The impact of the foreign direct investment on the digital development

Abstract

The transition to the digital economy has become a priority for the government policy at all levels in almost all the countries. The acceleration of the measures for the digital development contributes to increasing competitiveness in all sectors of the national economy, creates new opportunities for business and society, as well as new ways of accessing foreign markets. The purpose of the study is to analyze changes in the FDI priorities under the influence of the activation of national and regional strategies for accelerating digital development and to develop recommendations for stimulating FDI in the digital development of the national economy. It is substantiated that modern investment policy creates competitive advantages for attracting investments from digital MNEs, responds to global challenges and crisis phenomena and provides strategic opportunities for digital development for the country, including preparation for changes in investment determinants and investor profiles in other industries that implement digital technologies into the global value chains. It has been proven that the existing strategies are not comprehensive and effective, as they should include investments in infrastructure, in digital companies and in the digitalization of the economy as a whole. Foreign direct investment has been found to play a crucial role in accelerating digital development. The digital economy has already begun an active transformation of the international operations of multinational corporations, which consists in changing the motivation when choosing the main directions of their FDI. It is recommended to coordinate digital development strategies with all areas and policies of the state to create a transparent regulatory framework for the FDI in the digital development, mitigating the negative impact on social, environmental and economic consequences of the digital transformation.