Investment Cooperation Research Articles

ИНВЕСТИЦИОННОЕ СОТРУДНИЧЕСТВО РОССИИ И АРМЕНИИ В КОНТЕКСТЕ ЕВРАЗИЙСКОЙ ЭКОНОМИЧЕСКОЙ ИНТЕГРАЦИИ НАЧАЛА XXI В.

The article discusses the role of investment cooperation between Russia and Armenia in the development of integration processes in the Eurasian space in the 21st century. The author highlights the key factors that determine the interest of the Republic of Armenia in expanding economic ties with the partner states of the Eurasian Economic Union, primarily with Russia. The article presents facts that testify to the steadily developing cooperation between Russia and Armenia in the field of energy, transport, new technologies, banking, including within the framework of large investment projects that have received support at the government level; shows the expansion of the trade, economic and financial ties between the two countries in a regional format, the interest of the business circles of Russia and Armenia in holding joint industrial exhibitions, forums, business missions. The author notes that the cooperation between Russia and Armenia, which has deep historical roots, is at the same time a relevant trend in the development of international relations in the Eurasian space, is formed in the trend of the projects of the Eurasian economic union and Greater Eurasia on the basis of the strengthening the financial communications, exchange of investment capital, introduction of high technologies. The article concludes that the investment cooperation between Russia and Armenia has a significant long-term significance as a factor of stability and further economic integration in the Eurasian space.

Экспансия Китая в Узбекистан: экономический аспект

The author believes that the analysis of China’s economic expansion into Uzbekistan is important from the point of view of Russia’s economic interests in this country, because China is undoubtedly its main competitor in the Uzbek market. The paper attempts to discover the main factual parameters and statistical ones in particular that characterize the economic expansion of the PRC into Uzbekistan. Its main goals and directions are determined, an analysis of China’s positions in the economy of Uzbekistan and, above all, in the foreign economic sphere is given. Based on statistical data, it was observed that trade operations of Uzbekistan with China in the 21st century had a constantly growing negative balance, which adversely affected the economy of Uzbekistan. Investment cooperation between the countries has evolved more favourably, but the volume of direct Chinese investment in Uzbekistan is still quite modest. Based on the monitoring of Chinese companies’ participation in the economy of Uzbekistan, it was found that Chinese investors are most interested in investments in oil and gas, chemical, textile, electricity, cement, coal industries, as well as in agriculture and water management. It has been established that the investment climate in Uzbekistan for companies from China is quite favourable, and they successfully handle competition from Russia, Turkey, Germany, South Korea and Saudi Arabia.

Trade and Investment Cooperation between South Korea and the Visegrad Group

Trade and Investment Cooperation between South Korea and the Visegrad Group

Strengthening Regional Value Chain between India and South Korea: Emerging Opportunities for Trade and Investment Cooperation

Strengthening Regional Value Chain between India and South Korea: Emerging Opportunities for Trade and Investment Cooperation

ТОРГОВЕЛЬНО-ІНВЕСТИЦІЙНЕ СПІВРОБІТНИЦТВО УКРАЇНИ ТА ВЕЛИКОЇ БРИТАНІЇ

Current trade and investment cooperation between Ukraine and Great Britain is article analyzed in the paper. It is determined that the countries are the important partners and have a long history of trade and investment rellatioms. After Brexit, Great Britain started trade negotiations with the EU and other states in order to sign new trade agreements. Thus, the Political, Free Trade and Strategic Partnership Agreement between Ukraine and the United Kingdom of Great Britain and Northern Ireland was signed. The general principles of bilateral cooperation and partnership in the new Agreement is of strategic and practical importance. It has been proven that the signing of the agreement resulted in an increase of the import of goods of British origin to Ukraine and the import of goods of Ukrainian origin to Britain, i.e., there was an increase in the volume of export-import operations of Ukraine with Great Britain. Accordingly, the negative trade balance of Ukraine with Great Britain decreased. It was determined that Great Britain actively supports Ukraine in its resistance to Russian military aggression. In particular, the country applied a zero rate of import duty on all goods of Ukrainian origin and canceled all tariff quotas. The next stage to the intensification of mutual cooperation was the signing of Agreement on digital trade between Ukraine and the United Kingdom of Great Britain and Northern Ireland. The agreement is a legal foundation for greater development of the digital economy from e-commerce to cyber security, trade in digital products and services between Ukraine and Great Britain. The agreement is expected to support the economy of Ukraine and significantly improve trade and investment relations between the countries. According to the agreement, Ukraine will have guaranteed access to financial services important for recovery, thanks to the simplification of cross-border data flows. Ukrainian enterprises will also be able to trade with Great Britain more efficiently and cheaply with the help of electronic transactions, electronic signatures and electronic contracts. It has been established that in terms of the volume of accumulated direct investments in recent years, Great Britain is the seventh largest investor in the Ukrainian economy.

ТОРГІВЕЛЬНО-ЕКОНОМІЧНЕ СПІВРОБІТНИЦТВО МІЖ УКРАЇНОЮ ТА БОЛГАРІЄЮ

This article examines the potential for cooperation between Ukraine and Bulgaria in trade, economics, and investment. However, Ukraine has recently faced unprecedented large-scale problems, including a full-scale invasion that has displaced millions of Ukrainians across Europe. Despite these challenges, the authors maintain that trade, economic, and investment partnerships with Bulgaria remain relevant and important for Ukraine's economic and social development. To assess the prospects for future cooperation, the study uses data from various sources, including the National Bank of Ukraine, the Bulgarian People's Bank, the Bulgarian Investment Agency, the Embassy of Ukraine in Bulgaria, and Diia. The authors analyze the investment basis for both countries and highlight the main areas of cooperation between the two nations over the past two years. Firstly, the authors note that the scope of the customs regime is an important consideration in developing economic partnerships between Ukraine and Bulgaria. Since Ukraine is moving towards integration with the European Union, customs cooperation with Bulgaria can facilitate trade between Ukraine and other EU countries. The authors also point out that the ongoing COVID-19 pandemic has created additional challenges for economic cooperation between Ukraine and Bulgaria. Secondly, the authors analyze the investment basis for both countries. They note that Bulgaria is among the top 20 countries investing in Ukraine, with investments mainly focused on the energy sector. Ukrainian investments in Bulgaria are mainly in the food and agriculture sector. The authors suggest that expanding investment in these sectors could further promote economic cooperation between the two nations. Overall, the article provides a comprehensive analysis of the potential for trade, economic, and investment partnerships between Ukraine and Bulgaria. The authors argue that despite the challenges facing Ukraine, effective diplomacy is essential for building partnerships with other nations. They suggest that expanding economic and investment cooperation with Bulgaria could have significant benefits for Ukraine's economic and social development.

Приоритеты внешней политики Ашхабада

After coming to power, S. Berdimuhamedow continued the course outlined by his father, the former president of the republic, to intensify relations with Russia, China and Turkey, the main foreign policy partners of Turkmenistan. For their part, the authorities of these countries are increasing their attention to Turkmenistan, based on their own goals. At the same time, if Beijing’s interest in this Central Asian republic has long materialized into large-scale gas and transport projects, then Moscow is speeding up cooperation with Ashgabat after a rather long break. The intensification of relations between Turkmenistan and Russia is in the interests of both countries: in the changed international conditions Russia needs new markets and export routes, while Turkmenistan can and is already deriving economic benefits from the development of trade and investment cooperation with the Russian Federation. As for Turkey, Ashgabat is reserved about R.Erdogan’s pan-Turkist ambitions, but shows interest in the gas projects he is promoting, which provide for the transportation of Turkmen gas to Europe bypassing Russia.

Investments of countries in renewable energy sources in Latin America and the Caribbean: State and prospects

The Economic Commission for Latin America and the Caribbean has identified the energy transition period as one of the strategic areas of action to accelerate the recovery of the region. Renewable energy can become a comparative advantage in terms of attracting investments in other sectors of energy-intensive industries, for example, those related to green hydrogen and the development of carbon-neutral technologies. The dynamic international market and the countries of the Latin American region have the opportunity to solve the tasks strategically with the help of investments. The goal is to conduct a quantitative analysis and directions of FDI to Latin America and the Caribbean based on statistical data. Investment cooperation is analysed within the framework of the theory of structural functionalism (Parsons) using macroeconomic indicators of foreign trade cooperation based on UNCTAD statistics on world investment, data from the central banks of Bolivia, Brazil, CEPAL statistical agencies and the Bank of Russia.

Экономическое сотрудничество Индии и Израиля

The article deals with the India–Israel economic relations within 1990–2020s. The authors stress that the Israeli direction is among the priorities in the external economic policy of India at the present time. The authors examine the importance of mutual trade stressing that it is well balanced and its volume has increased more than twice since 1992. A number of indices are calculated to conclude that the mutual trade is characterized by its high intensity. Intra-industry trade is also relatively high as there is high complementarity of India and Israel economy and the trade balance is usually positive for India. As a whole both India and Israel are interested in one another’s market. Countries have been conducting negotiations on creating a free trade zone but due to many obstacles from both parts the agreement is not yet reached. The authors underline that India–Israel investment cooperation has been rather well developing for the latest decade. Israeli investors are more active on Indian market and the average volume of their investments is usually about twice higher than the Indian direct investments to Israeli economy. Nowadays there are more than 300 companies with the participation of Israeli capital registered in India operating mainly in the sphere of medicine, telecommunications, chemical industry, energy, including the use of unconventional energy sources, as well as agriculture. Investments are very diverse in nature: among them there are the organization of manufacturing enterprises, the opening of research centers, the creation of subsidiaries etc. Scientific and technical cooperation is another important direction of India–Israel ties. Thanks to scientific and technical cooperation with Israel, the rapidly developing Indian economy is successfully compensating for the lack of advanced technologies that it needs. In addition to bilateral interaction, the countries also cooperate with each other through the I2U2 Dialogue and two large-scale projects in the field of food security and clean energy are being implemented in India at the present time. At the end of the article the authors underline that there is every reason to sure that economic relations between India and Israel will reach a fundamentally new level in the near future, which will contribute to the further development and modernization of the Indian economy.

ТОРГОВО-ЭКОНОМИЧЕСКОЕ СОТРУДНИЧЕСТВО РОССИИ И КИТАЯ В УСЛОВИЯХ САНКЦИОННОГО ДАВЛЕНИЯ ЗАПАДА

The article is devoted to the problems and prospects for the development of trade and economic relations between Russia and China under the sanctions pressure of the West. The dynamics of trade between Russia and China, the commodity structure of Russian exports and imports are considered. It is emphasized that the growth of trade exchange between the two countries does not mean that Chinese companies refuse to trade with Western countries. By expanding trade with Russia, Chinese firms are interested in minimizing the risks of falling under secondary Western sanctions. Russia's intention to implement the policy of "pivot to the East" is proved. The ability of Russia, despite sanctions, to find markets for energy resources, to reorient Russian oil and gas supplies from the European to the Asian market, where China is the main buyer of Russian energy resources, is emphasized, purchasing Russian oil at low prices. The desire of Chinese companies in the conditions of leaving the Russian market of Western firms to occupy the vacated product niches is noted. The features of the development of investment cooperation between Russia and China are revealed. Emphasis is placed on reaching a qualitatively new level of economic interaction between the border regions of the two countries. It is concluded that Russia plans to expand economic cooperation with China in the future.

СОСТОЯНИЕ, АНАЛИЗ И РЕКОМЕНДАЦИИ ПО ПРЯМЫМ ИНВЕСТИЦИЯМ КИТАЯ В РОССИЮ

This paper analyzes the current state and development of China’s direct investments in Russia amidst complex geopolitical situations, the COVID-19 pandemic, and the Sino-American trade war. It examines the challenges in Sino-Russian investment cooperation and offers strategic suggestions for enhancing bilateral economic collaboration in the new economic environment. The conclusion emphasizes that despite short-term difficulties due to Western sanctions, Russia’s import substitution strategy is apt for reducing import dependence. Given the high economic and resource complementarity between China and Russia, significant growth in Chinese direct investments in Russia is anticipated in the coming years.

Cooperation between China and LCA countries in the framework of the Belt and Road Initiative

The article discusses two of the most priority areas for China's cooperation with Latin and Caribbean America (LCA) countries within the framework of the Chinese Belt and Road Initiative – transport infrastructure and energy. The development of transport infrastructure will allow China to facilitate the access of Chinese goods directly to Latin and Caribbean America as well as to the countries lying on the tropic of Capricorn. The energy partnership under the Belt and Road initiative through construction of power plants in LCA countries will allow Beijing to stimulate trade electronic products and create fleets of cars that use alternative energy sources. Chinese enterprises are actively involved in the construction of local hydroelectric power plants, projects for the use of solar energy, wind energy and other renewable energy sources, and are also exploring opportunities for the «green» economic cooperation, which will contribute to the further development of diversified investment cooperation between the two countries.

Study on the Impact of Host Country ICT Development Level on China's OFDI Efficiency

The connotation of ownership advantages driving Chinese OFDI in the context of the IT revolution has changed significantly, and the level of ICT development in host countries may become a new type of locational advantage to attract foreign investment. In this paper, we investigate the impact of host country ICT advantage on Chinese OFDI and measure the efficiency of Chinese investment in 108 host countries from 2006 to 2015 with the help of the time-varying stochastic frontier gravity model, and empirically test the factors affecting investment efficiency, focusing on the impact of host country ICT development level on Chinese OFDI efficiency. It is found that overall the level of ICT development in host countries promotes the efficiency of Chinese OFDI; after distinguishing the sample into developed and developing countries, the level of ICT development in host countries has a differential impact effect on the efficiency of Chinese OFDI. This study helps us to better understand the relationship between Chinese OFDI and the ICT development level of host countries, and it has important insights for constructing new advantages in outward investment cooperation and improving the efficiency of outward FDI.

ТОРГОВО-ЭКОНОМИЧЕСКИЕ СВЯЗИ РОССИИ И КИТАЯ В НЕФТЯНОЙ ОТРАСЛИ: СОВРЕМЕННОЕ СОСТОЯНИЕ И ПЕРСПЕКТИВЫ

The article examines the development, current state and prospects of Russian-Chinese trade and economic relations in the oil industry. The article determines the prerequisites for increasing Russian energy exports to China and provides an overview of trade in crude oil and oil products between the two countries as well as the main directions of investment cooperation. The authors analyze the factors facilitating and hindering the development of relations in the oil sector between Russia and China and the opportunities for expanding cooperation amid the reorientation of the Russian energy supplies towards Asia.

THE ESTABLISHMENT OF MALAYSIA-THAILAND SPECIAL BORDER ECONOMIC ZONE (SBEZ)

The major thrusts of regional development are to achieve balances in social and economic development across regions and states and to raise the standard of living and quality of life of the people. Consequently, developments of border areas of Malaysia and Thailand, particularly the border towns of Northern Corridor Economic Region (NCER), i.e. Wang Kelian (Perlis), Padang Besar (Perlis), Bukit Kayu Hitam (Kedah), Durian Burong (Kedah), and Pengkalan Hulu (Perak) will benefit the people living in the border areas and for the mutual benefits of the two countries. It further promotes greater cooperation in trade and investment in the border areas. Therefore, there is a need to conduct a feasibility study and to take strategic approach in developing special border economic zone to ensure that whatever development would not be in conflict with the states’ interest or policies in relation to the development of such border areas.

An Examination of Security Risks in China-Pakistan Investment Cooperation under Changing Dynamics

As the most important part of China-Pakistan Economic Corridor, Pakistan itself has been facing problems like terrorism attacks, political turmoil and economic crisis. Especially after the U.S. withdraw from Afghan, its western borders close to Afghan has been facing numerous violence accidents and unstable factors. These problems cause serious situation to any personnel stay in Pakistan, and thus difficulties in progressing projects. However, except for those obstacles in front of Chinese personnel, Pakistan government has been determined to dedicate to economic development, thus CPEC and its related programs undoubtedly become Pakistan’s most feasible and reliable economic growth projects and vice versa. Among many other policies, Pakistan has launched security policies and special measures for Chinese staffs. Thus for investors, Pakistan is still the friendliest government with welcoming people. Based on analysis, there is still solid ground to stick to the CPEC and go on cooperation, while new investors need to assess all practical problems and factors to make decisions.

ФОРМУВАННЯ СИСТЕМИ УПРАВЛІННЯ ЯКІСТЮ ЯК ЧИННИКА КОНКУРЕНТОСПРОМОЖНОСТІ ПРОДУКЦІЇ ПІДПРИЄМСТВ АГРАРНОЇ ГАЛУЗІ

With the constant improvement of the quality of life of people, as well as the intensification of competition in the domestic and foreign markets, the quality and safety of agricultural products faces new challenges. Only competitive enterprises can produce food products in accordance with the requirements of international standards and will be able to take advantage of international cooperation in investment, crediting, certification, insurance, scientific and technical support of agricultural production and sale of food products. The article summarizes the concepts: "quality management system", the factors that affect the level of product quality are determined, proposals are presented. The general principles and provisions of the most common quality management systems based on international standards that are recommended to be implemented in the activities of agricultural enterprises are analyzed. The necessity and advantages of implementing a quality management system (HACCP - Hazard Analysis and Critical Control Points) as a tool for the production of quality agricultural products are determined. The application of the food safety management system based on the idea (HACCP - Hazard Analyses and Critical Control Points) provides the company with the opportunity provide guarantees for the production of a safe product through continuous control at all stages of production; qualitatively manage all critical factors that threaten food safety - eliminate, minimize or prevent their occurrence; provide guarantees that food products are safe at the time of consumption; guarantee proper sanitary conditions of production in accordance with international standards; ensure compliance with legislative and regulatory requirements for food safety; establish the trust of consumers, partners and Effective quality management is a comprehensive and systematic management process that is carried out on the basis of strict adherence to the principles of quality management, with minimal costs and maximum results. The latter is especially important, since the effectiveness of management is determined by its efficiency and maximum return on activity with minimal costs for organizational, economic, technical, personnel, social measures and balancing the whole range of factors affecting the formation and maintenance of product quality. The development, certification, and maintenance of the quality management system in a state of capacity is one of the strategic directions of business entities, which significantly increases their efficiency, economic efficiency and competitiveness in the domestic and world markets. To ensure the appropriate competitiveness of agricultural products in the markets, it is necessary to constantly monitor the improvement of its quality.

THE ECONOMIC BASIS OF INVESTMENT COOPERATION BITWEEN THE PRC AND INDIA AS A POTENTIAL PARTNER IN THE IMPLEMENTATION OF THE ONE BELT, ONE ROAD INITIATIVE

The authors show China’s desire to create a new type of Sinocentric globalization thanks to effective cooperation, coordination and solidarity, the principles of true multilateralism and the rule of law, the use of China’s wealth and industrial know-how, and the attraction of countries and companies into the Chinese orbit. It is argued that the significant improvement of the internal potential of the PRC characterizes the readiness of its powerful economic base for the formation of international bilateral and multilateral relations and the development of promising partnership relations between the PRC and other selected countries in the vector of investments in infrastructure and economic projects, which in general should ensure a closer connection connection with the countries of Asia and Europe and will contribute to the implementation of China’s external strategy of openness of a new type, as well as the sustainable development of transport and global transport infrastructure. “One Belt, One Road” is the largest geo-economic project in the history of mankind, aimed at creating and strengthening multinational ties, increasing the intensity of economic, cultural and political exchanges. Thanks to gigantic investment investments until 2049 (the 100th anniversary of the founding of the People’s Republic of China), with the support of the BRICS New Development Bank, the South-South Cooperation Promotion Fund, AIIB and the Silk Road Fund, the project should lead to the consolidation of the vast European-Asian space and parts of Africa (65 countries), in which more than 4 billion people live. The article focuses on the Initiative Project of the People’s Republic of China “One Belt, One Road” in terms of the importance of participation and partnership support of countries on this route, especially large countries such as India. It has been demonstrated that although the One Belt One Road Project aims to create a new model of cooperation in the promising partnership relations of China and India, the ambitions of the South Asian region are a “challenge” for both states. Based on the analytical evaluations of interstate relations between the PRC and India in different periods with a fairly wide range of development from cooperation to competition and even confrontation, the authors state that national strategic trends create various challenges for Sino-Indian relations. That is why the authors focused attention on the dual nature of the relations between these two countries and revealed, on the one hand, the development of friendly relations of cooperation, on the other hand, the presence and growth of geostrategic competition between China and India, which is likely to influence the formation of an adequate economic basis for investment cooperation of the People’s Republic of China with India as a potential partner in the implementation of the “One Belt, One Road” initiative, as well as on the project deployment scenario itself.

Risk Dominance Analysis of R&D Investment Cooperation in Dynamic Option Game

Research and development (R&D) investment is very important for firms to gain competitive advantages and sustainable development. Due to the uncertainty of the market and competitors, R&D investment is usually costly and high risk. In such circumstances, firms not only have to figure out the optimal investment timing, but also consider whether to cooperate with competitors to share the risks and costs. In this paper, a two-stage dynamic exchange option game model is proposed for two symmetric competing firms to analyze their R&D investment decision and cooperation. The results show that under uncertainty, the R&D investment timing and cooperation strategy of the two firms depend on the market fluctuation, R&D cost, opportunity benefit of free riding, and the externality of cooperation. If the opportunity benefit of free riding is less than or equal to half of the cooperative research cost, the two firms will invest as early as possible and cooperate. The technology spillover and profits of new products will positively affect the willingness of the competing firms to invest and cooperate in R&D. Moreover, we also calculate the market value thresholds of the investment strategies for the two firms. When the market value is small, the two firms wait for the R&D investment; when the value increases, the firm with a high successful R&D probability will lead the investment, and the other firm follows the investment; when the value is large enough, the two firms will invest at the beginning of the period.

On statistical indices for analyzing investment interaction between countries (through the example of Russia and Vietnam)

Aim. The presented study aims to assess the potential of investment cooperation between Russia and Vietnam using statistical indices for analyzing investment interaction between countries. Tasks. The author constructs statistical indices for Russia–Vietnam investment cooperation; develops the investment interaction complementarity index; analyzes the values of the calculated indices to assess the current state and potential of investment cooperation. Methods. This study uses such research methods as construction and analysis of statistical indices of investment cooperation between countries. Results. The author calculates statistical indices for analyzing investment cooperation between Russia and Vietnam, showing the ratio of mutual investment to the total volume of direct investment, the scope of the countries’ economies, incoming and outgoing bilateral flows. An investment cooperation complementarity index is proposed and calculated (for Russia and Vietnam), showing the extent to which the industries where incoming foreign direct investment of one country is directed coincide with the industries of outgoing direct investment of the partner country. Conclusions. The calculated indices for analyzing investment cooperation show that the investment cooperation between Russia and Vietnam is not fully developed. That said, analysis of the values of the investment cooperation complementarity index makes it possible to conclude that the countries have sufficient potential for the development of bilateral investment cooperation.