Foreign direct investment in Russia in the context of the digitalization of the economy

ABSTRACT

Due to the outbreak of the coronavirus pandemic, not only the digitalization of economies has accelerated, but also conditions of economic uncertainty have arisen, which has affected the volume of foreign direct investment. This paper examines the world foreign direct investment (FDI) market and the state of the Russian FDI market. The changes in the Russian FDI market, which occurred as a result of the developed world crisis, are revealed, including those related to the accelerated digitalization of the economy. Based on the specifics of process phenomena in the economy, the value of FDI increases several times, since they allow the long-term investment of foreign capital in the national production of goods and services. In 2019, many investors were guided by conservative forecasts and planned to take this direction of doing business as a basis at the beginning of the period, and low interest rates in developed countries made it possible to draw the attention of global investors to assets in emerging markets. But the changes associated with the coronavirus pandemic have made adjustments throughout the financial world space. The direction of FDI in Russia is no exception. Many countries have managed to change the direction of the vector from the negative to positive and started expanding electronic platforms, online space, transferring standard financial products and services from offline to online. © 2021 ACM.