Impact of foreign direct investment on economic development in CIS countries

Abstract

This study examines the factors influencing the inflow of foreign direct investment (FDI) to the CIS countries in the period from 2012 to 2021. The analysis focuses on macroeconomic variables affecting FDI such as: GDP growth, consumer price index (CPI), trade openness, political stability, ESG indicators and return on equity (ROE). This study uses FGLS regression, which shows that GDP growth, trade openness and consumer price index affect FDI inflows. GDP growth and trade openness positively correlate with FDI, unlike CPI. However, variables such as political stability, ESG indicators and return on equity were found to be statistically insignificant in this context. This study highlights the importance of economic growth and trade liberalization. Recommendations for further research to optimize FDI inflows are also discussed.