Êvropejsʹkij Vektor Ekonomìčnogo Rozvitku (Jun 2021)
INTERNATIONAL RATINGS AND VOLUMES OF FOREIGN DIRECT INVESTMENT: THE RELATIONSHIP BETWEEN INDICATORS
Abstract
The purpose of the study is to identify the relationship between the values of major international rankings and the volume of foreign direct investment for 20 leading countries in involvement FDI. The following rankings were examined: the index of ease of doing business, international and global ratings of competitiveness, the index of economic freedom, tolerance for corruption. Analysis of the places occupied by Ukraine in the relevant rankings. The statistical processing of information on 20 leading countries in terms of foreign direct investment and the corresponding place of these countries in the main international rankings, the use of the correlation method to identify the relationship between these indicators, methods of analysis and synthesis, comparing the level of foreign direct investment with the corresponding values of known international indices. In addition, countries were classified into three different groups depending on the relationship between the values of the main international ratings and of foreign direct investment. Another research method was the abstract-logical method to find new additional factors that determine the investment attractiveness of countries. The analysis of the relationship between the inflow of foreign direct investment and the corresponding place of the studied countries in the main international rankings did not show a significant dependence. At the same time, it was found that a number of countries that hold leading positions in attracting the highest volumes of foreign direct investment have correspondingly high-ranking positions in international indices. However, this sample of countries turned out to be the smallest. The largest number was the sample of countries, it was half of the list of countries for which there is no correlation between the volume of foreign direct investment and the rating values in major international indices. The analysis showed a fairly close relationship between the volume of foreign direct investment, on the one hand, and the size of the country, which is characterized by GDP and population, on the other hand. However, in our opinion, international ratings should not be ignored in general: achieving high places in international rankings to some extent forms a positive investment image of the country, and ignoring the results of ratings can lead to financial isolation of the country. At the same time, the study of new factors that cause the desire to make foreign direct investment in a country is a very interesting object of further research
Keywords
