Protectionism in foreign direct investment regulation

Abstract

Background. The study of the genesis of the world economy shows that during the downturn in production and rising unemployment, most of the government economic policy measures are aimed at regulating international trade, in particular, the export of such unemployment through the restriction of imports and support of national production, including by means of foreign direct investments attraction. At the same time, due to the globalization and internationalization of production processes, the growth of multinational companies’ capacity in the early twentieth century, protectionist measures in the regulation of foreign direct investment aimed at counteracting the destructive impact of international companies on the national economies and the environment of the host countries have become relevant.
The experience of the leading countries in introducing measures of investment protectionism is particularly important for Ukraine, taking into account the uncontrolled attraction of foreign direct investment during the years of independence.
Analysis of recent research and publications. Significant scientific advances in the field of protectionist tendencies in the regulation of foreign economic relations more closely reflect the peculiarities of trade protectionism, while the issue of protecting national interests in the field of foreign direct investments requires in-depth study.
Theaim of the article is to identify the peculiarities and trends of protectionism in the regulation of foreign direct investments.
Materials and methods. The materials of the study were works of domestic and foreign specialists, analytical materials of international organizations. In the process of research there were used general scientific methods of research: historical, logical analysis, synthesis and abstraction.
Results. The modern tendencies of regulation of foreign direct investments are analyzed and the role of protectionist measures in these tendencies is revealed. The main subjects and countries against which protectionist measures are directed in the field of regulation of foreign direct investment are identified. The sectoral structure and tools of protectionist investment policy of the G20 member states have been explored.
Conclusion. According to the results of the study, it has been found out that measures of investment protectionism are an integral part of the current trends of the international capital movement that have emerged in host countries in response to the expansionist policy of MNK and are also used as an instrument for the protection of national geopolitical interests in the home countries. The main actors of protectionism at the global level are G20 countries that control more than 70% of world foreign direct investment flows. Among the countries most active in protecting investment policy, it is necessary to point put the USA, which, by attracting American investors to the national economy, are trying to restore the balance of the domestic economic system and to strengthen the geopolitical influence abroad through branches of international companies.
An analysis of the investment protection policy toolkit indicates the absolute predominance of direct subsidies to achieve the effect in the short term along with more traditional investment policy measures. Therefore, among the areas of further research it is relevant to conduct analysis and quantitative assessment of the effectiveness of protectionist measures in countries’ foreign direct investment regulation.