Transformation of international investment in the face of global challenges
DOI:
https://doi.org/10.35774/visnyk2025.01.173Keywords:
international investment, foreign direct investment, global challenges, geopolitical instability, economic digitalisationAbstract
Introduction. In the modern context, international investment is experiencing significant changes, driven by various global challenges that are reshaping the structure and direction of investment flows. Analysing these transformations is crucial for understanding contemporary economic processes and formulating effective investment strategies.
The purpose of the study. This article examines key trends and analyses changes in international investment flows under current global challenges to create favourable investment conditions and ensure sustainable economic development.
Methods. The study employs methods of analysis and synthesis, generalisation, comparative analysis, systematisation, and logical and dialectical approaches.
Results. Given the rapid transformation of the global economy and the unpredictability of global processes, the success of international investments largely depends on investors’ ability to respond swiftly to new challenges, implement innovative solutions, and adapt to changing market conditions.
This article analyses global foreign direct investment (FDI) flows in terms of volume, country groups, and regions, demonstrating that the most significant factors shaping the transformation of international investment between 2003 and 2023 were economic instability triggered by the financial crisis (2008–2009), the COVID-19 pandemic (2020), and geopolitical tensions (2014, 2022).
It has been established that contemporary global challenges contribute to shifts in the geography of international investment, increasing the role of developing countries and regional centres while driving capital reallocation towards lower-risk assets.
Global challenges such as climate change, social inequality, and resource depletion are prompting investors to focus on environmentally and socially responsible projects aligned with sustainable development principles. Additionally, technological innovations and digital platforms are significantly altering the processes of attracting and managing international investments.
The study confirms that international investment is undergoing an active transformation phase. To ensure sustainable economic growth amid contemporary challenges, all market participants must be flexible and strategic.
Prospects for further research. Future research will explore investment opportunities in sectors that drive long-term economic growth, particularly renewable energy, biotechnology, and artificial intelligence.
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