Volume Of Foreign Direct Investment Research Articles

ФОРМУВАННЯ ІНВЕСТИЦІЙНОГО РИНКУ В УКРАЇНІ

A necessary condition for the development of the economy is an increase in the investment activity of investors in the country, an increase in investment resources and their effective use. Therefore, the study of trends in the development of the investment market is relevant and of great practical importance. Specifically, investments form production potential on the latest scientific and technical basis and determine the competitive positions of states in world markets. The study of the formation of the investment market in Ukraine made it possible to form the following conclusions:  the total volume of foreign direct investment in Ukraine in 2020 amounted to $ 453 million. USA, which is 14 times less than in 2010;  the study of the geographical structure of foreign investment made it possible to determine that in 2020, 453 million dollars were invested in the Ukrainian economy by direct foreign investors from more than 76 countries of the world. US direct investment It should be noted that the main investing countries include Cyprus – 31.1 %, the Netherlands – 20.2 %, the UK – 6.1 %, Switzerland – 6.0 %, Germany – 4.6 %, Austria – 3.3 %;  analysis of the distribution of foreign direct investment in the context of sectors of the economy in Ukraine made it possible to note that the greatest interest among foreign investors in 2020 was aroused by industry - 180.35 million dollars. USA, that is, 39.8 %. The leading spheres of economic activity in terms of the development of direct investments in 2020 remain: wholesale and retail trade, repair of motor vehicles and motorcycles – 106.9 million dollars. The United States, accounting for 23.6 %; financial and insurance activities – $ 96.9 million, which is 21.4 %. Thus, Ukraine remains attractive for investments and is not aloof from world processes, is sufficiently integrated into the world economy and the violation of macrostability in foreign markets has its echo in Ukraine. Thus, the investment market is a rather complex phenomenon, with its own internal structural structure, which is sensitive to changes in the external environment. At the present stage, its construction is represented by the classification of structural and infrastructural elements, as well as by supervisory and control bodies, ensuring its functioning thanks to market mechanisms.

Direct Foreign Investments in the Ukrainian Economy: State and Problems of Attracting

Investment is one of the main sources of sustainable economic growth of any country. A special need for investment, including foreign ones, is experienced by countries with economies in transition, to which Ukraine belongs. This article aims to analyze the state and dynamics of foreign direct investment and determine the sectoral structure of foreign direct investment in the national economy in the sectoral dimension to identify the problems and opportunities for investment development of Ukraine. According to the results of the analysis, it was found that the volume of foreign direct investment in Ukraine remains at a low level, and cannot affect the solution of problems related to the raw materials orientation and sectoral inefficiency of the national economy. Trends in attracting foreign direct investment to Ukraine are analyzed and the main factors slowing down this process are identified. These factors include the ongoing military conflict in the East of Ukraine, macroeconomic problems, political instability and low quality of institutions. It was found that, starting in 2018, there has been a gradual renewal of the interest of foreign investors in Ukraine. At the same time, it was found that foreign investments are directed mainly to less technologically and science-intensive industries and sectors of the economy. They account for about 60% of the total volume of foreign direct investment in the Ukrainian economy. It was emphasized that the priorities for national and foreign investment in Ukraine should be medium- and high-tech industries, which currently account for only a few percent in the total structure of foreign direct investment. To remedy the current situation, it is proposed to introduce tax and non-tax methods of investment incentives, among which industrial parks should take a special place as one of the most effective tools for attracting foreign investment in world practice. They contribute not only to the inflow of foreign investment, but provide many other advantages to countries and regions, including: the creation of new jobs, an increase in industrial production, the growth and diversification of exports, the attraction of foreign technologies and management practices, the development of high-tech industries. All these advantages and benefits from the creation of industrial parks are in need of Ukraine.

OFFSHORE ECONOMY TENDENCIES AND CHALLENGES: CASE STUDY OF UKRAINE

Abstract. The paper aims at disclosing the nature of offshore tools used for the withdrawal of capital from Ukraine, as well as suggesting measures to be undertaken by Ukrainian authorities to improve the current situation. The authors apply comparative analysis to find the data discrepancy between State Statistics Service of Ukraine and Eurostat on export-import operations between Ukraine and the EU to determine the volumes of tax evasion and avoidance in Ukraine. The article states that dynamic internationalization of financial and economic operations of Ukrainian business entities in recent decades had negative effects on national welfare due to their maneuvering of capital between affiliated units via transfer pricing and intensifying their offshorization using transborder movement of commodities, services, and factors of production resulting in the reduction of budget tax revenues, increasing the scale of cross-border outflow of capital, strengthening the strategic control of foreign countries over the production facilities of Ukraine, as well as significantly undermining national tax security, macroeconomic and social balance. Thus, Ukrainian regulatory bodies must take measures aimed at deoffshorization of business activities, structural modernization of the national economy, dynamization of macroeconomic growth, regulation of inflation and increasing the volume of foreign direct investments in Ukraine. Keywords: multinational companies, offshore, offshore financial centers, offshorization, tax avoidance, tax evasion, tax haven, Ukraine. JEL Classification H26, H31, H32 Formulas: 0; fig.: 0; tabl.: 6; bibl.: 49.

Identifying the degree of dependence of foreign direct investments on adjusted net savings of the recipient country

Due to the loss of the dominance of GDP as the main macroeconomic indicator of the social welfare, this study uses a more accurate and realistic indicator – adjusted net savings (ANS). Based on the economic and mathematical modelling, the study suggests a new method for identifying the value of adjusted net savings as a stimulating factor to increase the inflow of transnational capital to the recipient country. After assessing the current environment of investment attractiveness of recipient countries, attention was paid to identifying the degree of dependence of foreign direct investment on adjusted net savings. The novelty of this study is conditioned by the search and identification of the dominant macroeconomic indicator of investment attractiveness of the recipient country. Such an indicator will most fully reveal the conditions and prospects for attracting investments. The aim of this study was to consider alternative approaches to the country's development and to demonstrate the existence of a functional relationship between the volume of foreign direct investment and adjusted net savings. The purpose of this study is to build models of the dependence of foreign direct investment on adjusted net savings of the recipient country as an alternative indicator that most widely reveals the level of social welfare and economic development of the studied countries. Adjusted net savings consist of elements that cover the sustainable development of society, namely the economic, environmental, and social components. As a result, using the correlation and analysis of variance, the existence of dependence and its degree of influence on the volume of foreign direct investment on the adjusted net savings of the recipient country has been proved.

Analysis of foreign direct investments: regional aspect

The article analyses the dynamics of foreign direct investments in Russia and the world. Developed countries act as net lenders. Developing countries are borrowers in the investment capital market. The paper reveals the trend of reducing the balance of foreign direct investments in Russia, especially after the introduction of sanctions in 2014. Assessment of the structure of foreign direct investments by Federal Districts shows the presence of territorial imbalances in the distribution of foreign capital. The largest volume of foreign direct investments is in the Central Federal District. In the Krasnodar Territory, the balance of foreign direct investments is positive, but has an uneven dynamics. The authors make conclusions about the need to stimulate the inflow of foreign direct investments both at the level of Russia and in the Krasnodar Territory.

INSTITUTIONAL FACTORS OF ATTRACTING FOREIGN DIRECT INVESTMENTS IN THE INFRASTRUCTURE OF UKRAINE

The article examines the system of institutional support for the inflow of foreign direct investment, because the lack of a reliable legal and institutional environment causes the slowdown of the modernization of the infrastructure of Ukraine's economy. The production potential of the industry depends directly on the equipment and the latest technologies, the ability to use innovative methods productively. Effective development is not possible without investment funds, which determine not only financial support but also innovative modernization. The use of a range of factors to attract foreign direct investment is a priority policy for the development of a cost-effective economy focused on the European type of development. It is established, firstly, that institutional factors significantly affect the volume of foreign direct investment in countries with economies in transition; secondly, it has been found that the maturity of state institutions depends on numerous macroeconomic indicators of countries' development, including foreign direct investment, which may be accompanied by high transaction costs in a non-transparent institutional environment; thirdly, it is emphasized that one of the methods of creating a favorable institutional environment is a comprehensive analysis of relevant international indicators; then, the system of indices for assessing the institutional environment of the national economy is applied; afterwards, it was confirmed that the development of various state institutions will increase the inflow of foreign investment, which will promote innovation, effective technology transfer, and this, in turn, will ensure economic growth and modernization of Ukraine’s infrastructure. Carrying out the analysis and applying the proposed tools to study the impact and opportunities to increase the volume of foreign direct investment will lead to the modernization of the infrastructural sphere of life in Ukraine and opens a new field for a broader study of this topic. The development of economic life and investment requires extensive analysis and identification of tools to regulate an important area in the modern world. Keywords: infrastructure, foreign direct investment, institutional environment, performance indices of state institutions, bilateral investment agreements

МІЖНАРОДНІ РЕЙТИНГИ ТА ОБСЯГИ ПРЯМИХ ІНОЗЕМНИХ ІНВЕСТИЦІЙ: ВЗАЄМОЗВ’ЯЗОК ПОКАЗНИКІВ

The purpose of the study is to identify the relationship between the values of major international rankings and the volume of foreign direct investment for 20 leading countries in involvement FDI. The following rankings were examined: the index of ease of doing business, international and global ratings of competitiveness, the index of economic freedom, tolerance for corruption. Analysis of the places occupied by Ukraine in the relevant rankings. The statistical processing of information on 20 leading countries in terms of foreign direct investment and the corresponding place of these countries in the main international rankings, the use of the correlation method to identify the relationship between these indicators, methods of analysis and synthesis, comparing the level of foreign direct investment with the corresponding values of known international indices. In addition, countries were classified into three different groups depending on the relationship between the values of the main international ratings and of foreign direct investment. Another research method was the abstract-logical method to find new additional factors that determine the investment attractiveness of countries. The analysis of the relationship between the inflow of foreign direct investment and the corresponding place of the studied countries in the main international rankings did not show a significant dependence. At the same time, it was found that a number of countries that hold leading positions in attracting the highest volumes of foreign direct investment have correspondingly high-ranking positions in international indices. However, this sample of countries turned out to be the smallest. The largest number was the sample of countries, it was half of the list of countries for which there is no correlation between the volume of foreign direct investment and the rating values in major international indices. The analysis showed a fairly close relationship between the volume of foreign direct investment, on the one hand, and the size of the country, which is characterized by GDP and population, on the other hand. However, in our opinion, international ratings should not be ignored in general: achieving high places in international rankings to some extent forms a positive investment image of the country, and ignoring the results of ratings can lead to financial isolation of the country. At the same time, the study of new factors that cause the desire to make foreign direct investment in a country is a very interesting object of further research.

Foreign direct investment, enclaves and liveability: a case study of Korean activities in Hanoi, Vietnam

Foreign Direct Investment (FDI) is a core element for global capital flows and a key driver for urban transformation. However, the ways in which FDI flows have been associated with the production of new urban spaces have attracted little academic attention. This research investigates how FDI activities have led to the migration of expatriate workers and their family members who have established ethnic enclaves in search of liveable environments. The paper focuses on the case of Korean activities in the Hanoi Capital Region (HCR) where the growing volume of FDI has facilitated two bipartite activities in geographically separate locations: one in production space for industrial activities in regional areas and the other in the social space for residential and commercial activities in new urban cores. The case study of Korean FDI, the largest investors in Vietnam, and in particular the HCR, depicts wider perspectives beyond a single industrial sector. This research sheds light on new aspects of recent changes in Hanoi, borne of cross-border capital and human mobilities. The ethnic residential enclaves are largely self-contained for intense social interactions, used as a tool to enhance liveability and bounded within commuting distance from the industrial sites.

FOREIGN INVESTMENTS IN THE ECONOMY OF EASTERN EUROPEAN COUNTRIES

Foreign direct investment (FDI) has been debated by many specialists being considered in most cases a source of development for the receiving countries. From this perspective the study is a comparative analysis of FDI evolution in Eastern European countries and an analysis of FDI in Romania. The analysis was carried out over a period of five years and allowed us to obtain useful information regarding the FDI volume expressed in % of GDP, FDI structure and structure of activities in Romania considered attractive for FDI, respectively FDI distribution in the regions of Romania.

СВІТОВІ ТРЕНДИ ПРОСТОРОВОГО НАУКОВО-ТЕХНІЧНОГО РОЗВИТКУ БІЗНЕС-ПРОЦЕСІВ

У статті досліджено основні пріоритети просторового розвитку бізнес-процесів та можливості їх імплементації в зовнішню економічну політику України. Визначено базові поняття зовнішньої та внутрішньої просторової політики, критерії її оцінювання. Встановлено, що стратегічні пріоритети просторового розвитку світових бізнес-процесів являють собою систему цілей і завдань просторових одиниць (міста, регіону, держави, міждержавних об’єднань) щодо управління адміністративним, економічним і соціальним розвитком окремої територіальної одиниці з урахуванням реалізації механізмів просторового регулювання. За результатами дослідження зроблено висновки про те, що державне регулювання варто спрямовувати на просторову інтеграцію країни в світові бізнес-процеси, проведення відповідної податкової політики, раціоналізацію використання унікальних природних ресурсів у ряді районів, створення і реалізацію важливих цільових програм.

Uticaj eksternih faktora na tokove SDI na primeru Višegradske grupe i Srbije

This research paper examines the impact of external factors on the dynamics of foreign direct investment (FDI) trends in specific economies. The same subject will be analyzed through the examples of the Visegrad Group and the Republic of Serbia. The aim of the research is to determine the existence of a link between the impact of foreign direct investments on the growth and development of the economy observed through gross domestic product (GDP) in the 1990-2018 period. The results of the research indicate that Poland was the most successful in attracting and keeping FDI, compared to other countries. Further, the volume of FDI has been dependent on several external factors, such as overall business environment, economic crisis, political risks, positions in relevant institutions, pandemic, etc. Moreover, for the Republic of Serbia, it will be important that all stakeholders in the country have a proactive approach in order to keep FDI in the country. Finally, representatives of the authorities should be committed to fulfilling promised deals related to the regional cooperation and EU (European Union) accession and integration.

ІНВЕСТИЦІЙНА БЕЗПЕКА У СИСТЕМІ ЕКОНОМІЧНОЇ БЕЗПЕКИ ДЕРЖАВИ

In modern conditions of functioning of the market economy, in the era of development of globalization and globalization processes, the prevalence of international relations, the spread of various forms of international capital movement, in particular foreign direct investment, an important place is occupied by investment activities and policies implemented by the state within the framework of the latter. It is difficult to overestimate the importance and role of investment, because world experience shows that the effective development of business entities, and therefore the country's economy as a whole, cannot be imagined without making investments. Therefore, the government of almost any country in the world is focused on creating a favorable investment climate. The article defines the theoretical foundations of investment security of the state: the essence of the concept is outlined, the principles on which investment security is based, its place and role in the state's economic security system are justified. Qualitative and quantitative criteria for a comprehensive assessment of the state's investment security are presented. The calculation and analysis of the main indicators – quantitative criteria of investment security: gross accumulation of fixed capital; the degree of accumulation of fixed capital; the ratio of the cost of newly introduced fixed assets to the volume of capital investments is carried out; the ratio of net growth of foreign direct investment to GDP; the size of the Ukrainian economy as a percentage of global GDP. The dynamics of the total volume of foreign direct investment in the Ukrainian economy in the context of world countries is analyzed. The main investor countries that ensure the receipt of the largest volumes of investment flows to the Ukrainian economy are identified. Ukraine's place in the World Bank's “Doing Business” rating over the past ten years has been demonstrated. The positive dynamics regarding Ukraine's place in the World Bank's “Doing Business” rating and the main factors that influenced such positive changes were noted. The investment climate of the state is assessed and possible measures are proposed to improve the mechanism of managing the state's investment security.

Полярність впливу факторів глобалізаційних перетворень

The article discloses the issue of polarity of influence of factors of globalization transformations. The research is aimed at systematizing the factors of positive and negative impact of globalization transformations on the example of Ukraine. The definition of the essence of globalization is provided and a semantic explanation of polarity is determined. Polarity as a result of the research is defined as opposing the factors of influence, in particular comparing the positive and negative impact on globalization transformations. For an objective analysis, a more detailed analysis of negative and positive factors of globalization transformations in the aspect of Ukraine is carried out. In particular, the dynamics of foreign direct investments in Ukraine, as well as their structure in terms of sectors of the national economy and the countries that make these investments, are displayed. It is emphasized that to a large extent globalization transformations in the economy are shown by the example of the activities of transnational companies that constantly create new business structures in order to rationally divide the market. The meaning of transnational corporations for the economy of Ukraine is characterized and the turnovers of the largest ten of them are determined. It is noted that the positive factors of globalization transformations include: increase in the volume of foreign direct investment and budget revenues; cultural development; acceleration of scientific and technological progress; free movement of the population in different countries; regulation of ecological and medical situation; expansion of sales markets; rationalization of resource use; improving the quality of production. The negative factors of globalization transformations include: displacement of small entrepreneurs and small businesses from the market; economic and political weakening of the country; development of the shadow economy; obstruction of national interests; complications of entering the domestic business market; reduction of labor resources that are of strategic importance for the country; excessive use of the country’s natural resources.

ЕКОНОМІКО-СТАТИСТИЧНИЙ ПІДХІД ДО ПРОЦЕСУ МІЖНАРОДНОГО ІНВЕСТУВАННЯ: РИЗИКИ ТА ПЕРСПЕКТИВИ

The fact that Ukraine is involved in the worldwide process of globalization and integration intensifies the attraction of overseas capital, which is an important tool for structural changes in national economies, for replenishing the budgets of countries and ensuring their economic growth. The current economic development of Ukraine is a result of the lack of country’s own financial resources, which confirms the need to create a favourable investment environment and intensify international investment. In view of this, the essence of foreign investment has been considered; the main forms and modern approaches to the classification of foreign investment have been described. It has been highlighted that foreign direct investment is the most effective for further development of the national economy in the context of globalization. The main aspects that make Ukraine’s economy attractive for international investors have been identified. An economic and statistical approach has been used to analyze the volume of foreign direct investment in and from Ukraine and from the country in the dynamics as a whole, as well as in terms of individual countries. The orientation of foreign direct investment in certain types of economic activity has been analyzed; and the priority directions for foreign investment in the national economy have been determined. The transformational changes in the way how domestic statistical information related to foreign direct investment is displayed have been identified. It has been emphasized that currently the only body responsible for disseminating information related to international investment is the National Bank of Ukraine. The factors that affect foreign investment have been specified, as well as investment risks associated with the use of overseas capital in the country. It has been noted that the further implementation of Ukraine’s economic policy in the field of foreign investment is associated with the appropriate regulation of both attraction of investment and its effective use. Prospects for international investment in Ukraine have been highlighted.

THE EFFECT OF FDI ON PRIVATE INVESTMENT IN THE SOUTHEAST REGION OF VIETNAM

The Southeast region of Vietnam is the most dynamic economic area of the country and contributes the most to state budget revenue. Every year, this area attracts a high volume of foreign direct investment (FDI) inflows with the establishment of more industrial zones, export processing zones, and high technology parks. Do FDI inflows into this area crowd out/in private investment? This study uses the general method of moments (GMM) Arellano-Bond estimator to empirically investigate the effect of FDI inflows on private investment in the Southeast region from 2005 to 2018. The FE-IV estimator is employed to check the robustness of the estimates. The results show that FDI inflows crowd in private investment in this area. In addition, inflation increases private investment but infrastructure decreases it. The findings in this study provide some crucial policy implications for local governments in the Southeast region to attract more FDI inflows and stimulate more private investment.

Сучасний стан та тенденції розвитку аграрного сектору України

Annotation. The article analyzes the current state and development trends of the agricultural sector of Ukraine, which has become one of those sectors of the Ukrainian economy that are developing very dynamically in recent years. Thanks to this sphere of the national economy that a significant part of gross added value is created, revenues to the budgets of all levels are formed, foreign exchange revenues from exports grow, and the investment process is actively carried out. The special role of the agricultural sector in the socio-economic life of the country is due to the unique combination of favorable climatic conditions and geostrategic position, the ability of Ukraine to occupy an important place in the international food market. Therefore, the study of the state and development trends of the agricultural sector of Ukraine is relevant. Purpose. The purpose of the article is to research the state and trends of the agricultural sector in the economy of Ukraine. Results. The article identifies the place of the agricultural sector in the country’s economy. The key macroeconomic indicators of the agricultural sector are analyzed. The dynamics of the share of agricultural products in total value added, the share of the rural population in the general structure of the population, the structure of employment of the population of Ukraine by all types of economic activity, as well as the share of the employed population in agriculture. It is determined that one of the urgent problems of the agricultural sector of Ukraine’s economy is to attract investments that are necessary to modernize the industry and ensure its competitiveness. The factors that contribute to attracting investment are identified. The volume of foreign direct investment in the agricultural sector and trends in foreign direct investment in the share capital of the agricultural sector are considered. The main obstacles to intensifying investment processes are highlighted. The financial results of the agricultural sector, the growth trend and the dynamics of profitability of agricultural enterprises are studied. The priority directions of the state regulation of the agrarian sector are offered. Conclusions. Considering the state and development trends of the agricultural sector of Ukraine, we can conclude that the agricultural sector occupies an important place in the economy and plays an important role in the socio-economic life of Ukraine. Taking into account the above areas and sound public policy will contribute to the further development of the agricultural sector of Ukraine. Keywords: agricultural sector; dynamics; development; agriculture; agricultural enterprises; investments; areas for improvement.

The problems of investment support of innovative development of agriculture

The article examines the main problems facing the development of competitive agriculture, given the dynamism of investment in the industry and investment in the current environment of increasing globalization, as the introduction of innovative products is the basis for effective development of the enterprise, region and country. The analysis of the main indicators that characterize the level of investment support of enterprises of Lviv region, in particular the volume of capital investments and the volume of foreign direct investment. The volumes of agricultural output in enterprises and households of the population, and, accordingly, the possibility of attracting investment by these categories of producers are considered. The main problems of agricultural production are characterized and the directions of intensification of investment and innovation activity are offered, taking into account the support of the state, foreign economic potential of the region, its border location and export-oriented production. Innovative development of agriculture, expanding the ways of its investment are among the factors that play a crucial role in ensuring the balanced development of the region, building strategic prospects for its economic growth, identifying internal problems and obstacles to this process, and adequately assessing the potential of local resource levels. It is considered that the priority in today's conditions is the introduction of technologies for environmentally friendly cultivation of crops and the development of organic production, development of infrastructure for storage and distribution of agricultural products by attracting investment projects. It is important for agricultural producers to adapt to international food quality and safety standards and to produce agricultural products that meet EU requirements and standards. The model of strategic goals of innovative development of agriculture is offered, which aims to promote effective optimization of agricultural production, development of production infrastructure on the basis of state assistance and support, taking into account the stimulation of investment projects and attracting foreign funds.

Дослідження характеру та значимості впливу факторів ринку праці на інвестиційну привабливість країни

In recent years, there has been a significant structural impact of the so-called "digital" economy on the formation of FDI flows. The development of advanced technologies and robotics is accelerating. All this makes production more sophisticated, cheaper, and faster. The progressive labor market is a good basis for the successful development of enterprises in various industries. And investments make it possible for industries to be created, to develop, and to innovate. In addition, foreign direct investment is an important method of technology transfer that stimulates domestic public investment flows and fosters the development of human capital and institutions. The purpose of the article is to develop an economic and mathematical model of the dependence of a country's investment attractiveness on labor market factors. The influence of labor market factors on the investment attractiveness of Ukraine is analyzed and thoroughly substantiated, as well as the state of Ukraine's modern labor market, whose characteristic features, possible tendencies, and prospects are determined. The factors of the labor market include value-added per worker, medium and high-tech exports as a percentage of total exports, the unemployment rate, and the gross enrollment rate for higher education. Investment attractiveness is determined by the volume of foreign direct investment. When developing the model, the authors substantiate the comparability of the input data, their statistical significance, and the correlation of factor variables with foreign direct investment income. The Irwin method was used to check for anomalies of values, and recommendations were made for eliminating such data if they were found. The normality of distribution was verified using the Shapiro-Wilk test. The construction of a multivariate linear regression model was performed using the Stata 14 statistical package.

Features and Factors of Developing the Volume of Foreign Direct Investment in Iran and in Russia

The article discusses the features of foreign direct investment (FDI) in Iran and Russia from 2000 to 2018. The research methodology used in the article is focused on two main methods: theoretical and correlation analysis (using the Pearson correlation coefficient test). This test analyzes the relationship between foreign direct investment in the above countries and some macroeconomic variables. The results of the study show that economic structures and the influx of foreign direct investment in Iran and Russia are affected by Western economic sanctions, geopolitical risks and lower world oil prices. In addition, despite similar approaches to the absorption of foreign direct investment in Iran and Russia, the relationships between this indicator and macroeconomic variables (gross domestic product, inflation, employment in industry, services and agriculture, export volume and exchange rate) in these two countries differ significantly in the analyzed period (from 2000 to 2018). As a result of the analysis, it has been concluded that various factors, such as the size of the economy and the level of economic ties with developed economies, make the result of strategies and approaches to them different for these two countries.

The global processes influence on the development of the Arctic

In this article, an attempt is made to create a model of global processes influence on the development of the Arctic territories of circumpolar countries. A characteristic of the Arctic territories as a research object is given from the point of view of the territorial, geographical, natural and climatic features, as well as globalization processes such as transnationalisation, scientific and technological progress, market competition. A hypothesis of the global processes influence on the development of the Arctic is formulated. Methodology for creating a model of the global processes influence on the development of the Arctic territories of the circumpolar countries is proposed including the formulation of the research objective, the rationale for the selection of endogenous and exogenous variables, and the creation of a model. The research objective was to create a model of the globalization processes influence on the Arctic development. The indicators reflecting the economic, social, and environmental development of the Arctic territories of the circumpolar countries were selected as endogenous variables. They include the average annual increase in the gross regional product, the share of agricultural products in the gross regional product, the share of industry in the gross regional product, the number of economically active population, the number of unemployed people, and carbon dioxide emissions. The indicators characterizing globalization processes were selected as exogenous variables: the average value of the transnationalization index of the largest transnational corporations (TNCs), world exports of goods and services, royalties and license payments, traditional fuels consumption, electricity consumption per capita, the volume of foreign direct investments. The authors propose a dynamic econometric model consisting of eight econometric equations, each of which is an ADL model that takes into account the time factor. The results of the analysis will be used by the authors in further studies to make forecasts and develop a concept for the development of the Arctic territories of circumpolar countries.