identified, including the significance of the net FDI inflows. Eventually, the effect of gross fixed capital formation, employment, FDI net inflows, exports and R&D on changes in the GDP value are determined.

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