Modeling the Impact of Foreign Investment Flows Taking into Account Time Lags in the Context of their Impact on the Regional Production
Liubov Vodianka1, Vira Kozak2, Valentyna Skulyak3
1Vodianka Liubov, Department of business economics and human management, Faculty of Economics, Chernivtsi National University, Chernivtsi, Ukraine.
2Kozak Vira, Department of business economics and human management, Faculty of Economics, Chernivtsi National University, Chernivtsi, Ukraine.
3Skulyak Valentyna, Department of Finance, Bukovinian University, Chernivtsi, Ukraine.
Manuscript received on February 10, 2020. | Revised Manuscript received on February 20, 2020. | Manuscript published on March 30, 2020. | PP: 1835-1839 | Volume-8 Issue-6, March 2020. | Retrieval Number: F7931038620/2020©BEIESP | DOI: 10.35940/ijrte.F7931.038620
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: Peculiarities of regional processes of foreign direct investment impact on the gross domestic product of Western Ukraine and Chernivtsi region, taking into account a time lag, are reviewed in this article. Considering the fact that investment processes are enough complicated phenomenon to understand in the course of which different kinds of changes occur, the relevance and importance of establishing a pattern of their behavior is increasing. Economical and mathematical tools, in particular Almon distributed lag models which allow to estimate the discrete lag influence of determinants can be used to achieve this. In the course of the study, the Almon distributed lag models were constructed separately for the comparison, time lag interval boundaries were set, the main features of the discrete time lag distribution during the lag period were determined, and the economic and mathematical models of the distributed lag for the effects of foreign direct investment on the gross regional product of Chernivtsi region Western Ukraine were built. On the basis of the obtained results, conclusions about economic multiplier processes of the investment were made in the context of individual territories and the main trends of the investment flow return were defined.
Keywords: Modeling The Impact Of Foreign Investment Flows, Time Lags, Almon Lags, Regional Production.
Scope of the Article: Production.