scholarly journals The Role of the Foreign Investments in the Business Life of the Transborder Territories of the Carpathian Region

Author(s):  
Tetyana Bandura

The article dwells on the issue of foreign investment attraction to regions. The importance of foreign investment in regions’economy and the country in general is emphasized, the factors, which are decisive for investors in the analysis of region’s attractiveness, and factors that influence the level of to regions are examined, the mechanisms of foreign direct investment attraction are analyzed through the prism of cross-border cooperation forms. The European experience of foreign investment attraction is examined and statistical data for the recent years is provided. The level of foreign direct investment in four oblasts of Carpathian region is analyzed, the dynamics of foreign direct investment per capita in border regions is reviewed, and the reasons / preconditions of growth/fall of the rates are explained. The role of decentralization in attraction of foreign investors is shown and opportunities and algorithm of activities to be conducted by territorial communities to attract investors are described. The ways to increase investment capacity are analyzed. The role of crowd technologies in creation of region’s positive image and the role of territorial development agencies in region’s investment activity are shown and the ways they should work as well as the required resources are explained.  Practical recommendations on improvement of region’s attractiveness for foreign investors are suggested. Keywords: investment potential, investment risk, investment attractiveness, investment environment, investment climate, investment resources

2021 ◽  
pp. 160
Author(s):  
Vadym Maslii ◽  
Sviatoslav Pytel

Introduction. Foreign direct investment occupies a significant place  in financial flows and creates tools through which stable and long-term ties between countries are formed. Investment flows, which are both balanced and geographically and conjunctively disproportionate, can have positive and negative consequences for the host country’s economy. Particular attention should be paid to the qualitative parameters of the foreign investment process, which include the country of origin of investments, that is, their geographical location.Purpose. The purpose of the article is a comprehensive study of the geographical structure of foreign direct investment in Ukraine throughout the time-period of our country’s existence as an independent participant in the process of foreign investment.Method (methodology). In the process of researching the selected topic, the following methods were used: monographic – in order to study the results of existing analytical research, the object of which is the process of foreign investment in Ukraine and its aspect as the geographical structure of foreign investments is investigated; method of calculating the relative values of the structure – for the research of the geographical structure of foreign direct investment in Ukraine, which made it possible to abstract from a specific numerical expression of the volume of parts of the population; tabular – for submission of analytical information about the object of research; graphic – for visual presentation of the obtained statistical data on the geographical structure of foreign direct investment in Ukraine. Results. International investment activity has a significant impact on the geographical structure of FDI in Ukraine. During the study period (1995 - the end of 2019) the main investors were European countries. They exported to Ukraine annually about 50 % of the total invested capital, and in 2006-2011s, this figure reached 70 %. Investments from the European Union play a crucial role in Ukraine’s foreign direct investment process.According to the research, over the past 25 years there have been significant transformations in the territorial geographical structure of FDI in Ukraine. First of all, the number of investor countries has increased and the role of leaders, such as the United States, Germany, and the United Kingdom, has decreased. The role of investments from offshore countries and countries equated to them, such as Cyprus, Belize, the Bahamas, the British Virgin Islands, the Netherlands and others, has significantly increased. If in early 1995 the share of investments from these countries was about 11%, then at the beginning of 1998 this figure was 20 %, at the beginning of 2008 - 33%, at the beginning of 2011 – 51 %, and at the end of 2019 - 60 % respectively. It should be noted that there is no significant investment from South America, such as Brazil, Mexico and Venezuela, the industrialized countries of East and Southeast Asia and China, which is one of the 10 leading countries in the world. In this direction, promising investment cooperation should be expanded by concluding investment agreements taking into account the interests of future investors.Perspectives. In our opinion, promising in the future are studies of sectoral and territorial structure of FDI in terms of the largest countries of investors, assessment of their impact on the economic development of Ukraine in order to make effective management decisions in attracting foreign investors.


Author(s):  
Larisa Germanovna Chuvakhina

The article highlights the current problems of investments in the development of the world economy, when international investment needs are significantly high. The priority is given to the issues of investment resources for achieving the goals of sustainable development of the world economy. It has been stated that for creating the effective economic policy, the countries need to attract foreign investment. The current trends in the development of global market for foreign direct investment flows are examined. The flows of global foreign direct investment in 2017-2018 are analyzed. Special attention is given to the study of the US investment policy. The reduction in US investments into the Russian economy in terms of the sanctions policy against Russia is marked. The changes in the investment policy of the administration of D. Trump in terms of strengthening American protectionism are underlined. The issues of US-EU investment cooperation are considered. The role of the US Federal Reserve in regulating the activities of foreign companies in the US market is defined. The main decisions taken at the X World Investment Forum of the United Nations Conference on Trade and Development in October, 2018 are considered. The role of investment promotion agencies is defined as one of the tools to attract foreign investments into the country's economy. The decrease in the level of international investment and increased competition between countries for attracting foreign investment is stated. The study confirms that the investment attractiveness of the country, stability of the national financial system, and legal security of business play a decisive role in attracting foreign direct investment.


2019 ◽  
Vol 7 (4) ◽  
pp. 125-150
Author(s):  
Farruhbek Muminov

Central Asia, with its abundance of natural resources and low labor costs, is often seen as an attractive destination for foreign investment. The inflow of foreign investment into Central Asia has significantly increased in recent decades, and this phenomenon supports the improvement of both national economies and the welfare of the region. Still, Central Asia is not classified as a low-risk destination for foreign investment because of inadequate protection of foreign investment – particularly a lack of transparency and predictability in Central Asia states’ FDI (Foreign Direct Investment) regimes. Furthermore, international organizations (such as the OECD) indicate that some countries in Central Asia do not have clear investment policies. These points pose problems for foreign investors who desire to invest in the region. From this perspective, this article analyzes the consistency of the general principles of foreign investment in Central Asia with international investment standards.


2018 ◽  
Vol 26 (4) ◽  
pp. 760-772
Author(s):  
Yury K Zaytsev

The economic and political sanctions had a significant impact on the behavior of foreign investors in the real sector of the Russian economy in the period 2014-2017. Despite a significant outflow of foreign direct investment (FDI) in 2015, in 2016-2017, there was an increase in investment activity associated with a steady inflow of FDI, which could be explained by the change in investment strategies of foreign business in Russia. The purpose of the study. The article assesses the impact of Western sanctions and Russian countersanctions on the influx of foreign direct investment into Russia. Methods. The work is based on methods of statistical analysis of the behavior of foreign investors in Russia on the basis of macroeconomic data of the Central Bank of Russia and microeconomic data of the “Ruslana” database. Results. The author gives various assessments of sanctions and counter-sanctions impact on the Russian and European economies, and compares the effects of sanctions policies in Russia and Iran. The stylized facts, identified by the author at the micro level, allow to interpret the macro statistics provided by the Central Bank of Russia at a qualitative level. The conclusion . In conclusion, the author gives recommendations on the possibilities of using new mechanisms of interaction with international institutions to overcome the investment crisis as a consequence of the sanctions regime.


Author(s):  
Victor Obasse ◽  
Chima Onuoha

This study is an empirical inquiry into the impact of Direct Foreign Investment (DFI) of other countries into the manufacturing sector in River State, Nigeria. It would lead to a better understanding of the economic mechanism and the behavior of economic agents, both at micro and macro cadre allowing the opening of new areas of study in economic growths. This study would also look through the advantages and disadvantages which foreign direct investment has on Nigeria economy, thereby, reveal if there is a correlation between the direct foreign investment and the Nigerian economy. As a cross section survey, data for this study was generated using well and articulately structured survey from 50 respondents across 10 manufacturing firms in Rivers State. A total of three hypotheses were proposed with analysis revealing the relationship between direct foreign investments and manufacturing sector, it was revealed that direct foreign investment had a positive and significant relationship with manufacturing sector. The researcher believes that if appropriate actions are taken and necessary structures erected, the Nigerian manufacturing sector will be a healthier place to access the benefits that foreign direct investment conveys. This will lead to growth in Nigeria manufacturing sector. It was revealed that in spite of the acknowledged remuneration foreign direct investment conveys. It is nonetheless, criticized on grounds, of the defective activities that foreign investors indulge in. In conclusion, the study showed that the expansion of the manufacturing sector and direct foreign investment in Nigeria is based on a number of problems which may be reason for the positive but insignificant impact on DFI when the variables was regressed against manufacturing sector. It was at that point recommended that, Government needs to do a few needful in order to motivate foreign investors, this is by providing good and right social infrastructure and also a pool of relevant workforce, a safe working environment against militancy and a potentially strong market for their product and services can be sold.


2008 ◽  
Vol 8 (1) ◽  
Author(s):  
W. Krugell ◽  
M. Matthee

Purpose: The purpose of this paper is to construct an index that captures the factors expected to affect a local economy's attractiveness to foreign investors. Problem statement: Following South Africa's reintegration into the world economy in 1994, foreign direct investment has been seen as a potential driver of growth and development. Concerns about the low investment rate in South Africa raise the possibility of augmenting domestic with foreign investment expenditure. The potential of technology spillovers and skills transfer from foreign direct investment have also been emphasised. As a result, Trade and Investment South Africa is involved in identifying, packaging and promoting investment opportunities. However, investments tend to be place-specific and this has lead to the decentralisation of foreign direct investment promotion. Currently the nine provincial development agencies are competing to attract investors and the larger local governments are also getting involved in the fray. This paper argues that some places have better potential to attract foreign investment than others. A first step to use scarce investment promotion resources more efficiently would be to measure the inward FDI potential of South African regions. Approach: This paper uses principal components analysis to construct an index that captures the factors expected to affect a local economy's attractiveness to foreign investors. This approach draws on UNCTAD's Inward FDI Potential Index and applies it to 354 magisterial districts in South Africa for the periods 1996, 2001 and 2006. The index creates a summary measure of FDI potential.Findings: The results show that different places present differential potential in urbanization and localization economies and market size. The high-potential locations are typically found in or around the major agglomerations, but there are a few smaller places on the periphery that offer FDI potential. Contribution: The index should aid the location decisions of prospective investors as well as local policymakers in their efforts to promote FDI-led economic development. Conclusion: The places with high FDI potential are not randomly scattered across South Africa, but tend to cluster together. Cities and towns can improve their attractiveness to foreign investors through the exploitation of natural resources, population growth, economic growth and strengthening links to metropolitan areas.


2014 ◽  
Vol 8 (1) ◽  
pp. 7
Author(s):  
Grettel Brenes Leiva ◽  
Fidel León Darder

<p>La inversión directa extranjera (IED) tiene un claro impacto en la mejora de los niveles de desarrollo y crecimiento económico de los países receptores. En los últimos veinte años, Costa Rica ha realizado una decidida apuesta por la atracción de IED que, además, ha contribuido al incremento del volumen y la calidad de las exportaciones del país. Las subsidiarias costa- rricenses, propiedad de las empresas multinacionales, constituyen el instrumento a través del cual esa inver- sión exterior se transforma en actividad productiva. El presente estudio, basado en una muestra de ciento dos subsidiarias costarricenses, permite ahondar en el conocimiento de las subsidiarias costarricenses dado que brinda información a nivel micro empresarial de estas unidades corporativas. A partir de los hallazgos encontrados, se presenta una caracterización de dichas subsidiarias y de los altos directos a su cargo. Adicional- mente, se analizan otros aspectos asociados al manejo de las relaciones subsidiaria-casa matriz, las capacidades distintivas que poseen en las diversas actividades que realizan y que las hacen ser atractivas para los inver- sionistas extranjeros, además, se examina el potencial que podrían tener para establecer encadenamientos productivos con empresas nacionales, y, por último, se investiga la gestión emprendedora que ellas realizan, manifestada a través de las iniciativas emprendedoras que impulsan.</p><p> </p><p><strong>Abstract </strong></p><p>The foreign direct investment (FDI) has a clearimpact on improving the development and economicgrowth of the receiving countries. During the lasttwenty years Costa Rica bet decidedly on attractingFDI that has contributed to increase the volume andquality of the country’s exports. The Costa Rican foreignsubsidiaries have become the means in whichsaid foreign investment is transformed into productiveactivities. This research of 102 Costa Rican subsidiariesof multinational companies allows us to reach deeplyand unders-tand these corporate units at a micro entrepreneuriallevel. A characterization of said subsidiariesand their top executives is made. Also, the relationshipsbetween subsidiaries and head offices, the distinctivecapabilities for their area of business that make themattractive for foreign investors, their potential for developingpro- ductive chains with local companies andlastly their entrepreneurial procedures were examinedfrom the entrepreneurial initiatives they drive.</p>


Author(s):  
О. T . Prokopchuk ◽  
◽  
M. I. Malyovanyi ◽  
Yu. A. Tsymbalyuk

A necessary condition for the development of the economy is an increase in the investment activity of investors in the country, an increase in investment resources and their effective use. Therefore, the study of trends in the development of the investment market is relevant and of great practical importance. Specifically, investments form production potential on the latest scientific and technical basis and determine the competitive positions of states in world markets. The study of the formation of the investment market in Ukraine made it possible to form the following conclusions:  the total volume of foreign direct investment in Ukraine in 2020 amounted to $ 453 million. USA, which is 14 times less than in 2010;  the study of the geographical structure of foreign investment made it possible to determine that in 2020, 453 million dollars were invested in the Ukrainian economy by direct foreign investors from more than 76 countries of the world. US direct investment It should be noted that the main investing countries include Cyprus – 31.1 %, the Netherlands – 20.2 %, the UK – 6.1 %, Switzerland – 6.0 %, Germany – 4.6 %, Austria – 3.3 %;  analysis of the distribution of foreign direct investment in the context of sectors of the economy in Ukraine made it possible to note that the greatest interest among foreign investors in 2020 was aroused by industry - 180.35 million dollars. USA, that is, 39.8 %. The leading spheres of economic activity in terms of the development of direct investments in 2020 remain: wholesale and retail trade, repair of motor vehicles and motorcycles – 106.9 million dollars. The United States, accounting for 23.6 %; financial and insurance activities – $ 96.9 million, which is 21.4 %. Thus, Ukraine remains attractive for investments and is not aloof from world processes, is sufficiently integrated into the world economy and the violation of macrostability in foreign markets has its echo in Ukraine. Thus, the investment market is a rather complex phenomenon, with its own internal structural structure, which is sensitive to changes in the external environment. At the present stage, its construction is represented by the classification of structural and infrastructural elements, as well as by supervisory and control bodies, ensuring its functioning thanks to market mechanisms.


2021 ◽  
Vol 2 (6) ◽  
pp. 1-13
Author(s):  
Haider Kadhim Mahdi ◽  
Abdulmahdi Raheem Hamza ◽  
Yousif Mousa Sabti

This study aims to demonstrate the role of foreign direct investment in achieving sustainable development in Iraq. The Iraqi Investment Law No. (13) for the year 2006 and the amendments attached to it for the years 2009 and 2015 serve as a legal cover to grant many privileges and tax exemptions to foreign investors in order to attract more of them into the country. As Iraq is a developing country, it is in dire need of foreign direct investment to advance its economic and service reality by financing development programs and plans. The need for direct foreign investments to be directed towards the productive sectors.


Author(s):  
Radwan Alkebsee ◽  
Gaoliang Tian ◽  
Konstantinos G. Spinthiropoulos ◽  
Eirini Stavropoulou ◽  
Anastasios Konstantinidis

The capital market reputation attracts foreign investment. Corporate fraud phenomenon is one of the most crucial aspects that threaten foreign investors. This study investigates the impact of corporate fraud on foreign direct investment FDI. Using data of Chinese listed firms, over the period 2009 to 2017, the results show that corporate fraud is negatively associated with foreign direct investment. This suggests that corporate fraud declines foreign shareholders ratio, and foreign investors avoid investing in a risky environment where their wealth may be expropriated. Further, we explore the impact of having foreign shareholders on corporate fraud. We find that increasing foreign shareholders may help in curbing corporate fraud due to diversified corporate experience and risk-taking behavior. However, the findings remain robust after controlling for the potential endogeneity problem. Our findings have important implications for policymakers and governments as it shows that corporate fraud is a crucial determinant to the cause of foreign direct investment.


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