International Investment Movements

Abstract

In recent years foreign investment has become an important feature of the development of world economy. The aim of this study is to determine the main factors that stimulate international investment flows. For this purpose the theory of international investment will be reviewed in the first section of the work. The classification of the macro- and microeconomic factors influencing international investment movements will be represented. In the second section of the study, the regression analysis (times series and pooled regressions) is used to show that there is a relationship between imports (X) and inward foreign investment (Y); exports (X) and outward foreign investment (Y); inward foreign direct investment (X) and employment (Y); and inward foreign direct investment (X) and exports (Y).