Impact of international organizations on the institutional development of investment activity
Dublin Core
Title
Impact of international organizations on the institutional development of investment activity
Subject
Asymmetry
Foreign investment
Geostrategic matrix
Investment flow
Scenario
Foreign investment
Geostrategic matrix
Investment flow
Scenario
Description
This study examines the impact of international organizations on the institutional development of investment activity through the lens of foreign direct investment (FDI) flow asymmetry. The paper offers an
approach to computing an integrated Financial Asymmetry Index, formalizing the degree and nature of financial imbalances, and presents the geostrategic matrix built by comparing the actual and hypothetical
values of the FDI Attraction Efficiency Index. Using a linear regression model, a scenario-based forecast of FDI flows to 32 countries was generated for the years 2025 and 2030. As a result, it was unveiled that the majority of countries experienced a moderate financial imbalance, whilst developed and transition economies such as China and Singapore had a low degree of asymmetry in their financial systems. For less developed nations, one of the major preconditions of asymmetry was the administrative response taken by the government. The generated geostrategic matrix and FDI forecast may serve as FDI boosting tools. In this regard, investment policies of the world states should focus on promoting the efficiency of investment usage. The long-term predictions made suggest that countries will concentrate on improving and developing their investment potential. In turn, the solution offered in the study will help reduce financial asymmetries and balance available financial resources against investment needs.
approach to computing an integrated Financial Asymmetry Index, formalizing the degree and nature of financial imbalances, and presents the geostrategic matrix built by comparing the actual and hypothetical
values of the FDI Attraction Efficiency Index. Using a linear regression model, a scenario-based forecast of FDI flows to 32 countries was generated for the years 2025 and 2030. As a result, it was unveiled that the majority of countries experienced a moderate financial imbalance, whilst developed and transition economies such as China and Singapore had a low degree of asymmetry in their financial systems. For less developed nations, one of the major preconditions of asymmetry was the administrative response taken by the government. The generated geostrategic matrix and FDI forecast may serve as FDI boosting tools. In this regard, investment policies of the world states should focus on promoting the efficiency of investment usage. The long-term predictions made suggest that countries will concentrate on improving and developing their investment potential. In turn, the solution offered in the study will help reduce financial asymmetries and balance available financial resources against investment needs.
Creator
Francisco Zabala Aguayo
Source
https://www.sciencedirect.com/journal/european-research-on-management-and-business-economics/vol/28/issue/3
Publisher
Elsevier Espana, S.L.U
Date
1 February 2022
Contributor
Sri Wahyuni
Rights
ISSN: 2444-8834
Format
PDF
Language
English
Type
Text
Coverage
Jurnal Internasional European Research on Management and Business Economics 2022
Files
Collection
Citation
Francisco Zabala Aguayo, “Impact of international organizations on the institutional development of investment activity,” Repository Horizon University Indonesia, accessed February 5, 2025, https://repository.horizon.ac.id/items/show/6823.