ASSESMENT OF OUTWARD FOREIGN DIRECT INVESTMENTS RESULTS FOR NATIONAL ECONOMY
Abstract
The article is devoted to topical issues of determining the impact of exports of entrepreneurial capital on economic growth. The volumes of foreign direct investment exports, factors of international capital migration are analyzed and systematized in it. The correlation between changes in outward FDI and total assets of TNCs, total number of employees, housing price ratio, export diversification ratio, export concentration ratio assesses the impact of capital exports on the economy of the leading countries of foreign direct export. The positive and negative aspects of capital exports, the consequences of the COVID-19 pandemic on the outwards FDI and ways to recover them through the development of foreign direct investment and, consequently, capital migration, are formulated, based on the advice of UNCTAD and OECD experts. It is established that the export of capital has a positive effect on economic development, but has a negative impact on capital formation in the country, inhibits the dynamics of investment in fixed assets and, therefore, technological modernization of production, increasing the competitiveness of enterprises and productivity. The main goal of international capital flows is to get higher returns. Thus, the export of capital is essentially a transaction that is performed for profit. The successful development of the economy is certainly facilitated by investments, which in many cases contributes to improving production efficiency, creating new enterprises and modernizing existing ones. As international capital movements contribute to economic growth, deepen international ties and increase trade, it will be appropriate to assess the real impact of capital exports on economic growth, especially in the wake of the 2020 COVID-19 pandemic. It follows that the focus is now on the recovery process. But the challenge is not only to restart the economy, but also to make the recovery more resilient and better able to withstand future shocks. Thus, the main task is to reveal the theoretical foundations of the study of capital exports, analysis of current trends in capital migration, the place of leading countries on the world stage, identify the impact of capital exports on economic growth, competitiveness, study the positive and negative effects of capital exports.
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