Role Of Direct Investment Research Articles

ТЕХНОЛОГИЧЕСКИЙ СУВЕРЕНИТЕТ И ДИФФУЗИЯ ТЕХНОЛОГИЙ

The problem of reducing technological dependence is considered based on the use of the effect of technology diffusion. Under sanctions, this is one of the important areas of reducing the dependence of the economy. The analysis and prioritization of methods for borrowing technologies is carried out and the role of direct investment in combination with the localization of foreign production is shown. The directions for the most complete use of the effect of technology diffusion are substantiated. The stability and longevity of diffusion processes must be ensured by increasing the level of localization of high-tech foreign production. It is concluded that the further dynamics of technological development and the possibility of achieving a higher level of sovereignty depend on the ability of government and corporate governance bodies to adapt to the rapidly changing conditions of the global economy.

Scenarios of the Foreign Investments in the Sectors and Areas Promoting Development of the Tourism Sector

The role of direct investments is important for the development of the fields promoting the tourism sector. The aim of the article is to assess, based on the examples of other countries, what field of the tourism sector needs development and what methods could be applied in Georgia for its promotion. How can tax liberalism promote such a hotel direction as “apart -hotel” status which is growing despite the COVID situation. By investing in apart-hotel, a person receives not only a highly profitable investment asset, but also a flexible financial instrument. The analyses of various investment scenarios will reveal the model of efficient use of the country’s investment and resource potential which will be aimed at the development of the sector via investment in the field development promoting the tourist sector development.

Attraction of foreign direct investment into the economy of CIS countries in the conditions of regional integration

The goal of this article consists in the analysis of investment relations between CIS countries at the current stage, and as well as in development of proposals aimed at attraction of direct foreign investment into economy of the union in the conditions of regional integration. The article examines the peculiarities of investment process in CIS. The author outlines the common factors that delimit the expansion of economic integration within the union. The research is based on the scientific articles, databases of international organizations, analytical materials of CIS partner countries. Methodology includes such approaches as scientific abstraction, logical generalization, economic-statistical and factor analysis, clustering method, and circumstantiation. The essence of direct investment is revealed. The author suggests the original classification of foreign direct investment from the perspective of their role in the modern global economy. The role of direct investment in the development of CIS partner countries is described. The conclusion is made on the key development trends of investment relations in CIS countries. The article substantiates the need to develop agencies for attracting foreign direct investment, establish shared centers in the area of public-private partnership, as well as create joint sovereign funds and enterprises in high-tech sectors of the national economy. It is proposed to form a single specialized center for coordinating monetary policy of CIS member-states.

Current Trends in the Dynamics of International Capital Flows

Global economic and financial crisis 2007–2009 had a devastating effect on international capital flows. An assessment of their dynamics over the past decade shows that in certain fields (for example, the volume of international debt securities circulating) the pre-crisis indicators were exceeded, in a number of areas they are close to the pre-crisis level (foreign direct investments, total capitalization of the world stock market), international bank lending remains significantly behind the pre-crisis values. In the leading world economies cross-border capital flows relative to GDP significantly decreased compared to 2007. Global imbalances between savings and investments continued to grow, though their structure by countries changed, and now developed countries play a key role in them. In the structure of international capital flows the main shift occurred from the other to portfolio investment, with a slight increase in the role of direct investment. The “quantitative easing” policy in the USA and euro zone has had a significant impact on international capital flows. With generally positive trends in international capital movements in 2017–2018, new threats to their developments are beginning to emerge, primarily in countries with emerging markets.

The role of direct investment in the development of Russia’s innovative economy (1991-2017)

The article examines the impact of direct investments, including FDI, on the development of Russia’s innovative economy. The unfavorable situation in the Russian national innovation system is shown: the basic indicators of innovation in 2017 remain at the level of 2000. The negative influence of FDI on the Russian industry, which is due to the passive position of the state in managing the investment flow, has been revealed. The article proposes an approach to the building of a management system of the institutes of the national innovation systems (NIS) based on the principle of ensuring mutually beneficial conditions for all participants of the innovation process. On the example of experience of activity of venture funds and technoparks, the need for state control of the effectiveness of innovative institutions, based on their contribution to the growth of the number of innovative active enterprises in the real sectors of the Russian economy as the main criterion for investment management is justified.

Portfolio investment outflow and the complementary role of direct investment

Purpose – This paper aims to uncover potential contemporaneous relationship between foreign portfolio investment (FPI) and another popular type of cross-border investment outflow, namely, foreign direct investment (FDI). Design/methodology/approach – The relationship between FPI and FDI are modeled using simultaneous equations approach to take potential endogeneity in to account. In a panel of 45 countries over the period of 2001-2009, FPI and FDI are found to be strategically complimentary to each other. Findings – The two-stage least square estimates suggest existence of both statistically and economically significant relationship between these two types of outflows. In particular, the FDI outflow has empirically significant predictive power in explaining the FPI outflow. Similarly, the FPI outflow also has significant explanatory power for the observed level of FDI outflow. Second, the FPI has greater explanatory power for FDI outflow than the FDI for the FPI outflow. Originality/value – The authors believe that the paper would contribute to the relevant literature in terms of its originality and scope. The empirical findings of the paper have valuable policy implications.

Japan and East Asia: example, challenge and oppoirtunity

As part of our world economy programme at the Institute we are seeking to improve our understanding of the place of Pacific Asia in world trade and capital markets. This year, for example, we are contributing a paper on Hong Kong and Europe to an international study organised by the Institute of Developing Economies in Japan. Another focus of interest has been the role of direct investment by Japanese firms in the UK and elsewhere in Europe. This note reports on a discussion of current developments and topics for future research which took place at a meeting of the Members Forum on Monday 14th November. The meeting was attended by business leaders representing the corporate members of the Institute as well as Institute governors and staff. It is organised around the perception of Pacific Asia as seen from Europe or North America as example, challenge and opportunity.