scholarly journals Structural Analysis of Inward Foreign Direct Investment in Latvia

2021 ◽  
Vol 29 (1) ◽  
pp. 76-94
Author(s):  
Aleksejs Jurša ◽  

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.

2017 ◽  
Vol 3 (1) ◽  
pp. 67-77
Author(s):  
Helena Šlogar ◽  
Krešimir Jerin ◽  
Milan Papić

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.


2021 ◽  
Vol 107 ◽  
pp. 08003
Author(s):  
Liubov Kibalnyk ◽  
Maryna Leshchenko ◽  
Olena Feshchenko ◽  
Haiyu Wang

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.


2019 ◽  
Vol 21 (3(72)) ◽  
pp. 26-36
Author(s):  
N. VLADYMYRSKA

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.


Author(s):  
Halil Bajrami ◽  
Bashkim Bellaqa

Foreign Direct Investment (FDI) has a special and specific importance for the Republic of Kosovo taking into account the conditions and economic development, which in turn impact the economic development and social improvement of the country. For the state to have a greater absorption of FDI, significant improvement should be made in improving the management capacity in order to create a motivating environment for foreign investment, which is related to the improvement of macro-factors and microfactors at the country level in order to make the environment as attractive as possible for FDI. The purpose of this paper is to present the trend of FDI, the trend of export with a keen eye on Kosovo and to present the correlation of FDI with export. Firstly, at the beginning of this paper, a theoretical review of the literature on definitions of FDI in economic terms and definitions of export is presented. Secondly, the trend and comparison of FDI and exports over the years is presented. Thirdly, FDI trends in Kosovo were analyzed by the country of origin of these investments, etc. Fourthly, in the context of this paper, an analysis in terms of investment management at the country level in order to create an attractive investment environment was made. Fifthly, as part of this paper, empirical analyzes showing the correlations between FDI and Export in the Kosovo case have been made. FDI trends in Kosovo have been decreasing over the years, which must be improved by creating a motivating environment for both domestic and foreign investors. 


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