The impact of foreign direct investment on sustainable development

Abstract

In today's conditions of globalization, foreign investment has become one of the key sources of financing for many countries, especially for developing countries. Examining their impact on sustainable development helps to understand how they contribute to or hinder the achievement of economic, environmental and social sustainability. In line with the UN Sustainable Development Goals, it is important to explore how FDI can support these goals, particularly in areas such as reducing poverty, ensuring environmental sustainability and promoting equality. This allows for a better assessment of investment attraction policies and strategies.

The purpose of the study is to determine and analyze the relationship between the volume, structure and directions of FDI and indicators of sustainable development in a country or region, to analyze the impact of FDI on economic growth, employment, productivity and innovation, in particular, how they contribute to increasing competitiveness and economic stability. Overall, the aim of the study is to provide a deeper understanding of how foreign direct investment can be effectively integrated into sustainable development strategies, ensuring balanced economic, environmental and social progress.

A variety of methods can be used to examine the impact of foreign direct investment (FDI) on sustainable development, depending on the specific objectives and available data. However, our research used an analytical approach to work with data that spans multiple countries or regions over a period of time. This helps identify general trends and individual effects that affect different countries or regions differently.

The results of the study indicate that the world is significantly lagging behind the implementation plan of the Agenda for the period until 2030. Of the 135 tasks for which data and additional information from the relevant institutions are available, only 17% have made the expected progress, giving hope for their completion by 2030.

The findings indicate that foreign direct investment plays an important role in promoting sustainable development. Funding projects aimed at reducing greenhouse gas emissions and implementing green energy helps reduce global warming and its effects. This is important to ensure the sustainability of our planet for future generations.