International migration of capital and labor resources. Coursework: International capital migration

TOPIC 6. INTERNATIONAL CAPITAL MIGRATION

Formation of the world economy on turn of XIX-XX centuries created the opportunity to expand international economic relations, which raised the question of international mobility of factors of production. Capital is the most mobile, although, as a rule, its movement is subject to stricter regulation by the state. In modern conditions, this process serves as a factor in strengthening the internationalization of production and turns financial markets into the most important stimulus for the development of the world economy.

1. Theories international migration capital

2. Benefits and losses of countries when using foreign direct investment.

3. World investments and savings.

4. Internationalization of the capital market and problems of its regulation

Theories of international capital migration

The reasons for international capital movement are interpreted in various ways. economic schools in different ways and evolve with the development of both the world economy itself and economic science.

The question of why capital is exported and imported is primarily addressed by traditional theories. They usually mean neoclassical and neo-Keynesian, and sometimes Marxist theories of international capital movements.

For the first time, issues of capital movement between countries were raised by representatives of the English classical school V late XVIII- first half of the 19th century. Adam Smith and David Ricardo. They showed that under conditions of restrictions on the export of money capital, the exchange rate of the national currency decreases, prices rise, because the amount of money (gold and silver) exceeds the actual demand in the country. In this case, as A. Smith argued, nothing can prevent the removal of money from the country. Thus, he established a connection between the amount of money in a country, its price (interest), commodity prices and the “flight” of capital to countries with high purchasing power of money. D. Ricardo, considering comparative costs, showed the possibility of moving entrepreneurial capital and labor to countries with comparative advantages. Disciple and follower of D. Ricardo J. S. Mill argued that the export of capital always contributes to the expansion of trade and the most rational production specialization of countries. For this, an additional motive is definitely needed: a significant difference in profit rates between countries, since capital migrates only with the prospect of receiving very high excess profits.

In the 20th century neoclassicists (the Swedes E. Heckscher and B. Ohlin, the American R. Nurkse and the Dane K. Iversen) continued to develop these concepts. They also assumed that the main incentive for the international movement of capital is the rate of interest or the marginal productivity of capital: capital moves from places where its marginal productivity is low to places where it is high. B. Olin was the first economist to point out the export of capital in order to avoid high taxation and with a sharp decrease in the security of investments at home. He also drew a line between the export of long-term capital and short-term capital (the latter, in his opinion, is usually speculative in nature), between which the export of export credits is located.

R. Nurkse considered differences in interest rates, the dynamics of which are determined by conditions affecting the demand and supply of capital, as the basis for international capital movements. K. Iversen put forward the concept of marginal international capital mobility: different kinds capital have unequal mobility, which explains the fact that the same country acts as an exporter and importer of capital in relation to different countries.

However further development neoclassical theory has shown that it is of little use for studying direct investment, since one of its main premises - the presence of perfect competition - does not allow its supporters to analyze those corporate advantages (interpreted in economic theory as monopolistic), on which direct investment is usually based.

In the 20th century The views of the English economist were very popular J.M. Keynes and his followers. J.M. Keynes believed that a country can only become a real exporter of capital when its exports of goods exceed imports (to enable countries that purchase goods to finance their imports), and the growth of foreign investment must be supported by a positive trade balance of the country - exporter; Violation of this rule requires government intervention. The export of capital should be regulated in such a way that the outflow of capital from the country corresponds to the increase in commodity exports:

These views were reflected in the concept of neo-Keynesians

(American F. Machlup, Englishman R. Harrod, etc.). F. Mach loop believed that the most beneficial for the importing country is the influx of direct investment, which does not create debt. By R. Harrod, capital exports and trade balance movements stimulate economic growth, which depends on the amount of investment. If savings exceed investment, then growth slows, which stimulates capital outflow. In line with the neo-Keynesian theory, there are also models of capital export based on the preference for liquidity, which is understood as the investor’s inclination to store one part of his resources in a highly liquid (therefore low-profit) form, and the other part in a low-liquidity (but profitable) form. So American economist James Tobin put forward the concept of portfolio liquidity, according to which investor behavior is determined by the desire to diversify his portfolio of securities (including through foreign securities), while weighing profitability, liquidity and risks.

His compatriot Charles Kindleberger proved that in different countries capital markets are characterized by different preferences for liquidity and therefore an active exchange of portfolio investments between countries is possible, which explains the migration of capital between developed countries.

Karl Marx V. I. Lenin called it one of the most essential economic foundations of imperialism. The desire of monopolies to increase their monopoly income is realized by exporting “excess capital” abroad, especially to regions where high profits are ensured. The export of capital in this case turns out to be the basis for the financial oppression of weaker peoples.

Among the so-called “non-traditional” theories of international capital migration, two directions should be highlighted: the theory of international development financing for developing countries and the theory of TNCs.

International development finance is based on providing funds to developing countries. Part of these funds is provided by foreign states and international organizations for preferential terms through the official development assistance. First post-war decades the influx of official capital into developing countries was seen as a factor that would ensure self-sustaining or independent development of their economies (“supportive assistance”, “development assistance”). A significant portion of the funds flowing to these countries was in the form of bilateral or multilateral assistance, with a significant share of gifts (grants).

The starting point for justifying the need for influx financial resources developing countries were informed by conclusions about the peculiarities of capital accumulation in an underdeveloped economy made by American economists S. Kuznets and K. Kurihara. According to S. Kuznets, an economically underdeveloped country in the process of capital accumulation is forced to attract foreign capital, which gives it foreign currency to pay for imports and makes up for the lack of savings for investment. In this regard, two types of development assistance models have been developed - the savings-investment gap-filling model and the foreign exchange replacement model.

Many Western economists have criticized the use of development aid. They noted that the governments of developing countries use aid funds not to expand investment programs, but to increase consumer government programs that are not related to the economic development of the country.

In connection with the crisis of the theory of development assistance, Western economists (for example, L. Pearson) developed various partnership theories, which was embodied in the creation of mixed companies as a form of foreign investment with the participation of local capital. Such a company ensures harmony between foreign private capital, the government and local entrepreneurs.

90s XX century were marked by a large-scale influx of private capital into developing countries. Foreign direct investment, carried out mainly through transnational corporations, has come to the fore. The concept of capital export by transnational corporations is based on the idea of ​​the need to have additional advantages over local competitors, which allow them to obtain higher profits. This idea served as the basis for the development of a number of capital migration models.

Monopolistic advantage model was developed by an American economist Stephen Hymer and further developed C. Kindleberger, R. E. Caves, G. J. Johnson, R. LaCroix and other economists. It is based on the idea that a foreign investor is in a less favorable situation compared to a local one: he knows the country’s market and the “rules of the game” less well, he does not have extensive connections here, he incurs additional transport costs and suffers more from risks, it does not have a so-called “administrative resource”. Therefore, he needs so-called monopolistic advantages, due to which he could get higher profits.

Internalization model(from English gpjggpa1- internal) is based on the idea of ​​the Anglo-American economist Ronald Coase that within a large corporation there is a special internal market regulated by the heads of the corporation and its branches. This opens up opportunities for more convenient technology transfer and allows the potential of vertical integration to be realized. The creators of the internalization model (the British Peter Buckley, Mark Casson, Alan Rugman and others) believe that a significant part of formally international operations are actually intra-company operations of TNCs, the directions of which are determined by the strategic goals of the company itself and have nothing to do with the principles of comparative advantage or differences in the provision of factors of production.

Eclectic model by John Dunning has absorbed from other models of direct investment what has passed the test of life, which is why it is often called the “eclectic paradigm.” According to this model, a firm begins to produce goods and services abroad if the conditions for realizing existing advantages (ownership, internalization and location) are created.

Capital flight theory poorly developed, although in recent decades capital flight has acquired large proportions in the world, including in last decade and from Russia. The term “capital flight” is interpreted differently, which affects estimates of the scale of this phenomenon. Yes, D. Cuddington reduces capital flight to illegal export and/or export of short-term capital. According to M. Dooley, capital flight occurs when residents of different countries can benefit from existing or expected differences in taxes at little cost. However, most Researchers (Ch. Kindleberger, W. Klein, I. Walter) They believe that capital flight is a movement of capital from a country that is contrary to its interests and occurs due to unfavorable investment for many of its domestic owners.

Marxist theory also made its contribution to the development of theories of capital movement. Karl Marx justified the export of capital by its relative surplus in capital exporting countries. By excess capital, he understood such capital, the use of which in the country of its presence would lead to a decrease in the rate of profit in it. Active growth of monopolies with late XIX V. stimulated the export of capital, and therefore V. I. Lenin called it one of the most essential economic foundations of imperialism. The desire of monopolies to increase their monopoly income is realized by exporting “excess capital” abroad, especially to regions where high profits are ensured. The export of capital in this case turns out to be the basis for the financial oppression of weaker peoples.

Among the so-called “non-traditional” theories of international capital migration, two directions should be highlighted: the theory of international development financing for developing countries and the theory of TNCs.

International development finance is based on the provision of funds to developing countries. Some of these funds .

International capital migration is the movement of capital between countries, including exports, imports of capital and its functioning abroad. Capital migration is an objective economic process when capital leaves the economy of one country in order to obtain higher income in another country.

The first form of international cooperation has historically been international trade. Subsequently, economic ties between the countries developed, and not only goods and services, but also capital began to be traded on the world market. The expansion of capital was initially directed by industrialized countries into economically less the developed countries, including colonies. But gradually the processes of capital migration grew, and now almost every country is both an exporter and an importer of capital. From the second half of the 20th century. The export of capital is constantly growing. Capital exports are growing faster than both commodity exports and the GDP of industrialized countries. Today we can talk about the existence of a developed international capital market, which is one of the main driving forces of globalization of the world economy.

World capital market is part of the global financial market and is conventionally divided into two markets: the money market and the capital market.

On money market transactions are carried out for the purchase and sale of financial assets (currencies, credits, loans, securities) with a maturity of up to one year. The money market is designed to satisfy the current (short-term) need of market participants for credits and loans to purchase goods and pay for services. A significant part of transactions in the money market consists of speculative transactions for the purchase and sale of currencies.

Capital Market focused on longer-term projects with a implementation period of one year.

Main subjects world capital market are private business, states, as well as international financial organizations (World Bank, IMF, etc.).

The impact of international capital movements on the world economy is great and is constantly increasing following the increase in the scale of capital migration. International capital migration stimulates the development of the world economy and allows for the redistribution of limited economic resources more efficiently. The following can be distinguished consequences of capital migration for the global economy as a whole:

The migration of capital occurs in search of the most profitable areas for its investment, which allows increasing investment activity its subjects and the growth rate of the world economy;

It stimulates the further development of international relations
division of labor and, on this basis, processes of international economic cooperation;

As a result of the increase in the scale of activities of international corporations, trade between countries is increasing,
stimulating the development of world trade;

The mutual penetration of capital between countries strengthens the processes of international cooperation, to a certain extent
degree is a guarantor of mutual benefit of foreign economic policies pursued by countries.

Along with such obvious benefits of capital migration for the development of the world economy, we can also highlight negative consequences this process.

Negative influence The migration of speculative capital has an impact on the development of the world economy. Focusing on making a profit from short-term speculative transactions at exchange rates, or speculation on the international stock market, speculative capital can undermine the activities of individual companies and entire countries and economic regions (provoking a stock market collapse , causing strong fluctuations in exchange rates). Such capital flows sharply disrupt the balance of payments and increase the instability of the global monetary system.

International capital migration is controversial
consequences for capital exporting and importing countries. In
In many ways, the role and consequences of international capital migration
depend on the form of its migration.

Capital migration occurs in two forms: in the form of entrepreneurial and loan capital

Export entrepreneurial capital carried out in the form of investments in the economies of foreign countries with the aim of generating Profit. The export of loan capital is aimed at obtaining loan interest from the use of capital abroad.

As a phenomenon, it began to actively develop during the formation of the world economy.

Transfer of capital abroad (export of capital) is a process during which part of the capital is withdrawn from the national circulation of one country and placed in various forms(commodity, money) in manufacturing process and the appeal of another, host country.

International capital movement means the migration of capital between countries, generating income for their owners.

Foreign investments can be different in nature and form.

Thus, according to their sources of origin, they are usually divided into public and private capital.

Government investment is also called official; they represent funds from the state budget that are sent abroad or received from there by decision either directly from governments or from intergovernmental organizations. This government loans, loans, grants (gifts), assistance, the international movement of which is determined by intergovernmental agreements. This also includes loans and other funds from international organizations.

Private capital– these are funds from non-state sources placed abroad or received from abroad by private individuals (legal entities or individuals). This includes investments, trade loans, interbank lending; they are not directly linked to the state budget, but the government keeps their movements under review and can, within its powers, control and regulate them.

Economic transnationalization is characterized by the following functions:

1. gives business entities wider access to resources;
2. allows you to produce products for the capacious market of integration groups;
3. protects firms that are part of a transnational corporation from competition from firms in third countries;
4. allows participants to jointly solve pressing social problems.

The emergence of transnational corporations and the active internationalization of the economy lead to processes of globalization of economic life, when the economies of different countries not only intertwine, but also merge and interpenetrate. These processes affect not only the economy, but also politics, ecology, social and demographic environment. These processes also give rise to global issues, which are classified into 3 groups:

1. issues related to the relationship between various socio-economic systems (war and peace, disarmament, etc.);
2. issues arising in the system of relations “person - society” (fight against poverty, disease, etc.);
3. issues arising in the system of relations “society – nature” (protection environment, protection of resources, etc.).

The processes of internationalization, transnationalization and globalization occurring in the world economy open up new opportunities for deepening international specialization, increasing the scale of production, reducing costs and increasing the competitiveness of goods.

Capital migration began to accelerate in the last third of the 19th century. and became a noticeable phenomenon towards the end of the 19th and beginning of the 20th centuries.

The process of capital movement on the world market is developing very unevenly. Only in the 60-70s did this process become widespread.

Features of the export of capital to modern conditions.

1. change in the relationship between the centers of gravity of global investment. In this case, the peculiarity is this: industrial countries in the 90s became mainly net exporters of capital (net exporters), and mutual flows between the most developed countries increased.

2. The process of attracting investment by developing countries is accelerating.

3. competition for attracting foreign capital is increasing between developing countries, countries of Eastern Europe(former socialist countries), as well as Russia, but still the main object of international capital flows are developed countries.

2. Changes in the structure of investment forms and institutions. Now portfolio investments predominate in the total volume of capital on the world market. 2/3 of investment resources come from bonds. The development of portfolio investment, in turn, stimulates the development of the sphere of activity of institutional investors. In this case, capital is concentrated in institutions and funds.

3. Strengthening the interpenetration of international investment, that is, there is a unification of capital markets and foreign exchange markets.

4. Faster growth in the movement of capital than the movement of goods - so it took the last 17 years to double global trade turnover, but only 4 years to double financial flows.

The peculiarity of capital movement in modern conditions is associated with electronic means of communication and simplification of the capital market infrastructure. Currently, there is almost no nationality of capital and it is predominantly speculative in nature. Only a few people invest in the real sector abroad, the rest are speculative in nature. 9/10 of transactions on the world's stock exchanges have nothing to do with either trading or long-term investments. In connection with the growth of this capital, with the increasing uncontrollability of it, world society has become faced with the problem of strengthening regulation of the financial sector, both regulation at the national level and international regulation.

29. Essence, causes and forms of international capital migration.

At the present stage of development of the world economy, one of the main factors in the development of international economic relations is considered to be the export of capital and its international movements. Such forms of IEO as international trade in goods, services, and technologies affect monetary and financial aspects: when carrying out export-import transactions, international payments are carried out or international loans are required; during international labor migration, wage transfers are transferred. Thus, international monetary, credit and financial relations are a prerequisite for the development of IEO, and its consequence.

Currently, the scale and significance of the international movement of capital is reaching such a level that this process can be considered as a special form of IEO. The current growth rate of capital exports in all its forms is faster than the growth rate of commodity exports and the growth rate of GDP in industrialized countries.

The formation and development of MMK began much later than such forms of international economic relations as international trade in goods and international labor migration. For the possibility of exporting capital to arise, quite significant accumulations of it in the country were required.

The export of capital is the process of removing part of capital from the national circulation of a given country and moving it in commodity or monetary form into the production process and circulation of another country in order to extract higher profits.

The export of capital is carried out not only by industrialized countries, but also by many developing countries and former socialist countries.

The export of capital causes significant reverse movements of capital in the form of interest on loans, business profits, and dividends on shares.

International capital migration- these are processes of counter movement of capital between different countries of the world economy, regardless of the level of their socio-economic development, bringing additional income to their owners.

The objective basis of the MMK is the uneven economic development of the countries of the world economy, which in practice is expressed:

· in the unevenness of capital accumulation in various countries; in the “relative excess” of capital in individual countries;

· in the discrepancy between the demand for capital and its supply in various parts of the world economy. According to experts, at the beginning of the 90s the amount of “relative excess capital” reached 180-200 billion dollars.

The development of the MMC process is influenced by two groups of factors, including:

1) economic factors:

· development of production and maintenance of pace economic growth;

· deep structural changes both in the world economy and in the economies of individual countries (especially with the impact of scientific and technological revolution and the development of the global services market);

· deepening international specialization and cooperation of production;

· the growth of transnationalization of the world economy (for example, the volume of production by foreign branches of US multinational corporations is 4 times higher than the volume of merchandise exports from the United States itself);

· growth of internationalization of production and integration processes;

2) political factors:

· liberalization of export (import) of capital (FEZ, offshore zones, etc.)

· industrialization policy in the “third world” countries;

· carrying out economic reforms (privatization of state-owned enterprises, support for the private sector, small businesses);

· employment support policy.

The above factors predetermine MMK at the macroeconomic level. Along with this, there is economic feasibility, which directly stimulates subjects to export and import capital.

The international movement of capital is important for the development of the world economy, as it leads to the strengthening of foreign economic and political relations of countries and increases them foreign trade turnover, accelerates economic development and contributes to the growth of production volumes, increases the competitiveness of manufactured goods on the world market, increases the technical potential of importing countries, and increases employment in the country.

Forms of international capital migration.

MMK has a number of forms of implementation, which in practice are classified according to several criteria presented in the table:

Import and export of capital

Loan capital

Entrepreneurial capital

Loans and credits

Bank deposits and funds in accounts with other financial institutions

Direct investments

Portfolio investment

The main forms of MMK are the import and export of entrepreneurial and loan capital (see figure below)

Export of capital is the process of removing part of capital from national circulation in a given country and moving it in commodity or monetary form to another country in order to generate income. Since any country in the world not only exports, but also imports capital from abroad, i.e. If so-called cross-investments occur, then we should talk about international capital movements (capital migration).

International capital migration- This is a counter movement of capital between countries, bringing income to their owners. According to modern theories, the main reasons for capital migration are:

Its relative surplus in a given country, overaccumulation of capital;

Different marginal productivity of capital determined by the interest rate. Capital moves from where its productivity is lower to where it is higher;

The presence of customs barriers that prevent the import of goods and thereby push foreign suppliers to import capital to penetrate the market;

The desire of firms to geographically diversify production;

Growing exports of goods, causing demand for capital;

The discrepancy between the demand for national capital and its supply in various spheres and sectors of the country’s economy;

Possibility of monopolizing the local market;

Availability of cheaper raw materials or labor in countries where capital is imported;

Stable political environment and generally favorable investment climate.

Exported (imported) capital can be characterized according to various criteria.

By source of origin moving capital is divided into official, provided by the government of one country to another, as well as the capital of international economic organizations (IMF, World Bank, UN, etc.) and private – funds of non-state firms, banks, etc., moved according to their own decisions.

According to form The export (import) of capital can be carried out in monetary or commodity form. The export of machinery, equipment, patents, know-how as a contribution to the authorized capital of a company being created or purchased constitutes the export of capital to commodity form, and providing, for example, loans or credits to foreign firms or the government is the export of capital to monetary form.

By nature of use capital is divided into entrepreneurial and loan capital.

Entrepreneurial capital- these are funds directly or indirectly invested in any foreign production in order to make a profit. In turn, entrepreneurial capital is divided into direct and portfolio investments.

Direct foreign investment– is an investment of capital with the aim of acquiring long-term economic interest. Direct investments are considered to be those that cover more than 10% of the share capital and give the right to control the enterprise. Direct investments are carried out in the form of capital investments in foreign industrial, commercial and other enterprises by organizing production by the exporter of capital in the territory of another country. Enterprises created abroad can take the form of:

Branch – an enterprise wholly owned by a direct investor;

Subsidiary - an enterprise in which foreign direct investment amounts to more than 50%;

An associated company is an enterprise in which foreign direct investment is less than 50%.

In modern conditions, the bulk of foreign direct investment comes from international corporations. Foreign direct investment is an important feature of an international corporation. Today, the 100 largest transnational corporations (TNCs) account for about a third of all foreign direct investment.

Portfolio foreign investments – This is an investment of capital in foreign securities that does not give the investor the right to real control over the investment objects. Portfolio investments are made by purchasing stocks, bonds, treasury bills, options, futures, warrants, swaps, etc. The purpose of portfolio investment is to generate income through the growth of the market value of securities and paid dividends.

The movement of portfolio investments is significantly influenced by the difference in the yield of securities in different countries, the degree of risk on these investments, and the desire of firms to diversify (diversify) their portfolio of securities with securities of foreign origin.

The advantage of portfolio investments compared to direct ones is that they have higher liquidity, i.e. the ability to quickly convert into currency.

The abstract was completed by student gr. 6221 Tsymbal O.G.

Moscow State Industrial University

Department of "Economic Theory"

Moscow 2001

Theories of international capital migration.

International capital migration is one of the characteristic phenomena of the world economy. Capital, as a factor of production, has a physical and monetary form. Physical capital is investment goods used to produce other goods.

International capital migration is the movement of capital between countries, including exports, imports and its functioning abroad.

International capital migration depends on changes in economic conditions, scale, forms, mechanisms. Theories of international capital migration were developed within the framework of the neoclassical theory of international trade, the neo-Keynesian theory of economic growth, the Marxist theory of capital export, and the concepts of the development of an international corporation.

Neoclassical theory was based on the views of J. St. Mill, the famous English economist of the 19th century. He believed that that part of the capital that helps to reduce the rate of profit is exported. According to J.St. Mill, the import of capital improves the production specialization of countries and contributes to the expansion of foreign trade. Finished goods, like capital, are internationally mobile.

A new aspect of the study of international capital movements was that it was associated with international trade. J. Keynes believed that if the reasons preventing the international movement of capital were eliminated, the latter could replace trade in goods. Neoclassicists integrated the process of movement of factors of production, including capital, into the theory of international trade. This can be accepted since foreign trade and international capital movements have the same meaning. Excess or lack of capital is considered by neoclassical scholars as the reason for its international migration. The marginal productivity of capital is expressed in terms of the interest rate. International integration of capital continues until the marginal productivity of capital equalizes different countries. The export of capital is an alternative to commodity exports.

K. Iversen distinguished the international movement of capital into real and balanced.

Real capital flows are associated with unequal levels of marginal factor productivity in different countries.

Balancing capital movements are determined by the needs of regulating the balance of payments.

The neo-Keynesian theory of capital movements was developed under the influence of the views of D. Keynes. Keynesian theory states that macroeconomic equilibrium is the equality of investment and saving. Excess savings leads to a recession in the economy and unemployment. In this situation, part of the savings goes beyond national borders, but a more significant reason for the international movement of capital, according to Keynesian theory, is the state of the balance of payments. If exports of goods exceed their imports, then the country can become an exporter of capital. According to Keynes, the process of international capital movement should be regulated by the state.

Another founder of Keynesian theory was F. Mahlum. Machlup's most significant conclusions are as follows.

In countries that import capital, investment is stimulated, which increases consumption and increases national income.

Capital exports may limit domestic investment. This reduces consumption and national income. The export of capital affects the macroeconomic balance of the national economy.

According to the theory of economic growth created by R. Harrod, the export of capital and the formation of savings are linked in his model of “economic dynamics” with growth rates depending on the amount of investment. The rate of economic growth slows down if savings exceed investment, therefore, the tendency to export capital for more profitable use increases. The neo-Keynesian theory of capital export focuses on stimulating business activity in countries that export and import capital, it follows that foreign investment from developed countries accelerates the economic development of developing countries.

Marxist theory of capital movement. Marx believed that capital is exported from the country not because it cannot find application within the country, but because higher profits can be obtained from it abroad. According to Marxist theory, the reason for the export of capital is considered to be the increased internationalization of production, increased competition between monopolies and increased rates of economic growth. Internationalization theory studies the problem of intra-company relations of international corporations. To work with the concepts of global corporations, models of monopolistic advantages, product life cycle models and an eclectic model are being developed. The monopolistic advantages of foreign investors provide them with higher incomes than the income of a local firm in its host country.

The theory of capital flight. The outflow of business capital abroad is called capital flight (removal of assets). This problem considered the subject of international research. Capital outflow occurs through legal and illegal channels. The reasons for capital flight are considered to be instability of the economy, national currency, politics, investment climate and criminal activity. Capital flight has a strong negative impact on economic growth; it can not only destabilize the economy, but also cause shocks in other countries.

International capital movement is an important generator of economic growth, effective remedy increasing the competitiveness of exports, strengthening the country’s position in the world market and in the world economy as a whole.

World Investments and Savings

The demand for capital exists in the form of global investment. Demand arises from countries that do not have enough of their own capacity to cover domestic investment consumption. The source of global investment is savings. World Savings – Offer financial resources on the part of countries that have them in abundance. Such countries are called exporters or investors. The amount of world savings is determined by the difference between domestic savings and domestic investments of capital exporting countries. The amount of global investment is determined by the difference between domestic investment and domestic savings of capital importing countries, and the amount of foreign investment also depends on the savings of businesses, households and governments.

The difference between savings and national investment is called capital flow. The movement of capital is closely related to the movement of goods and services; they are mutually opposed, and ideally they balance each other. The intensity of capital flow is determined by the degree of openness of the country's economy and the value of the existing interest rate.

International financial flows and international flows of goods and services are two interrelated processes. In a closed economy, capital inflows are zero at any domestic interest rate. In a country with a small open economy, the influx of investment can be anything at the world interest rate. In a country with a large open economy, the higher its domestic interest rate, the more attractive these assets become to foreign investors, the greater the flow of capital, in general. In fact, the existence of large developed countries has a huge impact on the global capital market. The size of the world interest rate will be largely determined by the activities carried out in such countries economic policy. The more funds are raised from abroad, the more high percent you have to pay for their use, but the higher the interest rate, the more attractive the investment conditions become, therefore, more funds come from abroad. The fiscal policies of governments in developed countries determine whether global savings are sufficient for investment. Expansionary fiscal policy reduces saving and reduces the supply of capital. The policies of developed countries largely determine the equilibrium of the world capital market by influencing the size of the world market. real rate percent. It is the interest rate that determines the price at which investment resources are bought and sold on the world capital market. The country's net gain from capital imports will be determined by the difference between business gains and investors' losses.

International capital migration, balancing global savings and investments, provides benefits to both exporters and importers of capital. The total income from global investment is determined by the total gain of the exporting country and the capital importing country.

Export of capital and its forms.

The export of capital is carried out not only by industrialized countries, but also by moderately developed and developing countries. Each country is both an exporter and an importer of capital. This can be called cross-flow of capital.

The money market determines the relationship between supply and demand for short-term means of payment (international commercial credit). Medium-term and long-term loans, being part of the global credit market, at the same time constitute an integral element of the global capital market.

The global capital market regulates the movement of long-term assets in the form of investments. The main entities involved in investing funds are private business and the government. Flows of investment resources move both at the macro level and at the micro level. At the macro level, interstate, or official, capital flows take place. The micro level is the movement of private capital.