scholarly journals Retrospective analysis of foreign investment in the context of the evolution of economic theories

2021 ◽  
pp. 23-34
Author(s):  
Maryana Orshanska
Keyword(s):  
Foreign Direct Investment ◽  
Retrospective Analysis ◽  
Open Economy ◽  
Direct Investment ◽  
Monopolistic Competition ◽  
Economic Benefits ◽  
International Capital ◽  
Investment Activity ◽  
Systematic Analysis ◽  
Economic Theories

The article provides a retrospective analysis of the formation and evolution of foreign direct investment in terms of various economic theories taking into account changes in the stages of socio-economic development. The study of these historical and economic issues was carried out using systematic analysis and historical method; which allowed us to identify the genesis and analyze the evolution of economic theories on the formation and development of foreign direct investment. The author conducted a detailed study of the history of investment activities and management of foreign direct investment from the oldest origins in the ancient world to modern forms of innovation. It was found that at different times, repre- sentatives of various economic theories (open economy, market modernization, monopolistic competition, international capital movements, etc.) worked on under- standing complex investment processes, risk management and methods of obtaining economic benefits, who considered foreign direct investment as a guaranteed im- provement and development of society. The analysis of scientific literature and statistics shows positive social, po- litical, economic, technological and other effects of investment activities: job creation and training, export diversification and improvement of export perfor- mance, introduction of science-intensive technologies, activation of local firms – suppliers and subcontractors, the introduction of effective management methods, foreign exchange inflows, etc. Analyzing the genesis of economic theories, opinions and research, we conclude that humanity, feeling the need for savings, pays considerable attention to investment. The stages of the investment economy and the choice of methods of control over them indicate the urgency of this problem, and today scientists continue to discover new aspects of investment opportunities and develop innovative forms, mechanisms, tools of investment policy. Key words: economic theories, foreign direct investment, investment activity, international capital movement.

scholarly journals FOREING DIRECT INVESTMENTS OF GERMAN TNCs: MAIN TRENDS AND FEATURES

2015 ◽  
Vol 21 (03) ◽  
pp. 22-28
Author(s):  
Vasyl Namoniuk Vasyl Namoniuk ◽  
Nataliya Shavrina Nataliya Shavrina
Keyword(s):  
Foreign Direct Investment ◽  
Eastern Europe ◽  
Host Country ◽  
Capital Flows ◽  
Direct Investment ◽  
Central And Eastern Europe ◽  
Transnational Corporations ◽  
International Capital ◽  
Investment Activity ◽  
Economic And Financial Crisis

The paper deals with the features of German transnational corporations’ investment activity within the last decade. The period of active foreign direct investing during 2004–2007 and the period of FDI decline due to the global economic and financial crisis are distinguished. The sectoral and regional structures of German TNCs’ investments are analyzed as well. The special accent is made on the issue of investment attractiveness of Central and Eastern Europe, especially Ukraine, for the German TNCs. It was revealed that stability and predictability of the situation in the country and main features of its market are more important for German corporations when choosing the host country, than regulatory restrictions on foreign direct investment. This is a very important issue for the FDI attraction into Ukrainian economy. Keywords: TNCs, FDI, international capital flows, regulatory restrictions, Central and Eastern Europe, Ukraine.

Causal Relationship Between FDI Flow and Technological Innovation in China and Japan

2019 ◽  
Vol 23 (3) ◽  
pp. 536-545
Author(s):  
Chengkun Liu ◽  
Xiuwu Zhang ◽  
Takashi Tamamine ◽  
◽  
◽  
...  
Keyword(s):  
Foreign Direct Investment ◽  
Technological Innovation ◽  
Direct Investment ◽  
International Capital ◽  
Short Term ◽  
International Capital Flow ◽  
Measure Model ◽  
China And Japan ◽  
The One

The improvement of a country’s technological innovation level is influenced by the technology spillover of inward foreign direct investment (IFDI) and outward foreign direct investment (OFDI). Based on the Coe and Helpmen’s theory of international capital flow model and one-way causality measure model, this study examines the similarities and dissimilarities between the dynamic effects of IDFI and OFDI on technological innovation in China and Japan to enumerate the differences in the utilization effect of FDI between developed and developing countries. The empirical results show that the one-way causality intensity of IFDI to technological innovation in China is weaker than that in Japan, but the FDI volatility in China is stronger than that in Japan. The one-way causality intensity of OFDI to technological innovation are low both in China and Japan, and the patterns of long-term and short-term effects are not identical. According to the results of our empirical research, we draw the conclusions and proposed suggestions for using IFDI and OFDI in China and Japan.

scholarly journals The Impacts of Bilateral Trade and Foreign Direct Investment on Malaysia’s Economic Growth: The Roles of Singapore

2021 ◽  
Vol 21 (1) ◽  
pp. 419-432
Author(s):  
Chee-Yie Wong ◽  
Hui-Shan Lee ◽  
Shyue-Chuan Chong
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Open Economy ◽  
Direct Investment ◽  
Bilateral Trade ◽  
High Income ◽  
Vector Error Correction ◽  
Vector Error ◽  
Sustainable Economic Growth ◽  
Trade And Investment

Open economy is essential for a country to achieve sustainable economic growth. There existsa bilateral tiebetween Malaysia and Singapore since 1965. Thisrelationship has made Singaporeachievedas a high-income nation that enjoys modern infrastructure and technology, skilled labour, and strong financial structure, but Malaysia is still trying to upgrade itself to become a high-income nation via open economy. Furthermore, Malaysia’s reliance on the external market has inevitablyleft the economy to be more exposed to external shock. This research analysesthe impacts of Malaysia’s bilateral trade and investment with Singapore on Malaysia’s economic growth from2008 to 2016. Vector error correction model (VECM) reveals that Malaysia’s exports to Singapore arepositive and significant on Malaysia’s economic growth and Malaysia’s OFDI in Singapore is significant but negative on Malaysia’s economic growth.However, Malaysia’s imports from Singapore and Malaysia’s inward foreign direct investment (IFDI) by Singapore have insignificant impacts on Malaysia’s economic growth. It concludes that only Malaysia’s exports to Singapore can help to increase Malaysia’s economic growth.Thus,Malaysia’sgovernment couldprovide incentives to encourage Malaysian local firms to boost the exportationsto Singapore.

scholarly journals Foreign Direct Investment: A Feature Key Drive’s for India’s Growth in it Sector

2019 ◽  
Vol 8 (2S10) ◽  
pp. 126-131
Keyword(s):  
Foreign Direct Investment ◽  
Current Account ◽  
Open Economy ◽  
Direct Investment ◽  
Capital Investment ◽  
Current Account Deficit ◽  
Trade Deficit ◽  
Main Driver ◽  
Innovative Solution ◽  
Growth Prospects

The IT sector continues the main drivers of development in India, contributing nearly 72 percentage of its added gross value in 2017-18. However, this sector's growth in 2017-18 was moderate to 8.2 percent compared to 9.7 percent in the past year, although it remains greater than the IT sector, a main driver in FDI is frequently found in the open economy, a growth in investment assumes significant against the backdrop of widening current account deficit and trade deficit the country’s current account deficit is likely touch 2.8 percent of GDP 2018-19 on the IT sector, has increased its contribution to India has been rapidly moving upwards on the technology adoptions curve to improve and deliver leading it has excelled in business developing innovative solution and collaborating larger firms to meet the current needs of the IT sector. which offers a qualified workforce and excellent growth prospects for investors compared to tightly regulated in Foreign Direct Investment, perhaps it needs not only capital investment, but as well as technology. It could be included that the analyzed trend values are preferred to FDI inflows in IT Sector

scholarly journals The impact of the sanctions regime on foreign direct investments in Russia

2018 ◽  
Vol 26 (4) ◽  
pp. 760-772
Author(s):  
Yury K Zaytsev
Keyword(s):  
Foreign Direct Investment ◽  
Central Bank ◽  
Direct Investment ◽  
Foreign Direct Investments ◽  
Investment Strategies ◽  
Investment Activity ◽  
Foreign Investors ◽  
Qualitative Level ◽  
European Economies ◽  
The Impact

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.

scholarly journals Determinants of Foreign Direct Investment in Saudi Arabia: A Review

2017 ◽  
Vol 9 (7) ◽  
pp. 222
Author(s):  
Haga Elimam
Keyword(s):  
Economic Growth ◽  
Saudi Arabia ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Trade Openness ◽  
Maximum Flow ◽  
International Capital ◽  
Host Government ◽  
The Government

Foreign direct investment is identified as the major tool for the movement of international capital. Thus, the study has employed a review research to examine the determinants of foreign direct investment in Saudi Arabia. The results are significant as they have contributed towards determinants of foreign direct investment by comparing with previous studies. The results showed that trade openness, infrastructure availability, and market size play significant role in attracting foreign direct investment within a country. The inflow of foreign direct investment has a potential to benefit the investing entity as well as the host government. It also renders economic growth and socioeconomic transformation of the country. The flow of foreign direct investment in Saudi Arabia is affected by several factors including growth rate, GDP, exports and imports. It is the duty of the government to ensure the attractiveness of their country to maintain maximum flow of foreign direct investment, as it promotes sustained long-term economic growth by increased investment in the human capital.

FDI AS A SOURCE OF DEVELOPMENT CAPITAL

2018 ◽  
Vol 28 (1) ◽  
pp. 117-120
Author(s):  
Jovica Palashevski
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
External Financing ◽  
International Capital ◽  
Underdeveloped Countries ◽  
The World Bank ◽  
Rich Countries ◽  
A Company ◽  
Control Management ◽  
New Facilities

An important part of the international capital movement is in a different form known as foreign direct investment. This term refers to international capital flows in which a company of a country creates or extends its representation in another country. Foreign direct investment is a direct investment in production or business in a country by a company from another country, by purchasing a company in a given country or by extending the operations of a permanent business in that country. Foreign direct investment has many forms. Widely viewed FDI include acquisitions and acquisitions, building new facilities, reinvestment of profits earned in external operations and internal corporate loans. The investment is direct because the investor, company or group of investors requires control, management or significant influence over a foreign company. FDI is the largest source of external financing, and accordingly, it appears that countries with limited capital typically have an influx of finance from rich countries. According to the World Bank, FDI and the development of small business types are two crucial elements necessary for developing the private sector in underdeveloped countries, as well as reducing the economic gap.

A STUDY ON FOREIGN DIRECT INVESTMENT IN SERVICE SECTOR IN INDIA

2021 ◽  
Vol 9 (47) ◽  
pp. 11469-11476
Author(s):  
R. P. Meena ◽  
Sajjan Kumar
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Service Sector ◽  
Foreign Currency ◽  
Positive Response ◽  
International Capital ◽  
Fdi Inflows ◽  
Increasing Trend ◽  
The Relationship

FDI offers a bundle of benefits such as financial and non-financial. FDI is one such source of long term international capital. Service sector is a largest sector of India economy. Since 1991, FDI inflows in India is on an increasing trend. The FDI Inflows in service sector increased from Rs.14803.91 crores during 1991-2000 to Rs.63909.44 crores in 2018-19. It showed positive response. The easiest and cheapest way to increase the capital is foreign direct investment. There is also increase in foreign currency resources. This paper discusses about the trends of FDI equity inflows in service sector in India, to study and analyze the trend of FDI equity inflows in sub-sector of service sector in India and to examine and analysis the relationship between total FDI equity inflows and FDI equity inflows in service sector in India during 2009-10 to 2018-19.

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