The Impact of Foreign Direct Investment on Less Developed Regions
| Autor: | Lazarenko Maksym I. |
|---|---|
| Jazyk: | English<br />Russian<br />Ukrainian |
| Rok vydání: | 2024 |
| Předmět: | |
| Zdroj: | Bìznes Inform, Vol 2, Iss 553, Pp 56-62 (2024) |
| Druh dokumentu: | article |
| ISSN: | 2222-4459 2311-116X |
| DOI: | 10.32983/2222-4459-2024-2-56-62 |
| Popis: | The article is devoted to the study of the impact of foreign direct investment (FDI) and the activities of TNCs in less developed regions (LDRs), which can lead to a break in value chains and to an increasingly complex division of labor, more complex decisions on location and directions of regional development. The author presents different types and mechanisms of FDI in more developed regions (MDRs) and in LDRs. The main approaches to FDI in the LDRs, developed in economic theory, are evaluated. Attention is drawn to that that international production and FDI will have significant implications for the LDRs in the near future. The development of factory automation is likely to reduce the feasibility of low labor costs, low-cost locations, which, in turn, will lead to increased reuse, attraction of resources in high-tech industries and a decrease in the level of added value of services. Increasing digitalization of supply chains is likely to lead to the emergence of more complex global production networks, the expansion of international production in both low-tech industries and higher value-added services. Increased automation and digitalization, trends in regional integration towards more stable local and regional sources of supply, and a push to become less dependent on imports of strategic goods undertaken by more developed regions (MDRs) are likely to lead to stronger organization of production networks on a macro-regional scale. The article urges experts to continue researching FDI in the face of uneven development. |
| Databáze: | Directory of Open Access Journals |
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