Structure Of Foreign Direct Investment Research Articles

Воздействие прямых иностранных инвестиций на структуру экспорта России

One of the indicators of the country’s involvement in the global economy is the export of goods and its structure. The degree and nature of changes in export groups of goods may indicate changes in the structure of the economy under the influence of foreign direct investment, which makes it possible to evaluate the positive or negative effects of them. Recently, more and more countries are involved in the process of international capital movement, both as an exporter and as an importer. There are many reasons for the desire of domestic economic entities to export their capital abroad. The subject of this study is economic relations caused by the relationship of foreign direct investment with the structure of Russian exports. The article considers the dynamics of foreign direct investment in the domestic economy. The attractiveness of the Russian economy from the point of view of international ratings of countries is analyzed. An attempt is made to determine the relationship of foreign direct investment with the macroeconomic indicators of the Russian Federation, as well as the structure of foreign direct investment with the structure of Russian exports. The degree of influence of indicators of attracted foreign direct investment and payments for new technologies on changes in the structure of export is determined The impact of FDI on the host economy is different. On the one hand, FDI brings financial resources to the economy with the new technologies that the economy needs. On the other hand, a direct investor invests his money in those sectors of the economy that have a high rate of return, which in turn does not help to solve the problems of the economy and the uneven development of the country’s industries.

Modern trends in the structure of Foreign Direct Investment (FDI) in the world economy

Due to changes in the structure and trends of foreign direct investment (FDI), the development of the world economy has undergone significant differences over the past six years. Prior to 2011, FDI was primarily focused on the service sector (representing 40% of total world FDI) according to United Nations Conference on Trade and Development (UNCTAD) report, however, the current trend has changed.

Is there a “Chinese Wall” in Europe? A Glance at the Development of Socio-economic Disparities in Europe

This paper analyses the potential factors underlying the different socio-economic paths of European countries after the Second World War. It is clear that divergent economic growth and increasing social and economic divides are still present not only between European Union (EU) and non-EU countries, but also inside these groups. Based on values of the Global Competitiveness Index (GCI), this paper deals with three clearly differentiated groups of European countries. These groups have divergent socio-economic development not only in the past, but still at the beginning of the 21st century. This is emphasised by the digital divide. The main economic and demographic indicators have been analysed, and they reveal that divergence in global economic competitiveness of European countries can be explained by different historical heritages, economic policies, and institutional structures. Although it is difficult to draw a strict line between the three groups, the rising “Chinese wall” is further expanding by the changing in the countries’ productivity, foreign direct investment structure, labour force, and demographics (population ageing, old dependency ratios, migration flows).

Ukrainian companies in Poland - conditions and structure of foreign direct investment

The aim of the article is an attempt to find an answer to the question about the state of Ukrainian FDI in Poland: showing the state, support, government incentives, motives, barriers and investor sentiment. It was possible to reach the target primarily thanks to a thorough analysis of documentation from the websites of the State Statistics Service of Ukraine and interviews with representatives of institutions or their employees. The article consists of three main parts: the first is the administrative activity for the development of Ukraine’s cooperation with Poland and the existence of “incentives” for FDI from Ukraine; the second part analysed data on Ukrainian FDI in Poland and Ukrainian FDI in total and approximated the state of commodity exchange of Ukrainian companies with Poland as a basis for economic contacts (which may develop into strategic alliances, joint ventures or FDI); the third part presents the results of empirical research on investor sentiment, motives and barriers in this process.

Modern Trends in the Structure of Foreign Direct Investment (FDI) in the World Economy

Due to changes in the structure and trends of foreign direct investment (FDI), the development of the world economy has undergone significant differences over the past six years. Prior to 2011, FDI was primarily focused on the service sector (representing 40% of total world FDI) according to United Nations Conference on Trade and Development (UNCTAD) report, however, the current trend has changed.

Preview of BPM6 Methodology and Analysis of Foreign Direct Investment in 2015 in Croatia

Abstract Foreign direct investments include equity capital, reinvested earnings and debt relations between ownership-related residents and non-residents. Since 31 October 2014, the Croatian National Bank has started to publish information in the field of statistics Relations (balance of payments, foreign debt and the IIP) in accordance with the methodology prescribed by the sixth edition of the Manual on Balance of Payments (Eng. Balance of Payments and International Investment Position Manual, BPM6), thus changing the presentational form of direct investment. Direct investments are not classified according to the so-called direction of investments (Eng. directional principle) on direct investment in Croatia and direct investment abroad anymore, but according to BPM6 apply the socalled principle of assets and liabilities (Eng. Assets / Liabilities principle). The aim is to point out the differences between the standards BPM5 and BPM6 and determine which activities and which countries are the most represented in the structure of direct investments in Croatia. By identifying relevant activities and countries in the structure of foreign direct investment, relevant information is obtained about the macroeconomic state of the Republic of Croatia and about the opportunities and potential dangers that certain activities and countries provide.

К вопросу об инвестиционной привлекательности Украины для транснациональных корпораций

На сучасному етапі транснаціональні корпорації завдяки прямим іноземним інвестиціям постійно посилюють свій вплив на розвиток як міжнародних економічних відносин, так і конкурентоспроможності національної економіки. Надходження інвестиційних капіталів слугує основою розвитку інфраструктури території, виробництва, а залучення іноземних технологій підвищує конкурентоспроможність вітчизняних товарів на зарубіжних ринках.
 Метою написання статті є визначення інвестиційних стратегій ТНК у разі входження на український ринок, а також загальних тенденцій залучення прямих іноземних інвестицій, що впливають на інвестиційну привабливість України.
 Методи дослідження – аналіз та синтез, порівняння.
 На основі порівняння даних про динаміку обсягів іноземного інвестування в економіку України інших країн світу проаналізовано особливості залучення прямих іноземних інвестицій в Україну.
 Досліджено галузеву структуру прямих іноземних інвестицій і визначено тенденції, характерні для основних видів економічної діяльності. Відповідно до даних проаналізованих наукових матеріалів було визначено, що переважну частину капіталу іноземних ТНК зосереджено в харчовій і тютюновій промисловості, торгівлі, фінансах, операціях із нерухомістю, тобто в галузях із високою оборотністю капіталу і забезпеченими ринками збуту. Крім того, виявлено негативну тенденцію зменшення припливу іноземного капіталу в реальний сектор економіки.
 Розглянуто критерії, за якими Україна є приваблива для діяльності ТНК, а також враховано чинники, що знижують конкурентні переваги.
 Наукова новизна роботи – визначення особливостей поточного розвитку інвестиційних процесів в Україні, а також обґрунтування необхідності вивчення аспектів інвестиційної діяльності ТНК для залучення зарубіжних інвестицій в економіку країни на взаємовигідних умовах.
 Практична значущість роботи полягає в тому, що забезпечення відповідних заходів щодо поліпшення інвестиційного клімату дозволить Україні за раціонального підходу отримати низку конкурентних переваг, пов’язаних із функціонуванням на її території іноземних корпорацій.
 Подальшого дослідження потребують програми діяльності уряду зі створення відповідних законодавчих актів із регулювання стимулів залучення іноземних ТНК і системи амортизаторів можливих негативних наслідків транснаціоналізації.
 Рис. 2. Табл. 1. Бібл. 11

Alternative assessment of volume and industry structure of foreign direct investment in Russia

The article describes the role of offshore jurisdictions in the world’s capital flows. It is noted that not only tax heavens, but also some developed countries (Netherlands, Great Britain, Switzerland) accumulate capital in significant quantities, formally being an investor. In view of this assessment of volume and sectoral structure of foreign direct investment in Russia and analysis of the results are carried out.

Equity Investments vs. Debt Investments – What Drives OFDI in Polish Industry

AbstractPolish economy witnessed enormous changes over the past 25 years. Systematic economic growth, increasing market openness, legal stabilization and integration with EU have substantially improved Poland’s global competitive position. That is reflected, among others, in intensified flows of long-term capital in the form of foreign direct investment (FDI). What is worth stressing, the last decade (regardless the economic crisis) brought a significant rise of investments made by Polish companies abroad (Outward FDI). It should be mentioned however, that the FDI flows are usually analyzed (in both theoretical and empirical literature) as if they consist only of equity investments, when in fact they consist also of intracompany loans. As the latter may not be driven by the same factors as equity flows, the real structure of FDI flows should be taken into consideration while evaluating the investment potential of companies. The paper examines selected issues concerning international expansion of Polish companies in the form of foreign direct investment. It provides theoretical background of the problem, explores the reasons for expansion and presents the structure of foreign direct investment by Polish industrial companies in the period 2003-2012 with regard to the equity and debt components of the flows. The study is based on the data provided by the National Bank of Poland (NBP).

Analysis of the Trade Balance of the Enterprises with Foreign Direct Investment in Romania

Abstract The purpose and objectives of the present paper highlight the main aspects regarding the development of the enterprises with foreign direct investment in Romania related to the contribution that they have had or may have on the economic development of our country. In this research, we intend to analyze the dynamics and structure of foreign direct investment in Romania, from the point of view of their impact on the net income of the trade balance in the case of companies with foreign capital participation in our country. We have analyzed the exports and imports of enterprises with foreign direct investment at an overall level, and at industry level, of which manufacturing and other activities.

Core competencies, matching and the structure of foreign direct investment

AbstractWe develop a matching model of foreign direct investment to study how multinational firms choose between greenfield investment, acquisitions and joint ownership. Firms must invest in a continuum of tasks to bring a product to market. Each firm possesses a core competency in the task space, but the firms are otherwise identical. For acquisitions and joint ownership, a multinational enterprise (MNE) must match with a local partner that may provide complementary expertise within the task space. However, under joint ownership, investment in tasks is shared by multiple owners and, hence, is subject to a holdup problem that varies with contract intensity. In equilibrium, ex ante identical multinationals enter the local matching market, and, ex post, three different types of heterogeneous firms arise. Specifically, the worst matches are forgone and the MNEs invest greenfield; the middle matches operate under joint ownership; and the best matches integrate via full acquisition. We link the firm‐level model to cross‐country and industry predictions and find that a greater share of full acquisitions occur between more proximate markets, in hosts with greater revenue potential and within contract‐intensive industries. Using data on partial and full acquisitions across industries and countries, we find robust support for these predictions.

Bezpośrednie inwestycje zagraniczne w województwie kujawsko-pomorskim

The inflow of foreign direct investment to kujawsko-pomorskie voivodship make chance to complete shortage of own investment possibilities in economy of region. In that paper is described the structure of foreign direct investment in kujawsko-pomorskie voivodship in 1999–2006 and the companies with foreign capital in this voivodship. There are presented also problems connected with foreign direct investment and labor market in kujawsko- pomorskie voivodship.

Beyond New Regionalism, beyond Global Production Networks: Remaking the Sunan Model, China

I attempt to advance the research on globalization and regional development in China through a study of Kunshan City. I investigate the restructuring process, the structure of foreign direct investment, and the nature of global–local networks to understand trajectories and models of regional development in the context of globalization. I highlight the interactions of the Chinese state, transnational corporations (TNCs), and regional assets in shaping the trajectories of regional development. I argue that Kunshan's pathway to globalizing regional development is state centered and heavily dependent on global forces, which has made Kunshan a TNC satellite district and a dual city segmented between TNCs and domestic firms. I also argue that TNCs' local embeddedness has to be positioned in their global and external networks and that the assessment of regional development has to be conditioned upon a region's specific context. The findings suggest that neither new regionalism nor global production network perspectives can fully explain regional development in China with huge domestic markets and large regional disparities. I promote an alternative, middle-ground perspective to regional development to better integrate global forces, state institutions, and local contexts. Such a third approach to regional development has the potential to localize TNCs and to develop indigenous capacities.

The multinationalization of the transport sector

According to the World Investment Report 2004, the structure of foreign direct investment (FDI) has shifted towards services. Further, the composition of services FDI is also changing from trade and finance to such industries as electricity, water, telecommunications, storage, and transportation. In the latter sector, the value of FDI stock rose by 1600% between 1990 and 2002. Incorporating a transport sector that is dominated by multinationals and economies of scale in a new trade theory model leads to interesting predictions regarding the volume of trade and income and, hence, to a new set of policy conclusions. It also sheds new light on the de-industrialization debate.

A COMPARATIVE ANALYSIS OF FDI IN TURKEY AND THE CEECS: IS THERE ANY LINK BETWEEN FDI AND TRADE?

This paper examines the structure of foreign direct investment (FDI) flows into Turkey and the Central and Eastern European Countries (CEECs) as well as the other new members of the European Union (EU). Our study has two main parts. Firstly, we investigate the key economic and political factors that have an impact on foreign investment, for example, the macroeconomic performance, the production cost and the size of domestic market. Secondly, we explore the relationship between FDI and trade flows for Turkey, the Czech Republic, Hungary and Poland using the Granger causality methodology.

Taxation and the Financial Structure of Foreign Direct Investment

The vast increase in foreign assets globally has raised interest in how the home country should tax profits flowing from these investments. Broadly speaking, countries have chosen either to exempt foreign income from taxation or to subject foreign income to taxation with credits/deductions given for foreign taxes paid. Recent research has focused on the effect of these foreign income tax rules on the relationship between aggregate FDI flows and corporate tax rates. In this paper we examine how foreign income tax rules can affect the financial structure of subsidiary-level FDI in Europe. The tax-deductibility of interest payments suggests that higher (host-country) corporate tax rates should be associated with a greater proportion of debt-financed FDI, as foreign income tax credit systems should, in theory, limit the benefits of shielding foreign income from host country taxation. Our results indicate that whilst multinationals from tax exemption countries adjust the financial structure of foreign investments in response to corporate tax rates, the effect of corporate tax rates is insignificant for FDI originating from tax credit countries. These results reveal an additional channel through which foreign income tax credit systems attenuate the forces of tax competition.

Corruption and the Ownership Composition of the Multinational Firm at the Time of Entry: Evidence from Turkey

This paper is an empirical assessment of the relationship between corruption and the ownership structure of foreign direct investment. In particular, two forms of ownership structures are considered: joint venture and wholly owned subsidiary. The results indicate a strong negative impact of corruption on joint ventures, particularly for the ones originating from the developed countries. As the degree of corruption dissimilarity between the source country and Turkey gets deeper, the share of foreign ownership declines. This lends support to the transaction cost approach which emphasizes the costs of sharing ownership that are expected to increase in corrupt environments.

Patterns of Foreign Direct Investment in Mongolia, 1990-2003: A Research Note

This paper delineates the pattern and structure of foreign direct investment (FDI) in a land-locked transition economy, Mongolia, situated strategically between Russia and China. The assessment is based on publications of major international financial institutions, official statistical publications of the Mongolian Government, and a unique dataset of 1,035 FDI firms based on a database compiled by the Mongolian office of the World Bank. A structured analysis of the dataset and government statistical publications makes it possible to ascertain patterns with respect to FDI country origin, sectoral composition, mode of entry, firm capitalization, composition of foreign and local partners, entry date, and location of the investment (core versus periphery). Journal of Economic Literature, Classification Numbers: E60, F21, P33. 5 figures, 3 tables, 34 references.

The complex integration strategies of multinationals and cross country dependencies in the structure of foreign direct investment

The behavior of many multinational enterprises is not well described by existing models of foreign direct investment (FDI). Firms often follow strategies that involve vertical integration in some countries and horizontal integration in others, a strategy known as complex integration. This paper presents a three-country model that is used to analyze why firms might follow a strategy of complex integration. My analysis reveals that complex integration strategies create complementarities between potential host countries that have important implications for the structure of FDI. The analysis also shows that falling transport cost between countries may increase the importance of complex integration strategies.

East Asian FDI in Europe and Germany

During the 1980s foreign direct investment (FDI) expanded remarkably. Simultaneously, the regional structure of foreign direct investment changed. This relationship is discernible among industrial countries, as well as between industrial and developing countries. Of particular importance is the interface of foreign trade relations between the “Triad” and the economically dynamic East Asian and Pacific area. This article highlights, in particular, foreign investment coming from Eastern Asia into Europe and Germany.