Foreign Investment in Buryatia

The study aimed to address and analyse foreign direct investment and its impact on the national economy. Statistical data were analysed, concluding that a majority of foreign direct investment (37.6-43.7%) was directed to industry, particularly the processing sector (23.7-26.3%), trade (14-15.9%), and financial activities (18.4-19.6%), while the least went to education (0.04-0.08%) and healthcare (0.2-0.3%). Most foreign direct investments inflows came from Cyprus, the Netherlands, Switzerland, Germany, and the United Kingdom. Advantages and disadvantages of attracting foreign direct investment were systematised, and key factors negatively influencing Ukrainian investment market were identified. The study explored the core components that facilitated foreign direct investment inflows as well. A definition of the term “foreign investment” was provided, implemented measures aimed to improve the investment climate, as well as the measures that need to be implemented to promote the attraction of additional foreign investment were analysed. Main statements of legislative and regulatory acts to support strategic foreign investors were systematised. Investment potential of Ukrainian promising sectors was addressed. To trace foreign direct investment dynamics, the volume of foreign direct investment in Ukraine as of 2003-2024 period was considered. Distribution of foreign direct investment by major economic sectors (2007-2024) and by country of origin was analysed. The study explored the correlation between changes in foreign direct investment levels and inflation dynamics in Ukraine using macroeconomic data and the elasticity coefficient for the 2003-2024 period. The influence of internationalisation, globalisation, and transnationalisation on foreign direct investment was addressed. The importance of foreign direct investment as a driver of Ukrainian economic development was substantiated, key challenges in managing foreign direct investment were identified, and recommendations for enhancing investment governance were proposed. The practical significance of the study is determined by the contribution to improvement of the effectiveness of foreign direct investment management and promotion of national economic welfare

Many developing and developed countries alike are striving to attract foreign direct investment because of its impact on economic development, transferring expertise, and development of mechanisms for the business models of the host economy. This research drives at studying foreign investments by analyzing their inflows and their relative importance to Egypt; identifying as well, the reasons that prevent outmost and optimal benefit by drawing on the experiments of some countries. The research also aims to examine foreign direct investment in the field of clean energy in Egypt, to study the patterns of joint cooperation between foreign investments and the various ministries and agencies in the energy field; studying as well, the obstacles that prevent some of the memorandums of understanding signed with foreign companies from being implemented. The practical side of the study is explained through the applied study by analyzing the data issued by the Ministry of Planning and Economic Development using descriptive statistical and inductive measures to test the relationship between the study variables. The results of the study showed through statistical analysis when testing the hypotheses that there is a positive significant effect between foreign direct investment and the real economic growth rate, and that it contributes to development but in a small amount due to the nature of these investments and their sectoral distribution. There is a positive non-significant impact between foreign direct investment and total exports and imports as a percentage of the gross domestic product. Its impact is negligible and poor, given that the majority of it flows into the petroleum sector. There is also a positive significant impact between foreign direct investment and total human capital as a percentage of the gross domestic product in a small percentage given that the majority of foreign investments do not require large labor. There is a negative significant effect between foreign direct investment of the inflation rate due to its sector distribution which is mostly focused in the petroleum sector and between tourism and real estate.

A territorial analysis of the foreign direct investments (FDI) in Romania shows major differences at all levels and in many fields. Among the eight Romanian economic development regions, there are a few which have closer indicators with the level of other countries in European Union (EU), but still many other far from the requirements of a member state of EU. A sectoral analysis of the FDI in Romania demonstrates a big imbalance between branches. Some of them were more attractive compared with the others. The investments generally and the investments in rural area and agri-food sector especially, acquire a special importance, as they are closely linked to the natural environment and the population. In the context of the transformations in the last years, the agriculture needs major investments in order to recover the lost capital due to the lack of stability and clear policy in the first years of transition. The lack of domestic capital claims for international funds and foreign investments. These are only a part of the arguments supporting the idea that, the foreign capital in Romania is welcome and necessary for the recovery of some sectors of activity, for improvement of the state of regions and for evening out of the disparities between them. The analysis of the Romanian sectors and regions, together with the investment policy and foreign capital flow’s evolution in economy will strengthen the above-mentioned arguments and reveal the present drawbacks and the need to accelerate the investment process.

Although the theoretical literature suggests that countries with a strong outward orientation register a faster pace of economic progress relative to those that are inwardly oriented, the empirical evidence is mixed. This thesis re-examines the empirical relationship between outward orientation and economic growth using innovative methodologies drawn from the production frontiers literature and timeseries econometrics. Outward orientation is defined as openness to trade and foreign investment. A key difference between this thesis and the current literature is that the former distinguishes between technology and efficiency externalities of outward orientation and also considers the potential linkages between various channels of outward orientation. The thesis is organized as a collection of three independent empirical studies. In the first study, the efficiency component of productivity growth is isolated, and the effects of trade and inward and outward foreign investment on efficiency is examined; different forms of foreign investment – direct, portfolio and other foreign investment are distinguished. A sample of 20 OECD countries covering the period 1988-2000 is applied in the analysis. In the second study, ‘inefficiency free’ measurements of technology gap are computed. Through second stage regressions of the technology gap measure on trade and foreign direct investment, the effects of outward orientation on technology are gauged. A larger panel dataset of 63 countries covering the period 1982-2000 is applied in this study. The third study, using quarterly data from Australia over the period 1988-2003, evaluates the growth effects of outward orientation while providing for systematic interactions between various types of trade and foreign investment. In addition to the empirical studies, the thesis also includes two literature review chapters: one on the linkages between trade, foreign investment and economic growth, and the other on the use of production frontier methods in macroeconomic applications.

Preferential trade agreements are growing in number and deepening in content by incorporating disciplines that go beyond market access. They increasingly encompass non-trade-related disciplines as diverse as intellectual property rights, environment laws, or labor market regulations. Moreover, because investment is complementary to trade, preferential trade agreements provide relevant institutional frameworks to partner countries that wish to regulate their foreign investments. This paper studies the impact of deep trade agreements on foreign direct investment and examines three sub-questions. First, is the impact of trade agreements on foreign direct investment heterogeneous across types of business activity Second, is this impact heterogeneous across disciplines covered in the agreements Third, does the level of development of home and host countries matter for this impact The analysis exploits the World Bank’s data set on the content of preferential trade agreement and data on announcements of bilateral greenfield investment at the activity level. The findings show that deep trade agreements matter for investment: every additional discipline in a preferential trade agreement increases foreign direct investment by 1.4 percent, on average. Deep agreements do not impact foreign direct investment in natural resources and extractive activities and have heterogeneous effects across manufacturing- and services-related activities. The results also reveal that disciplines that go beyond the mandate the World Trade Organization matter more for foreign direct investment. Disciplines related to investment liberalization and protection, intellectual property rights, or migration increase foreign direct investment, whereas disciplines on labor market regulations reduce investment. The results are mostly driven by investment between developed and developing countries.

In a modern economy, investment activity is one of the main factors of economic development, structural changes and increased competitiveness. A significant part of the countries of the world strive to attract and encourage foreign investments to strengthen productive capacities and sustainable economic development. And for a foreign direct investor, the primary motive for investment is the establishment of long-term relations with the host enterprise, provided that it has a significant influence on its management, as well as increasing profits, reducing taxes, diversifying risks, etc. Currently, the main subjects of foreign direct investment in the global market are international companies and financial groups. However, in reality, foreign direct investment alone cannot guarantee the prosperity of the national economy. The latter, as a development tool, has both its advantages and disadvantages, and in the host country, they contribute to sustainable economic growth only if certain conditions are met. In this regard, the government of the host country is responsible for establishing conditions for foreign direct investment that will contribute to the long-term economic growth of that country, and not only to ensuring the profits of foreign investors. Therefore, the impact of foreign direct investment on the host country depends on many factors, such as the method of entering the market, the sources of financing for direct investment, the latter’s impact on the activities of companies operating in the host country, etc. On the other hand, regardless of the volume of foreign investment, it can also be completely useless and lead to the ruthless waste of the country’s natural resources, as well as the population’s dependence on the outside world for many years. Only with a balanced and considered approach to the joint interests of investors and the host country can it be ensured that foreign investments are effectively attracted and utilised for the benefit of the country’s economic prosperity and the improvement of the population’s living standards.

The analysis of the impact of foreign direct investment (FDI) on the rate of economic growth on the example of China and Ukraine is carried out. It is shown that foreign direct investment has a positive impact, but this is not the only factor that determines economic growth. Apart from the attracted foreign investment, the country must have developed institutions that will protect foreign capital from both the internal political and the external risks. Such an institutional environment will contribute to the growth of foreign direct investment and the effectiveness of their implementation. It is shown that at the same levels of foreign direct investment per capita – investments in China tend to grow steadily and less volatility. At the same time, foreign investment in Ukraine is unstable and highly dependent on macroeconomic factors, such as global economic crises and armed aggression of the neighboring country. To determine the impact of foreign investments on the pace of economic growth, the article used a regression and correlation apparatus. A cross-correlation function was used to assess the lagging impact of foreign investment on economic growth. The novelty of this publication is that by using correlation analysis, a significant difference in the lags of FDI impact on the GDP growth rates for the economies of Ukraine and China has been proved. It is found that Ukraine is characterized by a rapid short-term response to foreign direct investment with zero and single lag, while for the Chinese economy this response is dissolved over time. The main stagnation factors in Ukraine include the following: practical absence of the possibility of direct investment of the population into the country’s economy (underdeveloped stock market), significant political (risks of loss of property), macroeconomic and corruption risks.

The importance of excellent tax policies in increasing foreign direct investment inflows should be stressed in all growing economies. Foreign direct investment (FDI) is critical to increasing productivity, particularly in developing nations. Taxes emanating from energy related business have also triggered this inquiry due to fumes being contended within the environment and the effect on human existence. Prior researchers have investigated a variety of issues including trade liberalisation, property taxes, market shares, corporate taxation, and rising prices. Fewer researchers have examined the tax implications of energy and information and communication technology (ICT) development as a predictor of FDI in low-income countries. Following the introduction of taxes on energy and ICT activities in Nigeria, foreign investments’ responses have not been tried out in studies and yet the dwindling level has been an issue of policy concern. As a result, this study seeks to fill the gaps by evaluating the effects of energy and ICT taxes on FDI from 2010 to 2020. The data applied for this analysis are obtained from World Bank, Federal Inland Revenue Service (FIRS) and Central Bank of Nigeria. Considering the outcome of this investigation, the paper concludes that the ICT development tax is detrimental to FDI inflows using the econometric approach of regression analysis. The correlational analysis also provides evidence that ICT taxation has a strong negative association with FDI. Other factors, such as trade openness and energy taxes, neither have a substantial relationship nor impact on FDI. The study indicates that improving policies to minimise ICT taxation will benefit the expanding economy by recruiting new foreign investors and retaining those who are currently present in the country

Foreign direct investment (FDI) flows are highly dynamic, but the factors of FDI flows are not fully determined in the process of globalization. Undoubtedly, foreign investment is a driver of economic growth. This constitutes the importance of the assessment of FDI factors and foreign capital opportunities. This article analyzes the importance of the investment environment for FDI and FDI importance for the economy, considers the main FDI theories, identifies key determinants and interferences of FDI. The aim of the research is to assess the investment environment, the factors of foreign capital inflows and to analyze the prospects of FDI in Lithuania. The analysis of scientific research papers made it possible to focus precisely on the most important aspects of FDI. The information of statistical databases provided opportunities to substantiate FDI dynamics and its factors. Literature analysis identified the essence of FDI and the main economic theories: the production cycle, exchange rates and imperfect capital markets, internalisation (domestic distribution), and Dunning eclectic paradigm. Theories have different approaches to the problems arising from the movement of capital between countries and the prospects of international investment. They also analyze the relation of FDI to legal, institutional, political environment, international organizations, competition, operating costs, economic growth, cultural differences, macroeconomic situation. Literature also indicates the impact of FDI on the receiving country‘s economy. In general, it was found that the recipient country‘s gains exceed the negative impacts, and the increasing volume of FDI increase the incentives for economic growth. Economic growth promotes further capital growth. Scientific analysis made it possible to focus on the most important aspects of FDI in Lithuania. Thus, the empirical part of the research, the analysis of FDI dependence on various macroeconomic factors is based on comparative statistical methods and econometric models. FDI in Lithuania is also assessed with regard to activities, investing countries. Undoubtedly, the methods used in the research are particularly important because they determine the results. The study uses the following methods: abstract, systematic comparative, logical analysis, analytical - critical method, correlation, regression analysis and cross-sectional models. The economic environment is assessed using investment attractiveness ratings which are broadly recognised by the international community. FDI in Lithuania is assessed using the gravity model. It should be noted that the FDI gravity model has not yet been applied in Lithuania. At the end of the article, according to the conducted significance and impact analysis, FDI prospects for the future and quantitative FDI forecast are discused. Authors conducted FDI stock inflows in Lithuania applying gravity model which confirms the main assumptions. FDI stock in Lithuania is positively affected by level of economic development, but it is negatively affected by unfavorable geographical location: distance from developed countries which tend to invest rather than receive FDI. FDI in Lithuania in certain industries comes without special incentives, but less attractive activities should be encouraged by state regulation, while ensuring favorable business conditions. The main factors of FDI disclosed include economic development, specialization of FDI outflow and inflow countries, transparency of business environment, cultural distance, communication. However, the most important factors are combined effects – the country’s ability to benefit from market perspectives. The growth of FDI in Lithuania was forecasted. It will not be fast, but balanced political, administrative and financial solutions would have positive impact on capital inflows. In conclusion, Lithuania has the potential to receive more FDI in the future.

Foreign Direct Investments (FDI) in Mining Sector in India

India attracts a large sum of foreign investments every year. These foreign investments have a remarkable impact on Indian economy. Real economy is assumed to be affected by foreign investment through its constituents like exchange rate, foreign exchange reserves, economic growth, etc. Exchange rate movements are also believed to affect the foreign portfolio investment, especially foreign institutional investment coming to the country. The unit root test is applied to determine stationary of the time series data. Vector error correction model is applied to determine the dynamics of the relationship between foreign investment and exchange rate. The result shows that foreign portfolio investment, foreign direct investment, index of industrial production, interest rate and wholesale price index have a positive impact on the exchange rate (REER), that is, Indian rupee appreciates whereas import has negative impact on exchange rate in India that is, Indian rupee depreciates. In short, foreign portfolio investment in India may lead to rupee appreciation with several other currencies and their selling and disinvestment may lead to its depreciation.

Most developing countries rely on some form of trade and foreign investment for Foreign Direct Investment (FDI) has considerable significance for transitional economy countries like Lao PDR as well their economic development. This study is aimed at understanding of role of FDI in economic development in Lao PDR through focusing on resource sector and also this study examined the FDI situation in Lao PDR since 1988. The study found that, since 1988, Lao PDR offers investment opportunities for foreign companies and has adopted a number of policies to attract foreign direct investment into the country. Law on foreign investment was revised three times. FDI in the Lao People’s Democratic Republic has improved clearly since around mid-2000. Mining and electricity generation sectors account for much of FDI, and are likely to remain the most active sector for foreign investment. FDI are expected to bring benefit to host country. The study also found that FDI has positive impact on economy in the form of higher economic growth, an increase in revenues, and export performance. From 2006 to 2010, average GDP growth rate in Lao PDR was 7.9% and in 2011, it was 8.4%. Export increased significantly over the decade due to the increase of export in mining and electricity. However, aside from benefit, resource sectors have a negative impact in term of environmental problem.

Purpose - The study tests the interactive and causal relationship among exchange rate volatility (ERV), foreign direct investment (FDI), and stock market performance (SMP) in Nigeria from 2003–2022. Specifically, it investigates the long-run effect of ERV on SMP as well as the interactive effect of ERV and SMP on FDI. Methodology - The research follows an explanatory time series design and relies on secondary data gathered from the World Bank database. Econometric techniques, including the Autoregressive Distributed Lag (ARDL) model, Granger causality tests, and multiple regression analysis, are employed to examine both short- and long-run relationships among the variables. Results - The long-run ARDL specification and bounds test reveal the presence of a large inverse relationship between lagged and current FDI, which indicates an adjustment process towards equilibrium. Exchange rates have a positive and significant effect on long-run FDI, but the dynamics of short-run exchange rate movements and stock market performance are not significant. More volatility of exchange rates is also associated with low FDI, which reflects the adverse effect of exchange rate uncertainty on foreign investment. Conclusion - The evidence supports the supreme role played by exchange rate dynamics in determining FDI inflows. The long-run negative impact of exchange rate volatility on FDI supports the need for policy measures to ensure exchange rate stability for a more conducive investment climate in Nigeria. Keywords: Exchange rate volatility, stock market performance, foreign direct investment, ARDL model.

Despite efforts to convert from inward-looking economic development strategies to export-promoting alternatives, the Middle East and North African (MENA) region still endures relatively slow growth and high unemployment. Lower trade barriers, privatisation of many industries, and reform of its foreign exchange markets have attracted only modest foreign investment expenditures to the region. Such an outcome may reflect low receptivity levels among MENA members toward investments of multinational enterprises (MNE). Using panel data, this study analyses foreign direct investment (FDI) behaviour in 16 MENA economies over the 2000–2005 period. In particular, the study examines a long-term ‘colonisation memory effect’ on recent foreign investments in the MENA region. Colonisation memory, measured by the temporal proximity of a country's colonised era, may foster anti-MNE sentiments if foreign firms are perceived as exploitative, thus adversely affecting foreign investments in these countries. The statistical results indicate that variations in FDI net inflows and long-term colonisation memory are inversely and significantly correlated. Other important results indicate that variations in real income, international trade openness, and efficiency-seeking investment behaviour show a direct relation with MENA's FDI variations. Variations in hydrocarbon endowment, growth in aggregate output, and the region's foreign exchange markets also have an adverse effect on MENA's net inflows of foreign investments.

INTRODUCTION There has been a considerable increase in foreign direct investment in Indonesia, from USD 22.9 billion in 2010 to USD 50 billion in 2016. Foreign investment rose to USD 57 billion in 2017 and to an estimated USD 78.4 billion in 2019. Sectors such as mining, manufacturing, transport and telecommunications have continued to attract fairly high levels of foreign investment. The biggest investors come from Singapore, the United States and Japan. The growth of foreign investment since 2010 is partly due to Indonesia's stable economic growth, political stability, vast natural resources and its relatively lowcost production base. The increase of investment has a close relation with the government's efforts to attract foreign investment to Indonesia over many years. These efforts are shown in the government's attitude towards foreign investment which has changed over time. The changes are mostly attributable to the changes of government policies towards foreign investment. These attitudes may be classified into three investment attitudes. First, is the ‘closed investment’ phase, from 1945 until 1966. Second is the ‘open investment’ phase, from 1967, when Law No. 1 of 1967 was promulgated, until 1998; and third is the ‘liberalisation of investment’ phase from 1998 to the present date. CLOSED INVESTMENT PHASE The closed investment attitude took place following Indonesia's declaration of independence in 1945. Since 1945, however, the government then, known as the old order regime, closed its door to foreign investment. The government also nationalised foreign plantation companies operating in Indonesia which had operated long before independence. OPEN INVESTMENT PHASE When the old-order government was replaced by the new-order administration in 1966, the attitude towards foreign investment changed. The government promulgated Law No. 1 of 1967 on Foreign Investment. The Foreign Investment Law provided the government's guarantee to foreign investors. The government pledged to protect foreign investment, not to nationalise the foreign investors’ assets, and the government's willingness to settle any investment disputes through international arbitration.