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

Liubov Kibalnyk,Olena Feshchenko,Haiyu Wang,Maryna Leshchenko,S Semerikov,O Chernyak,V Soloviev,L Kibalnyk,H Danylchuk

doi:10.1051/shsconf/202110708003

Abstract

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.

Highlights

IntroductionAn important and defining feature of forming the world economic system is economic globalization, against which there is an active search for competitive models of national economies that would meet modern challenges of combining global trends and development patterns with national interests and goals
In recent decades, an important and defining feature of forming the world economic system is economic globalization, against which there is an active search for competitive models of national economies that would meet modern challenges of combining global trends and development patterns with national interests and goals
The globalization of the world economy has contributed to the intensification of international investment processes and influenced the formation of the structure and dynamics of foreign direct investment

Summary

Introduction

An important and defining feature of forming the world economic system is economic globalization, against which there is an active search for competitive models of national economies that would meet modern challenges of combining global trends and development patterns with national interests and goals. Modern processes of globalization are directly related to the internationalization of markets for services and capital, accompanied by increasing international mobility of national resources and the interdependence of national economies. International investment is an independent and especially important area of international economic relations being characterized by rapid growth and significant completion of the world trade and its contribution to the economic growth of national economies and the increase of their competitiveness. As the processes of the world economy globalization have contributed to a dramatic increase in capital mobility and the intensification of international investment, studying and modelling of the globalization effect on the flows and structure of foreign investment are extremely relevant. The flow of foreign investment becomes the foundation of forming a unified system of relations of the new configuration of the global economy

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