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Strategic Characteristics of Foreign Investment

Abstract

This study identifies the strategic characteristics of FDI. Aim. The study determines and presents the strategic role of FDI, its characteristics, and its impact on the economic development of the regions where it is made. Tasks. In this study, we identify the nature of FDI and the extent of its positive and negative impacts on regional economic development, particularly during the selection and implementation of strategic development priorities. Methods. The study uses a strategic approach to analyze the work of major researchers on the examination of factors that determine the efficiency of FDI. Other research methods include scientific generalization and systematization. Results. Foreign investment that requires large amounts of financial resources and technology transfer ends up being a long-term process. This study presents, in a structured fashion, the approaches to determining the positive and negative impacts of FDI on economic development that have been adopted by different schools of thought and outlines major strategic characteristics of said investment process. Conclusion. Mistakes made during initial strategy development and failure to assess the potential opportunities and threats of operating in new markets may result in significant losses that require a consistent strategic approach if they are to be avoided. Strategic priorities aimed at attracting FDI in regional economies should be based on the existence and potential formation of strategic economic factors that would ensure a positive effect from its implementation while reducing any negative impacts.

About the Author

Angelina V. Tedeeva
Moscow School of Economics of Moscow State University named after M. V. Lomonosov
Russian Federation


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Review

For citations:


Tedeeva A.V. Strategic Characteristics of Foreign Investment. Economics and Management. 2017;(9):60-69. (In Russ.)

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ISSN 1998-1627 (Print)