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Abstract

Attracting investments is important for any economy. The purpose of this study is to study the factors influencing the inflow of foreign direct investment on the example of the leading countries in this indicator, and the country of the Organization of Turkic States. The authors used both qualitative and quantitative methods for analyzing research data from other authors, reports from international organizations and the World Bank database. Econometric calculations were made by using the Stata 17 application package. A linear regression model was built, estimated by the least squares method. Several factors are selected that supposedly influence FDI inflows to the countries of the Organization of Turkic States. It is shown that the factor of political stability is more significant than the level of inflation, the volume of foreign trade and final consumption expenditures. The author concluded that the factor holding back the growth of investments is the inefficient activity of the institutions of economic and political regulation. In particular, negative institutional factors are non-transparent regulatory policy, the dominance of state ownership and the lack of an adequate system for protecting the rights of investors, the low degree of the rule of law and the restriction of economic freedoms. Further study of issues related to attracting FDI should consider the trends of mass digitalization, since the introduction and dissemination of digital technologies is becoming an integral part of the competitiveness of the modern economy.

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