Analysis Of Foreign Investment Research Articles

Antagonism in the Analysis of Foreign Investments in Strategic Companies

The modern model of attracting foreign investment requires rethinking from the perspective of achieving the development goals of investment objects. The article examines the relationship of the institutional foundations of foreign investment in strategic societies with the development processes of such societies. The author provides data on the presence of some flaws in the institutional foundations, and also reveals extremely insignificant research activity in relation to the issue under study. The work used such general scientific and special methods as the scientometric method, the method of text analysis, the method of retrospective analysis, analytical methods and the method of system analysis. Empirical research materials are presented by open analytical reports of the Federal Antimonopoly Service of the Russian Federation, the UN Conference on Trade and Development. The shortcomings were identified and the directions of modernization of the institutional foundations of foreign investment in strategic companies were formed.

Do foreign investors have a positive impact on the domestic government bonds market? A panel pooled mean group approach

This study examines foreign investors’ impact on the domestic government bond market’s yield and volatility by employing a pooled mean group (PMG) approach. The study uses the panel data of 38 countries from 2004 to 2018. The study finds that in the whole sample and the sub-set of developing countries, both in the long and short run, a large proportion of foreign investors is associated with a reduction in domestic government bond yields. However, an analysis of foreign investment’s effect on the bond yield’s volatility brought significant results only in the short run, while there is no substantial evidence of any long-run effects. The PMG methodology in this study allows differentiation between the long- and short-run relationships between foreign ownership and bond yield and yield volatility. Our sample allows the analysis and comparison of these relationships in developed and developing countries. We further apply nonlinear autoregressive distributed lag (ARDL) to test for potential asymmetry in the relationship, which has not been done in other studies.

Прямі іноземні інвестиції в Україну в умовах інтеграції до Європейського Союзу

The purpose of the article is to study the prerequisites for the inflow of foreign direct investment in Ukraine and the reasons that slow down this process, in particular in the context of EU integration, as well as to analyze the dynamics of foreign direct investment in Ukraine. The dynamics of foreign direct investment in Ukrainian economy in 2002-2022 were analyzed, with consideration of the reasons for their changes over the study period. Starting from 2013 and until 2016, the volume of investments declined rapidly, which was caused by political instability in the country and a number of other reasons; in 2020, the COVID-19 pandemic became a major challenge, which also had its extremely negative consequences for the economies of countries and investors, and in 2022, russia’s full-scale invasion of Ukraine led to a decrease in foreign direct investment from 6687 million US dollars in 2021 to 190 million US dollars in 2022. One of the main problems of the Ukrainian economy is the low return on investment and its inefficient distribution. An analysis of foreign investment by type of economic activity leads to the conclusion that the largest share of foreign direct investment goes to the developed economic sectors. The main factors that negatively affected the dynamics of foreign direct investment in different periods were investor distrust caused by the high level of corruption in the country, doubts about the fairness of the judicial system, monopolization of markets, and instability of the national currency; russia’s war against Ukraine (since 2014); the COVID-19 pandemic; russia’s full-scale invasion of Ukraine (since February 2022), which still continues. Ukraine’s European integration processes, along with reforms designed to accelerate these processes, as well as the end of the war in Ukraine, will help attract foreign direct investment aimed at recovering and developing Ukraine.

Preconditions for the formation of the investment policy of Ukraine as a key set of measures to ensure economic development

The article focuses on investments as a tool for solving economic development problems of the national economy. Based on the analysis of macroeconomic systems' development factors, it is concluded that it is necessary to accelerate economic development to ensure national competitiveness within the current global economy. The necessity of forming the organizational mechanism for the country's economic growth at a transitional stage of development is substantiated. The analysis of foreign investments in Ukraine is carried out. The paper defines the key points, tools, and measures for forming the corresponding mechanism on the example of Ukraine as an economic system in the transitional stage of development. The organizational scheme for economic growth by executive authorities is proposed. One of the critical roles in this mechanism is assigned to the Investment Department and Independent National Science Council; tasks and functions of these units in the structure of the agency are described.

Prospects for protection and protection of the rights of investors in residential real estate: judicial and extrajudicial means

The main concepts of the mechanism of regulation of guarantees of protection of the rights of investors of residential real estate were considered in the article. The current state of legal regulation of investors' rights is analyzed and it is established that the existing legal definitions create a «blurred» legal field, which is the basis for abuse in this area. The existing opinion in the scientific literature on the existence of general and special legislation in the field of regulation of the rights of investors in residential real estate is supported. It is established that the draft Law of Ukraine «On guaranteeing property rights to real estate to be built in the future» belongs to the special legislation and, subject to its adoption, will be the main source that structures the «blurred» and broad legislative field presented in special legislation only by the Laws of Ukraine «On investment activity» and «On state registration of real rights to immovable property and their encumbrances». The analysis of foreign investment and other features of investment is left out of this scientific article, as the aim was to study the existing and future guarantees of residential real estate investors' rights under the draft Law of Ukraine «On guaranteeing real rights to real estate to be constructed in the future». Some novelties of the bill are analyzed, in particular the form of the transaction concerning the future real estate object, its essential conditions and it is established that the bill strengthens guarantees of the rights of investors of residential real estate, that introduces the obligatory form of such contracts - purchase, sale. The novelties of such an agreement, in particular, will be mandatory information on the legal grounds for the acquisition of ownership by the developer of land ownership; guaranteeing the first sale of the future real estate, guaranteeing the absence of third party rights to the future real estate. Taking into account the provisions of general legislation, in particular, the provisions of the Civil Code of Ukraine on contracts, it is established that the contract is concluded only after the parties agree on all material terms, so consolidating these novelties as essential terms of the contract will prevent double sale of future object real estate.

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

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.

Modeling the process of attracting foreign investment in the Russian economy

In the paper, on the basis of an assessment of the development of the Russian economy, the sectors most in need of an investment are identified, taking into account the depreciation rate of basic production assets. Depreciation of fixed assets reflects the demand for investment in order to modernize and reconstruct production. Based on the data of the Federal State Statistics Service of Russia, a rating of economic sectors in terms of the degree of depreciation of fixed assets at the end of the year by type of economic activity for 2013-2018 is built. In addition, the paper presents a model for predicting the inflow of foreign direct investment in Russia, developed using the classical approach to estimating linear regression criteria, which is based on the least squares method (OLS). In compiling this regression model, the applied software package for econometric modeling GRETL (GNU Regression, Econometrics and Time-series Library) was used to predict the inflow of foreign investment. Forecasting the inflow of foreign investment in the Russian Federation is aimed at solving the following tasks: to determine the most competent direction of investment policy and activity using forecast estimates, as well as to assess the country’s investment attractiveness. However, a significant role in predicting this indicator is played by the determination of factors that have an impact on the future volume of foreign investment. In addition, the analysis of foreign investments, depending on the influence of various factors, can tell about those or other motives that guide foreign investors when investing their own capital.

АНАЛІЗ ІНОЗЕМНИХ ІНВЕСТИЦІЙ В ЕКОНОМІКУ УКРАЇНИ: СУЧАСНИЙ СТАН ТА НАПРЯМИ ОПТИМІЗАЦІЇ

The article provides a detailed analysis of foreign investment in the economy of Ukraine, in particular in terms of types recommended by the methodology of the balance of payments - direct, portfolio and other investments. The main characteristics of each type of investment are highlighted and the most desirable form is highlighted given the current economic situation in the country. The dynamics of the total volume of investments of non-residents in Ukraine with an emphasis on the main crisis periods in both the world and domestic economy is studied. Particular attention is paid to the structure of incoming investment flows on the basis of the country of origin and the ratio of investments from highly developed countries and the so-called offshore zones. The most attractive sectors of the national economy for non-residents are named, and the impact of the distribution of total investments by types of economic activity on Ukraine's position in the world economic space is analyzed. A special role in this study is given to the analysis of Ukraine's position in the ranking of "Doing Business", which is compiled by the World Bank and is a kind of benchmark for investors. The main achievements of Ukraine on the way to the growth of its investment attractiveness are analyzed and the still unresolved problems are highlighted. The main directions for further structural changes in the context of optimizing the investment climate in Ukraine are presented.

La inversion extranjera directa

El presente artículo se realiza basado en el trabajo de investigación “Análisis de la inversión extranjera en Colombia años 1990 a 2005”, se extrapola al año 2009 para realizar un análisis del panorama mundial de la inversión extranjera directa, partiendo de la información estadística de la UNCTAD y de la CEPAL. En el artículo, se concluye que la Inversión Extranjera Directa (IED) es una de las fuerzas más poderosas detrás del crecimiento económico global, y una de las mayores fuentes de financiamiento externo para las naciones en desarrollo.

Foreign Ownership, Competition, and Survival Dynamics

The impact of foreign direct investment on host countries’ industrial sectors has received considerable attention. It is shown by many researchers that foreign plants are more productive than are domestic ones, but the empirical evidence regarding spillovers is not unambiguous. In this paper, we suggest that the impact of foreign direct investment on local industry hinges on the dynamics of foreign and domestic plants—i.e., on entry and selection (exit) processes. Our analysis of foreign investment and competition dynamics in Turkish manufacturing industry for the period 1983–2001 indicates that foreign plants have a better performance level than do domestic ones when they are first established in the local market, and, subsequently, are more likely to survive but; the difference in survival probabilities disappears when the industry and/or plant characteristics are controlled for. Moreover, foreign presence seems to have no long-term effect on the survival prospects of domestic plants.

Trade Openness, Foreign Direct Investment and Child Labor

Summary The skeptics of globalization argue that increased trade openness and foreign direct investment induce developing countries to keep labor costs low, for example, by letting children work. This article argues that there are good theoretical reasons why globalization might actually have the opposite effect. We test this with various measures of child labor and provide the first analysis of foreign investment in addition to trade. We present evidence that countries that are more open to trade and/or have a higher stock of foreign direct investment also have a lower incidence of child labor. This holds for the labor force participation rate of 10–14-year old children, the secondary school nonattendance rate and a count measure of economic sectors with child labor incidence as the dependent variables. Globalization is associated with less, not more, child labor.

Trade Openness, Foreign Direct Investment and Child Labor

The skeptics of globalization argue that increased trade openness and foreign direct investment induce developing countries to keep labor costs low, for example by letting children work. This article argues that there are good theoretical reasons why globalization might actually have the opposite effect. We test this with various measures of child labor and provide the first analysis of foreign investment in addition to trade. We present evidence that countries that are more open towards trade and/or have a higher stock of foreign direct investment also have a lower incidence of child labor. This holds for the labor force participation rate of 10 to 14 year old children, the secondary school non-attendance rate and a count measure of economic sectors with child labor incidence as the dependent variables. Globalization is associated with less, not more, child labor.

Living with the “Enemy”: An Analysis of Foreign Investment in the Japanese Equity Market

Living with the “Enemy”: An Analysis of Foreign Investment in the Japanese Equity Market

Living with the “enemy”: an analysis of foreign investment in the Japanese equity market

This paper studies the impact of foreign investment on domestic financial markets. In particular, it examines the empirical validity of some protectionist claims used by regulators to restrict foreign investment. These people argue that: (1) trading by foreign investors tends to increase market volatility more than trading by domestic investors; (2) foreign investors have more sophisticated investment technology than do their domestic counterparts, causing domestic investors to “lose out” to foreign ones; and (3) foreign investors tend to make investment decisions on the basis of short-term gains rather than long-term fundamentals, such as corporate dividend growth. We find no evidence supporting these claims from the Japanese experience. To the contrary, we find that foreign investors tend to be long-term contrarian players in the market.

A general equilibrium analysis of foreign investment and intersectoral linkage

In this paper, we demonstrate that a foreign capital induced growth in a protected sector, which provides an industrial input for agricultural products, may increase welfare even after the entire foreign capital income is repatriated. Such a policy may lead to an increase in the volume of trade along with an increase in the size of the protected sector, quite contrary to the usual perception. The analysed structure also incorporates migration and unemployment.

Japanese Investment in the United States: Lessons for the Economic Analysis of Foreign Investment

Japanese Investment in the United States: Lessons for the Economic Analysis of Foreign Investment

THE INTERNATIONALIZATION OF SOUTH AFRICAN CAPITAL: SOUTH AFRICAN DIRECT FOREIGN INVESTMENT IN THE CONTEMPORARY PERIOD

WHILE THERE HAS BEEN considerable analysis of foreign investment in South Africa, there exists no overall study of South African investment abroad. There are possibly two major reasons for the absence of such an analysis. First, South African foreign investment is a very small fraction of the totality of foreign investment world-wide. But, second and more centrally, the fact is that for most South African companies investment abroad is a very recent phenomenon. This article attempts to delineate and explain the major features of contemporary South African private investment abroad. The first section is concerned with the overall picture and particularly contrasts South African direct foreign investment (DFI) with that emanating from other non-advanced capitalist countries. The second section presents a case study of the Anglo American Corporation and associated companies. Anglo American is simultaneously-and the connection is, as we shall see, far from fortuitous-South Africa's largest company and its largest foreign investor. According to Forbes Magazine, Anglo American now ranks No. 1 amongst foreign investors within the US economy.1 It therefore merits a more detailed consideration. An examination of South African foreign investment will first help illuminate the current trajectory of South African capitalism and, second, reveal something of the nature of the contemporary internationalization of capital. On the one hand, South African capital has many characteristics in common with capital in the advanced countries. On the other hand, South Africa remains a nonadvanced capitalist country. As a consequence, it will be argued, South African DFI differs in important respects from the DFI emanating from both the non-advanced and the advanced capitalist countries. A necessary caveat is to stress the data limitations. Data was derived from press reports, company reports, brokers' reports and interviews primarily with company managements. There are limitations imposed by these sources, as