IMPACT OF INSTITUTIONAL FACTORS ON ATTRACTING FOREIGN DIRECT INVESTMENT
Abstract
The purpose of this study is to prove impact of institutional factors on attracting foreign direct investment, which is important only for countries where Gross National Income per capita exceeds the level above average.
Methodology. Аuthors developed and used a methodology that determines limited development level of the state, which can be taken into account when an investor makes a decision to invest in a particular country.
The оriginality /value of research reveals that the institutional environment in attracting FDI will increase if recipient country will exceed limited level of economic. In other words, for Less developed countries, institutional factors do not affect FDI inflows.
Research results. The study proved that institutional factors only affect FDI when a country's gross national income is higher than average. Consequently, institutional changes undertaken to attract FDI were determined to be appropriate if recipient country's Gross National Income per capita exceeds a certain limit.
About the Authors
L. Zh. Ashirbekova
Аl-Farabi Kazakh National University
Kazakhstan
Kazakhstan
Almaty
T. T. Zhumagul
Аl-Farabi Kazakh National University
Kazakhstan
Kazakhstan
Almaty
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Review
For citations:
Ashirbekova L.Zh., Zhumagul T.T. IMPACT OF INSTITUTIONAL FACTORS ON ATTRACTING FOREIGN DIRECT INVESTMENT. Central Asian Economic Review. 2020;(1):123-134. (In Kazakh)
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