scholarly journals Economic-legal analysis of international investments

2020 ◽  
Vol 6 (3) ◽  
pp. 89-122
Author(s):  
Vladan Stanković ◽  
Gordana Mrdak ◽  
Miloš Miljković

The subject of this paper is an analysis of advantages and disadvantages of international investments - foreign direct investment (FDI) with a brief overview of the Republic of Serbia and its level and structure of FDI. Foreign direct investment is an important factor in development, especially in developing countries and countries in transition. Countries in transition, which includes Serbia and all Western Balkan countries feel a lack of capital, so it is important for them to fill the gap with foreign direct investment. For countries with current account deficits, FDI is used to increase exports and alleviate current account deficit problems. Based on experience and theoretical consideration, the paper points out the necessity of changes in our business environment, in order for Serbia to use foreign direct investments (with all its negative characteristics) which can and must give a special contribution and impetus to its economic growth.

2021 ◽  
Vol 69 (3-4) ◽  
pp. 80-94
Author(s):  
Aleksandar Kemiveš ◽  
Lidija Barjaktarović

This research paper examines the impact of external factors on the dynamics of foreign direct investment (FDI) trends in specific economies. The same subject will be analyzed through the examples of the Visegrad Group and the Republic of Serbia. The aim of the research is to determine the existence of a link between the impact of foreign direct investments on the growth and development of the economy observed through gross domestic product (GDP) in the 1990-2018 period. The results of the research indicate that Poland was the most successful in attracting and keeping FDI, compared to other countries. Further, the volume of FDI has been dependent on several external factors, such as overall business environment, economic crisis, political risks, positions in relevant institutions, pandemic, etc. Moreover, for the Republic of Serbia, it will be important that all stakeholders in the country have a proactive approach in order to keep FDI in the country. Finally, representatives of the authorities should be committed to fulfilling promised deals related to the regional cooperation and EU (European Union) accession and integration.


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


Author(s):  
Sydney Ozuzu ◽  
Araniyar Isukul

This study examined the effect of foreign direct investment on a developing economy. The study employed multiple regression models to estimate the relationship that exists between sectorial inflow of foreign direct investment and Nigeria economic growth. Augmented Dickey Fuller Test, Johansen Co-integration test, normalized co-integrating equations, parsimonious vector error correction model and pair-wise causality tests were used to conduct the investigations and analysis. The findings of the result reveal that foreign direct investment in the agricultural sector have positive but no significant effect, foreign direct investment in the manufacturing sector have positive and significant effect, foreign direct investment in the mining and querying sector have negative but no significant effect, foreign direct investment in the transport and communication sector have positive and  significant effect while  foreign direct investment in the oil and gas sector have positive and significant effect on Nigeria real gross domestic products. The study concludes that the oil and gas sector have the greatest impact on Nigeria economic growth followed by manufacturing, agricultural, transport and communication sectors while mining and quarrying reduces gross domestic product. Nigerian policy makers should design sectoral policy reforms with the intention of creating an enabling business environment, improve infrastructure, address issues of insecurity in the north and south that hinder foreign direct investment in mining and quarrying sectors. Furthermore, there is the need to strengthen policy cohesion with regards to foreign direct investments to ensure that mining and quarrying sectors perform as well as the oil and gas sector.


2020 ◽  
Vol 4 (1) ◽  
pp. 14-19
Author(s):  
Getoar LUBENIQI

Economic development is an aspiration for every country in the world including Kosovo. Foreign Direct Investment (FDI) plays a very important role in the economic development of Kosovo which is in the process of transition. For Kosovo, it is essential to have an accelerated pace of economic growth, lower unemployment, higher quality of life, lower demographic migration and lower poverty rates, thus attracting FDI has a direct and very important role to play. Although Kosovo has a large number of advantages for attracting foreign investment, there are also a number of challenges or disadvantages that are very evident which negatively impact on current and potential investors in the future. Based on the data analysis, the overall trend of FDI has declined in recent years, therefore it is very important for Kosovo to develop further steps to improve the business climate in Kosovo and attract foreign investments. The purpose of this paper is to analyze the performance of FDI in Kosovo 2008-2019, to analyze the advantages and disadvantages of doing business in Kosovo, to identify where Kosovo stands in terms of doing business and what is new for Kosovo in a way that improve the business environment and attract foreign investment. To achieve this goal of comparative analysis and identification, the integrative review method was used.  Key words: Republic of Kosovo, Direct Foreign investments, Business environment, Economic Development, Doing Business.


Globalization has enabled "joining" the rest of the modernity project. Expressive values such as knowledge, information, symbols and communication have become an imperative. Planetary power has encouraged the movement of free international capital in the global village. Digital economy and networked politics are responsible for the freedom of movement of capital that has become the part of financial globalization. From the range of stimulating factors to the free movement of international capital, the thrust of foreign investment plays an important role. The intricacy of neoclassical theory and the neoliberal political economy have enabled stronger interconnectedness and deeper integration of national economies. Consequently, there have been changes in the way of thinking of the ruling elites in terms of importance of foreign direct investment (FDI). Such awareness has also come through to the ruling elites of the Republic of Croatia who apply the strategy of attracting FDI based on pragmatic nationalism. FDIs are incorporated into the "national box" in the Republic of Croatia as one of the tools to gain advantages. In the perspective of advantages and disadvantages, the work is focused on the employment category from the perspective of the Republic of Croatia as the recipient of FDI or political foreign direct investment (PFDI). Given the importance of attracting FDI in the Republic of Croatia, the subject of the research includes consideration of the essence of Croatian FDI and employment in the Republic of Croatia in terms of identifying the attracted investments and the correlation with the growth or decline in employment. The aim of the research is to identify and deepen the topic of FDI in Croatia and its impact on employment in the Republic of Croatia. In addition, the aim is to explore and identify key FDI providers and employment impacts.


2013 ◽  
Vol 60 (6) ◽  
pp. 791-812 ◽  
Author(s):  
Yusuf Akbas ◽  
Mehmet Senturk ◽  
Canan Sancar

In this study, countries were analyzed between 1990 and 2011 in order to determine whether a causal relationship exists among current account deficit, GDP, foreign direct investment, and total credits of G7. Analysis took into account the cross-sectional dependence and was applied to test the causality among the variables form the panel. Firstly, panel unit root tests were used for determining stationary of variables. As a result of the panel unit root tests, it was found that GDP and foreign direct investment have a stationary structure and that total credits and current account deficit contain unit root. In order to see whether there is a long-term relationship among the variables or not, the panel co-integration test was used. As a result of the test, it was concluded that there is a co-integration relationship among the series. The possibility of a causal relationship was analyzed among the variables using the causality test developed by Elena Ivona Dumitrescu and Christophe Hurlin (2012). Results of the analysis showed a unidirectional causal relationship from current account deficit and foreign direct investment to GDP. Bidirectional causality was found between current account deficit and total credits. Finally, a unidirectional relationship was found from foreign direct investment to current account deficit and total credits.


Author(s):  
Oksana Gavryliuk ◽  
Yurij Dolnyi

The article reveals the essence of the investment climate, the quantitative and qualitative parameters of which form the conditions of attractiveness / unattractiveness of the national economy for internal and external investors. We have summarized the motives of exporters and importers of capital, which are represented by the desire of investors to place capital in a particular country or industry, where it will ensure maximum profit, minimize costs and diversify risks. Also, we have examined the main and indirect effects of foreign direct investment. The authors described indirect horizontal and vertical spillover effects, among which are “the demonstration effect”, “the effect of competition” and “the effect of overflow of knowledge on the labor market”. Finally, we have identified the positive and negative consequences of attracting foreign direct investment in the economy of the recipient country on the economic, monetary, technological, social, and environmental areas. Also, we have emphasized that the identified advantages and disadvantages of attracting FDI into the economy of the recipient country are possible in theoretical terms, but are not automatically realized. Each country should evaluate its own internal socio-economic situation, the feasibility of attracting FDI and regulate them in order to maximize benefits and minimize the possible negative impact of the international investment process.


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