scholarly journals FOREIGN DIRECT INVESTMENT OF TNCS AS A FACTOR OF INNOVATION DEVELOPMENT

This article considers modern approaches to the impact of foreign direct investment (FDI) of TNCs (transnational corporations) on innovative development, examines the cumulative effect of technology transfer, and highlights the main factors stimulating economic growth. The technological effect has been studied on the example of creating branches of foreign companies, intensifying competition with national companies, which stimulates productivity, as well as promotes the transfer of new forms and methods of management, skills in production, and business culture by national producers.Based on the analysis of innovative projects, statistical data from UNCTAD and other international organizations, the trend of declining FDI inflows in the world as a whole and individual countries, reducing the number of mergers and acquisitions (M&A) of TNCs in the COVID-19 pandemic investigated. Research and new technologies are considered as the basis for the success of the Top 50 – the most innovative companies that give impetus to the development of knowledge-intensive industries. The application of a comprehensive integration strategy of TNCs through the transformation of a fragmented production system in the production and distribution network is determined. The strategy is implemented at the global or regional levels. The tendencies of development of innovative TNCs at the expense of increase of knowledge-intensive technologies creation, an increase of their efficiency because of the use of advantages of the international movement of the capital, and placement of new innovative branches are defined. The importance of development research and development work (R&D) is the main factor in the progress of radical innovations that underlie the success of innovative companies around the world. The advantages of using knowledge-intensive technologies to increase the efficiency of TNC production and taking advantages of global value chains are noted. Cross-border mergers and acquisitions applied in the strategy of TNCs to develop international markets and achieve technological leadership through the effective use of global production systems are considered.

2016 ◽  
Vol 21 (1) ◽  
pp. 9-20
Author(s):  
Ersalina Tang

The purpose of this study is to analyze the impact of Foreign Direct Investment, Gross Domestic Product, Energy Consumption, Electric Consumption, and Meat Consumption on CO2 emissions of 41 countries in the world using panel data from 1999 to 2013. After analyzing 41 countries in the world data, furthermore 17 countries in Asia was analyzed with the same period. This study utilized quantitative approach with Ordinary Least Square (OLS) regression method. The results of 41 countries in the world data indicates that Foreign Direct Investment, Gross Domestic Product, Energy Consumption, and Meat Consumption significantlyaffect Environmental Qualities which measured by CO2 emissions. Whilst the results of 17 countries in Asia data implies that Foreign Direct Investment, Energy Consumption, and Electric Consumption significantlyaffect Environmental Qualities. However, Gross Domestic Product and Meat Consumption does not affect Environmental Qualities.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Federico Carril-Caccia

PurposeThe present article analyses the effects of cross-border mergers and acquisitions (CBM&As) on targets' total factor productivity (TFP), employment, wages and intangible-asset investment. The author investigates whether the impact of CBM&As differs depending on the origin of the investing multinational (MNE). The author distinguishes between CBM&As from European countries, other developed countries and emerging countries.Design/methodology/approachThe author makes use of a unique firm-level data set of foreign direct investment in the French manufacturing sector. The authors applies propensity score matching and difference in differences to estimate the effect of CBM&As.FindingsThe results show that the consequences of CBM&As differ strongly depending on the origin. CBM&As from European MNEs have a positive impact on TFP, wages and intangible-asset investment, and those from emerging countries seem to increase wages and intangible-asset investments. In contrast, CBM&As that originate from MNEs from other developed countries do not have a significant effect.Originality/valueThis article contributes to the growing literature on the effects of foreign direct investment that highlights the relevance of accounting for the MNEs' origin. In particular, it is the first to address the impact of emerging-country MNEs' CBM&As in Europe.


Author(s):  
Svitlana Bestuzheva ◽  
Viktoria Kozub

The paper proposes a scientific approach to determining the impact of globalization processes on the development of Ukraine’s economy based on the analysis of the dynamics and modeling of indicators of the degree of integration of Ukraine’s economy into the system of world economic relations. Globalization is seen as a modern trend in the world economy as a system of interconnected and interdependent economic entities, among which a significant place is occupied by countries. The authors determine the degree of Ukraine's integration into the world economic space by its place in the ratings of globalization and economic openness. Analysis of the dynamics of the degree of integration of Ukraine's economy into the global economy is based on GDP, export and import quotas during 2006 – 2020. Based on the results of the analysis, the authors developed an econometric model for assessing the impact of factors on the globalization index of Ukraine, identified the most significant positive factors, namely the volume of exports of goods and services as a percentage of GDP, GDP, the ratio of foreign direct investment to GDP, the share of innovative exports export of goods and services of the country. The import quota and the corporate income tax rate have been identified as negative factors. Based on the results obtained during the modeling, the authors have developed and proposed a sequence of measures to increase the level of openness of Ukraine's economy in the context of its globalization. Perspective forms of globalization in the context of forming a new perspective of the international community on changing the vector of world economy - from globalization to regionalization and nationalization which have materialized in increasing the volume and diversification of the structure of international trade, intensification of international financial transactions, the emergence of transnational business, a sharp increase in foreign direct investment and intensification of international labor migration.


Author(s):  
E. Nur Ozkan-Gunay ◽  
Yusuf Cukurcayir

This chapter investigates the spillover effects of Foreign Direct Investment (FDI) on innovation capability in four competing emerging economies in the district of Eastern Europe, the Czech Republic, Hungary, Poland, and Turkey, for the period 1995-2008. Panel data models are employed to test two competing hypotheses regarding the impact of FDI on innovation capability: it may improve the innovation capability of host countries via spillover channels, or may lead to the crowding-out effect through the importation of technologies via joint ventures. The empirical evidence corroborates that FDI inflows generate spillover effects on domestic innovation capability in competing emerging countries, supporting the hypothesis that inward FDI brings knowledge spillovers, new technologies, and products into the host country and promotes the innovation capability of domestic firms. In addition, the level of human capital stock and qualified researchers play a crucial role in stimulating innovative capability and technological progress.


In urban development, urbanization is an important and decisive process of transformation. In the current globalization period, the urbanization of cities around the world is strongly influenced by the foreign direct investment (FDI). It is considered an important catalyst for economic growth. This paper aims to analyze the effect of FDI on sustainable urbanization in Binh Duong province by utilizing the time series data throughout 2000 - 2018, expressed through statistical and analytical methods. The research results show that FDI contributes to promoting economic, social and urban development in Binh Duong province, but it still has some limitations. The research results are also the basis for researchers and policy makers to develop orientations to attract, use and manage FDI, proposing solutions to improve the efficiency of it to urbanization in a sustainable way in Binh Duong province in the future.


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.


2020 ◽  
pp. 119-123
Author(s):  
М.Л. Лучко

Статья посвящена анализу современных трендов прямых иностранных инвестиций (ПИИ) в мировой экономики. Автор рассматривает объем, динамику и структуру ПИИ в последние годы, кроме того, анализируются процессы транснационализации, главную роль в которых играют транснациональные корпорации (ТНК), в том числе, на основе Индекса транснациональности. Выявляются топ-10 нефинансовых ТНК мира, а также топ-10 нефинансовых ТНК из развивающихся стран и стран с переходной экономикой, а также направления инвестиционной политики в современных условиях. В статье анализируется влияние пандемии на объем мировых ПИИ в 2020 г. и на инвестиционную политику государств, которые борются с пандемией. This article is dedicated to the analysis of modern trends in foreign direct investment (FDI) in the world economy. The author examines the volume, dynamics and structure of FDI in recent years, besides that, analyzes the processes of transnationalization where transnational corporations (TNCs) are playing the main role, in particular, based on the core of Transnationality Index. The top 10 non-financial TNCs in the world, as well as the top 10 non-financial TNCs from developing countries and countries with economies in transition, as well as the directions of investment policy in modern conditions are identified. The impact of the pandemic on the volume of global FDI in 2020 and on the investment policies of states that are struggling with the pandemic is analyzed in the article


Author(s):  
Florina Popa

Foreign Direct Investment are among the mobilizing factors of the economic development of a country, alongside the domestic investments, being a basic support in the achievement of the development and modernization strategies. The study presents, briefly, the effects of intervening Foreign Direct Investment flows on the economy of a country, able, by the advanced experience brought, to generate a better capitalization of resources, a contribution to growth. The directions of manifesting the mechanisms of influence of Foreign Direct Investment, as well as the role that they hold for their impact, the economic environment of the host country and the policies practiced in relation to Foreign Direct Investment are taken into account. The purpose of the paper was to point out some aspects regarding the favourable impact that foreign investments could have on an economy, by the contribution to new technologies and the contribution to the productivity increase. The conclusions point to the potential of the impact of Foreign Direct Investment on development and the need for the host countries, to support some properly oriented policies, by maintaining a correlation between the volume of foreign investment flows and the development potential of a country. The research method used to carry out the study was the documentation from the foreign and domestic specialized literature, the synthesis and processing of the relevant ideas, by capturing the impact of Foreign Direct Investment in economic development.


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