The Function of Investment in Advanced and Less Developed Economies

摘要

Interest regarding the properties of market liquidity and its importance in the functioning of financial markets to raise capital and spur investment and economic growth in both developed and less developed economies continues to be a major interest for governments, banks and other financial establishments. The movement of capital and surplus funds from western financial institutions into Asia, Africa, Latin America and Eastern Europe has been highly lucrative for many institutional investors. As boundaries between countries and locations become less distinct, investors have developed strategies to meet changing demands for investment. Promoting investment in developed and less developed countries continues to be a means of enhancing capital productivity and profits; both through foreign and international markets, and is considered the primary means of linking national economies. In 2017, global foreign direct investment (FDI) reached 1.86 trillion US dollars compared to 10.2 billion US dollars in 1970. The magnitude of global investment and FDI remains a major source of capital for many countries.