USE AND REGULATION OF FOREIGN DIRECT INVESTMENT: NEW PARADIGM

Abstract

According to international organizations data, global FDI flows dropped considerably in 2022.The article discusses certain global long-term trends and pressing problems of Foreign Direct Investment (FDI) and Global Value Chains (GVC) in Russia and abroad. This paper provides key indicators published by international organizations, such as IMF, OECD and others in 2023. The author offers a relatively non-customary approach to the study of FDI and GVC - through the analysis of international migration of factors of production (capital and labor). The author examines the interaction between these two types of international resource transfers and comes to a paradoxical conclusion that the radical change of Russia’s economic relations with Western countries in 2022-2023 was logical and predictable. A relatively non-customary approach is due to the fact that in May 2023 the Russian President and Government emphasizes the importance to develop an action plan to implement the 2023-2025 State Migration Policy Conception. According to OECD data, Russia as a recipient of FDI recorded negative inflow in 2022, but the paper provides a long-term view on the subject. Finally, the author substantiates the need to revise certain principles of Russia’s foreign economic policy as well as theoretical courses on International Economics in educational institutions.