Subject The article analyzes the impact of foreign bank investments on the economy of the investee country based on the review of scientific publications and empirical research. Due to high degree of depreciation of fixed assets of Russian enterprises, the problem of attracting investments in the domestic economy is very important. Furthermore, the assessment of the impact of foreign bank investments on the real sector of the economy by economists is ambiguous. Objectives The purpose of the study is to analyze the effect of macroeconomic variables on the level of foreign bank investments in Russia. Methods The logic of the research lies in the neo-positivist empirical approach, where after a thorough theoretical analysis of an economic phenomenon its quantitative evaluation is produced using the regression method. Results I provedthat the decreasing exchange rate of the ruble, the level of past due debt, the increasing GDP and Russia's international reserves have a positive impact on the level of foreign bank investments in fixed assets of Russian enterprises. The obtained results may be used for improving the investment climate in the country. Conclusions and Relevance Foreign bank investments in fixed assets lead to creating new production capacity, contribute to improving the technical level of production, attracting foreign technologies, integration of the investee's economy into the world economy and, ultimately, accelerate economic growth. Given the positive views of foreign authors on the impact of bank investments on the economic situation in developing countries and the results of my own empirical research, I conclude that to increase the flow of foreign bank investments in fixed assets of domestic enterprises, it is necessary to increase domestic investment in infrastructure projects and create conditions for repatriation of capitals that have gone to offshore.
Keywords: foreign bank investments, emerging economy, economic growth
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