Economic Growth Models and FDI in the CIS Countries During the Period of Digitalization

Vladimir V. Olkhovik (), Olga I. Lyutova () and Edvardas Juchnevicius ()
Additional contact information
Vladimir V. Olkhovik: Financial Research Institute, Moscow 127006, Russian Federation; HSE University, Moscow 101000, Russian Federation
Olga I. Lyutova: HSE University, Moscow 101000, Russian Federation
Edvardas Juchnevicius: Gdansk University, Gdansk 80–309, Poland

Finansovyj žhurnal — Financial Journal, 2022, issue 2, 73-90

Abstract: This article explores the interrelation between economic growth and foreign direct investments (FDI) in the countries of the Commonwealth of Independent States (CIS) in 1993–2019. The research focuses on the impact of new FDI inflows per capita, as well as the influence of accumulated foreign capital (FDI stock per capita) on GDP growth per capita. This article has aimed to find the causal link between GDP growth and FDI inflows, as well as between GDP growth and FDI stock per capita in the CIS countries. The research methods include: empirical and statistical research, synthesis of practical and theoretical matters, methods of mathematical modelling. Discussion. FDI in the CIS countries are often determined by market size and market growth potential, which ensure a favourable business environment for foreign investors. Data obtained during the analysis suggest that the CIS countries mainly attract market-oriented FDI, which is consistent with the findings of the authors. Thus, the accumulated foreign capital stock has positive impact on economic growth in the CIS countries. Results. Foreign direct investments for economic growth act through such factors as gross domestic product, interest rate, average wages, exchange rate, consumer price index, political stability. The coronavirus pandemic factor is assessed by the authors as negatively affecting the investment attractiveness of countries; the use of digital technologies in handling FDI, according to the authors, is debatable issue.

Keywords: economic growth models; foreign direct investments (FDI); Commonwealth of Independent States (CIS) countries; digitalization; trade integration; global integration; financial capital (search for similar items in EconPapers)
JEL-codes: C23 E27 F43 F47 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.finjournal-nifi.ru/images/FILES/Journa ... ii/05_2_2022_v14.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fru:finjrn:220205:p:73-90

DOI: 10.31107/2075-1990-2022-2-73-90

Access Statistics for this article

Finansovyj žhurnal — Financial Journal is currently edited by Vladimir S. Nazarov

More articles in Finansovyj žhurnal — Financial Journal from Financial Research Institute, Moscow 125375, Russia Contact information at EDIRC.
Bibliographic data for series maintained by Gennady Ageev ().