Capital expansion of Polish companies abroad and international investment position of the country

2016 ◽  
Vol 61 (7) ◽  
pp. 75-89
Author(s):  
Barbara Ptaszyńska
Keyword(s):  
Foreign Investment ◽  
Direct Investment ◽  
International Investment ◽  
European Market ◽  
Services Sector ◽  
National Bank ◽  
International Investment Position ◽  
The Impact ◽  
Size And Structure

The aim of the study is to determine the effect of the size and structure of the Polish direct investment on the international investment position of the country. As it turns out, the impact of the Polish direct investment abroad on the Polish international position worsens. The article describes the conditions and the scale of Polish investment abroad in the years 1994—2013. Based on data from the Ministry of Economy, National Bank of Poland and agencies of foreign investment, it was found that Polish entrepreneurs direct their capital mainly in the services sector on the European market.

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

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Van Ha ◽  
Mark J. Holmes ◽  
Gazi Hassan
Keyword(s):  
Foreign Direct Investment ◽  
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.

scholarly journals FEATURES OF GLOBAL INVESTMENT POLICY: MODERN TRENDS AND PROSPECTS

2019 ◽  
pp. 142-148
Author(s):  
Larisa Germanovna Chuvakhina
Keyword(s):  
Foreign Direct Investment ◽  
Foreign Investment ◽  
Direct Investment ◽  
World Economy ◽  
International Investment ◽  
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.

scholarly journals The Consequences of the Military Conflict in Eastern Ukraine, Its Impact on International Investment Attractiveness, Economic and Demographic Development in Ukraine

2020 ◽  
Vol 11 (4) ◽  
pp. 81
Author(s):  
Dmytro Vasylkivskyi ◽  
Serhii Matiukh ◽  
Olha Matviiets ◽  
Ihor Lapshyn ◽  
Vitalina Babenko
Keyword(s):  
International Investment ◽  
Demographic Development ◽  
Economic Changes ◽  
Military Conflict ◽  
Development Indicators ◽  
Terrorist Groups ◽  
Demographic Processes ◽  
National Bank ◽  
The Military ◽  
The Impact

The conflict in the Eastern part of Ukraine and the growing geopolitical tensions have had a significant impact on the economy and society of the country. As a result, it deepened the recession and diverged from the planned development indicators. In particular, this concerns international reserves of the National Bank of Ukraine and the country's budget deficit. Multilateral economic changes, exacerbated by the impact of hostilities in the Eastern part of the country have transformed the structure of socio-demographic processes in Ukraine. Armed confrontation causes a continuous deterioration of demographic and economic indicators of development not only of Donetsk and Luhansk regions, but also has an impact on the whole country. This confrontation is also accompanied by the loss (destruction, theft, etc.) of public assets. The estimated cost of destroyed components of industrial, communal, social, transport, energy and other infrastructure are indicative due to the inability to inspect objects located within the territory controlled by terrorist groups. The conflict has also affected the investment attractiveness of the country, which accelerates the creation of a depressed nature of country’s development. Therefore, in the context of hostility in the Eastern Ukraine, it is important to understand and study its destabilizing impact, not only on domestic economic and demographic indicators, but also on the volume of foreign investment, which will allow us to understand the level of country’s involvement in the global investment space and the real impact of military action on the population and on international economic affairs of Ukraine. As a result of this scientific research, the population and GDP forecast have been conducted. It is worth noting that the forecast itself based on regression mathematical modelling which includes past data and can be accurate if current conditions are stable in the future.

Features of the Formation of Direct Investment Articles and Its Impact on the Balance of Payments and the International Investment Position of the Country

2019 ◽  
Vol 7 (2) ◽  
pp. 14-19
Author(s):  
К. Буневич ◽  
K. Bunevich ◽  
Э. Гаврилова ◽  
E. Gavrilova ◽  
О. Иванова ◽  
...  
Keyword(s):  
Direct Investment ◽  
International Investment ◽  
Balance Of Payments ◽  
Economic Activities ◽  
Economic Relations ◽  
Qualitative Nature ◽  
International Investment Position

The balance of payments and the international investment position (hereinafter referred to as the IIP) reflect the specifics and peculiarities of the country's economy. However, the data of statistical reports on the economic activities of the country represent only the final formed results for a certain period or date. They do not reflect the nature of the formation of their individual articles. For a deeper understanding of the country's economic processes, it is necessary to analyze the qualitative nature of the formation of the final articles included in the statistical reports under consideration; economic relations due to the flow of direct investment and the role of this flow in reflecting the economic processes of the country.

Renminbi internationalisation will push ahead

2016 ◽  
Keyword(s):  
Direct Investment ◽  
Equity Markets ◽  
International Investment ◽  
Capital Account ◽  
Foreign Exchange Reserves ◽  
Content Type ◽  
Capital Account Convertibility ◽  
International Payment ◽  
Account Convertibility ◽  
International Investment Position

Subject Renminbi internationalisation. Significance The renminbi emerged from relative international obscurity to become the fifth most-used currency in international payments in just over a decade. Nevertheless, its international use as a currency of settlement or foreign exchange reserves remains small compared to the dollar and euro. Without full capital account convertibility, the benefits of its international usage have been restricted to exporters and offshore settlement centres, especially Hong Kong. Impacts Reform will raise renminbi quotas for portfolio investors, boost outward direct investment and develop China's international payment system. Incremental reforms will help rebalance China's net international investment position. In the longer term, internationalisation will benefit domestic bond and equity markets by increasing their depth and liquidity.

scholarly journals Does Foreign Direct Investment More Important Than Domestic Direct Investment for Export Structure? Evidence from Indonesia

2021 ◽  
Author(s):  
Ariyo DP Irhamna ◽  
Ely Nurhayati ◽  
Adinda Putri Safira ◽  
Galuh Indra Wijaya
Keyword(s):  
Time Series ◽  
Foreign Investment ◽  
Direct Investment ◽  
Negative Impact ◽  
Positive Impact ◽  
Domestic Investment ◽  
Fdi Inflows ◽  
Export Structure ◽  
The Impact ◽  
Export Product

Abstract Scholars have long studied the spillover of FDI on trade. However, there has been limited study which spesifically investigate the impact of FDI on the export structure in a developing country. Does FDI more important than domestic investment for export structure? To examine the question, we test the impact of FDI and DDI on the export structure in time series framework, utilizing data on FDI inflows to Indonesia and export data based on product stage over 1992–2017. The export structure is analyzed based on three categories, namely primary product, intermediate product, and final product. Our results show that domestic investment has a negative impact on the primary export product, while foreign investment has a positive impact on the final export product. The result highlights the importance of domestic and foreign investment in export upgrading.

scholarly journals Protection of National Sovereignty and Hindering Foreign Investment

2017 ◽  
pp. 1-14
Author(s):  
Badreddine Berrahlia ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Technology Transfer ◽  
Foreign Investment ◽  
Direct Investment ◽  
Foreign Direct Investments ◽  
Business Law ◽  
National Sovereignty ◽  
Investment Projects ◽  
Recent Debate ◽  
The Impact

The article explores the recent debate regarding the rules of sovereignty and the need to acquire technology through Foreign Direct Investment (FDI) in relation to the Algerian Business Law. The article explores the 51/49 rule as an obligatory condition for direct international partnerhip projects, which requires a majority of Algerian ownership of at least 51 percent in all foreign direct investment projects (FDIP). The current research also investigates the impact of the 51/49 rule on the inflows of the foreign direct investments in Algeria as well as some other countries. The research concludes that there is no evidence that the amendment of the 51/49 rule would lead to technology transfer through the FDI.

scholarly journals Protection of Foreign Investment in Central Asia

2019 ◽  
Vol 7 (4) ◽  
pp. 125-150
Author(s):  
Farruhbek Muminov
Keyword(s):  
Foreign Direct Investment ◽  
Central Asia ◽  
International Organizations ◽  
Foreign Investment ◽  
Direct Investment ◽  
International Investment ◽  
Labor Costs ◽  
Foreign Investors ◽  
Investment Policies ◽  
National Economies

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.

scholarly journals The Consequences of Foreign Direct Investments in Redefining Bilateral Trade Flow in Nigeria: A Gravity Panel Approach

2020 ◽  
Vol 10 (4) ◽  
pp. 367-379
Author(s):  
Saidu D Muhammad ◽  
Kenneth O Diyoke ◽  
Nnanna P Azu
Keyword(s):  
Foreign Direct Investment ◽  
Foreign Investment ◽  
Direct Investment ◽  
Bilateral Trade ◽  
Negative Impact ◽  
Import Substitution ◽  
Trade Flow ◽  
Foreign Direct Investments ◽  
Bilateral Trade Flow ◽  
The Impact

Most of the Nigerian government’s transformation agenda is geared toward creating and enabling business environments to attract foreign direct investment. Opinions are divided as to the impact of foreign investment on trade and this researcher believed it could be either positive or negative. Hence, this research is to ascertain the magnitude of foreign investment’s impact on Nigeria’s bilateral trade. Integrating foreign direct investment in the gravity model, we applied the PPML technique because of its robustness and ability to recognise zero trade. We segregated foreign investment into three-flow, stock and its annual growth. Our estimation revealed that foreign direct investment stock impacts negatively on bilateral trade flow in Nigeria for both exports and imports and it is robust with the overall sample. Exporters’ foreign direct investment inflow was also revealed to have an impact on bilateral trade in Nigeria. But in all ramifications the magnitude of the negative impact is relatively small but statistically significant reflecting that trade and inward foreign investment are at least substitutes. Nigeria should further encourage inward foreign investment to further stimulate economic growth and aid in creating import substitution.

scholarly journals INTERNATIONAL INVESTMENT RESOURCES MARKET: STRUCTURE AND CURRENT TRENDS

2021 ◽  
Vol 71 (4) ◽  
Author(s):  
Ihor Shmorhun ◽  
Oksana Bulkot
Keyword(s):  
Foreign Direct Investment ◽  
Stock Market ◽  
Direct Investment ◽  
Industrial Revolution ◽  
International Investment ◽  
Bond Market ◽  
Foreign Direct Investments ◽  
Investment Strategies ◽  
Current Trends ◽  
The Impact

The article is devoted to the study of the dynamics of the market of international investment resources. A comprehensive analysis of current trends in the market of international investment resources in terms of its structural division into the market of foreign direct investment, the market of basic investment instruments - stocks and bonds, and the market of financial derivatives. Based on the analyzed statistical information, the authors draw conclusions about current trends in the international market of investment resources. The analysis of the foreign direct investment market revealed a tendency to decrease the volume of direct investment capital in all regions of the world. It is shown that foreign direct investment market is suffering severely from the crisis caused by the COVID-19 pandemic, as well as from the impact of other factors such as the new industrial revolution, the transition of many world policies to greater economic nationalism, and the trend of sustainable development. In particular, countries with transition economies, developed and developing countries are suffered from decline of about 40% of foreign direct investments most of all. The market of basic investment instruments demonstrates a tendency to recover: the global stock market and the bond market also suffered significantly at the beginning of the pandemic in March 2020, but by the end of 2020 these markets had almost fully recovered and the bond market in general began to show record volumes and values. The derivatives and hybrid financial instruments market is showing a steady positive upward trend in 2020: trading in instruments such as currency futures, stock market futures, ETF options, etc. is showing significant growth. Such trends indicate that investors have become more active in portfolio investment strategies.

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