ECONOMIC AND STATISTICAL APPROACH TO THE PROCESS OF INTERNATIONAL INVESTMENT: RISKS AND PROSPECTS

Foreign Investment ◽

National Economy ◽

Direct Investment ◽

Structural Changes ◽

Statistical Approach ◽

International Investors ◽

Effective Use ◽

The fact that Ukraine is involved in the worldwide process of globalization and integration intensifies the attraction of overseas capital, which is an important tool for structural changes in national economies, for replenishing the budgets of countries and ensuring their economic growth. The current economic development of Ukraine is a result of the lack of country’s own financial resources, which confirms the need to create a favourable investment environment and intensify international investment. In view of this, the essence of foreign investment has been considered; the main forms and modern approaches to the classification of foreign investment have been described. It has been highlighted that foreign direct investment is the most effective for further development of the national economy in the context of globalization. The main aspects that make Ukraine’s economy attractive for international investors have been identified. An economic and statistical approach has been used to analyze the volume of foreign direct investment in and from Ukraine and from the country in the dynamics as a whole, as well as in terms of individual countries. The orientation of foreign direct investment in certain types of economic activity has been analyzed; and the priority directions for foreign investment in the national economy have been determined. The transformational changes in the way how domestic statistical information related to foreign direct investment is displayed have been identified. It has been emphasized that currently the only body responsible for disseminating information related to international investment is the National Bank of Ukraine. The factors that affect foreign investment have been specified, as well as investment risks associated with the use of overseas capital in the country. It has been noted that the further implementation of Ukraine’s economic policy in the field of foreign investment is associated with the appropriate regulation of both attraction of investment and its effective use. Prospects for international investment in Ukraine have been highlighted.

Protection of Foreign Investment in Central Asia

Russian Law Journal ◽

10.17589/2309-8678-2019-7-4-125-150 ◽

2019 ◽

Vol 7 (4) ◽

pp. 125-150

Author(s):

Farruhbek Muminov

Keyword(s):

Central Asia ◽

International Organizations ◽

Foreign Investment ◽

Direct Investment ◽

Labor Costs ◽

Foreign Investors ◽

Investment Policies ◽

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.

FEATURES OF GLOBAL INVESTMENT POLICY: MODERN TRENDS AND PROSPECTS

VESTNIK OF ASTRAKHAN STATE TECHNICAL UNIVERSITY SERIES ECONOMICS ◽

10.24143/2073-5537-2019-2-142-148 ◽

2019 ◽

pp. 142-148

Author(s):

Larisa Germanovna Chuvakhina

Keyword(s):

Foreign Investment ◽

Direct Investment ◽

World Economy ◽

Investment Policy ◽

Investment Promotion ◽

The Us ◽

The World

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.

German Corporate Convergence to a Market Based System

International Community Law Review ◽

10.1163/187197407x210283 ◽

2007 ◽

Vol 9 (2) ◽

pp. 209-232 ◽

Cited By ~ 2

Author(s):

Matthew Berger

Keyword(s):

Corporate Governance ◽

Financial Markets ◽

Foreign Investment ◽

Direct Investment ◽

Investment Decisions ◽

Governance System ◽

Legal Reforms ◽

Corporate Governance System ◽

International Investors

AbstractGermany has implemented several legal reforms in an attempt to attract international investment. Commentators proclaimed that a transition from a bank-based system of corporate governance to a market-based system was required in order for Germany to attract international investors. Debates still transpire regarding the success of the legal reforms implemented in an effort to make this change. This analysis explains Germany's previous corporate governance system and the new laws implemented to transform it to a market-based system. Empirical data is recited concerning the changes in foreign direct investment, German household investment decisions, and the German financial markets. The paper concludes that an analysis of this data reveals an increase of foreign investment in Germany and a substantial movement towards a market-based system throughout the duration of the legal reform.

Bulletin of the National Technical University "Kharkiv Polytechnic Institute" (economic sciences) ◽

PROBLEMS AND WAYS TO ACTIVATE INVESTMENT ACTIVITY IN UKRAINE

10.20998/2519-4461.2020.1.84 ◽

2021 ◽

pp. 84-87

Author(s):

Анастасія Говеля ◽

Ірина Чекмасова

Keyword(s):

Economic Development ◽

Foreign Investment ◽

Direct Investment ◽

Investment Climate ◽

The European Union ◽

Investment Activity ◽

Investment Projects ◽

Social Environmental

The article examines the current state and problems of the development of attracting foreign direct investment. The author determined that the most investments in Ukraine are made by such countries as Cyprus and some countries of the European Union. It is proved that foreign investment is one of the most effective ways to develop economic, social, environmental and other spheres. It is determined that the key problems in attracting foreign investment today are: political instability, legislation, high inflation, and undeveloped infrastructure. The author has identified trends and explored the prospects for the development of attracting foreign direct investment, which allows us to demonstrate the dynamics of investments, which is considered an indicator of changes in the level of trust and rating of the country as a whole. Foreign investment plays a major blow to the economic development of many countries. Raising in the economy largely provides effective investment activity of Ukraine, which works by showing the dynamics invested in the country, so the investment climate in any country stands out from the main factors of socio-economic activity. situation. Thus, projects, innovative investments can be of great benefit for the economic development of the country, help to solve economic problems, so attract investors necessary and justified. In order to increase investment attractiveness, the country needs to implement a set of measures on the part of states and affairs, and as Ukraine has a strong production potential, thus concentrating the enhancement on the realization of its competitive advantages. It is concluded that the main directions of increasing the efficiency of investment activities, now and in the near future, will be: new modern infrastructure, improved investment, attracting foreign investors and improving the tax system. To improve the investment climate in Ukraine and increase the flow of foreign investment, it is necessary to promote the development of science, improve the regulatory framework in the field of investment, participate more actively in international investment projects, and develop small and medium-sized businesses in Ukraine.

MONEY TRANSFERS OF THE RESIDENTS AS AN ALTERNATIVE TO DIRECT FOREIGN INVESTMENT

Municipal economy of cities ◽

10.33042/2522-1809-2020-2-155-83-87 ◽

2020 ◽

Vol 2 (155) ◽

pp. 83-87

Author(s):

Y. Fedotova ◽

М. Naumov

Keyword(s):

Economic Growth ◽

Foreign Investment ◽

National Economy ◽

Migrant Workers ◽

Labor Migration ◽

Direct Investment ◽

Developed Countries ◽

Investment Climate ◽

Negative Consequences

The article deals with the lack of financial resources in the domestic market and the prospects for the recovery of the national economy linked to external factors. The volume of foreign direct investment in Ukrainian economy in 2018 was 60 % of the pre-crisis level. To attract foreign investment, it is necessary to create a favorable investment climate and increase the competitiveness of the national economy. The success activities in attracting investments can be assessed using next ratings: raising the country by one point can lead to an increase in foreign direct investment by $ 250-500 million next year. Ukraine has climbed five steps in the Doing Business 2019 ranking, but the volume of foreign direct investments has not changed significantly. In addition, more than half of the investments that are classified as foreign come from countries that are attractive for favorable taxation, that is, probably has a Ukrainian origin, so-called "round-tripping". Thus, the steps taken do not solve the issue of attracting foreign investment, which requires finding alternative ways to attract funds from abroad. One of them is the transfer of migrant workers home. Such transfers are received exclusively in a freely convertible currency, do not result in a requirement to return the funds received in the future, are evenly distributed across the country's regions and are characterized by a low concentration. Over the past five years, transfers of migrant workers to their homes have exceeded foreign direct investment in Ukraine every year. They also exceeded the losses of the country's economy from the reduction in the number of workers. At the same time, the experience of the leading countries shows, that in the long term, sustainable economic growth is possible only with a stable increase in the number of workers. Accordingly, the labor migration of Ukrainians abroad should be compensated by immigration flows from less developed countries. Otherwise, the lag between the Ukrainian economy and the world's leading countries will be maintained or even increased, primarily due to the inability to ensure high GDP growth rates. Reducing the negative consequences of labor migration requires the development of an effective migration policy. Keywords: economic growth, investment climate, foreign direct investment, labor migration.

Foreign direct investment trends: an analysis of the structure and dynamics in the context of globalization

SHS Web of Conferences ◽

10.1051/shsconf/202110708003 ◽

2021 ◽

Vol 107 ◽

pp. 08003

Author(s):

Liubov Kibalnyk ◽

Maryna Leshchenko ◽

Olena Feshchenko ◽

Haiyu Wang

Keyword(s):

Direct Investment ◽

Spanning Trees ◽

Geographical Location ◽

Foreign Investments ◽

Investment Environment ◽

Investment Activity ◽

Active Involvement ◽

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.

ATTRACTING FOREIGN INVESTMENT AS A TOOL FOR ENSURING COMPETITIVENESS AND SUSTAINABLE DEVELOPMENT OF THE COUNTRY

Vìsnik Sumsʹkogo deržavnogo unìversitetu ◽

10.21272/1817-9215.2020.3-22 ◽

2020 ◽

pp. 199-211

Author(s):

O. Karintseva ◽

I. Dehtyarova ◽

M. Kharchenko ◽

O. Dolgosheieva ◽

A. Kirilieva

Keyword(s):

Sustainable Development ◽

Economic System ◽

Foreign Investment ◽

National Economy ◽

Economic Activity ◽

Direct Investment ◽

Investment Activity ◽

The World ◽

Investment Object

The article reveals the essence of investing and its role for the development of the national economy. It is determined that the country's investment activity is a tool for strengthening the national economy which in turn will be an indicator of sustainable development and a high level of competitiveness among other leading countries. It is noted that the national economy is a single socio-economic system that has many components in different sectors of economic activity. In order for the development process to continue, it is necessary to resolve the contradictions that arise between the individual elements of the economic system. The paper identifies the most attractive types of economic activity for foreign investors and highlights the prerequisites for choosing an investment object. Analyzing the foreign experience of the mechanism of attracting foreign investment, the emphasis is on the fact that there are several mechanisms of attracting foreign investment in the world. The main components of the complex mechanism for attracting foreign direct investment are institutional, legal, monetary, budgetary and tax, territorial and organizational mechanisms. All mechanisms of international cooperation for investing in highly efficient Ukrainian companies provide many current and future benefits. It is determined that the world experience of attracting foreign investments is ideal for Ukraine In the light of the above facts, they drew attention to the fact that the issue of attracting foreign investment to Ukraine is very important and needs much attention. On Ukraine's path to sustainable development, attracting foreign direct investment is an important tool for increasing economic prosperity, thereby destroying and restoring national barriers. The article formulates the functions of attracting foreign investment at the micro and macro levels. The study found that an effective mechanism for attracting foreign direct investment to the country as a whole is to be attractive to investors, which leads to real attraction of funds. Attracting foreign investment in the implementation of strategic goals of the state will improve and enhance the efficiency of certain parts of the national economy.

Role of foreign direct investment – As a strategic move towards growth, economic integration and development

International Journal of Electrical Engineering Education ◽

10.1177/0020720921996597 ◽

2021 ◽

pp. 002072092199659

Author(s):

Rima H BinSaeed

Keyword(s):

Saudi Arabia ◽

Direct Investment ◽

Vital Role ◽

Foreign Investors ◽

Technological Infrastructure ◽

Industrial Sectors ◽

Vision 2030 ◽

International Investors ◽

The Government

Kingdom of Saudi Arabia with its developed economy and advanced technological infrastructure has shown a major progress in business opportunities for overseas investors. Saudi Arabia’s education sector is one of the most attractive investment opportunities for the foreign investors Earlier in 2019, 9 new foreign education enterprises were granted investor licenses, amounting to a total of $141mn of investment deals. The Saudi government introduced Saudi Vision 2030, an aspiring development plan that foresees vital prospects for foreign investors in the regions of education, housing, health and energy, amongst others. In 2016, Saudi Arabia permitted the procurement of 100% of assets by foreign investors in retail and wholesale trade. A privatisation program has also been introduced. The government also attempts to attract FDI in the regions of renewable energy and entertainment. A foreign direct investment (FDI) plays a vital role in local and international economy. Several opportunities and ventures are encouraged by Saudi Arabia to improve the standard of business and economical environments. To accomplish the finances for the projects SAGIA, the lawful authority is there to smooth the progress of investments, which encourages Saudi FDI prospective to grow simultaneously. FDI has a greater scope for diverse businesses and investing in to underdeveloped industrial sectors. FDI plays an important role in boosting the economy of Saudi Arabia by managing international investors who shares the huge portion of 34% in General GDP (Gross domestic product) of Saudi Arabia. This paper aims to review the literature to shed light on the steps taken by the government to increase FDI in the country and what are the current trends that are helping to fulfil VISION 2030.

FOREIGN DIRECT INVESTMENT IN SERBIA

10.51738/kpolisa2021.18.1r.4.01 ◽

2021 ◽

pp. 253-265

Author(s):

MILOŠ PJANIĆ ◽

MIRELA MITRAŠEVIĆ

Keyword(s):

Developing Countries ◽

Financial Markets ◽

Direct Investment ◽

Employment Growth ◽

Home Country ◽

New Technology ◽

Foreign Direct Investments ◽

Education Innovation ◽

In the process of globalization, the importance of foreign direct investment has changed significantly, because today they represent one of the most important factors of competitiveness, development and application of new technology, education, innovation and economic development. As a significant form of financing national economies, foreign direct investment is a form of investment that is realized outside the home country, where one of the most important goals of both developed and especially developing countries is to attract as much foreign direct investment. A large number of developing countries, including Serbia, have liberalized restrictions on foreign investment and free trade in the last two decades, liberalized national financial markets and begun privatization processes. Due to numerous problems and consequences of economic crises they have faced, many developing countries, as well as Serbia, view foreign direct investment as one of the most important factors for stimulating trade, employment growth, openness of national economies, and establishing overall macroeconomic stability. The aim of this paper is to point out the importance and dynamics of foreign direct investments in Serbia, as well as the key incentives for their attraction. Also, in addition to the theoretical review of foreign direct investments, the effects of foreign direct investments are presented in the paper.

Does foreign direct investment influence R&D activity in the host country? Evidence from Vietnam

International Journal of Emerging Markets ◽

10.1108/ijoem-08-2020-0932 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Van Ha ◽

Mark J. Holmes ◽

Gazi Hassan

Keyword(s):

Foreign Investment ◽

Direct Investment ◽

Probit Model ◽

Innovation Activity ◽

Heckman Selection Model ◽

Content Type ◽

Domestic Firms ◽

The Impact ◽

Local Firms

PurposeThis study focuses on the linkages between foreign direct investment and the research and development (R&D) and innovation activity of domestic enterprises in Vietnam.Design/methodology/approachThe Heckman selection model approach is applied to a panel dataset of nearly 7,000 Vietnamese firms for the 2011–2015 study period to investigate the impact of foreign presence on the R&D of local firms through horizontal and vertical linkages. Probit model estimation is employed to examine how foreign investment influences the innovation activity of local companies.FindingsWhile there are a small number of firms carrying out R&D activities in Vietnam, foreign or joint domestic–foreign venture firms are less inclined than domestic firms to undertake R&D. Domestic factors that include capital, labor quality, location and export status of firm have a significant effect on the decision of domestic firms to participate in R&D activity. Only forward linkages and the gross firm output are found to have an impact on the R&D intensity of domestic enterprises, while other factors appear to have no significant influence on how much firms spend on R&D activities.Practical implicationsIn order to promote the R&D activity of domestic firms, policy should focus on (1) the backward linkages between local firms in downstream sectors with their foreign suppliers in upstream sectors, and (2) the internal factors such as labor, capital or location that affect the decisions made by domestic firms.Originality/valueGiven that foreign investment may affect R&D and innovation activity of local firms in host countries, the impact is relatively unexplored for many emerging economies and not so in the case of Vietnam. The availability of a unique survey on Vietnamese firm technology and competitiveness provides the opportunity to address this gap in the literature.