scholarly journals Investment Climate and Foreign Direct Investment Trends in the South Caucasus and Central Asia

2007 ◽  
Vol 2 (1) ◽  
pp. 31-40
Author(s):  
Slavica Penev

Investment Climate and Foreign Direct Investment Trends in the South Caucasus and Central AsiaThis paper analyzes and compares investment climates and trends in the South Caucasus and Central Asia. The analyses and comparisons were conducted in view of the impacts of transitional progress, economic development, and the energy reserves from these regions on the inflow of foreign direct investment. Improvement of the investment climate by accelerating the transition process and reducing investment risks can be seen as the most important determinants of FDI inflows into the countries of these two regions. Structural diversification of South Caucasian and Central Asian natural resource-based economies would be essential in ending dependence on the energy and mining sectors and would have positive long-term effects on economic growth and the investment climate, and attract other, additional types of FDI.

Significance The network of new land routes to link East Asia and Europe was first raised by President Xi Jinping on a 2013 visit to Kazakhstan, through which the more critical central corridor passes, with connections to the northern one. Kazakhstan's government strongly supports the endeavour, as it helps it achieve a number of goals: improving domestic infrastructure, attracting foreign direct investment (FDI), boosting employment in road construction and related industries and, in the long term, diminishing dollarisation of the economy. Impacts Greater political, economic and cultural ties are expected to be forged between Kazakhstan and China. Improved transport infrastructure is to increase Kazakhstan's competitiveness and improve its attractiveness for FDI. Central Asian inter-regional trade is likely to increase.


Author(s):  
Л. О. Чіп

Проаналізовано особливості, основні проблеми ін-вестиційного клімату в Україні, його виключну важ-ливість для сприяння динаміки соціально-економічного розвитку та можливості модернізаціїна цій основі національної економіки. Розглянуто ос-новні риси, тенденції інвестиційних процесів в Украї-ні та напрями вдосконалення державної політики усфері інвестування, а також заходи щодо удоскона-лення правового поля у сфері інвестиційної діяльнос-ті. Акцентовано увагу на тому, що в Україні пере-важають негативні оцінки стосовно інвестиційногоклімату, поскільки внутрішніх інвестицій недостат-ньо, щоб забезпечити високу довгострокову динамі-ку, а темпи залучення прямих іноземних інвестицій –як інвестиційного стимулятора – значно уповільни-лися. Обґрунтовано необхідність, що на сучасномуетапі розвитку економіки країни прямі іноземні інве-стиції є невід’ємним компонентом її нормальногофункціонування. Висвітлено фундаментальну значу-щість інвестиційної діяльності для чіткого окрес-лення національних інтересів з урахуванням впливівгеополітичного середовища. The features of the main problems of the investment climate in Ukraine, its crucial importance to the promotion of the dynamics of socio-economic development and possibility of updating on this basis of the national economy have been analyzed. The main features and trends of investment processes in Ukraine and ways of improving the state policy in the field of investment, as well as measures to improve the legal framework in the field of investment activities have been examined. The attention has been focused on the fact that Ukraine is dominated by negative assessments of the investment climate, because domestic investment is not enough to provide high long-term trend, and the rate of foreign direct investment - investment as a stimulant - slowed considerably. Necessity, that at the present stage of development of the economy, foreign direct investment is an integral part of its normal operation. The fundamental importance of investment for a clear definition of national interests, taking into account the effects of the geopolitical environment has been highlighted.


Author(s):  
Javohir Juraev ◽  

Uzbekistan has only begun to make independent steps in global economic processes. Along with Central Asian countries, Kazakhstan, Kyrgyzstan, Turkmenistan and Tajikistan, Uzbekistan’s economy and economic structure is pretty young, thus vulnerable to any unseen exogenous repercussions. We have already seen that how the Mexican Tequila crisis in 1994, the Asian crisis in 1997-98, the Russian crisis (even it was the leftover contagion from the Asian crisis) in 1998 and recent Kazakhstan real-estate crisis in summer of 2007 happened. It easy to see if we look behind capital flows. Capital flows have been heartache and headache for an economy for the last two decades. They are so mobile and volatile that can bear vicious ebbs and flow in no time at all. However, it is necessary to remember, that today it is difficult to speak of the economy of any country as about of separate island. Foreign Direct Investment is very necessary somehow, at least theoretically, to boost the economies of Central Asia. But there should be proper balance and policies to make the most of FDI inflows. An enchanted economy by enormous FDI inflows is exposed to very huge risk which might end up even with crisis!


2019 ◽  
Vol 10 (1) ◽  
pp. 19-30
Author(s):  
Riesta Karentina

Despite growing concern regarding the productivity benefits of foreign direct investment (FDI), few studies have been conducted on the impact of FDI spillovers on domestic firms’ labor productivity in Indonesia. This study aims to do three things. First, it examines the effect of FDI spillovers on domestic firms’ productivity. Second, it investigates the short-term and long-term effects of FDI spillovers on domestic firms’ productivity. Third, it explores the impact of FDI spillovers on domestic firms’ productivity in different groups of industries based on their factor intensity. Micro-level panel data covering about 20,000 medium and large manufacturing establishments in each year over the period 2010 and 2014 was employed. This study suggests that, within the same industry, horizontal spillovers are associated with domestic firms’ productivity: this relationship is negative in the short-term but positive in the long-term. This study’s findings also demonstrate that, across industries, there are negative backward spillover effects on domestic firms’ productivity. In addition, this study points out that FDI spillovers affect domestic firms’ productivity effectively when they are capital-intensive. Therefore, the results imply the importance of maintaining a long-term perspective toward foreign-invested firms in Indonesia and the government needs to stimulate policies that can enhance domestic firms’ capacity to supply intermediate materials and capital to foreign firm in downstream market by truncating the technology gap between foreign and domestic firms.


2019 ◽  
Vol 7 (2) ◽  
pp. 153-164
Author(s):  
Saparuddin Mukhtar ◽  
Dicky Iranto ◽  
Riana Raudha Adni

This research was conducted to determine the short-term and long-term effects between Gross Domestic Product, Interest Rates, and Inflation on Foreign Direct Investment in the manufacturing sector for the period 2004-2017. Study applied VECM (Vector Error Correction Model), secondary data obtained from Bank Indonesia, BPS, and Bappenas. Based on the statistical results it can be concluded that: first, GDP has a positive and not significant effect in the short term, then in the long run, it has a negative effect toward FDI. Second, in the short term interest rates have a negative and not significant while in the long term interest rates have a negative and significant effect on FDI in the manufacturing sector. Lastly, inflation has a negative and insignificant effect, while, in the long-run inflation has a positive and significant effect on FDI in the manufacturing sector.


2021 ◽  
pp. 20
Author(s):  
Norayr Dunamalyan

The events taking place on the periphery of the Heartland show a clear connection between the processes in the South Caucasus and Central Asia. The fact is that the independent republics (recognized and unrecognized) must still take their place in the new world order, as demonstrated by the turbulent 2020 in the Caucasus and the rapid changes in Central Asia (Tajikistan, Kyrgyzstan, Afghanistan). All these plots have their own logic and content. In this article, we will pay more attention to the South Caucasus, the countries of which, despite their long-term neighborhood, exist in various regional, cultural and political spaces with all its consequences.


2015 ◽  
pp. 151-156
Author(s):  
A. Koval

The improving investment climate objective requires a comprehensive approach to the regulatory framework enhancement. Policy Framework for Investment (PFI) is a significant OECD’s investment tool which makes possible to identify the key obstacles to the inflow foreign direct investment and to determine the main measures to overcome them. Using PFI by Russian authorities would allow a systematic monitoring of the national investment policy and also take steps to improve the effectiveness of sustainable development promotion regulations.


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