MEASURING INSTABILITY OF FOREIGN DIRECT INVESTMENT FLOWS IN LATVIA
DOI:
https://doi.org/10.17770/sie2021vol6.6474Keywords:
correlation, deals, foreign direct investment flow, instability, investors, Latvia, standard deviationAbstract
Fluctuations of Foreign Direct Investment (FDI) flows constitute an acute research problem globally and in Latvia studies. Already before COVID19, negative flows occurred. The research aim is to investigate stability in FDI in Latvia applying theory of dynamical system to big database of 129 countries of origin of FDI covering the whole period of regained statehood. The primary methods used are standard deviation and correlation. The main research result is disclosing growing instability of FDI flows in Latvia despite joining the EU and Eurozone. Novelty consists of research methodology justification, plotting analytical table, calculation of sigma and correlations for FDI flows for the periods before and after Latvia joined the EU, and drawing conclusions.
Downloads
References
Cambridge English dictionary. (2020). Definition of instability in the Cambridge English dictionary. Retrieved from: https://dictionary.cambridge.org/dictionary/english/instability
Clive, W. J. Granger. (1994). Is Chaotic Economic Theory Relevant for Economics. A Review Article of: Jess Benhabib: Cycles and Chaos in Economic Equilibrium. Journal of International and Comparative Economics, 3, 139-145.
Dettoni, J. (2021). Covid-19 blows $311bn in productive investment in 2020. Retrieved from: https://www.fdiintelligence.com/article/79396
Fingar, C. (2019). Inside fDi: SDGs can help FDI get over GDP break-up. Retrieved from: https://www.fdiintelligence.com/Inside-fDi/Inside-fDi-SDGs-can-help-FDI-get-over-GDP-break-up?utm_campaign=Jan+2019+e-news+2&utm_source=emailCampaign&utm_medium=email&utm_content
Gandolfo, G. (2009). Economic Dynamics: Methods and Models (Fourth ed.). Berlin: Springer.
Investopedia. (2020). Definition of the standard deviation. Retrieved from: https://www.investopedia.com/terms/s/standarddeviation.asp
Leal Filho, W., Azul, A.M., Wall, T. et al. (2021). COVID-19: the impact of a global crisis on sustainable development research. Sustain Sci 16, 85–99. Retrieved from: https://doi.org/10.1007/s11625-020-00866-y
Lursoft. (2020). Lursoft statistics of FDI in Latvia. Retrieved from: https://www.lursoft.lv/lursoft-statistika/Arvalstu-tieso-investiciju-sadalijums-pa-valstim&id=501
Mathsisfun. (2020). Standard deviation formulas. Retrieved from: https://www.mathsisfun.com/data/standard-deviation-formulas.html
Oxford Dictionary. (2020). Definition of instability in Oxford dictionary. Retrieved from: https://en.oxforddictionaries.com/definition/instability
Pelēce, D. Ārvalstu tiešās investīcijas Latvijā. (2020). Retrieved from: https://www.makroekonomika.lv/arvalstu-tiesas-investicijas-latvija
Research methodologists adphealth. (2020). Retrieved from: http://adphealth.org/irtoolkit/research-methods-and-data-management/research-tools-and-techniques.html?tdrmodal=120#sec4_1
Sauka, A. (2020). FICIL Sentiment Index. Retrieved from: https://www.ficil.lv/wp-content/uploads/2021/01/ENG_2020_FICIL_Sentiment_Index.pdf
Your Dictionary. (2020). Definition of instability in Your Dictionary. Retrieved from: https://www.yourdictionary.com/instability
