Foreign Investment Research Articles

THE REPORT ON SUSTAINABLE DEVELOPMENT AND INVESTMENTS IN THE AGRICULTURAL SECTOR: THE ENVIRONMENTAL CAPITAL PERSPECTIVE

Introduction. Ukrainian agribusiness works in challenging conditions today, and the international community greatly supports it. The decision to grant Ukraine the status of a candidate for EU accession, adopted by the European Council in June 2022, and initiatives such as the provision of financial assistance under the Ukraine Facility program (June 2023) opened up new opportunities for the agricultural sector of Ukraine. The realization of these opportunities depends not only on Ukraine's ability to carry out reforms in the direction of European integration but also on the readiness of business entities to overcome the consequences of hostilities through recovery and reconstruction. Purpose. The article aims to provide scientific justification for the standardized forms of the Report on Sustainable Development and Investments (ESGI-report) in the agricultural sector of the economy for the preparation and publication of environmental capital indicators. Methods. The methods of induction and deduction, analysis, and synthesis formed the basis for developing environmental indicators for the ESGI report. The abstract-logical method became the basis for the study of the norms of European legislation and the leading systems for measuring sustainable development. The analogy method made it possible to propose indicative (reference) indicators for measuring sustainable development at the micro level. Results. The article systematizes the estimated and verifiable indicators of ecological capital. The first group includes risks and opportunities connected with climate change, the transition to sustainable technologies, and martial law. The second group comprises indicators that can be accurately measured with the help of calculators and technical means. They are related to the use of natural resources and the impact on the environment. To prepare the ESGI report, it is proposed that all materials posted on the Sustainable Reporting Platform (SR platform) be used: reporting forms, survey questionnaires, video recordings, as well as materials of webinars, presentations, and articles. The SR platform was developed within the framework of the MSCA4Ukraine program funded by the European Union. Conclusion. Attracting foreign investments for the post-war reconstruction of Ukraine's agribusiness is impossible without preparing and disclosing non-financial information about environmental capital at the micro level. One of the tools for disclosing such information is the ESGI report, which is posted on the SR platform. It is advisable to publish environmental indicators in standardized reporting forms to ensure their comparability with the data of other enterprises. At the same time, to assess the level of sustainable development, it is necessary to apply scientifically based reference values, which are based on best practices, statistical data and the company's own experience.

Can Investment Liberalization Improve Enterprise Productivity

In the context of the new development pattern, a deep understanding of the factors affecting enterprise productivity and an accurate evaluation of the implementation effect of foreign access policies have important theoretical and practical significance for further promoting the improvement of enterprise quality and efficiency, and promoting the high-quality development of the Chinese economy. This article is based on the former research and uses the negative management list of foreign investment as the research basis to study the impact of investment liberalization on enterprise productivity and propose relevant policy recommendations.

FDI, defense spending, and economic prosperity

AbstractThe relationship between foreign direct investment (FDI) and military spending in the Middle East and North Africa (MENA) region is complex and multifaceted. High levels of military spending can deter foreign investors, as it creates an uncertain and potentially volatile investment climate. However, countries that invest in their military infrastructure and capabilities may be seen as more stable and secure, which can attract foreign investors. Taking into account several factors that can influence this relationship, including political stability, security concerns, and economic factors, this work analyzes whether military spending attracts foreign capital into the region. Using a dynamic panel data methodology along with other relevant macroeconomic variables, results show that the military expenditure has a positive and significant impact on FDI inflows into the MENA region. The paper highlights the fact that policymakers in the region must carefully balance military spending with investments in other areas of the economy in order to create a stable and favorable investment climate that attracts foreign investors and contributes to long‐term economic growth and development achieving both security and welfare.

An Econometric Evaluation of the Variation effect of the Nigerian Rate of Exchange on the Economic Progression

This research work investigated an econometric evaluation of the variation effect of the Nigerian rate of exchange on the economic progression between the years 1986-2017. A secondary source of data was employed in this work, which was extracted from the National Bureau Statistical Bulletin published by the Central Bank of Nigeria. Maximum Likelihood estimation of the R-software was carried out to evaluate the parameter estimate of the multiple regression coefficients and analyzed the influence of the explanatory variables (Gross Domestic Product, Unemployment and Inflation on the rate of Exchange). It was observed that the Gross Domestic Product and Unemployment rate influenced negatively on the Exchange rate but significant with (β = -1.646, t = -2.409, sig.val = 0.0228) and (β = - 0.8602, t = -3.302, sig.val = 0.00263) respectively. Nevertheless Inflation rate had positive influence on the rate of Exchange but not significant with (β = 1.311, t = 0.852, sig.val = 0.40122). The Coefficient of determination (R2 = 82.7) implies that the variation of the Nigerian rate of exchange has significant effect on the economic progression between the years 1986-2017. However, the paper recommends the following; a control of the sequential rising of inflation so as to have a stabilized rate of exchange and a promising economy for the citizens, adequate security, effective fiscal and monetary policies, as well as the provision of infrastructural facilities so that foreign investors will be attracted to invest in Nigeria.

Behind the Withdrawal of Foreign Investment from India: In - depth Causes and Insights

In recent years, one of the most noteworthy events experienced by the Indian economy is the large-scale withdrawal of foreign capital. In 2023, a total of 2,783 foreign enterprises exited the Indian market, with divested capital aggregating to 2 trillion rupees. While foreign direct investment (FDI) has consequently increased on a territorial basis, there has been a steep decline in Indiaʼs FDI inflows to USD$28.163 billion in 2023 from its peak of USD$64.072 billion in 2020. This indicates some relationship between territorial rise or fall and regional factors. This article delves into the collapse of foreign capital in India, exploring the causes and offering benchmarks on how to address these circumstances. The analysis will cover various perspectives, including infrastructure development in India, lack of policy clarity for foreign investors, poor legal conditions, and socio-political factors, to identify the main reasons behind the cessation of foreign investments. Additionally, this article aims to provide both theoretical and practical guidance for formulating Indiaʼs future economic policies by comparing the flow of investment into India with other emerging economies like China.

The Correlation Dynamics Between Sensex 30 Returns and INR/USD Exchange Rate Movements

The Sensex 30 is a benchmark index for India's largest companies, indicating the health of the stock market. Its movements are influenced by domestic economic conditions, corporate performance, and global trends. The INR/USD exchange rate, which represents the Indian rupee vs. the US dollar, is crucial for India's international trade and investment. A depreciating rupee benefits export-oriented companies but increases import costs, affecting market performance. Understanding this dynamic is essential for investors and policymakers. The fluctuating link between the INR/USD currency pair and SENSEX 30 stock index is examined in this study from 2014 to 2024, with an emphasis on how changes in the exchange rate affect stock market performance. As India continues to integrate into the global economy, the interaction between foreign investments and the Indian stock market has become increasingly relevant for understanding investor sentiment and economic stability. This study particularly examines how returns from the SENSEX 30, an index that monitors 30 of India's biggest and most traded firms, are impacted by changes in the INR/USD exchange rate. The research's main finding is that there is a strong positive correlation between the INR/USD exchange rate and the SENSEX 30 index, with a rise of 1 in the SENSEX 30 for every 0.90 increase in the exchange rate. This implies that the depreciation of the Indian currency (INR) in relation to the US Dollar (USD) may result in increased stock market returns, especially in industries that rely heavily on exports, as Indian goods become more competitive in international markets due to the weaker currency. On the other hand, persistent depreciation may also result in higher import prices and inflationary pressures, which might be detrimental to business profitability and the state of the economy as a whole. Given that currency changes may have an impact on their investment decisions, foreign institutional investors (FIIs) are essential to this dynamic.. Decreased international gains are eroded by a lower INR, which frequently leads to portfolio modifications and more market volatility. Exchange rate fluctuations and stock market performance are influenced by the participation of foreign institutional investors (FIIs) and the Reserve Bank of India's (RBI) monetary policy choices. For example, the RBI's changes to interest rates have an effect on investor mood and influence market movements. Global economic variables that affect the US stock market and exchange rate include geopolitical tensions, changes in the price of commodities, particularly oil, and US Federal Reserve policies. The study uses a variety of statistical techniques, including as trend analysis, a t-test, and correlation analysis, to assess the link between the performance of the SENSEX 30 and the INR/USD exchange rate during a ten-year period. The results of the t-test demonstrate that the difference between the mean values of the SENSEX 30 and the INR/USD exchange rate is statistically significant, with a t-statistic of 30.278 and very tiny p-values. The SENSEX 30 exhibits a significantly bigger variation than the INR/USD, suggesting that the stock market is more volatile than the currency rate. This result is in line with predictions because stock markets are often more erratic than exchange rates. As a result, the study emphasizes how much exchange rate fluctuations affect the Indian stock market. It is recommended that investors keep a careful eye on currency changes since they have the International Journal of Scientific Research in Engineering and Management (IJSREM) Volume: 08 Issue: 09 | Sept - 2024 SJIF Rating: 8.448 ISSN: 2582-3930 © 2024, IJSREM | www.ijsrem.com DOI: 10.55041/IJSREM37610 | Page 2 potential to impact business profitability and stock market performance, particularly in industries that depend on imports or exports. The results also emphasize how crucial it is to diversify portfolios and hedge against risk related to currencies in order to successfully manage the intricate relationships between monetary policy, market volatility, and global economic situations.

The Bee Fertilizes the Flower She Robs: Analysing the Diplomatic Games of Carrot, Soft Power and National Interests for Access to Natural Resources in Papua New Guinea

Purpose: This paper conducts a nuanced exploration of Papua New Guinea’s (PNG) intricate diplomatic landscape through the metaphor "The Bee Fertilizes the Flower She Robs." This conceptual framework elucidates the complex interplay between soft power, national interests, and resource access among global powers - namely Australia, China, and the United States - in the strategically significant Asia-Pacific region. By situating PNG within this geopolitical contest, this study aims to deepen understanding of how these states navigate power dynamics, particularly regarding PNG's abundant natural resources. Materials and Method: Employing a qualitative methodological approach, this research employs case analysis as its primary investigative tool. Selected case studies critically examine the diplomatic strategies executed by Australia, China, and the United States in PNG, focusing on soft power mechanisms such as cultural diplomacy, development assistance, and foreign direct investment. The analysis is grounded in a comprehensive review of primary and secondary sources, including diplomatic documents and investment reports, to capture the multifaceted nature of international relations in PNG. Findings: The findings reveal a paradox: while foreign investment catalyses economic development in PNG, it simultaneously engenders dependencies that can jeopardize sovereignty. The divergent strategies of Australia, China, and the United States manifest as a blend of cooperation and competition, accompanied by significant ethical considerations regarding environmental sustainability and community displacement. Implications to Theory, Practice and Policy: This study advances the discourse surrounding soft power, urging a re-evaluation of its role as both an instrument of influence and a potential source of dependency. Policymakers in PNG are encouraged to establish regulatory frameworks that ensure transparency, prioritize local agency, and promote sustainability, thereby navigating complex international engagements while safeguarding their sovereign interests.

Omission in Adoption: Whole of Systems Approach Applied to Case Study Analysis of Genetically Modifi ed (GM) Maize Adoption in Eastern Cape Province South Africa

This article critically explores the political economy of genetically modifi ed (GM) maize adoption in South Africa, focusing on its impact on smallholder farmers using the whole-of-systems approach. While South Africa has become a leader in GM maize production, the benefi ts have been unevenly distributed, particularly disadvantaging smallholders. Government eff orts to integrate smallholders into the GM maize value chain have faced signifi cant challenges, including structural inequalities, high input costs, inadequate infrastructure, and limited access to education and resources. The article analyzes the broader political, economic, and environmental contexts, revealing how global trade policies, foreign investments, and domestic regulatory frameworks infl uence smallholder integration into the global maize value chain. A case study of the Eastern Cape province underscores the additional challenges smallholders face, such as climate change, labor shortages, and barriers to market access. Despite GM maize’s potential to improve food security and smallholder incomes, the article argues that current policies and institutional frameworks need substantial reforms to ensure equitable benefi ts. The research highlights the need for a multidimensional approach that addresses the socioeconomic, political, and environmental factors constraining smallholder participation in the GM maize sector, calling for targeted interventions to bridge the gap between large-scale commercial farms and smallholders.

The Spatial–Temporal Evolution and Driving Factors of the Coastal Tourism Economy in China

Tourism has emerged as a pivotal element of China’s economic development, particularly within its coastal cities. This paper presents a comprehensive analysis of China’s coastal city tourism economic development, focusing on 53 coastal cities. Through a meticulous combination of literature analysis and data crawling, a robust database is constructed, encompassing tourism resources and revenues. This study delineates the spatial–temporal evolution pattern of China’s coastal city tourism development and employs geo-detector methods to quantitatively analyze the impact factors driving this evolution. Key findings reveal distinct trends in the coastal tourism economy of China from 2009 to 2019, characterized by spatial stability, similar trends in adjacent spatial units, and localized spatial structures. Notably, factors such as actual foreign investment, the presence of star-rated guesthouses, tourism industry employment, airport activity, and import–export trade volume exert significant influence on the domestic tourism economy. Similarly, tourism employment, airport activity, availability of star-rated hotels, import–export trade, and utilization of foreign capital emerge as influential factors shaping inbound tourism. Policy recommendations emphasize the need for government intervention to optimize tourism development strategies for coastal cities. This entails balancing resource exploitation with environmental protection and enhancing the quality of tourism services, fostering sustainable growth and long-term prosperity.

Domestic vs. Foreign Institutional Investors: Who Improves ESG and Value of Chinese Companies?

Recent years have seen the influence of both institutional investors and corporate social responsibility strengthen in the Chinese capital market. However, research on the impact of these market changes on corporate activities and values has been insufficient. To address this gap, this study analyzes the impact of foreign and domestic institutional investors who invest in Chinese A-share listed companies on corporate value through environmental, social, and governance (ESG) policies. The results of the analysis are as follows: First, the shareholding of both foreign institutional investors (FIIs) and domestic institutional investors (DIIs) enhances corporate value. Second, the shareholding of FIIs strengthens the company’s ESG, while that of DIIs does not significantly affect it. Third, ESG has a positive impact on corporate value. Fourth, ESG partially mediates the positive relationship between the shareholding of FIIs and corporate value. The research findings provide academic implications for the causal relationship between corporate governance, sustainable management, and performance, as well as practical implications for the development of the Chinese capital market and corporate sustainability.

The natural law and positivist approaches to legal understanding in the context of revealing the category of legal personality of professional participants in capital markets

This article aims to analyze the main philosophical concepts used in understanding the legal category of legal personality and to conduct a descriptive study of the concepts related to this category that prevail in domestic science. The author of the article substantiates the position that the approaches to the theoretical and legal developments of the category of universal legal personality of legal entities should be based on the natural law type of legal understanding. At the same time, the article analyzes domestic authors’ approaches to understanding the legal category of legal personality and compares these approaches with those prevailing in Western countries. Furthermore, the author attempts to justify the expediency of distinguishing exclusive legal personality, given the positivist approach that underlies the construction of the model of the exclusive type of legal personality of professional participants in capital markets. In our opinion, establishing the exclusive legal personality of legal entities is a state-imposed limitation on their universal legal capacity, such as the ability to participate in certain civil-law relations, considering the social importance of the type of activity carried out by these entities. After all, the proper functioning of capital markets is crucial to the financial stability of the country. Capital markets, along with commodity markets, directly influence the formation of exchange rates by attracting foreign investment into the country’s economy. They can also act as a catalyst for economic growth by accumulating financial resources from the population to create capital-intensive productions with high value-added end products. However, achieving such results depends on the balanced state policy in the field of regulating the activities of professional participants in capital markets. To limit the speculative nature of such entities and ensure sustainable economic development, the scope of their legal capacity is narrowed by directly specifying in the law the types of activities they are permitted to engage in.

Modification and termination of legal services supply agreement

The article is focused on studying the possibility to modify and terminate legal services supply agreement. The author has noted that the volume of foreign investments is a significant stimulus for the recovery of the domestic economy, and this should be facilitated by proper protection of the rights of investors as less protected participants of investment relationships. All this will contribute to the need to streamline legislative mechanisms for regulating relations in the sphere of services provision. In particular, civil regulation of legal services, despite the extraordinary social importance played by relations on providing legal services in society, has not been sufficiently developed yet, in order to affirm that a fairly well-balanced regime for regulating these relations functions in Ukraine. The author of the article has indicated that the right to apply measures of operational influence by legal services’ customers requires a clear description in the legislation, but not to be established through a multi-stage interpretation of the relevant norms. The exercise of such a right should not depend on its enshrining in the terms of legal services supply agreements, i.e. its normative basis should be the relevant legal norms, which should increase the guarantee of protection of the rights and interests of the customers of such services as less protected participants of contractual relations. The author has proved that the application of legal services on protection by the customers in the form of terminating the agreement, first of all by filing the corresponding claim to the court, has no particular specificity, compared to similar protection within other contractual obligations. The analysis of court practice indicates the lack of acute problems requiring scientific description and resolution in this regard. There is a stable court practice in Ukraine regarding the protection of legal services’ customers through the termination of relevant agreements. Termination of the contract, as a terminating legal fact, protects rather the customer’s interests, but not the rights (for safeguard of assets; for concluding the same meritous contracts with other entities, etc.). The author of the work has specified that modification and termination of legal services supply agreements, which are carried out based on the understandings between the parties, as a general rule, are not applied in the context of the parties’ reaction to the offense committed by the counterparty, but due to other motives. In particular, a significant modification of circumstances can be mentioned among such motives.

Impact of short- and long-term factors on the growth of gross agricultural products in Azerbaijan: ARDL analysis

Purpose. The main purpose of this research is to assess the factors affecting the gross agricultural products in Azerbaijan in the short and long term. Methodology / approach. This study uses an Autoregressive Distributional Lag (ARDL) model to analyse the relationship between gross agricultural output and total government expenditure on agriculture, the volume of credit used in agriculture, direct investment in fixed assets in agriculture, and the country’s net agricultural exports. In our study, unlike most existing research, the variables are integrated in the second order, which increases the importance of this study. Results. The results of the study indicate that, despite the “crowding in” effect created by the state budget expenditures as the main factor in the short term, the effect on the growth of gross agricultural products in the long term is not so important. Credit resources and net exports have a negative effect in this relationship. In the long term, investment in fixed capital is a crucial factor in the growth of production. In general, the positive balance of net exports is a “mirror” reflection of investments, especially innovation-oriented investments. Considering that the predominance of imports in the total demand for agricultural products significantly reduces the multiplier effect that can occur in the field in general, it minimises the multiplier effect of the total expenditure. From this point of view, foreign investments can play an important role in creating a positive balance in the trade balance of agriculture. Originality / scientific novelty. The scientific value of the research is the selection of main factors as direct contributions to the growth of the gross agricultural products and their effects. Through the ARDL program, we determined what factors are short-term and which are long-term, and we analysed the causes and consequences of these dependencies and put forward relevant proposals. Practical value / implications. The practical value of the research lies in the given proposals that can directly affect the net export of agricultural products and create positive changes in its balance. Because, massive investments, especially foreign investments, can modernise the rural economy in a short period of time and, accordingly, not only increase the competitiveness of its products in foreign markets, but also raise the level of self-sufficiency.

ENSURING ECONOMIC SECURITY: COMPARISON OF EU MEMBER STATES AND UKRAINE

The purpose of this paper is to conduct a comprehensive study of economic security in the EU Member States and Ukraine, to identify differences and to propose targeted policy interventions based on these differences. Methodology. The study uses a quantitative strategy that assigns numerical ratings to countries based on their performance against predefined thresholds for various economic security indicators. These indicators include industrial security, demographic security, energy security, foreign trade security, investment and innovation security, macroeconomic security, food security, social security and financial security. The study uses data from a variety of sources and applies a ranking system to reflect the level of economic security in each category. Results. The analysis revealed significant differences in the levels of economic security between EU Member States and Ukraine. The main findings include differences in agricultural efficiency, healthcare system efficiency, renewable energy consumption, trade balance, research and development expenditure, and socio-economic factors. For example, countries such as Belgium and Ireland have high yields, while Cyprus and Romania have much lower yields. Life expectancy and the quality of healthcare also vary: Spain and Sweden lead the way, while Bulgaria and Ukraine lag behind. Practical implications. The findings suggest the need for targeted policies and technological advances to improve economic security. For the younger generation, marketing strategies based on brand equity and exclusivity can continue even during economic downturns. For the older generation, strategies that focus on value for money or lower prices may be more effective. Understanding these metrics can help businesses align their strategies with national economic priorities and identify potential areas for investment and growth. Value / Оriginality. This study contributes to the existing literature by providing a detailed comparative analysis of economic security in the EU Member States and Ukraine, filling a gap in the understanding of the multifaceted aspects of economic security in these regions.

Bureaucratic Law Transformation and Trade Union Fragmentation in Thailand and Japan in the Context of Free Trade

To achieve economic development, a country must cooperate with other nations. This often involves a partnership where one country provides workers, while foreign investors contribute significant capital. To sustain such trade relationships, bureaucratic reform is sometimes necessary. These reforms aim to enhance administrative efficiency and economic competitiveness but can also lead to the fragmentation of trade unions, which impacts workers' protection and rights. This research explores the transformation of bureaucratic law and trade union fragmentation in Thailand and Japan within the context of free trade. A qualitative comparative study method was employed to analyze the effects of these reforms in both countries. In Thailand, reforms aimed at simplifying the licensing process and reducing regulations have been successful in attracting foreign investment and accelerating economic growth. However, they have also increased job uncertainty and weakened social protection. In Japan, while traditional labor unions persist, the increasing fragmentation has resulted in uneven worker protection. This analysis reveals that the social and economic effects of these changes are complex and require careful policy consideration to balance economic growth with worker protection. The study recommends comprehensive labor law reforms, increased social dialogue, and stronger support for new trade unions to ensure fair and sustainable worker protections in both countries.

Dynamics of youth unemployment in ASEAN-5 emerging economies through macroeconomic analysis

This research investigates youth unemployment dynamics in ASEAN-5 emerging economies using a macroeconomic framework. Employing the panel Autoregressive Distributed Lag (ARDL) methodology, it examines the effects of Gross Domestic Product (GDP), inflation rate, population growth and Foreign Direct Investment (FDI) on youth unemployment rates. Empirical results reveal that GDP and inflation significantly influence youth unemployment over the long term. This highlights the interplay between economic expansion and youth employment prospects. Conversely, neither population growth nor FDI significantly impacts youth unemployment. This suggests that increasing population or attracting foreign investments alone may not directly translate to better employment opportunities for the youth. Instead, robust economic growth and stable inflation rates are crucial. These findings underscore the need for ASEAN-5 policymakers to develop strategies fostering economic growth and controlling inflation to mitigate its adverse effects on youth employment. The research provides insights into how targeted economic policies can better address youth unemployment challenges, creating a conducive environment for job creation and economic stability, ultimately benefiting the youth workforce.

The impact of digitalization and economic diversification on economic growth: evidence from Saudi Arabia

The present study aims to assess the impact of economic diversification and digitalization on economic growth in Saudi Arabia during the period 1990–2021. We have looked into this relationship in both the overall economic and non-oil economic sectors using the autoregressive distributed lag (ARDL) cointegration approach. The empirical results offer compelling evidence that economic diversification and digitization affect economic growth both directly and indirectly through their effects on non-oil GDP growth. The findings indicate that there is a long-run dynamic between economic growth, economic diversification, and digitalization. In the long run, digitalization contributes to the progress of non-oil economic growth and, therefore, sustainable economic growth. In addition, the causality test revealed that economic diversification develops the economy of new knowledge, which reinforces economic diversification, and non-oil economic growth supports digitalization. Consequently, digitalization played an important role in the Kingdom’s economic transition toward economic diversification. Indeed, our results prove that digitalization increases non-oil income and then reduces the supremacy of the oil sector in the economy, which promotes economic diversification. The KSA authority must accelerate the energetic transition process in order to support economic diversification and attract more foreign investment in information and communication technologies (ICTs).

Effects of Foreign Direct Investment Inflows to Economic Growth: a Case of Turkey

Objective: The purpose of this study is to investigate the effects of Tax Competition for Turkey, as well as the aspects of basic taxes like Personal Income Tax and Corporation Tax and evaluate the results. In this context, the impact of foreign direct investments on economic growth in Turkey is investigated. Theoretical Framework: Theoretically, it is accepted that foreign direct investment will positively affect economic growth. This study investigates the practical implications of this theory for Turkey. Method: International Comparative Analysis and various tables and graphics were used in this study to analyse the variance of Personal Income Tax and Corporation Tax by years. In addition study applies regression analysis on direct foreign inflow and economic growth in Turkey for 1974-2019 period. Results and Discussion: Regression analysis was performed on the time series of foreign capital investments and economic growth. However, it is concluded that foreign capital investments do not positively affect economic growth over the 1974-2019 period since foreign capital investments in Turkey reached their usual level only after 2002. Research Implications: This study concludes that foreign direct investment (FDI) does not always positively affect economic growth for all countries. Originality/Value: The study is original in that it shows that a generally accepted theory may have different results in practice for some countries.

The role of ISDS in the Russian–Ukrainian conflict

AbstractInvestor-State Dispute Settlement (ISDS) has long served as an effective remedy for disputes between foreign investors and host states. In the context of the Russian–Ukrainian conflict, ISDS has gained particular prominence as a potential tool for advancing the legal claims of private persons even in wartime or otherwise hostile situations. In particular, we had a slew of ISDS cases between Ukrainian investors and Russia, especially in relation to Crimea. This has also raised a number of questions regarding territory and annexation within the context of international law, which the arbitration tribunals had to address. The purpose of this study was to evaluate the utility of ISDS for enforcing private claims in wartime, and to assess the judgments of the arbitration tribunals, with the addition of Russian ISDS cases against Ukraine as well, to serve as a contrast.

Evaluating the Efficiency of Capital Enhancement and Investment Constraints in Life Insurance Supervision

Abstract This study addresses the critical public concern of effectively mitigating solvency risks in insurance companies through supervisory intervention. Building upon existing research, we extend our analysis to incorporate the effects of foreign investment and examine the impact of varying degrees of risk aversion among insurers. Furthermore, we investigate the optimal expected terminal utility in relation to initial insurance company premiums, integrating interest and exchange rates into our analytical framework. Additionally, we evaluate the impact of regulatory interventions, specifically capital injection schemes and risk-constrained asset allocation, on insurers’ default risk and certainty equivalent wealth using a utility-based approach. Our findings indicate that: (1) when policyholders exhibit higher degrees of risk aversion, a reduced propensity to allocate funds to riskier assets, such as stock index funds and foreign assets, is observed; (2) when exchange rates offer higher returns, an increased allocation to foreign assets is advisable; (3) conversely, when exchange rate returns exhibit greater uncertainty, a reduction in foreign asset allocation is recommended; (4) in scenarios where foreign risk-free rates yield higher returns, an increased allocation to foreign assets is suggested; and (5) under conditions of capital minimization, the influence of exchange rates and foreign interest rates on optimization becomes less discernible.