scholarly journals EVALUATING PRIORITIES FOR FOREIGN DIRECT INVESTMENT IN BALTIC COUNTRIES

Author(s):  
Assylkhan Turdykhan ◽  
Liucija Birškytė

The purpose of this study is to аssеss the relаtive priоrity of three Bаltic countriеs аs а home country fоr fоreign direct іnvеstmеnt (FDI) іnflоw from the United Stаtеs of Аmericа over the pаst four yeаrs (2014–2018). The study offers а structured model referrіng to а combіnаtiоn of the аnаlytic hierаrchy procеss (АHP) аnd the technique fоr оrder preferеnce by sіmilаrity to ideаl solutiоn (TOPSIS). To provide vаlid аnswers to rеseаrch quеstiоn, the sevеn reliаble determіnаnts of FDI were selected from recеnt studiеs. The rеsults fоr this tіme period shоw thаt productivity, mаrket potеntiаl, mаrket size, GDP grоwth аnd developmеnt hаve the highеst priоrity іm the decisiоn-mаkіng procеss. Hоwever, this study hаs potеntiаl lіmitаtiоns. The evаluаtiоn of priоritiеs of Bаltic countriеs аre bаsed оn а lіmited tіme period. The obtаіned fіndіngs help to evаluаte trеnds of the аctivity of FDI аnd cаn аssist policy mаkers аnd іnvеstоrs of multіnаtiоnаl cоrpоrаtiоns with their chаllеngеs of strаtegic decisiоn-mаkіng procеss

2021 ◽  
pp. 253-265
Author(s):  
MILOŠ PJANIĆ ◽  
MIRELA MITRAŠEVIĆ

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.


As explained in the foregoing chapter, once the relevant cash outflows and inflows associated with a foreign direct investment project are estimated so as to calculate the net cash flows, the desirability of the investment project should then be determined in terms of its economic profitability. Therefore, in this chapter the methods widely used in evaluating investment projects are discussed and their advantages as well as shortcomings are highlighted. Later in the chapter, evaluating foreign direct investment projects from the viewpoint of the parent company is elaborated in terms of profit and/or income transferred to the home country. The same investment evaluation techniques were applied to the net cash flows transferred to the home country of the parent company. The possible income and/or dividends to be remitted to the home country of a parent company are identified and discussed so as to reflect the viewpoints of investing parent companies when planning foreign direct investments. This two-level evaluation approach is generally followed in practice to make sure that direct investments are profitable at both host and home country levels, since an investment project that is not profitable at host country level would not be profitable at home country level either or a project that is profitable at host country level may not be profitable at home country level.


2016 ◽  
Vol 28 (1) ◽  
pp. 61-67
Author(s):  
Aida Barkauskaite ◽  
Violeta Naraskeviciute

Abstract The foreign direct investment movement is becoming increasingly important nowadays. Various studies are conducted to determine the influence of foreign direct investments on certain countries. That is why it is important and useful to evaluate and compare how foreign direct investments affect the economic indicators of the Baltic countries - countries having similar economies. Methods used in the analysis are: logical comparative and generalization methods, systematic literature analysis and methods of mathematical statistics. The results have showed that foreign direct investments have positive influence on economies through gross domestic product and labour productivity growth in all Baltic countries, though foreign direct investments do not influence the unemployment rate in all Baltic countries


2018 ◽  
Vol 87 (3) ◽  
pp. 165-179
Author(s):  
Marcus Deetz ◽  
Anna Ammon ◽  
Neele Döpkens

Zusammenfassung: Haben Remittances, also der Geldtransfer von Migrantinnen und Migranten zur Unterstützung der Familien im Heimatland, einen positiven Einfluss auf den Wohlstand eines Landes? Hierzu können die empirischen Befunde wie folgt zusammengefasst werden: Bei den durchgeführten Paneldatenregressionen von Remittances pro Person auf das Bruttoinlandsprodukt pro Einwohner, wobei die Kontrollvariablen Arbeitslosigkeit, Export, ausländische Direktinvestitionen, Bruttoinvestitionen sowie der Einfluss der Finanzkrise 2008–2009 berücksichtigt wurden, ist der Koeffizient der Variablen Remittances pro Person mit einer Höhe von 0,026 statistisch hochsignifikant. Remittances haben demnach einen positiven Einfluss auf den Wohlstand eines Landes, wenn dieser in Bruttoinlandsprodukt pro Einwohner gemessen wird. Auch die Ergebnisse der Robustheitsanalysen haben den positiven Zusammenhang bestätigt, der auch bei Veränderung von Kontrollvariablen statistisch signifikant bleibt. Summary: Do remittances, that is, the transfer of money from migrants to support families in their home country, have a positive influence on the prosperity of a country? The empirical findings can be summarized as follows: In the panel data regression of remittances per person to the gross domestic product per inhabitant, whereby the control variables unemployment, export, foreign direct investment, gross investment and the influence of the financial crisis 2008–2009 were taken into account, the coefficient of the variable remittances per person is statistically highly significant at 0.026. Thus, remittances have a positive influence on a country’s prosperity when measured in gross domestic product per inhabitant. The results of the robustness analyses also confirmed the positive correlation, which remains statistically significant even if control variables are changed.


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