The Influence of TNC Investment Activity on the Economic Growth of Countries with Emerging Economy

Abstract

TNCs provide asignificant part of the global industrial production. For developing countries, the issue of attracting FDI has never lost its relevance. TNCs have always been among the priority foreign investors and the main structural element of most world economies. TNCs solve critical issues of economic growth in developing countries with the help of foreign direct investment. The aim of this article is to study the dependence of a developing country’s economic growth on FDI, i.e. consider and explore the relationship between these two indicators. The object of the study is FDI and the GDP of Russia and Kazakhstan. Initially,the study was aimed at identifying the positive and negative aspects of TNCs through the analysis of FDI in Kazakhstan and Russia over the years of independence. Next, the study includes a regression analysis of the contribution of FDI to the GDP of Russia and Kazakhstan. SPSS software was used. The share of GDP for FDI for Kazakhstan and Russia was used as an independent variable. GDP for both countries was taken as the dependent variable. The analyzed period was from 1992 to 2020. Statistical data was used from official sources. Regression analyses performed with dependent variables are significant. Upon the research results, the independent variable for the RF model is higher than for the KZ model. Thus, the level of FDI contribution to GDP growth for Russia is much higher than for Kazakhstan.

Keywords

• economy
• transnational corporations
• fdi
• developing countries
• gdp
• practice