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Ключові слова

foreign investment
sustainable foreign investment
national wealth
human capital
productive capital
net foreign assets
sustainable economic growth
sustainable development

Як цитувати



The purpose of this article is to analyze the role of foreign investment in contributing to national wealth growth and sustainable economic development, taking into consideration the twofold nature of foreign investment and ambiguous empirical data on its positive impact on economic growth. On the basis of World Bank accounting approach, the author has developed the net foreign assets structure and has analyzed the chain relationships occurring during the estimation of economic sustainability. Having analyzed the core literature concerning effects of international investment on economic well-being of developed and developing countries, the author suggested her own vision of the positive effects of international investment on components of national wealth. On the basis of individual 4-indicators approach for sustainable development outlook, the author came to conclusion that foreign investment plays little role in national wealth growth for selected OECD countries. Despite the fact these countries have required absorptive capacity, small share of foreign investment in national wealth structure is explained by insufficient compliance of foreign capital to sustainability characteristics determining sustainable foreign investment, which, therefore, arises the question of development of unified indicative list of sustainability characteristics to be used by governments attracting foreign capital inflows. Therefore, sustainable foreign investment is characterized by positive impact on human capital through boosting local education, as well as productive capital through the import of high technologies and their emulation into domestic production process. Foreign investment leads to government debt increase, if not absorbed by structural elements of national wealth.
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