Identifying the degree of dependence of foreign direct investments on adjusted net savings of the recipient country

• Rudenko-Sudarieva, Larysa V. ^[1] ; Shevchenko, Yuliia A. ^[2]
  1. [1] KYIV NATIONAL ECONOMIC UNIVERSITY NAMED AFTER VADYM HETMAN
  2. [2] Department of Multilateral and Bilateral Trade Agreements, MINISTRY FOR DEVELOPMENT OF ECONOMY, TRADE AND AGRICULTURE OF UKRAINE
• Localización: Estudios de economía aplicada, ISSN 1133-3197, ISSN-e 1697-5731, Vol. 39, Nº Extra 6, 2021 (Ejemplar dedicado a: Special Issue: Innovative Development and Economic Growth in the CIS Countries)
• Idioma: inglés
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• Resumen

  • Due to the loss of the dominance of GDP as the main macroeconomic indicator of the social welfare, this study uses a more accurate and realistic indicator – adjusted net savings (ANS). Based on the economic and mathematical modelling, the study suggests a new method for identifying the value of adjusted net savings as a stimulating factor to increase the inflow of transnational capital to the recipient country. After assessing the current environment of investment attractiveness of recipient countries, attention was paid to identifying the degree of dependence of foreign direct investment on adjusted net savings. The novelty of this study is conditioned by the search and identification of the dominant macroeconomic indicator of investment attractiveness of the recipient country. Such an indicator will most fully reveal the conditions and prospects for attracting investments. The aim of this study was to consider alternative approaches to the country's development and to demonstrate the existence of a functional relationship between the volume of foreign direct investment and adjusted net savings. The purpose of this study is to build models of the dependence of foreign direct investment on adjusted net savings of the recipient country as an alternative indicator that most widely reveals the level of social welfare and economic development of the studied countries. Adjusted net savings consist of elements that cover the sustainable development of society, namely the economic, environmental, and social components. As a result, using the correlation and analysis of variance, the existence of dependence and its degree of influence on the volume of foreign direct investment on the adjusted net savings of the recipient country has been proved.