Peculiarities and Prospects of Investment Activities in the Conditions of the Global World Crisis

ABSTRACT

According to the International Monetary Fund, FDI is an investment that is formed to ensure the long-term interest of the investor in enterprises operating in another country. FDI is a critical factor of external financing for developing countries as they can receive financing from more affluent countries (Yang & Shafiq, 2020). [...]FDI offers various benefits to the country, such as providing long-term capital necessary for the economic development of the host country, creating new jobs, introducing innovative and new technologies, providing greater access to foreign markets, introducing new management skills, attracting companies from innovative sectors, etc (Misra, 2012). FDI supports a country's economic development by strengthening its human capital and fostering innovation and competition, contributing to technological progress and productivity. [...]FDI leads to overall economic growth in the country (Grossman, Helpman, 1991). According to the definition provided by the United Nations Conference on Trade and Development (UNCTAD, 2022), tax incentives are opportunities that reduce the tax burden of a party and encourage them to invest in a relevant project or sector of the economy.