Investment Activity un the Conditions of Global World Crisis, Features, and Prospects

Abstract

In the context of global competition and technological progress, an increasing number of factors influence the economies of the world. With the outbreak of the war in Ukraine, there have been dramatic changes in global investment trends. The war has repercussions far beyond its immediate surroundings, causing a cost-of-living crisis that affects billions of people around the world while rising energy and food prices depress real incomes and exacerbate debt tensions. Investor uncertainty and risk aversion could put significant pressure on FDI flow this year. The impact on investment flows to developing countries in 2022 and beyond is difficult to predict. The research aims to establish the regularity of the state of investment activity in the context of the global world crisis and to determine the features and prospects of investment activity development. This can be done by conducting a regression analysis to reflect the dependence of the impact of factors on the level of investment activity in 25 economies of the world according to the Global Outsourcing Attractiveness Index between the results of legal adaptability and corporate performance. To check the level of investment activity it is necessary to analyze the state of FDI flows by regions, economies, and countries. Research methods: method of information synthesis; regression analysis; systematization, generalization, comparative analysis. Results. It has been established that as a result of regression analysis, the value of the coefficient of determination indicates that the regression model explains 78% of the dependence of the level of investment activity in 25 economies of the world between the results of legal adaptability and corporate activity. This indicates that there are still a small number of other factors influencing the level of investment activity that is not included in the regression model. It has been determined that global FDI flows recovered to USD 972 billion in the first half of 2022. However, most of the increase was in the first quarter, while global FDI flows decreased by 22% in the second quarter of 2022 compared to the previous quarter. This was caused by rising inflation and interest rates, and rising energy prices, due to Russia’s full-scale invasion of Ukraine. The study found that FDI flows recovered significantly in all regions of the world. It was found that FDI increased sharply in some European countries after the negative inflows recorded in the second half of 2022, the latter was also driven by significant growth in Australia, Germany, Mexico, Spain, and Sweden, whose FDI inflows increased by more than USD 15 billion. It has been revealed that the United States was the leading recipient and investor of FDI worldwide in 2021.