SOME ASPECTS REGARDING THE IMPACT OF FOREIGN DIRECT INVESTMENT IN ECONOMIC DEVELOPMENT

Direct Investment ◽

New Technologies ◽

Host Countries ◽

Foreign Investments ◽

Advanced Experience ◽

Productivity Increase ◽

Synthesis And Processing ◽

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.

Industrial Dynamics, Innovation Policy, and Economic Growth through Technological Advancements ◽

Foreign Direct Investment as a Development Strategy

10.4018/978-1-4666-1978-4.ch002 ◽

2013 ◽

pp. 13-29 ◽

Cited By ~ 1

Author(s):

E. Nur Ozkan-Gunay ◽

Yusuf Cukurcayir

Keyword(s):

Development Strategy ◽

Direct Investment ◽

New Technologies ◽

Knowledge Spillovers ◽

Spillover Effects ◽

Innovation Capability ◽

Host Countries ◽

Innovative Capability ◽

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.

Innovative Approach to Measuring the Impact of FDI on Some Macroeconomic Indicators in B&H

ECONOMICS ◽

10.2478/eoik-2018-0008 ◽

2018 ◽

Vol 6 (1) ◽

pp. 7-15

Author(s):

Slobodan Subotić ◽

Živko Erceg ◽

Vladimir Marković ◽

Goran Mitrović

Keyword(s):

Economic Development ◽

National Economy ◽

Direct Investment ◽

Economic Life ◽

Capital Export ◽

Economic Surplus ◽

Macroeconomic Indicators ◽

Relationship Of ◽

SUMMARY The necessity of economic life and economic development of every economy is the free movement of capital. The international movement of capital has its balance of payment when capital export represents economic surplus in relation to consumption of the national economy and the import of capital represents an increase of consumption in regard to the output of a national economy. Analysis of the influence of foreign direct investment (FDI) on economic growth of the host country, among other things, is emphasized in the function of the achieved phase of its economic development. Taking all this into consideration, the aim of this paper refers to an attempt to indicate the significance and the role of FDI as well as the importance of attracting foreign direct investment in B&H and the determination of the effects of FDI on the economy of B&H. In this regard, we will try to determine the level of FDI’s impact on some macroeconomic indicators in B&H (GDP, import, export, unemployment) by using contemporary SPSS statistical analysis program (model) and applying the methods (calculating coefficients) of correlation and regression analysis. In other words, we will determine the analytical expression used to describe a statistical relationship of these macroeconomic categories.

Impact of Foreign Direct Investment Inflows on Economic Growth; the Case of the Republic of Seychelles

10.20944/preprints201903.0273.v1 ◽

2019 ◽

Author(s):

Yusheng Kong ◽

Sampson Agyapong Atuahene ◽

Geoffrey Bentum-Mican ◽

Abigail Konadu Aboagye

Keyword(s):

Economic Growth ◽

Direct Investment ◽

Least Square ◽

Small Island ◽

Host Countries ◽

Fdi Inflows ◽

Economic Trends ◽

The Republic ◽

This paper aims to research whether there is link between FDI inflows and Economic growth in the Republic of Seychelles Island. The ordinary least square results obtained shows that in the impact of FDI inflows on economic growth is low. Small Island Developing States attracts less FDI inflow because they are limited to few resources that attracts overseas firms which results in retarded development. The research lighted that impact of foreign direct investment on host countries does not only depend on the quality and quantity of the FDI inflows but some other variables such as the internal policies and the management skills, market structures, economic trends among others.

Foreign Direct Investment in Nepal

NUTA Journal ◽

10.3126/nutaj.v5i1-2.23457 ◽

2018 ◽

Vol 5 (1-2) ◽

pp. 48-55

Author(s):

Biraj Pyakurel

Keyword(s):

Direct Investment ◽

New Technologies ◽

Market Access ◽

Location Factors ◽

Host Countries ◽

Goods And Services ◽

Management Techniques ◽

Major Factors ◽

Market Infrastructure

Foreign Direct Investment (FDI) is an important source of capital for economic growth in developing countries. It provides a package which constitutes new technologies, management techniques, finance and market access for the production and movement of goods and services. However, attracting FDI is a major challenge for host countries as it faces the challenge of identifying the major factors that motivate and affect the FDI location decision. The main FDI location factors are cost, market infrastructure, and technological, political, legal and socio-cultural factors. Despite several conflicting circumstances, Nepal is attempting to sort out overarching issues of FDI concerning with economic development. That’s why Nepal is at a point where from it can excel for economic goals via FDI. The set trends illustrate that various indicators pertaining to FDI in the country has been improving since peace process was begun in 2006. This analysis comes to conclusions that the country owns unique advantages and, thereby, opportunities of FDI useful for the country’s prosperity. Yet FDI in the country is not free of challenges, thus, that need to be timely addressed with prudent measures.

DOMESTIC AND FOREIGN FINANCING SOURCES IMPACT ON THE ECONOMIC DEVELOPMENT OF THE REPUBLIC OF SERBIA

Facta Universitatis Series Economics and Organization ◽

10.22190/fueo1902145r ◽

2019 ◽

pp. 145

Author(s):

Goran Radisavljević ◽

Goran Milovanović ◽

Saša Bjeletić

Keyword(s):

Economic Development ◽

Private Sector ◽

Growth And Development ◽

Direct Investment ◽

Statistical Data ◽

Contemporary Theory ◽

Domestic Savings ◽

The Republic ◽

The aim of the paper is to analyze the effects of selected sources of financing on the economic development of the Republic of Serbia in the period from 2012 to 2016 on the basis of systematized statistical data. First, the theoretical framework of domestic and foreign sources of financing and the impacts of these sources on economic development are presented from the perspective of contemporary theory. This is followed by the analysis of the impact of domestic sources of financing (domestic savings, state and private sector) on the economic development of the Republic of Serbia. Finally, the paper examines the relevance of foreign direct investment (FDI) for encouraging restructuring, competitiveness, growth, and development of the economy of the Republic of Serbia.

Modeling the impact assessment of agricultural sector on economic development as a basis for the country’s investment potential

Investment Management and Financial Innovations ◽

10.21511/imfi.16(3).2019.21 ◽

2019 ◽

Vol 16 (3) ◽

pp. 229-240

Author(s):

Alina Bukhtiarova ◽

Arsen Hayriyan ◽

Victor Chentsov ◽

Sergii Sokol

Keyword(s):

Economic Growth ◽

Economic Development ◽

Direct Investment ◽

Agricultural Sector ◽

Negative Impact ◽

Manufacturing Sector ◽

Value Added ◽

The Cost ◽

In the context of countries integration into the world economic space, agricultural sector is one of the priorities and strategically important sectors of the national economy. Development of instruments aimed to increase investment potential of this sector is therefore an important component of the country’s economy growth. The article proposes a science-based model of the impact of the agricultural sector on the economic development level of countries trying to move towards European integration.It was found that the employment rate (+58.4) has the largest influence on the rate of GDP change in the studied group of countries (Ukraine, Moldova, Georgia, Armenia). The impact of the gross value added of the manufacturing sector on its economic growth is positive (+44.6). The negative foreign direct investment ratio in the model (–40.3) may be due to the fact that the indicator in the studied countries is still largely influenced by the intervention of the state mechanism, significant uncertainty and risk, which is a deterrent to the overall economic development. An important result of the study was that foreign direct investment had a negative impact on economic growth in developing countries. Further development of the investment potential of a country’s agricultural sector provides for a radical acceleration of scientific and technological progress and, on this basis, a reduction in the cost of a unit of agricultural products and food and an increase in their competitiveness in the domestic and world markets.

FOREIGN DIRECT INVESTMENT OF TNCS AS A FACTOR OF INNOVATION DEVELOPMENT

Bulletin of V. N. Karazin Kharkiv National University Economic Series ◽

10.26565/2311-2379-2021-100-05 ◽

2021 ◽

Keyword(s):

Mergers And Acquisitions ◽

Direct Investment ◽

New Technologies ◽

Production Systems ◽

Cumulative Effect ◽

Business Culture ◽

The World ◽

Knowledge Intensive ◽

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.

Ways of attracting foreign direct investment in the Ukrainian economy

University Economic Bulletin ◽

10.31470/2306-546x-2021-50-168-173 ◽

2021 ◽

pp. 168-173

Author(s):

Yuliia Horodnichenko

Keyword(s):

Foreign Investment ◽

Direct Investment ◽

New Technologies ◽

Synthesis Method ◽

The State ◽

Local Market ◽

Foreign Investments ◽

Foreign Experience ◽

Study Results

Subject of research is the directions and ways of attracting foreign direct investment in Ukraine. The purpose of the article is to study the essence and features of foreign direct investment and to study the foreign experience of ways to attract direct investment to Ukraine. Methods used in the research process: method of system-structural analysis and synthesis, method of comparative analysis, generalization, general scientific, special methods of scientific knowledge and other research methods. Study results. The importance of foreign investments in the activity and development of the state is described. The main measures that need to be implemented to attract foreign investment are identified. International investment cooperation, given the high level of its efficiency, provides the country and its businesses with a number of current and future benefits. Positive and negative factors influencing the attraction of foreign investments into the state economy are outlined. One of the most common ways to attract direct investment to Ukraine is to create joint ventures, which are manifested in the processes of cooperation, pooling of knowledge, efforts, resources and experience. Motivational levers of influence on direct investment partners are singled out. They can be divided into two large groups. In the first case, firms are mainly engaged in the sale of goods and services produced in other countries, in the second - invest in the creation of production facilities in this country in order to sell products in the local market or export it to markets in other countries. Application of results. The results of the study can be used in the activities of the Ministry of Finance of Ukraine, the Verkhovna Rada of Ukraine, the National Commission on Securities and Stock Market, as well as in higher education institutions in the teaching of economic disciplines. Conclusions. Foreign investment plays an important role in the development of the country's economy. Attracting funds from foreign investors contributes to the intensification of the investment process, the introduction of new technologies, the use of advanced foreign experience, the development of small and medium-sized businesses, the growth of investment potential of the territories.

Corruption in Latin America and How It Affects Foreign Direct Investment (FDI)

Business Development Opportunities and Market Entry Challenges in Latin America ◽

10.4018/978-1-4666-8820-9.ch002 ◽

2016 ◽

pp. 30-46 ◽

Cited By ~ 1

Author(s):

Jose Godinez

Keyword(s):

Developing Countries ◽

Economic Development ◽

Latin America ◽

Direct Investment ◽

Detailed Account ◽

Clear Definition ◽

Host Countries ◽

Positive Effects ◽

Definition Of

Foreign direct investment has aided in a significant manner the economic development of Latin America since the early 1990s because capital in this region is limited (Blanco, 2012). Despite some criticism literature on FDI has overwhelmingly demonstrated that FDI has positive effects on host countries (Tan & Meyer, 2011) especially in Latin America (Wooster & Diebel, 2010). Authors researching the effects of FDI in Latin America have stated that this investment helps to growth on productivity (Blonigen & Wang, 2005) and thus, might help developing countries to begin their road to development. Therefore, scholars have devoted great efforts to understanding the determinants of FDI to Latin America and a brief overview will be provided in this study.This paper will present a detailed account of FDI flows to the region, a clear definition of corruption and how it is manifested in Latin America. After these definitions, suggestions are provided to deal with the problem of corruption in the region.

The Effects of the Trade-related Investment Measures Agreement on the Egyptian Economy

Arab Law Quarterly ◽

10.1163/15730255-12333013 ◽

2019 ◽

Vol 33 (3) ◽

pp. 209-246

Author(s):

Lourna El-Deeb ◽

Ahmed Labeeb

Keyword(s):

Developing Countries ◽

Direct Investment ◽

Developed Countries ◽

Foreign Investments ◽

Current Period ◽

Investment Law ◽

The Government ◽

Abstract The Trade-Related Investment Measures (TRIMs) Agreement aims to balance the interests of developed countries seeking to protect their investments as well as developing countries trying to attract more foreign investments to finance national projects. This article assesses the TRIMs Agreement and the compatibility of Egyptian economic legislation, especially the provisions of the Investment Law No. 72/2017, alongside the impact of this agreement on the Egyptian economy. We conclude that Egyptian legislation as a whole is in line with the TRIMs Agreement, with the exception of some provisions enacted under exceptional circumstances in Egypt since January 2011. As a result of these circumstances, it is impossible accurately to assess the extent to which the Egyptian economy was affected by the implementation of TRIMs during the current period, since the policies adopted by the Government of Egypt have succeeded in increasing the volume of foreign direct investment to Egypt.