Vol.7, No.4, November 2018.                                                                                                                                                                             ISSN: 2217-8309

                                                                                                                                                                                                                        eISSN: 2217-8333


TEM Journal



Association for Information Communication Technology Education and Science

Foreign Direct Investments Impact on Economic Growth in Developing Countries


Matraeva Lilia Valerievna, Solodukha Petr Viktorovich


© 2018 Matraeva Lilia Valerievna, published by UIKTEN. This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License. (CC BY-NC-ND 4.0)


Citation Information: TEM Journal. Volume 7, Issue 4, Pages 731-737, ISSN 2217-8309, DOI: 10.18421/TEM74-05, November 2018.


Received: 11 June 2018.
Accepted: 18 October 2018.
Published: 26 November 2018.




In today's world, globalization and the integration of economic ties are taking place intensively, and capital mobility is increasing. However, international practice shows that foreign investment can have both positive and negative effects on the country's economy. In this paper, the author examines the effects of foreign direct investment in the economy of the Russian Federation on the basis of testing two hypotheses on the basis of statistical analysis and macroeconomic modeling. The first is related to the assessment of the economic impact on the donor country based on the modified difference model of the multiplier-accelerator. The second hypothesis is based on a test of the impact of foreign investment on the host economy, based on the elasticity of external and domestic investment flows. The study identifies several target groups for analysis: regions that are active donors of investments and regions in which foreign investment flows are low. The comparison of the effects of foreign investment in these target groups allowed the author to give a more accurate description of the hypotheses about the nature of the consequences of foreign investment in the regions of the Russian Federation.


Keywords – foreign direct investments, impact of foreign direct investments, global effects in world economy.



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