Issue: № 1, 2025
Doi: https://doi.org/10.37634/efp.2025.1.7
Introduction. The relevance of the research topic is due to the importance of understanding the role of foreign direct investment (FDI) in the national economy and the need to determine the relationship between foreign direct investment and economic growth in order to formulate a policy to encourage the inflow of FDI as a factor in post-war economic recovery. The purpose of the paper is to generalize the main theories of foreign direct investment and determine the positive correlation with FDI and economic growth in the context of post-war economic recovery and economic growth activation. Results. The generalization of theoretical approaches demonstrates that the main theories of FDI mainly explain the movement of investments from developed economies to others and reflect the multifaceted motives of investors. The generalization of the factors of attracting FDI demonstrates that economic, political, social, legal, technical, cultural factors interact with each other, creating a complex impact on investors' decisions to invest capital. It is determined that FDI plays a critical role in the processes of economic recovery of countries after crisis periods, such as wars or financial crises, when countries face large-scale destruction of infrastructure, loss of production capacity, high unemployment and significant budget deficits, because FDI provides the inflow of necessary capital, technologies, management skills and experience, which are crucial for the stabilization and further development of the economy. Conclusion. The generalization of the factors of FDI attraction demonstrates that their understanding and analysis are key to the development of an effective investment policy. It is noted that national governments, when developing investment policy, should take into account not only macroeconomic indicators and the legal framework, but also the specific needs of investors, trends in world markets, as well as competitive advantages and disadvantages inherent in a particular country in order to form strategies that contribute to attracting FDI to the most promising sectors of the economy and meet the requirements of the modern global economic environment. It is determined that FDI not only provides financial support and promotes economic growth, but also acts as an important factor in the political stabilization of the country after the crisis, strengthens international relations, stimulates the implementation of political and economic reforms, and ensures legal protection of investors, which makes FDI a key element of the recovery and development strategy of a country that seeks to stabilize its economy and political system after the crisis.
Keywords : foreign direct investment, FDI, economic growth, economic recovery, positive effects of FDI, negative effects of FDI, globalization
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