Институциональные факторы оттоков прямых иностранных инвестиций на развивающихся рынках
Аннотация
Every year, interest in understanding the determining factors of inflows and outflows of foreign direct investment is increasing, since they are one of the main factors for the balanced and high-quality development of the country. For recipient countries, attracting FDI has many positive effects, since it stimulates economic development by importing more advanced production and management technologies, has a beneficial effect on the unemployment rate in the country, as it creates new jobs along the way, and helps to improve the macroeconomic and financial situation. For donor countries, the FDI strategy also has many advantages, such as saving on import tariffs and transport costs; moreover, developed countries have the opportunity to use cheaper labor and raw materials from recipient countries. With increasing competition and dynamically increasing FDI flows, developing countries are seeking a significant share of high-quality investment, so factors that attract or repel investors are an important area to study.
At the moment, there is a significant amount of work devoted to the study of the characteristics of FDI recipient countries that affect the inflow of investment. However, the literature devoted to the analysis of institutional factors contributing to the export of foreign direct investment is rather limited in its number, so the topic we are studying still leaves room for interesting conclusions. Understanding the factors that determine bilateral flows of foreign direct investment in the world economy involves studying the characteristics of both host and source countries, so in this paper we consider the characteristics of both, depending on the hypothesis.
The object of the research is developing countries that implement foreign direct investment.
The subject of the research is the factors influencing the outgoing flows of foreign direct investment.
The main objective of this work is to identify and assess the impact of institutional factors on the outward FDI in emerging markets.
Other objectives of the study:
- analyze literature on related and related topics;
- to study the theoretical aspects of the given topic;
- compile a database with the necessary factors;
- to conduct an econometric study with hypothesis testing;
- to assess the results obtained;
- draw up practical conclusions.
As a result of the study, the following conclusions were obtained:
- Improving institutions has a positive effect on the outflow of FDI from developing countries, while improving institutions in developed countries negatively affects the outflow from them. This may be due to the fact that with the improvement of institutions in developing countries, the competitiveness of firms increases and they have opportunities for external investment. At the same time, the improvement of institutions in developed countries negatively affects the outflow of investments from them, since it makes no sense to take money out of the country to exploit conditions in other countries, so this has a deterrent effect.
- The tax burden of a country is a very important factor when deciding on foreign direct investment. In cases where a developing country was an importer of foreign direct investment, an increase in the tax burden in an exporting country had a positive effect on FDI outflows, while an increase in the tax burden in the host country had a negative impact. Since FDI is a catalyst for economic growth, governments in developing countries often have policies to attract foreign direct investment, which may include tax and other incentives. An analysis of a couple of countries where a developing country was an exporter of FDI revealed that tax policy in developed countries is not an attractive factor contributing to outflows of foreign direct investment.
- The final finding of our study is that firms in developing countries tend to take advantage of institutions in developed countries. This is due to investors' fears about the safety of their money, which depends on many characteristics related to the effectiveness of government, etc. For this reason, investors decide to export investments in order to avoid risks associated with institutional factors. Firms can benefit from comparative characteristics in developed countries, in our case political stability, government efficiency, regulatory quality, and freedom to do business.
At the moment, there is a significant amount of work devoted to the study of the characteristics of FDI recipient countries that affect the inflow of investment. However, the literature devoted to the analysis of institutional factors contributing to the export of foreign direct investment is rather limited in its number, so the topic we are studying still leaves room for interesting conclusions. Understanding the factors that determine bilateral flows of foreign direct investment in the world economy involves studying the characteristics of both host and source countries, so in this paper we consider the characteristics of both, depending on the hypothesis.
The object of the research is developing countries that implement foreign direct investment.
The subject of the research is the factors influencing the outgoing flows of foreign direct investment.
The main objective of this work is to identify and assess the impact of institutional factors on the outward FDI in emerging markets.
Other objectives of the study:
- analyze literature on related and related topics;
- to study the theoretical aspects of the given topic;
- compile a database with the necessary factors;
- to conduct an econometric study with hypothesis testing;
- to assess the results obtained;
- draw up practical conclusions.
As a result of the study, the following conclusions were obtained:
- Improving institutions has a positive effect on the outflow of FDI from developing countries, while improving institutions in developed countries negatively affects the outflow from them. This may be due to the fact that with the improvement of institutions in developing countries, the competitiveness of firms increases and they have opportunities for external investment. At the same time, the improvement of institutions in developed countries negatively affects the outflow of investments from them, since it makes no sense to take money out of the country to exploit conditions in other countries, so this has a deterrent effect.
- The tax burden of a country is a very important factor when deciding on foreign direct investment. In cases where a developing country was an importer of foreign direct investment, an increase in the tax burden in an exporting country had a positive effect on FDI outflows, while an increase in the tax burden in the host country had a negative impact. Since FDI is a catalyst for economic growth, governments in developing countries often have policies to attract foreign direct investment, which may include tax and other incentives. An analysis of a couple of countries where a developing country was an exporter of FDI revealed that tax policy in developed countries is not an attractive factor contributing to outflows of foreign direct investment.
- The final finding of our study is that firms in developing countries tend to take advantage of institutions in developed countries. This is due to investors' fears about the safety of their money, which depends on many characteristics related to the effectiveness of government, etc. For this reason, investors decide to export investments in order to avoid risks associated with institutional factors. Firms can benefit from comparative characteristics in developed countries, in our case political stability, government efficiency, regulatory quality, and freedom to do business.