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Polezharova, L. V., and A. B. Berberov. "International Capital Flow Taxation within the Context of Companies’ Investment Strategies Factors: Developing Countries’ Experience." Economics, taxes & law 12, no. 4 (September 6, 2019): 132–42. http://dx.doi.org/10.26794/1999-849x-2019-12-4-132-142.
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The subject of the research is taxation tools for regulation international capital flows of MNCs and instruments of taxation base dilution counteraction used by some countries. The purpose of the work is regularity revelation of combination the mentioned above tools in developing countries that are potentially locomotives of the world economic development — Brazil, China, India, Mexico, Russia. It is determined that present-day international taxation in these jurisdictions is based on the same instruments as in the developed countries, but it has its own specificity corresponding with the national tax system, as well as the instruments combination which is conditioned by the particular features of socio-economic, political and legal mode of the state. All the countries under study experience significant withdrawal of capital and consequently keenly need domestic and foreign investments. At the same time they lack tax yield, which makes them build similarly less attractive in international sphere tax treatment than the developed economies and keep for themselves predominant share of foreign MNCs’ profits under the terms of international agreements. The ways to struggle tax revenue leakage differ in details both within these countries and with the similar mechanisms in developed economies. The authors stress the importance of forming tax treatment of international capital flow to stimulate keeping capitals within the country. To achieve this, the countries should define more exactly the existing mechanism of international capital flow investment taxation and the combination of regulation tools used.
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Anatolievich Smirnov, Dmitry, Konstantin Aleksandrovich Strus, and Anna Artemovna Avanesova. "Features of the Taxation in the Territories with the Special Mode of Business and Investing Activities: Comparative Analysis of the Russian and Foreign Best Practices." International Journal of Engineering & Technology 7, no. 3.14 (July 25, 2018): 412. http://dx.doi.org/10.14419/ijet.v7i3.14.17035.
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Preferential taxation regimes are recognized in the modern developed states as the most effective way of stimulation of entrepreneurial and investment activity. We examined the Russian mechanism of establishment of the preferential taxation regimes that have been developed for entrepreneurial and other investment activities and their infrastructure designed to provide mechanisms of operations. Our comparative analyses of the best practices in preferential taxation regimes across developing countries inform readers about advantages and risks of the investment activities and organization of business in certain territories of modern Russia. Critical appraisal of theories and practices in the formation of specific preferential taxation regimes would assist readers in the implementation of entrepreneurial and investment activity in modern Russia, revealing features of optimal regimes for specific businesses with possible mitigation or prevention of financial risks for investors. Critical comparative analysis of the best foreign practices in China, Singapore, and United Arab Emirates in the organization of foreign businesses sheds light on the most effective forms of such investment activities.Incompleteness and fragmentariness of the Russian legislation supporting preferential taxation regimes prevent successful implementation of foreign entrepreneurial and investment activities.The Russian legislation must be revised to ensure an attractive environment for foreign investments. Successful business and innovative activities would be possible only by the realization of the following legally significant steps: 1) adoption of the basic legislation 2) statewide programs supporting the development of free economic zones of advanced economic development.
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Neumayer, Eric. "Do double taxation treaties increase foreign direct investment to developing countries?" Journal of Development Studies 43, no. 8 (November 2007): 1501–19. http://dx.doi.org/10.1080/00220380701611535.
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Kangave, Jalia. "The Dominant Voices in Double Taxation Agreements: A Critical Analysis of the “Dividend” Article in the Agreement between Uganda and the Netherlands." International Community Law Review 11, no. 4 (2009): 387–407. http://dx.doi.org/10.1163/187197409x12525781476123.
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AbstractIn a bid to attract foreign investment, Third World countries are increasingly concluding Double Taxation Treaties with capital-rich countries, based on either the UN model treaty convention or the OECD model. Using the example of the dividend Article in the Uganda-Netherlands treaty, the discussion in this article illustrates the increased use of tax treaties to shift income from developing to developed countries. By essentially reducing the tax rate on dividend income to nil, that treaty significantly erodes Uganda's tax base. Such agreements raise concern, especially when one takes into account the fact that investment decisions are often driven by factors external to tax, meaning that reduced tax rates do not guarantee increased investments. Worse still, because developing countries are net capital importers, the benefits accruing from such treaties are often one-sided. The paper calls for a rethinking and redrafting of the UN model convention to ensure that the taxing rights of Third World countries are strengthened. In addition, since the practical reality is that developed countries often base their agreements (even with developing countries) on the OECD model, there is a need to amend the latter model to take this reality into account.
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Merollari, Klaudeta, and Sorina Koti. "Foreign Direct Investments in Albania, Structure and Dynamics." European Journal of Economics and Business Studies 2, no. 1 (August 30, 2015): 22. http://dx.doi.org/10.26417/ejes.v2i1.p22-32.
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After the fall of communism regime, Albania has become a host country to foreign direct investments (FDI) from many countries around the world. Albania represents four of the five types of FDI: those which gain access to specific factors of production; those which gain access to disposable production factors; those which gain access to Albanian consumer markets and those which organize joint ventures.Our country widely supports the FDI as there are no high taxation and commerce barriers to gain access to the new markets. Foreign direct investments are a very important segment of the economic activity of a country. In theory and also in practice, there are recognized the effects of FDI. They have brought significant positive effects on the economy. One of the advantages of FDI is that they help in the economic development of the country where is invested.FDI are usually applied in developing countries. During the 90s, they were one of the major external financial sources for most countries that had an economic growth perspective. FDI have been a significant support for some countries which faced economic difficulties.The main aim of this paper is to analyze the theoretical part and the relations of FDI in general.Another aim of this paper is to provide a general picture of FDI in Albania over the years, the main sectors where they are centralised, districts / cities where they are allocated, and so on.At the beginning it is given a theoretical framework, definitions and relations of FDI to various economic aspects.Then it is described the evolution in time and the development of FDI in different levels, for example in the countries of origin, currency in which it is mostly invested, main sectors, etc.There is also a comparison of FDI in Albania in relation to other countries in the region and beyond. We have mentioned here also the factors that affect FDI.
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Steenkamp, Lee-Ann. "The Permanent Establishment Concept In Double Tax Agreements Between Developed And Developing Countries: Canada/South Africa As A Case In Point." International Business & Economics Research Journal (IBER) 13, no. 3 (April 28, 2014): 539. http://dx.doi.org/10.19030/iber.v13i3.8591.
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In this era of globalisation, developing countries have resorted to double tax agreements in order to attract foreign direct investment. The extent to which a countrys tax treaty policy favours developing countries or not depends upon the extent to which the country is prepared to adopt provisions from the UN model tax convention as opposed to the OECD model. Developing countries in particular should carefully consider the design of their tax treaties so as to effectively combat tax avoidance, without sacrificing foreign direct investment. To this end, the Canada/South Africa tax treaty is compared and contrasted with these two models. The concept of permanent establishment is reviewed in this context. It was found that the Canada/South Africa tax treaty is overwhelmingly based on the OECD model. This could indicate that South Africa has a deliberate tax treaty policy of ceding taxing rights to other countries. Thus, developing countries are seemingly unable or unwilling to make use of the UN model so as to retain greater source taxation. A number of recommendations are made to broaden the scope for the source taxation of business income in the developing country.
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Baratashvili, Nazi, and Zaza Pharsenadze. "Importance of double taxation to increase export potential of Georgia." Economics, ecology, socium 2, no. 4 (December 31, 2018): 41–52. http://dx.doi.org/10.31520/2616-7107/2018.2.4-5.
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Introduction. According for future economic development of country and creation strong stable political framework is essential to improve international existing mechanism of avoiding double taxation. Double taxation avoidance system is an essential component of good business environment and is a key factor of stimulating investments. Agreements of Double taxation provide legal framework of releasing from double taxation. In spite of that, such exemption is foreseen by the internal law of different countries, international double taxation agreements provides contingency approach.
Aim and tasks. The aim of the article is to study the directions of avoiding double taxation, which contributes to the deepening of economic cooperation between countries and attracting investment. The task is to study and show the positive and negative sides of double tax treaties.
Results. One of the main factor of countries economic development is to promote export. For that every country is interested in incensement of export share per capital in foreign trade. In the article is analysed trends of development of international double taxation principles and forms. Research shows and confirms that an effective legal mechanism in Georgia is still in the process of formation in this field. Trade liberalization contributes to the creation of such flexible mechanisms, which allow developing countries receive maximal benefits from the process of world economic development. Also, Georgia received economic benefits from agreement of Avoidance of Double Taxation, which was signed all parties.
Conclusions. We have to mention that for Georgia is great challenge to increase export share per capital in European Union countries. Georgian has real ability to increase export potential in EU countries. The result of this is deep and comprehensive Free Trade Agreement (DCFTA) with the European Union and agreement of Avoidance of Double Taxation and the Prevention of Fiscal evasion (DTAA) with respect to taxes on income. It promotes to build further new trade economic cooperation between countries by safeguarding the interests of involved countries according the agreement.
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VLADYMYRSKA, N. "F�ATURES OF INTERNATIONAL INVESTMENT IN THE ECONOMY OF UKRAINE." Economic innovations 21, no. 3(72) (September 20, 2019): 26–36. http://dx.doi.org/10.31520/ei.2019.21.3(72).26-36.
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Topicality. In the conditions of the economic crisis, in which the economy of Ukraine has been in recent years, the search for reasons that do not allow developing the economy properly and the intensification of areas for attracting investments, including foreign ones, is one of the priority issues. The article aims to explore the level of the investment climate in Ukraine, as well as to analyze the level of attracting foreign investment in the economy of Ukraine. Aim and tasks. Investment attractiveness is largely shaped by the investment climate; therefore, we analyze the investment climate as a combination of legal, financial, political, and socio-cultural factors that predetermine the expediency of investing in the country. Estimated index of investment attractiveness of the country for 2009-2018 and the place of Ukraine in the rating of investment attractiveness of the countries of the world. The article analyzes the volume of foreign direct investment in Ukraine, the structure of investment in the sectoral context and by investor countries of foreign direct investment over the ten-year period from 2010 to 2019. Research results. Based on the study, it was found that the most attractive for foreign investors in the industry, during the analyzed period, remain the industry, especially processing, financial and insurance activities, wholesale and retail trade, real estate operations, scientific and technical activities, information and telecommunications. It is determined that the main investor countries that invest more than 80% of foreign direct investment are twelve of the one hundred and thirty investment countries. The top five investor countries are Cyprus, the Netherlands, Germany, the United Kingdom and the Russian Federation, these countries form more than 60% of all international investments in the economy of Ukraine. The study revealed that almost a third of the international investment in the Ukrainian economy is Ukrainian capital, previously withdrawn from the country in offshore jurisdictions - round - tripping. These countries, apart from Cyprus, include Switzerland and the British Islands Verginsky. Conclusion. The necessity of further formation of modern approaches to the creation of a favorable investment environment in the Ukrainian economy, based on the experience of countries such as Estonia in the taxation of withdrawn capital and world experience, is substantiated. Ukraine should also continue to cooperate with international institutions such as the OECD and develop areas of cooperation with investors under the MLI Convention, which will help reduce the movement of Ukrainian capital to low-tax countries and, accordingly, will affect the increase in investment in the Ukrainian economy.
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Conrad, Adeeb, and Frederik J. Mostert. "Financial considerations when making capital investments abroad." Corporate Ownership and Control 9, no. 2 (2012): 188–96. http://dx.doi.org/10.22495/cocv9i2c1art3.
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There are many financial considerations which enterprises should take into account when they are contemplating the possibility to make capital investments abroad. The long-term nature of capital investments emphasizes the importance of the financial decisions as enterprises are often not in a position to opt out easily. This research paper focuses on the financial considerations only and other considerations, such as political, economic and technological matters do not receive any attention. The objective of this research focuses on the improvement of financial decision-making when enterprises are contemplating capital investments abroad. This objective is achieved by paying attention to the impact of following aspects: taxation, inflation rates, foreign exchange rates, interest rates, the capital structure and the cost of capital, capital and labour intensity, labour productivity, as well as the cash flow, liquidity, solvency and profitability considerations. An empirical study which has 29 top companies in South Africa as the respondents provided detailed information concerning capital investments made abroad. As South Africa is a developing country with an emerging market economy, the empirical results should be valuable to enterprises in other countries with emerging market economies.
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ANDREEVA, Polina Aleksandrovna. "Foreign experience in regulating the activities of large corporate structures in the extraction of Arctic resources." NEWS of the Ural State Mining University 59, no. 3 (September 15, 2020): 176–84. http://dx.doi.org/10.21440/2307-2091-2020-3-176-184.
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Relevance. In terms of implementing large production projects, the Arctic is one of the most challenging regions in the world. This is due to geographic remoteness, extreme temperatures, difficult ice conditions, a vulnerable environment and the presence of indigenous people concerned about any outside interference. Global experience shows that the development of the Arctic territories is untenable without participation of large corporations and their implementation of large-scale Arctic projects. The capabilities of medium-sized businesses to influence the development of the Arctic territories are incomparable with the capabilities of large corporate structures in terms of their system-forming effects. At the same time, ensuring the necessary investments for the development of the Arctic territories requires improving the state regulation of subsoil use from the position of strengthening the incentive nature of the system of measures used. The purpose of the study is to generalize and analyze foreign experience in regulating the process of developing subsoil resources in foreign Arctic countries. Research methods – a systematic approach, generalizations, comparative analysis, comparisons, etc. Results. The experience of subsoil use regulation in the Arctic territories in the USA (Alaska), Canada, Norway, Denmark and Russia is generalized and analyzed. It has been determined that the approaches to regulating the process of developing subsoil resources are correlated with the state structure of the countries: unitary or federal. The form of subsoil ownership in each of the listed countries and the procedure for granting subsoil plots for use are considered. Most attention is paid to the economic mechanism of regulation. It is proved that, depending on the economic model, measures to support corporate business and economic incentives used by countries to achieve strategic goals in the Arctic have many differences, but a similar nature. Special tax regimes, rent control measures, financial support, which is in the nature of investments, and other financial instruments are used as incentives. The specificity of the tax policy of each of the countries under consideration is disclosed, a number of factors influencing the amount of royalties, the procedure for the distribution of collected taxes on corporations in the Arctic zone between the budgets of the federation and provinces, etc., are determined. Common tools for all states have been identified and the existence of coordination procedures has been confirmed to harmonize the interests of corporations and the state. The experience of taxation of regional corporations in the Arctic territories of Russia and its disadvantages are briefly highlighted. Conclusions. The imperfection of the institutional framework of the Russian Arctic requires the adoption of new legislative acts, as well as changes in taxation, the implementation of a system of incentives from the state. It is advisable to use many elements of the economic mechanism of foreign countries to expand the capabilities of corporations involved in the development of Arctic subsoil resources.
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Shafiq, Muhammad Nouman, Liu Hua, Muhammad Azhar Bhatti, and Seemab Gillani. "Impact of Taxation on Foreign Direct Investment: Empirical Evidence from Pakistan." Pakistan Journal of Humanities and Social Sciences 9, no. 1 (June 30, 2021): 10–18. http://dx.doi.org/10.52131/pjhss.2021.0901.0108.
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Foreign direct investment plays a vital role in promoting economic growth, especially for developing economies. It causes improvement in the different sectors such as education, healthcare, manufacturing industries, and creates more jobs. The speed of FDI inflows has been increasing in Pakistan each year. In order to attract more FDI, many countries try to reframe their tax policies by introducing different tax incentives such as tax holidays, investment allowances, exemptions, deductions etc. The purpose of the present paper is to find the implication of taxation in the decision of FDI inflows in Pakistan. Time series data is used spanning over 1985 to 2020. The data was obtained from two sources: the “World Development Indicator” (WDI) and “Economic Survey of Pakistan”. “Auto-Regressive Distributed Lag” (ARDL) and “Error Correction Model” (ECM) techniques are used for empirical analysis. The study concludes that low taxes motivate foreign investors' investment contribution and the long-run relationship between taxes and FDI in Pakistan. Other control variables, including GDP growth, trade openness and exchange rate, positively impact FDI. It is suggested that decision-makers should direct policies to reduce the taxes to welcome FDI in Pakistan. In this regard, the government needs to reconsider its priorities while making policies favouring FDI.
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Twerefou, Daniel Kwabena, Emmanuel Abbey, Emmanuel A. Codjoe, and Peter Saitoti Ngotho. "Impact of Stock Market Development on Economic Growth: Evidence from Selected Sub‑Saharan African Countries." Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis 67, no. 4 (2019): 1071–83. http://dx.doi.org/10.11118/actaun201967041071.
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This paper examines the impact of stock market development on economic growth in Sub‑Saharan Africa using a balanced panel data of five selected countries over the period 1993 – 2013 and the system generalised method of moments dynamic panel estimation framework. The paper finds a positive impact of stock market development proxied by the turnover ratio of domestic shares and market capitalization on economic growth though minimal. Furthermore, investment, lagged gross domestic product and human capital were found to have a significantly positive impact on growth while trade and foreign direct investment negatively impacted on growth, even though the results for foreign direct investment is not significant in all the models and consequently, not very robust. There should be policy measures aimed at enhancing economic growth using the development of the stocks market as a channel. Such policies should focus on developing the appropriate mix of taxation of investors as well as the development of requisite technology, institutional and regulatory framework that will facilitate an increase in the size and liquidity of the market in the sub‑region.
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He, Xiaohong, and Stephen E. Guisinger. "Taxation of U.S. foreign direct investment abroad: Effective tax rates and tax policy competition in developed and developing countries." Journal of International Accounting, Auditing and Taxation 2, no. 2 (January 1993): 215–29. http://dx.doi.org/10.1016/1061-9518(93)90007-g.
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Steenkamp, Lee-Ann. "Beneficial Ownership Provisions In Tax Treaties Between Developed And Developing Countries: The Canada/South Africa Example." International Business & Economics Research Journal (IBER) 12, no. 9 (August 30, 2013): 1107. http://dx.doi.org/10.19030/iber.v12i9.8056.
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In the years since the Organisation for Economic Cooperation and Development (OECD) adopted its first draft tax treaty in 1963, the world has experienced an astonishing surge in international trade and investment. The tax treatment of these cross-border transactions is affected by double tax agreements. As tax treaty networks will likely continue to expand, concerns about tax treaty abuse might be expected to grow. The extent to which a countrys tax treaty policy favours developing countries - or not - depends upon the extent to which the country is prepared to adopt provisions from the UN model tax convention as opposed to the OECD model. Developing countries, in particular, should carefully consider the design of their tax treaties so as to effectively combat tax avoidance without sacrificing foreign direct investment. To this end, the Canada/South Africa tax treaty is compared and contrasted with these two models. The concept of beneficial ownership is reviewed in this context. It is contended that a general definition in South Africa's Income Tax Act of 'beneficial ownership' would assist in the interpretation of the term for the purposes of South Africa's tax treaties. It is submitted that the scope for the source taxation of passive investment income (viz. dividends, interest and royalties) in the developing country could be magnified through treaty negotiations.
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Tanasić, Ljiljana, and Teodor Petrović. "Transfer pricing in a function of abusing tax competition instruments." Skola biznisa, no. 1 (2020): 137–61. http://dx.doi.org/10.5937/skolbiz1-22224.
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The paper focuses on elucidating transfer pricing as a means of tax competition instruments misuse. Tax competition instruments have a key role in creating national tax attractiveness for foreign direct investment. However, in order to protect the local tax base on the basis of abuse of tax competition instruments, a large number of countries apply the principle of sources of income, i.e. taxation of business profits made by a non-resident legal entity exclusively in the country where the business was conducted and revenue generated. But with the process of globalization and the expansion of multinational companies, i.e. related legal entities, the instruments of tax competition have remained a suitable area of legally permitted transfer of profits through the application of transfer pricing. The data presented in the paper indicate that, although the trend of global corporate tax rate (as the dominant instrument of tax competition) has a downward trajectory, there are still fluctuations in rates between countries around the world, including the existing inconsistencies and ambiguities of national tax regulations. Taking this into account, the aim of the paper was to emphasize that transfer prices, through the instruments of tax competition, have threatened the economic, social, and tax stability of individual countries for more than two decades. The paper shows that developed countries have managed, to a certain extent, to gain control over their application by introducing more aggressive tax audits of transfer pricing. However, special attention is paid to developing countries which remain an active source of tax competition instruments abuse through the inadequate application of transfer pricing, due to the lack of adequate regulatory and control mechanisms, financial and human resources, and efforts to attract foreign investment through various instruments of tax competition.
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Pavlik, Iryna. "TRANSBOUNDARY COOPERATION OF UKRAINE AND POLAND IN AGRARIAN SPHERE: PROBLEMS AND PROSPECTS." Economic Analysis, no. 27(3) (2017): 62–70. http://dx.doi.org/10.35774/econa2017.03.062.
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Transboundary cooperation between Ukraine and Poland in the agrarian sector is an objective process with the condition of integration of the economy into the world economy. Inter-regional relations and foreign economic activity are developing, joint ventures, holdings, unions are being created. This tendency is inherent to the countries which have common borders and are geographical neighbours, such as Ukraine and Poland in particular. We consider the perspective directions of cooperation between Ukraine and Poland in the agrarian sector in formation of a coherent agrarian policy, the Common Agricultural Market, creation of a free trade area in the border regions, establishment of joint investment programs; improvement of the investment climate through preferential taxation of agricultural production; development of mechanisms for joint support of innovative activity of agricultural enterprises, farms, individual farms by regional authorities and local self-government bodies, etc. As a result of this study, the main directions of Ukrainian and Polish cooperation and formation of relations between the two states in the field of agriculture in the border territories have been established. The problems of transboundary cooperation between Ukraine and Poland in the agrarian sector have been elucidated. They are presented in the form of barriers that hinder to active cooperation of the mentioned countries. The areas of transboundary cooperation between Ukraine and Poland in the agrarian sector have been proposed. The cooperation between Ukraine and Poland in the agrarian sector will contribute to the economic development of both countries.
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Piasecki, Ryszard. "Development Economics and the issues of poverty and social inequalities." Annales. Etyka w Życiu Gospodarczym 20, no. 6 (February 22, 2017): 123–32. http://dx.doi.org/10.18778/1899-2226.20.6.09.
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Development economics emerged as a separate discipline of economic science in the 1950s but it wasn’t until the 1960s and mid-1970s that it began to draw serious attention. Gradually, an extensive literature concerning economic development was built up. In the 1980s it turned out, however, that despite some successes, the economic growth in most of medium and less developed countries was not as high as expected. During the 1980s and 1990s, the so-called Washington Consensus dominated the theory and practice of economic development. This notion covered the whole range of activities that were to lead the developing countries to improved welfare and prosperity. It included strict fiscal and monetary policies, deregulation, foreign trade and capital flow liberalisation, elimination of government subsidies, moderate taxation, liberalisation of interest rates, maintaining low inflation, etc. Based on the developmental experience of over past ten years, a new paradigm of development is emerging, the elements of which can be described as follows: (1) the basic economic environment should encourage the long-term investment in (2) the economy should have a high sensitivity to market stimuli (3) human capital must complement physical capital (4) due to the fast flow and absorption of information in the rapidly changing world, the key role is played by institutions and mechanisms that jointly respond to stimuli (5) wherever market failures occur, an intervention of the state should be market-friendly 6) social equality must be guaranteed if the economic development is to take place on a sustainable basis.
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MAKUSHINA, Elena Yu, Dar'ya M. KARMANOVA, and Aleksei S. KUCHER. "Tax reform initiated by D. Trump: Economic and social aspects." Finance and Credit 27, no. 3 (March 30, 2021): 693–720. http://dx.doi.org/10.24891/fc.27.3.693.
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Subject. The article addresses the tax reform of 2017, initiated by D. Trump. Objectives. The aim is to determine the relationship between the total volume of tax revenues to the budget of the U.S. Government and the growth of U.S. GDP in the long run. Methods. To identify the impact of the tax reform on the investment climate in the country and the subsequent GDP growth, we formulate a hypothesis and propose a regression model. The quarterly data from 04.01.1960 to 07.01.2019 serve as a statistical sampling, published by financial departments of the U.S. Office of Management and Budget and the U.S. Bureau of Economic Analysis. The study rests on the econometric analysis enabling to identify the impact of the volume of tax revenues from the corporate income tax and individual income taxes on the level of the GDP of the United States. Results. In the short term, we observe a decrease in tax revenues and a subsequent increase in the budget deficit, in the long term – an increase in business activity of the country, a growth in foreign direct investment, and, consequently, an increase in the GDP. The paper offers a model for assessing the economic growth of the GDP of the United States, in which tax predictors were used in combination with macroeconomic indicators. Conclusions. The experience of the United States and the results of this study may be used by the governments of developing countries and experts in the field of taxation for tax policy development.
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Rogozhina, N. "Globalization and Developing Countries: Environmental Aspect." World Economy and International Relations, no. 4 (2014): 16–25. http://dx.doi.org/10.20542/0131-2227-2014-4-16-25.
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In the article the widespread opinion concerning the exclusively negative impact of globalization on environmental situation in developing countries is disputed. But analysis of environmental consequences of trade and investment liberalization in these states proves that the role of foreign investments in deteriorating of national environmental situation is too exaggerated. On the contrary, the "export of environmentalism" is associated with TNK activities. On the one hand, globalization originates new threats. On the other hand, the integration of developing countries into the world economy favors the solution of many environmental problems by attraction of foreign private investments in industrial development and costly infrastructure projects; transfer of clean technology; promotion of international environmental cooperation and increase of environmental responsibility of national business.
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Anoshkina, Ekaterina, Elizaveta Markovskaya, Angela Mottaeva, and Asiiat Mottaeva. "Institutional aspect of influence of the foreign direct investments on the economic growth." E3S Web of Conferences 210 (2020): 13022. http://dx.doi.org/10.1051/e3sconf/202021013022.
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Authors analyze the differences between the influence of the foreign direct investments on the economic growth in the developed and developing countries. For the model of the gross domestic product (GDP) on the foreign direct investments for the developed countries the following data are used: observations for the 10 countries during 1983-2013. For the model of the GDP on the foreign direct investments (FDI) for the developing countries the following data are used: observations for the 11 countries during 1994-2013. Investigators conclude that the influence of the foreign direct investments on the economic growthdefinitely has the positive effect in both cases. However, the degree of this influence depends on the type of the country. The developing countries get the smaller effect from the foreign direct investments because of the non-transparent institutional environment and negative influence of other non-economic factors. These findings provide an opportunity to judge that in developed countries, institutional and economic environment and, most of all, human capital allow you to get the full effect of FDI, that is, as capital accumulation and spill-over effects. In developing countries, there should be thresholds to reduce effects of FDI, such as insufficient human capital and poor economic and institutional environment. Thus, the impact of FDI on economic growth is certainly positive, however the level of this effect depends on country characteristics. That is, the hypothesis that FDI affects developing countries less than developed, due to the existence of thresholds in the form of unhealthy institutional and economic environment were confirmed.
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Karadag, Haydar. "The Uncertainty Index and Foreign Direct Real Estate Investments in Developing Economies." Emerging Science Journal 5, no. 4 (August 1, 2021): 512–20. http://dx.doi.org/10.28991/esj-2021-01293.
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Attainment of standards in a country’s real estate market to meet international investors’ expectations contributes significantly to the real estate sector. However, in developing economies characterized by an environment of uncertainty where stability cannot be achieved, direct investments in real estate can bring returns to foreign investors. This is because economic uncertainty in developing countries raises the exchange rate. An increase in the exchange rate keeps real estate prices in developing countries relatively low. Foreign investors then take advantage of the low prices to invest in real estate in that country. The study aims to research whether the uncertainty in developing countries increases the foreign direct real estate investments. The study examines the relationship between the uncertainties in selected developing economies in Europe and the real estate investments by foreigners in the period 2008–2018. Gengenbach, Urbain, and Westerlund Panel Cointegration test and PDOLS coefficient estimation methods were used in the study. According to the analysis results, a 1% increase in the uncertainty index in the economies examined increases foreign direct investments by 5.731%. Since this study is one of the most detailed studies measuring foreign direct real estate investments under uncertainty conditions in the economy, it contributes to the literature. To sustainably increase foreigners’ direct real estate investments in developing countries, economic and political stability should be prioritized. Facilitating the bureaucratic process, providing tax reductions, making real estate suitable for demand, following the appropriate price policy, and making various environmental regulations will also increase foreigners’ direct real estate investments. Doi: 10.28991/esj-2021-01293 Full Text: PDF
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Kuzucu, Serpil. "Do foreign direct investments and portfolio investments stimulate economic growth Evidence from developing countries." Pressacademia 5, no. 4 (December 30, 2018): 331–38. http://dx.doi.org/10.17261/pressacademia.2018.1000.
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Flфystad, Gunnar. "On Tariffs and Optimal Taxation Policy in Developing Countries." Pakistan Development Review 24, no. 3-4 (December 1, 1985): 443–52. http://dx.doi.org/10.30541/v24i3-4pp.443-452.
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Taxes on the foreign-trade sector are substantial sources of government revenue in almost all developing countries. Thus in a number of countries - including Pakistan, Indonesia, Burma, Ceylon, Malaysia, Thailand, Nigeria, Ghana and Colombia - such taxes account for more than 40 'percent of the government revenue. The main type of trade tax has been tariffs, but in addition there have been export taxes and profits from export marketing boards, the latter being really forms of export taxes
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PJANIĆ, MILOŠ, and MIRELA MITRAŠEVIĆ. "FOREIGN DIRECT INVESTMENT IN SERBIA." Kultura polisa, no. 44 (March 8, 2021): 253–65. http://dx.doi.org/10.51738/kpolisa2021.18.1r.4.01.
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In the process of globalization, the importance of foreign direct investment has changed significantly, because today they represent one of the most important factors of competitiveness, development and application of new technology, education, innovation and economic development. As a significant form of financing national economies, foreign direct investment is a form of investment that is realized outside the home country, where one of the most important goals of both developed and especially developing countries is to attract as much foreign direct investment. A large number of developing countries, including Serbia, have liberalized restrictions on foreign investment and free trade in the last two decades, liberalized national financial markets and begun privatization processes. Due to numerous problems and consequences of economic crises they have faced, many developing countries, as well as Serbia, view foreign direct investment as one of the most important factors for stimulating trade, employment growth, openness of national economies, and establishing overall macroeconomic stability. The aim of this paper is to point out the importance and dynamics of foreign direct investments in Serbia, as well as the key incentives for their attraction. Also, in addition to the theoretical review of foreign direct investments, the effects of foreign direct investments are presented in the paper.
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Shevchenko, I. V., and M. K. Tretyakova. "Analysis of foreign direct investments: regional aspect." Vestnik Universiteta, no. 5 (July 6, 2021): 162–68. http://dx.doi.org/10.26425/1816-4277-2021-5-162-168.
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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.
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Selimi, Dr Sc Nasir. "Why hasn’t Macedonia succeeded for a long time in absorbing Foreign Direct Investment." ILIRIA International Review 5, no. 1 (June 30, 2015): 9. http://dx.doi.org/10.21113/iir.v5i1.2.
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Recently almost all countries of the world without exception developed countries or the developing countries are attracting foreign direct investments. The reason is that there is no dilemma that benefits of foreign direct investments in the host countries as well as domestic countries are greater than the damage that can have.Western Balkan countries also follow this trend for attracting foreign direct investment. Some of them have achieved notable successes, while the others have achieved less success. Macedonia is a country that during the last two decades ranks among the countries with smaller foreign direct investments.In the paper which I have chosen to analyze, in the start I gave a general overview of the meaning, role and importance of foreign direct investments for economic development of a country. Later I have analyzed the trend of foreign direct investments in the region, and especially in Macedonia. At the end sought and given reasons of locking foreign direct investment in Macedonia and recommendations to overcome such a situation.
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Grub, Phillip D. "Third World Multinationals: The Rise of Foreign Investments From Developing Countries." Journal of International Business Studies 16, no. 1 (March 1985): 173–75. http://dx.doi.org/10.1057/jibs.1985.13.
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Yerrabati, Sridevi. "Foreign Direct Investments, Economic Growth and Regulatory Quality in Developing Countries." Journal of Developing Areas 55, no. 4 (2021): 147–71. http://dx.doi.org/10.1353/jda.2021.0084.
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Arabyat, Yaser Ahmad. "The Impact of Foreign Direct Investment on Poverty Reduction in the Developing Countries." International Finance and Banking 4, no. 2 (October 12, 2017): 92. http://dx.doi.org/10.5296/ifb.v4i2.11987.
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The aim of this study is to choose and estimate the effect of foreign investments in engine for economic growth and hence poverty reduction in the developing countries. The study concluded that there is a weak effect of non-moral of foreign investments on decreasing unemployment in the developing countries, regardless of the existence or absence of development. In addition, the study concluded with a negative effect for the total local production on unemployment and poverty. Finally, we concluded that this may be a result of profit repatriation of foreign firms, crowding out of domestic investment because of FDI or low level of human capital in the country.Consequently, the study recommended to despite how desirable the inflow of FDI is to developing countries, care should be taken when attracting foreign investments and they should be directed to the productive sectors of the economy. Also government should create a competitive environment so as to maximize the benefits of FDI because by exposing foreign investors to an even playing field with indigenous investors.
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Stanković, Vladan, Gordana Mrdak, and Miloš Miljković. "Economic-legal analysis of international investments." Oditor 6, no. 3 (2020): 89–122. http://dx.doi.org/10.5937/oditor2003089s.
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The subject of this paper is an analysis of advantages and disadvantages of international investments - foreign direct investment (FDI) with a brief overview of the Republic of Serbia and its level and structure of FDI. Foreign direct investment is an important factor in development, especially in developing countries and countries in transition. Countries in transition, which includes Serbia and all Western Balkan countries feel a lack of capital, so it is important for them to fill the gap with foreign direct investment. For countries with current account deficits, FDI is used to increase exports and alleviate current account deficit problems. Based on experience and theoretical consideration, the paper points out the necessity of changes in our business environment, in order for Serbia to use foreign direct investments (with all its negative characteristics) which can and must give a special contribution and impetus to its economic growth.
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Eteria, Emir. "GLOBALIZATION AND MAIN TRENDS OF GLOBAL ECONOMIC PERFORMANCE: TRADE AND INVESTMENTS." Globalization and Business 4, no. 8 (December 27, 2019): 90–95. http://dx.doi.org/10.35945/gb.2019.08.010.
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Globalization and its impact on developing and transition economies are among most debated issues in social sciences. Globalization is multidimensional, multipart and multispeed phenomena affecting all countries and nations in the world. However, economic dimension of globalization could be considered as foundation as well as determinant of development of other forms of globalization, including political and social globalization. It is obvious, that economic globalization intensifies cooperation as well as competition on regional and global level and therefore, enhances economic and political interdependence among countries. There are many conflicting approaches towards globalization. However, a leading form of globalization still is neoliberal globalization, while other perspectives are opposing ideas to neoliberal globalization. A fundamental idea of neoliberal economic globalization is socalled “small government” and openness for trade and investment, which has been considered as a necessary precondition for economic development of any nation in the world since 1980s. Noteworthy, that major negative aspects of neoliberal globalization, underlined by “skeptics” are negative effects of neoliberal globalization on trade and investment performance of developing and transition economies. Conducted analysis of trade and investment performance of developing and transition economies demonstrates their growing involvement in globalizing world economy. Ac- cording to data of the United Nations Conference on Trade and Development (UNCTAD), during 1990-2018, exports an- nual average growth rates of developing and transition countries were 9,5% and 8,8% respectively, while exports annual average growth rate of developed countries was 5,7%. More - over, in 1990-2018, imports annual average growth rates of developing and transition countries were 9,3% and 7,7% respectively, while imports average growth rate of developed countries was 5, 9%. It is clear, that besides trade, Foreign Direct Investment is the major indicator to evaluate countries/ country groups’ involvement in globalization. Noteworthy, that between 1990 and 2000 average share of developing countries in world Foreign Direct Investments (inward) was 29,3%, in 2001-2010 was 34, 4%, while in 2011-2018 aver- age share was 44, 2%. In 2018, developing countries share in inward world Foreign Direct Investments was 54, 4%, while developed countries share was 42, 9%. It is clear, that countries/country groups’ involvement in the international capital movement and in globalization processes in general, depends not only on inward Foreign Direct Investments, but also on outward FDIs. In 1990-2000, average share of developing countries in outward FDIs was 10,4%, in 2001-2010 was 14,1%, while in 2011-2018 average share of developing countries in outward world FDIs significantly increased and reached 30,1%. The data underlines an intensification of trade relations of transition and developing countries as well as their increased openness for Foreign Direct Investments and rising share in outward world FDIs. As a result, during 1990-2018, developing and transition countries involvement in globalizing world economy significantly increased via increased trade relations and growing participation in movement of Foreign Direct Invest- ments. Consequently, despite some setbacks, economic globalization remains as the leading characteristic of the world economic development and process of deglobalization is not evident.
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Kraja Boriçi, Ylvije, and Elezi Osmani. "Foreign Direct Investment and Economic Growth in Albania." ECONOMICS 3, no. 2 (December 1, 2015): 27–32. http://dx.doi.org/10.1515/eoik-2015-0014.
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Abstract Since the 1980s, foreign direct investment inflow (FDI) has grown significantly in most developing countries while pertaining Alania, foreign direct investment has started after the 1990s. A lot of developing countries have made policies aimed at reducing FDI barriers. Foreign capital globalization, particularly FDI inflow is increased significantly in developing countries, due to the fact that FDI is the most stable and prevalent component of foreign capital inflows (Adams, 2009) Foreign direct investments are a very important factor for the development of a country and Albania has still much to be done to encourage such investments, especially in the legislative framework. The authors are trying to give the answer to the question that how does foreign direct investment in the Albania affect the nation’s economy? The authors identify that foreign direct investment improves technology and has positive impact on economic growth. Because the overall theory is that FDI inflow enhances and sustains economic growth in the host country.
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Kalendienė, Jonė, and Violeta Pukelienė. "TAXATION AND ECONOMIC SUSTAINABILITY." Ekonomika 90, no. 4 (January 1, 2011): 63–75. http://dx.doi.org/10.15388/ekon.2011.0.924.
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Macroeconomic theory says that taxes play a repressing role in an economy. Introduction of new forms of taxation, the increase of tax rates and augmentation of tax income of the Government puts a downturn risk on consumption and therefore on economic growth. Knowing that, governments of different countries start to competing among themselves by lowering corporate tax rates and trying to boost economic growth by using foreign investments. On the other hand governments are pushed to lower personal tax rates in order to satisfy their electorate. It has been strongly believed that countries with lower tax rates have better prospects for the future growth. However, small tax income is limiting governmental spending and might cause serious imbalances in the economy. As the Irish example shows, smaller taxes cannot guarantee a sustainable growth of the economy. Thus, the relationship between taxation and economic development needs rethinking.This study aimed to test the efficiency of taxation in terms of sustainable economic development and to discuss the factors that are the most important here.A comparative analysis of EU countries was used in the research. The results suggest that the harmfully small tax rates could have violated the sustainability of some European economies.
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Zaremba, Michał. "Polish Investments on Non-European Markets." Ekonomia Międzynarodowa, no. 15 (September 30, 2016): 211–22. http://dx.doi.org/10.18778/2082-4440.15.03.
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Foreign direct investment is probably one of the most visible signs of globalization in recent years. Developing countries seek FDIs as a potential tool to complement the level of domestic investment as well as a possible efficiency-gain in strument through the transfer of appropriate technology, management knowledge, business culture, access to foreign markets, increasing employment opportunities, and improving living standards. Undoubtedly, non-European markets, mostly represented by developing countries, are becoming an important and attractive area for economic activities for highly- and medium-developed economies.The aim of the paper is to discuss and present the investment activities of Polish companies on non-European markets as it poses challenge not only for the companies themselves but also for the government to support the logistical and financial needs of the potential investors.
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Vasiukov, Evgenii Aleksandrovich. "Comparative analysis of the factors of attractiveness for foreign direct investments in the developing and developed countries." Финансы и управление, no. 1 (January 2020): 38–52. http://dx.doi.org/10.25136/2409-7802.2020.1.31832.
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With the cooling of global economic and exhaustion of internal sources of finance, the countries need to attract foreign investment in form of foreign direct investments (FDI) to stimulate economic growth. The subject of this research is the factors defining the inflow of foreign direct investments into national economies, as well as comparison of the factors impacting attracting of foreign capital into developing and developed countries. For comparison of the inflow of FDI, the work utilizes the following factors: openness of trade, wages, size of the market, development of infrastructure, and tax policy. In the next few years, developing countries will continue to maintain an edge in size of wages, but due to drastic difference in the quality of labor resources, developed countries will be more preferable from the investment perspective. In absence of the necessary infrastructure and without additional support or stimulus of the receiving state, decisions on investments will lean towards the more accessible markets of developed countries. As a result of limited business environment, high level of expenses for starting a company, and inefficiency of the market, the state needs to provide clear communication regarding the vector of government policy in the area of investments and refrain from inconsistency in passing measures. If companies would not be certain in the future of the political course, their profit expectations would rise significantly, while investment activity would drop.
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Githaiga, Peter, Josiah Nyauncho, and Charles Githinji KABIRU. "Foreign Direct Investments and Economic Growth: The Primary Drivers." Asian Journal of Finance & Accounting 7, no. 2 (September 28, 2015): 93. http://dx.doi.org/10.5296/ajfa.v7i2.8185.
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<p>In order to achieve the Global Millennium Development Goals (MDGs) there is need for enhanced global partnerships in areas such as trade, health, security, environmental sustainability, food security and education. Owing to these initiatives Foreign Direct Investments (FDIs), Official Foreign Development Assistance (ODAs) and other external capital flows are increasingly considered as drivers of economic growth for developing countries. By year 2000 FDIs flow to developing countries accounted for 19% of the total global FDI flow compared to 52% in 2010. Collectively FDI equates to 11% of global GDP and generates close to 80 million jobs globally. Global FDI totaled to US$ 1.2 trillion in 2010, US$ 1.4 trillion in 2011 and US$ 1.8 trillion in 2012. Similarly, the developing countries received half of the FDI and only invested a quarter of the FDI out flow. Studies show that FDIs contributes to economic growth by stimulating several macro-economic and demographic variables which are major agents of economic growth. This paper sought to explain the effect of FDI on the determinants of economic growth human capital development, financial sector development and trade openness. A sample of 30 African countries was used for the study. The data used was retrieved from UNCTAD and World Bank online databases for the period between 1980 and 2012 and analyzed through a fixed effect regression model. The results of the study show that FDI had a positive impact on measures of financial sector development and trade openness. However the effect of FDI on human capital development was negative. The study recommends the need for favorable monetary policies that elicit more FDI for enhanced economic growth. The study also suggests increased global trade liberalization and integration to boost trade. Finally the study recommends that additional FDI flows should be directed towards human capital development. </p>
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Akhter, Syed H. "Foreign direct investments in developing countries: The openness hypothesis and policy implications." International Trade Journal 7, no. 6 (December 1993): 655–72. http://dx.doi.org/10.1080/08853909308523785.
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da Silva Oliveira, Romerito, and Arilda Teixeira. "The Effects of Corruption on Foreign Investments in Developed and Developing Countries." Management and Business Research Quarterly 16 (October 2020): 29–42. http://dx.doi.org/10.32038/mbrq.2020.16.03.
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This paper aimed to identify which elements related to the corruption impact the Foreign Direct Investment (FDI) regarding developed and developing countries. In order to achieve this purpose, the member countries of the Economic Commission for Latin America and the Caribbean (ECLAC) and the Organisation for Economic Co-operation and Development (OECD) were analysed. It was a quantitative and descriptive survey, with a sample of 78 countries and secondary data from 2012 to 2017. The results were estimated by Logistic Regression and Multiple Linear Regression, with Random Effects (RA), chosen by the Breusch-Pagan (1980) and Hausman (1978) tests. It was suggested that the corruption does not impact the inflow of FDI; however, being a developed country, with positive Gross Domestic Product (GDP) growth rates, and institutional quality, have positive impacts on the inflow of the FDI. Moreover, it showed that it is possible to accept, with 95% confidence, the following statement, the more developed a country is, the smaller its Capital inflow of FDI.
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Babcock, Jennifer. "The Effects of Imputation Systems on Multinational Investment, Financing, and Income-Shifting Strategies." Journal of the American Taxation Association 22, no. 2 (September 1, 2000): 1–21. http://dx.doi.org/10.2308/jata.2000.22.2.1.
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The United States is one of a few remaining countries to tax distributed corporate earnings twice—once at the corporate level, and again at the individual level. In contrast, many other countries have adopted imputation systems that refund domestic corporate taxes through dividend tax credits. Consequently, foreign-source income, which is often relieved from domestic corporate taxation, is generally ineligible for dividend tax credits. The paper develops a model to derive the investment, financing, and crossjurisdictional income-shifting incentives of imputation-based multinationals. The model indicates that imputation systems encourage firms to restrict their equity stakes in new foreign investments, and, ultimately, to expand their domestic investments. The results also reveal that imputation systems create incentives for firms to lever highly their foreign operations, use internal debt over equity finance, shift foreign taxable income into home jurisdictions, and to merge with or acquire purely domestic or nonresident owned firms.
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Antevski, Miroslav, and Sanja Filipovic. "Foreign investment activities of Chinese companies." Medjunarodni problemi 66, no. 3-4 (2014): 231–48. http://dx.doi.org/10.2298/medjp1404231a.
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Chinese investments abroad have recorded high growth rates in the last decade, but its scope is still small in comparison to those of developed industrial countries. The state plays a key role in its encouragement and support directly and indirectly. Large state corporations are the biggest investors abroad, somewhere investments of Chinese private companies dominate, e.g. in Africa. There is a great geographic dispersion of investment flows, while the highest concentration is in developing countries. The main drivers of investment capital are trade, energy sources, natural resources, infrastructure projects and acquisition of strategic assets. These drivers are often are combined from two or more ones which are mutually supportive.
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Anhier Al-Froukh, Mohammad. "Developing in Investment Environment in Jordan from the Perspective of Jordan Investments Commission." International Journal of Business and Management 14, no. 10 (September 4, 2019): 116. http://dx.doi.org/10.5539/ijbm.v14n10p116.
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Globalization; along with its developed technology and wide opened window has facilitated interaction between countries that surpassed import and export. Attracting foreign investments to a country is an added value which helps in developing the workforce within the country and get use from different experiences that other countries employ. From that point, current study seeks to examine the influence of a group of CSF on the investment environment in Jordan from the perspective of Jordan Investment Commission. In order to achieve the aim of study, (412) questionnaire were distributed on senior managers, managers and tram leaders within JIC. Results of study indicated that foreign direct investment is a real means to achieve a number of objectives, including: decrease unemployment, exploitation of natural resources, contribution to the increase of GDP, the abundance of goods for domestic markets, increased exports, and technology transfer. What is important to us in all this is the transfer of technology from developed countries with direct investments to the host countries of this investment, where the transfer of the most efficient and developed means of production, since the foreign investor is always looking for the greatest return through investments in other countries, Create appropriate conditions for this.
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Tahirović, Husnija. "The importance of improving free trade in developing countries." Ekonomski izazovi 9, no. 17 (2020): 28–44. http://dx.doi.org/10.5937/ekoizazov2017028t.
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The subject of this research is a scientific contribution to the promotion of free trade in underdeveloped countries and developing countries, both in theoretical and practical terms. Bearing in mind that the world trade is a young scientific area that has evolved from skill through the methodology of dealing with people in organizations to forms as professions and scientific discipline. Experience shows that developing countries that have understood this and started using scientific achievements in the field of international trade business and free trade, have in practice achieved far faster development than other underdeveloped countries. The promotion of free trade in developing countries is more decades in the circles of interest for numerous economic theorists and practitioners, bearing in mind the fact that free trade is the first-rate factors of the economic development of each country. This paper presents a contribution to the analysis of the competitiveness of free trade in developing countries and persistent analysis compared to developed countries. The paper points to the importance of membership in the World Trade Organization, which entails access to the market, benefits, relief and exemption from customs duties. The starting assumption is that the competitiveness of the economy of countries that are underdeveloped or in development is at a very low level. Therefore, an increase in competition between undeveloped countries would be conditional on an increase in exports and thus developed a more favorable environment for attracting foreign direct investments. This is why the basic message of this scientific research paper is that, with cooperation with international monetary, financial and trade institutions, allow developing countries to open their markets and seize the benefits of engaging in international trade flows . Therefore, on the work of the paper a special emphasis is placed on cooperation with the World Trade Organization, the WTO. The theoretical and empirical foundation of this scientific and research work stems from the realization that investments in the development of free trade are an increasingly significant factor of growth and development of each economy. The experience shows that countries that save on these activities are the ones who are working too little for their present and not for their future. The lack of investment in the promotion of free trade is reduced in the final instance to poverty in the quality of economic development. And the quality of planting and future economic growth is based on programmed production, redistribution and allocation of quality scientific programs with calculated effects on labour productivity, savings and prosperity. Investing in improvement and cooperation with international trade institutions of the current and future leaders of undeveloped countries provides answers to evolving challenges. Improving foreign trade is one of the most cost-effective investments of an underdeveloped state. Knowledge and expertise in the field of foreign trade are the fundamental determiners of the development of the most solemn, the vreiority and the quality of human life in these countries. The entire future of one country is based on science, education and knowledge that liberate the social, economic and cultural difference.Chinese foreign direct investment in the world has long and successful tradition. Over the past decade, China has become one of the largest exporters of foreign investment in the world, including European countries. China's investment in Europe brings a number of benefits in terms of technology, know-how, improving the reputation of existing brands, establishing a logistical market in the European market. Looking from the viewpoint of the host countries, the inflow of Chinese investments brought new economic opportunities, especially in those European countries that had poor economic growth, faced with high unemployment after the Euro crisis. This paper presents global trends of Chinese foreign direct investment, the motives that have prompted Chinese investors to invest in European countries, the needs of the EU for Chinese investment, and good example of attracting Chinese investments in Serbia.
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Antevski, Miroslav. "Development potentials of foreign direct investments: Comparative international experiences." Medjunarodni problemi 61, no. 1-2 (2009): 48–73. http://dx.doi.org/10.2298/medjp0902048a.
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In this paper the author analyses the main development potentials of foreign direct investments in different world regions. They are real and evident, but not always exploited. It is found out that the developed financial markets, good governance, developed institutions and the size of country have a great impact on the location choices of foreign investors. In developing countries economic, administrative and legislative reforms, as well as developed infrastructure networks, should improve a country's attractiveness for FDIs. In most countries, FDIs are concentrated in developed regions and sell the greatest share of their production on the local market. One of their parts is export-oriented, but at the same time, they are great importers from developed countries. The extent of spillovers is modest in most cases.
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Spahija, Fidane. "The Investment and Net Interest Margin: Case Study Commercial Banks in Kosovo." European Journal of Multidisciplinary Studies 1, no. 2 (April 30, 2016): 117. http://dx.doi.org/10.26417/ejms.v1i2.p117-126.
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In Kosovo, but in all developing countries, the foreign investment is the locomotive of the country that considered as the most important economic sectors. In general it can be concluded that most of the investment originates from developed countries and that these investments return to these places. Origin of investments in Kosovo mainly comes from countries such as Austria, Germany, Slovenia, Great Britain, Switzerland, Turkey, the Netherlands, Albania, Serbia, USA, France, Macedonia, Croatia, Cyprus, Norway, Italy, Greece etc. The banking sector in Kosovo has been very attractive to the foreign investors. A total of nine commercial banks, seven are foreign owned. Foreign investments are primarily generated as investments in shares of foreign shareholders from different countries of the world. Investments in securities have increased by the banking sector in 2014. With the change of the interest rate it has also changed net interest margin of the banking sector. Interest on loans and deposits has continued to decline. Especially interest rates on deposits in 2014 have fallen to 1. 1%. This linked to the investment bank in securities of our government as the initiator in this area but cannot be denied to the investment of foreign governments. With the decrease of credit interest rate will be the development of sustainable economic growth and boost investment.
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Onder, Gokhan, and Zeynep Karal. "DETERMINANTS OF FOREIGN DIRECT INVESTMENTS OUTFLOW FROM A DEVELOPING COUNTRY: THE CASE OF TURKEY." Business, Management and Education 11, no. 2 (September 13, 2013): 241–55. http://dx.doi.org/10.3846/bme.2013.14.
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Foreign direct investments (FDI) outflows of Turkey have remarkably been raising over the last decade. This rapid increase brings about the need for questioning the determinants of FDI outflows. The aim of this paper is to estimate the factors affecting outflow FDI from Turkey from 2002 to 2011 by using Prais-Winsten regression analysis. According to estimation results, population, infrastructure, percapita gross domestic product of the host country, and home country exports to the host country are the factors having positive effects on outflow FDI. We found, on the other hand, that the annual inflation rate of the host country, its tax rate collected from commercial profit, and its distance from Turkey have a negative relation with investment outflows. Moreover our results show that while investment outflows to developed countries are in the form of horizontal investments, investment outflows to developing countries are in the form of vertical investments.
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Göçer, Ismet, Mehmet Mercan, and Osman Peker. "Effect of Foreign Direct Investments on the Domestic Investments of Developing Countries: A Dynamic Panel Data Analysis." Journal of Economic and Social Studies 4, no. 1 (March 15, 2014): 69–87. http://dx.doi.org/10.14706/jecoss11415.
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Liu, Li. "Where Does Multinational Investment Go with Territorial Taxation? Evidence from the United Kingdom." American Economic Journal: Economic Policy 12, no. 1 (February 1, 2020): 325–58. http://dx.doi.org/10.1257/pol.20180592.
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In 2009, the United Kingdom changed from a worldwide to a territorial tax system, abolishing dividend taxes on foreign repatriation from many low-tax countries. This paper assesses the causal effect of territorial taxation on real investments, using a unique dataset for multinational affiliates in 27 European countries and employing the difference-in-differences approach. It finds that the territorial reform has increased the investment rate of UK multinationals by 16.7 percentage points in low-tax countries. In the absence of any significant investment reduction elsewhere, the findings represent a likely increase in total outbound investment by UK multinationals. (JEL F23, G31, H25, H32, H87)
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Flфystad, Gunnar. "Free Trade versus Protection : Static and Dynamic Aspects." Pakistan Development Review 24, no. 1 (March 1, 1985): 39–50. http://dx.doi.org/10.30541/v24i1pp.39-50.
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This paper analyses whether the developing countries are pursuing an optimal foreign trade policy, given the theoretical and empirical evidence we have. The paper concludes that constraints in imposing other taxes than tariffs in many developing countries may justify having tariffs as part of an optimal taxation policy.
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Bilek, Edward M., and Paul V. Ellefson. "Business arrangements used by U.S. wood-based companies involved in direct foreign investment." Forestry Chronicle 67, no. 2 (April 1, 1991): 141–44. http://dx.doi.org/10.5558/tfc67141-2.
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Two hundred foreign investments (wholly-owned subsidiaries and joint ventures) were identified for 12 of the nation's 1981 top 20 sales-leading transnational wood-based companies. Investments were scattered over much of the world with a significant preference for developed countries (135 of the 200 foreign investments). Company executives agreed that the ability to compete in world markets would be key to a company's long-term success. Only three companies indicated foreign investments were of growing importance. Factors influencing company decisions about type of foreign investment included length of investment, developed versus developing country, social and political conditions in host country, foreign pressure to reduce equity, control of profit remittances and share of financial burden.
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Sholokhova, Maria. "Investment cooperation in the BRICS countries." BRICS Journal of Economics 4, no. 1 (December 28, 2020): 24–32. http://dx.doi.org/10.38050/2712-7508-2020-1-4-3.
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The purpose of the study is to analyze the current stage of investment cooperation between the BRICS countries in terms of current investment projects and legislation regulating investment interaction. The methods of the research are as follows: investigating the issue of investment cooperation between different member states and the legal framework for such cooperation; finding sources such as books, magazines, journals, legal acts, and websites; collecting all the necessary data; critical analysis of the data on the issue of the research; developing an outline. The investment interaction under study is presented at three different levels: outward foreign direct investments from the BRICS countries; foreign direct investments into the BRICS countries; and investment cooperation between the BRICS countries. All levels of investment cooperation are regulated both at the national and international levels.