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Foreign Direct Investments (II)

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  • Andrei, Liviu Catalin
  • Andrei, Dalina

Abstract

Our ever surviving obsession running our undertaking from its start – i.e. previously to the basic study, published in 2019 and 2020 – like a ‘red thread’ is that one single scientific truth about foreign direct investments (FDI) vis-à-vis plenty of theories, models and empirical studies in which these – actually, what is here called international directly invested capital – are seen so differently acting in different countries and regions of the world. So, first, this must be about the whole world at once. Then, it simply must be about a number of countries/ entities for which all capital entries (FDI) equal all capital issues (directly investments abroad/DIA) and so the FDI stock balances of these countries make the null sum. Then, our previous and basic paper was for a comprehensive picture drawn about our world through the amounts of directly invested capital flows in work between nations. We found the uneven capitals distribution throughout the world – i.e. obvious and the most obvious at the first sight --, accompanied by a curious trend of FDI and opposite DIA equalizing on each world country. So, about half of the world total amount of capital developed by just four-five countries and regions, then, a top-17 of countries and regions with the overwhelming capital majority on both FDI(entries) and DIA(issues). We also found the flows’ developing dynamic that looks somehow different than the basic ‘static’ image – e.g. hierarchy of the same top entities changes. Then, there was a by regions description of the world of capital flowing between nations – and we’ll be a bit back to in this text below – deepening the primary view on the tops of countries-regions – i.e. not too much structural difference between the total world and each of regions. The annexes of that previous paper brought some specific concepts in – i.e. new in the field, not yet to be found in specific dictionaries --, the common features of individual country’s evolving through joining this international capital part, classification of 215 world countries according to their contribution to international directly invested capital – i.e. classifications for FDI, DIA, FDI stock balances and dynamics of FDI and DIA, all these for all countries -- and finally there were a few words for each country in context. In this paper below it will be staying on international flows of capital among countries and on regions, as previously, but more deeply on flows identifying and classifying, here basing on our first, primary and ever basic model(theory) assumptions: ‘capital is world belonging, then distributes among countries’ . It will be here below to find exactly where the same capital comes from, how many sources are there to talk about for a world picture imagined this way. All these below that are text, model and empiric analysis will carry with them a new theory about foreign direct investments in the field.

Suggested Citation

  • Andrei, Liviu Catalin & Andrei, Dalina, 2021. "Foreign Direct Investments (II)," MPRA Paper 106661, University Library of Munich, Germany, revised 15 Mar 2021.
  • Handle: RePEc:pra:mprapa:106661
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    References listed on IDEAS

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    Cited by:

    1. Andrei, Dalina Maria, 2023. "Investitiile straine directe in regiunea Central Est Europeana," MPRA Paper 117753, University Library of Munich, Germany, revised 24 Jun 2023.
    2. Liviu C. Andrei & Dalina M. Andrei, 2020. "Foreign Direct Investments The International Directly Invested Capital Divided Into Cooperation Capital And Long-Way Flows," Management Strategies Journal, Constantin Brancoveanu University, vol. 50(4), pages 16-23.

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    More about this item

    Keywords

    foreign direct investments (FDI); direct investments abroad (DIA); FDI stocks balance; Cooperation capital (Ccp);
    All these keywords.

    JEL classification:

    • F0 - International Economics - - General
    • F2 - International Economics - - International Factor Movements and International Business
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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