The interaction of investment attractiveness and political stability

Authors

  • H. Hovakimyan Armenian State University of Economics (Armenia)

Keywords:

investment attractiveness, political stability, foreign direct investment, FDI inflows, outflows, balance

Abstract

The article examines the impact of foreign direct investment on a series of economic and political factors. The correlation between FDI and the various economic and political indicators. Proved that those with high levels of the political system, have higher rates of outflow FDI in countries with high levels of government corruption and low levels of democracy has a high level of FDI inflows. It is proved that the volume of FDI inflows into the state's economy is closely linked to political factors in the country. From a practical point of view, are the kind of FDI indicators of the level of confidence of foreign investors in the political and economic system of the country. In some cases, the level of FDI inflows into the country illustrates the degree of fulfillment of election promises by the current government of the state. An example would be a situation where due to attracting FDI to the country's citizens new opportunities for employment and increasing the level of socio-economic development of the region's FDI recipient data. Approach used by the author, examines the relationship of FDI with the level of economic and political development of the state aimed at detailed analysis of the interaction of investment attractiveness and political stability in the country.

Author Biography

H. Hovakimyan, Armenian State University of Economics (Armenia)

PhD student in the 4th year, department of Microeconomics and Organization of Entrepreneurial Activity, assistant in Standing Committee on Economic Affairs, National Assembly of Republic of Armenia; member of Youth Parliament of RA (Armenia)

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