Issue №4, 2016

          

Effect of attracting FDI to economic growth of TNCs

Effect of attracting FDI to economic growth of TNCs

V. Nosova, Banking University Kharkov Institute (Kharkov, Ukraine) 

The article shows the influence of FDI invested in R & D, to achieve economic growth of TNCs. The internal and external effects of transfer and imports of technology in the manufacturing sector of FDI are considered. The use of factors’ analysis proposes for stimulating economic growth. The significance of R&D investment highlights as the main factor in the development of innovations that underpins the success of the top 50 innovative companies in the world. The preconditions of economic growth are defined through increase in the creation of science-intensive technologies, improvement their effectiveness as a result of maximization benefits of international capital movement. On the ba- sis of systematization of TNC’s competitiveness factors distinguish characteristic features: the innovative and the ability to dynamic companies’ adaptation.

Keywords: foreign direct investment, economic growth, transnational company, innovation, global production systems.

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For citation: Nosova O. V. Effect of attracting FDI to economic growth of TNCs // Corporate governance and innovative economic development of the North: Bulletin of the Research Center of Corporate Law, Management and Venture Capital of Syktyvkar State University. 2016. № 4. P. 13—23.