Identification of the Global Strategic Trends Defining of Foreign Direct Investments Development

Objectives. The foreign direct investment market is extremely dynamic. This is affected by a large number of factors, both external and internal. On the one hand, corporations change strategic investment priorities due to changes in the volume of accumulated investment resources, technologies used, and the market capacity to which they are oriented. At the same time, transformations take place in the global economy, leading to a change in the external environment, which leads to a change in the conditions for doing business in different countries and industries. The identification, systematization and description of the main strategic trends in the development of the foreign direct investment market and the factors that determine them, therefore, is the research objective of this work.

Methods. During the research we used methods of statistical data analysis, scientific generalization, strategic analysis, systematization of scientific approaches.

Results. The main indicators of the foreign direct investment market dynamics by countries, regions and international integration unions were analyzed in the framework of this study. As a result, the main global strategic trends in the development of the foreign direct investment market were identified and formulated. It was found that a number of strategic global trends in the development of the foreign direct investment market are sustainable, which determines the need to take them into account when developing appropriate strategies. The results of this study can be used to develop both corporate strategies for the implementation of FDI in certain countries and regions, and in the process of developing national regional and sectoral strategies for investment development.

1. Zaytsev A. A. Intercountry differences in labor productivity: role of the capital, level of technologies and natural rent // Economy Questions [Voprosy ekonomiki]. 2016. N 9. P. 67–93. (In rus)

2. Kvint V. L. The Global Emerging Market: Strategic Management and Economics. M. : Business Atlas, 2012. (In rus)

3. Kuznetsov A. V. Internationalization of the Russian economy: investment aspect. M. : Komkniga, 2007. (In rus)

4. Mogilat A. Foreign Direct investments to the real sector of the Russian economy: a look from microlevel and the forecast till 2017 // Economy Questions [Voprosy ekonomiki]. 2015. N 6. P. 5–21. (In rus)

5. Tedeeva A. V. Strategic characteristics of foreign direct investments // Economy and management [Ekonomika i upravlenie]. 2017. N 9 (143). P. 60–69. (In rus)

6. Korinek A. Regulating Capital Flows to Emerging Markets: An Externality View. NBER Working Paper N. w24152. 2017, 28 Dec:50.

7. Global Investment Trends Monitor: Global FDI Flows Slip in 2016, Modest Recovery Expected in 2017. United Nations UNCTAD. N 25. 1 February 2017 // http://unctad.org/en/PublicationsLibrary/webdiaeia2017d1_en.pdf

8. Blomstrom M.R. Lipsey and M. Zegan. What explains developing country growth? NBER Working Paper. National Bureau for Economic Research, Cambridge, Massachusetts. 1994; 4132.

9. Borensztein E., Gregorio J., Lee J. W. How Does Foreign Direct Investment Affect Economic Growth?. Journal of International Economics. 1998; 45:p. 115–135.

10. Békés G., Murakozy B. The Ladder of Internationalization Modes: Evidence from European Firms. CEPR Discussion Paper N. DP12639. 2018:38.

11. Hosseini H. An economic theory of FDI: A behavioral economics and historical approach. The Journal of Socio-Economics. 2005; 34:530–531.

12. Krugman P. Fire-Sale FDI // Chapter. URL: http://www.nber.org/chapters/c6164.

13. Kvint V. L. Strategy for the Global Market: Theory and Practical Applications. London-New-York: Routledge, 2015. p. 548.

14. Smarzynska B. Spillovers from Foreign Direct Investment through Backward Linkages: Does Technology Gap Matter? Mimeo, World Bank. 2002.