The assessment of the attractiveness of countries for foreign direct investments

Abstract

The attractiveness of foreign direct investment (FDI) is greatly influenced by globalization and economic factors such as gross domestic product (GDP), average wages, market size, tax and legal system, innovation and many others. FDI is an important source of capital that complements domestic investment, which promotes the development of a country’s economy. In the world, the competition for attracting FDI to countries is increasing. The problem raised in the article is to reveal the main factors determining the attraction of FDI flows and their weights, which influence economic growth in the country, in accordance with scientific paradigms. The purpose of the article is to find a connection with real FDI flows based on the theoretical aspects of globalization and the economy and quantitative research on the influence of factors, after selecting the 5 factors that have the greatest influence on attracting FDI and determining their weights. Tasks: to identify the main theoretical aspects that allow predicting the factors that determine the attractiveness of countries for direct foreign investments, after choosing the 5 most important factors that influence FDI attraction, to perform an expert assessment and determine their weights, to check or select 5 factors by ranking and their weights have a direct relationship with in real 2020 By the distribution of FDI flows, to group countries according to their similarities and differences. Methods used to achieve the tasks: analysis of scientific literature and articles, methods of juxtaposing and comparing statements, review of statistical data, questionnaire survey of experts, AHP expert assessment, TOPSIS, EDAS, COPRAS methods, Cluster analysis. The obtained results showed that China should be in the first place in terms of FDI flows if the weights and criteria are chosen correctly. This state was separated into a separate cluster because its data differ significantly from the others. Scientific benefit: Finding the relationship between factors and FDI flows could lead to a model that countries can use to attract more FDI.