Retrospective analysis of foreign investment in the context of the evolution of economic theories

Abstract

The article provides a retrospective analysis of the formation and evolution of foreign direct investment in terms of various economic theories taking into account changes in the stages of socio-economic development. The study of these historical and economic issues was carried out using systematic analysis and historical method; which allowed us to identify the genesis and analyze the evolution of economic theories on the formation and development of foreign direct investment. The author conducted a detailed study of the history of investment activities and management of foreign direct investment from the oldest origins in the ancient world to modern forms of innovation. It was found that at different times, repre- sentatives of various economic theories (open economy, market modernization, monopolistic competition, international capital movements, etc.) worked on under- standing complex investment processes, risk management and methods of obtaining economic benefits, who considered foreign direct investment as a guaranteed im- provement and development of society. The analysis of scientific literature and statistics shows positive social, po- litical, economic, technological and other effects of investment activities: job creation and training, export diversification and improvement of export perfor- mance, introduction of science-intensive technologies, activation of local firms – suppliers and subcontractors, the introduction of effective management methods, foreign exchange inflows, etc. Analyzing the genesis of economic theories, opinions and research, we conclude that humanity, feeling the need for savings, pays considerable attention to investment. The stages of the investment economy and the choice of methods of control over them indicate the urgency of this problem, and today scientists continue to discover new aspects of investment opportunities and develop innovative forms, mechanisms, tools of investment policy. Key words: economic theories, foreign direct investment, investment activity, international capital movement.