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Ministry of Education and Science of the Russian Federation

Federal Agency for Education State Educational Institution of Higher Professional Education

"All-Russian Correspondence Financial and Economic Institute"

Department of Economic Theory

TEST

on global economics on the topic:

Theories of international capital migration

Teacher

Work is done

Faculty of Finance and Credit

Personal file number

Introduction

Neoclassical, neo-Keynesian and Marxist theories of capital migration

Modern theories of capital migration: the theory of “economies of scale”, the theory of allocation, the theory of capital flight

Introduction

In modern conditions, the study of capital flows between countries is becoming increasingly important. This process serves as a condition for the internationalization of production and turns financial markets into the most important factor in the world economy.

One of the characteristic phenomena of the world economy is the international migration of capital, based on its division as one of the factors of production. As a factor of production, capital has a physical and monetary form. Physical capital is investment goods used to produce other goods. Such capital, i.e. machinery, equipment, etc., moves between countries as part of international trade. When they talk about international capital movements, they mean the movement of money capital in various forms.

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

Any country in the world exports capital, for example, by opening correspondent accounts of its banks in foreign banks. And every country imports capital from abroad. Therefore, we can talk about international capital movement in relation to any country, implying two-way movement. But it is by no means that each country imports exactly as much capital as it exports.

The reasons for international capital migration are interpreted ambiguously by economists of various schools of economic thought. Approaches to explaining this process evolve with changes in economic conditions, scale, forms, mechanisms, and consequences of international capital.

Why is capital exported and imported? Many theories, primarily the so-called traditional ones, have tried and are trying to answer this seemingly simple question. They are usually understood as neoclassical and neo-Keynesian theories of international capital movements; Marxist theory can also be attributed to them.

The purpose of this test is to examine theories of international capital migration.

To achieve the goal, it is necessary to solve the following tasks:

Study neoclassical, neo-Keynesian and Marxist theories of capital migration;

Consider modern theories of capital migration: the theory of “economies of scale”, the theory of allocation, the theory of capital flight

Neoclassical, neo-Keynesian and Marxist theories of capital migration

Neoclassical theory was based on the views of J. St. Mill, a famous 19th century English economist who shared the Ricardian principle of comparative advantage in international trade. The classical theory of A. Smith and D. Ricardo, substantiating the reasons for the international mobility of goods and services, was based on the premise that factors of production, including capital, are not mobile internationally. However, in the 30-40s of the 19th century, the attention of J. St. Mill was attracted by the rapid growth in the export of capital from England. The reasons for this phenomenon are associated by him in the “Principles of Political Economy” (1848) with the tendency of the rate of profit to decrease with economic progress. J. St. Mill believed that that part of capital that helps to reduce the rate of profit is exported. As a rule, capital is sent to the colonies to produce raw materials for export to the metropolis. This reduces the cost of producing goods in the metropolitan countries and weakens the tendency of the rate of profit to fall. According to J. St. Mill, the import of capital improves the production specialization of countries and contributes to the expansion of foreign trade. He showed for the first time that both finished goods and capital are internationally mobile. Research by J. St. Mill preceded the emergence of the theory of international migration of production factors (1; p. 265)

Later, economists began to link theories of international trade with various aspects concepts of factors of production. J. A. Hobson and J. Keynes, who shared the views of J. B. Say on the equal importance of all factors of production that have independent productivity, transferred the problem of these factors to the international level.

A new aspect of the study of international capital movements was that it was linked to international trade. J. Keynes believed that if the reasons preventing the international movement of capital were eliminated, the latter could replace trade in goods.

The ideas of neoclassical economists about international capital migration took shape in a theoretical system in the 20s of the 20th century. The main provisions of neoclassical theory are set out in the works of E. Heckscher, B. Ohlin, R. Nurkse, K. Inversen. Neoclassicists integrated the process of movement of factors of production, including capital, into the theory of international trade. From the standpoint of modern economic theory, this is justified, since foreign trade and international capital movement have the same economic meaning. Thus, the movement of capital in the form of external loans represents trade extended over time. It is not an exchange of goods for goods, but an exchange of consumption in the present for consumption in the future.

E. Heckscher and B. Ohlin developed the theory of factor proportions, according to which countries are provided with factors to varying degrees and use them in different proportions in the production of goods. Excess or lack of capital is considered by neoclassicals as the reason for its international migration. At the same time, based on the concept of marginalism, they focus on the marginal productivity of capital, expressed in the interest rate.

E. Heckscher substantiated the trend towards international equalization of prices for production factors in the long term. This trend is realized in the process of international exchange and international migration of capital, B. Olin came to the conclusion that in this process it is necessary to take into account factors that interfere with the export of goods and thereby stimulate the export of capital, as well as the desire of firms for more profitable investment of capital abroad, risk investments, etc. He believed that the movement of capital occurs from places where its productivity is low to places where it is high. The international integration of capital continues until the marginal productivity of capital in different countries is equalized.

According to R. Nurkse, the export of capital is explained by differences in interest rates and acts as an alternative to commodity exports. He developed models in which the international movement of capital was associated with technical discoveries, the development of foreign trade, and an increase in the supply of capital.

K. Iversen analyzed not only the essence of international capital movement, but also its mechanism. He differentiated the international movement of capital into real and balancing. The real movement of capital is associated with unequal levels of marginal productivity of factors in different countries Oh. The balancing movement of capital is determined by the needs of regulating the balance of payments. The scientist also studied the consequences of the export of capital, such as increasing the efficiency of production factors due to their more rational combination, and the growth of national income in countries connected by international capital migration.

Neo-Keynesian theory, like neoclassical theory, is based on macroeconomic analysis. This is the main drawback of both theories, since they do not examine the behavior of individual investors.

Neo-Keynesian theory is of particular interest in the connection between the movement of capital and the state of the country's balance of payments. Keynes himself proceeded from the fact that capital movements generally arise from disequilibrium in the balance of payments of different countries. In his polemics with Olin, he emphasized that capital is exported from the country when the export of goods and services exceeds their import, and if this rule is violated, state intervention is necessary (2; p. 485)

R. Harrod in his model of “economic dynamics” emphasizes that the lower the rate of economic growth of a country rich in capital, the stronger the tendency to export the latter from it.

Neo-Keynesian theory has become one of the foundations of the so-called policy of development assistance to countries in Africa, Asia and Latin America by countries with market economies. Indeed, according to this theory, the export of capital to developing countries stimulates business activity in both exporting and importing countries. However, since this export is hampered by high risk and other obstacles in many developing countries, Western governments need to encourage this export of capital, including through the export of public capital.

K. Marx justified the export of capital by its excess in the country exporting capital. By excess capital, he (following the classics of economics) understood such capital, the use of which in the country would lead to a decrease in the rate of profit. Excess capital appears in three forms: commodity, productive (excess production capacity and labor) and money. Through commodity export and capital export, this surplus (real or potential) is exported abroad. A similar opportunity appears after most countries are drawn into the orbit of world capitalism and preconditions are created in them (primarily production infrastructure, although often foreign capital itself creates this infrastructure). Active growth of monopolies since the end of the 19th century. stimulated the export of capital, and therefore V.I. Lenin even called the export of capital one of the main features of the modern stage of capitalism, its typical feature (3; p. 215)

Subsequent generations of Marxist economists, without departing from the postulate of excess capital, identified several more reasons for its export (sometimes calling them conditions): growing internationalization of production, increasing competition between monopolies, increasing rates of development (which leads to increased foreign demand for capital from both developing , and economically developed countries). A number of economists of the Marxist school have emphasized that the acceleration of the pace of development after World War II in industrial countries increased the financial and organizational capabilities of monopolies to export capital from these countries, despite the lack of a downward trend in the rate of profit. However, Marx's idea of main reason the export of capital has remained fundamental in Marxist theory.

Modern theories of capital migration: the theory of “economies of scale”, the theory of allocation, the theory of capital flight

Among modern theories, the theories of international corporations occupy an important place. A significant place in them is occupied by the justification of the reasons for entering a company beyond national borders, as well as the development of direct investment models.

The theory of “economies of scale” focuses on the effect obtained from increasing the scale of production when transferring it to other countries. Economies of scale reduce production costs. International corporations rely on organizing production at lower costs.

Placement theory is focused on elucidating the reasons why a firm locates production of the same product and, therefore, capital in different countries and does not concentrate it in one country. Among such reasons are the possibility of access to cheaper resources, lower transport costs, the creation of an export market, the ability to bypass customs barriers, etc. The theory of location is considered a continuation of the theory of international trade. The reasons that determine the location of production are similar to those that determine the development of international trade. In addition, direct investment can either replace trade or stimulate it through the sale of components, equipment or complementary goods (1; p. 269)

The theory of capital flight. In certain countries and regions of the world, a specific phenomenon is periodically observed - the outflow of business capital abroad, called capital flight. Russia also faced a similar situation. This problem is the subject of international research.

There are different interpretations of the content of the concept under consideration. J. Cuddington understands capital flight as the outflow of short-term private capital of a speculative nature. World Bank experts interpret this phenomenon as a massive outflow of capital of any nature and any urgency. L. Krasavina considers capital flight as an accelerated outflow of large volumes of capital exported through legal and illegal channels, with different urgency and functional purpose of assets.

The reasons for this phenomenon are considered to be economic instability, an unfavorable investment climate, fears of depreciation of the national currency, political instability, and criminal activity. Large-scale capital flight reduces resources for economic growth (R. Dornbusch believes) and undermines the country’s financial and investment potential (M. Dooley notes).

Mass capital flight can not only destabilize the economy, but also cause shocks in other countries due to the high integration of financial markets. As measures to counter the outflow of capital, economists propose, first of all, the creation of a favorable investment and business climate, strengthening trust in the government and financial institutions. The development of such measures is very relevant in the context of constantly increasing volumes of capital movement between states.

International capital movement is an important generator of economic growth, an effective means of increasing export competitiveness, and strengthening the country’s position in the world economy. At the same time, the international movement of capital occupies a certain niche in the global economic space and determines the specifics of the world capital market.

The phenomenon of “capital flight” is most fully characterized by:

capital migration;
export of capital due to its surplus in the country;
movement of capital to another national economy due to its illegal origin;
removal of capital from the country for the purpose of its safety and security.

Correct answer: c), d)

Specify the main reasons for the export of capital:

the impossibility of effectively investing capital in the exporting country;
the desire to invest capital at a higher rate of return;
developing new and maintaining conquered “niches” in diversified international markets;
the opportunity to influence the policies of the host country.

Correct answer: b), c)

Representatives neoclassical theory international capital migration:

E. Heckscher;
R. Harrod;
J. Cuddington;

Correct answer: a), d)

List of used literature

World economy: Tutorial for universities/Edited by I.P. Nikolaeva. – M.: UNITY, 2005

World Economy: Textbook/Edited by A.S. Bulatov. – M.: Economist, 2005

Lomakin V.K. World economy: Textbook for universities. – M.: UNITY-DANA, 2002

Send your good work in the knowledge base is simple. Use the form below

Students, graduate students, young scientists who use the knowledge base in their studies and work will be very grateful to you.

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Federal Agency for Education

All-Russian Correspondence Financial and Economic Institute

Department of Economic Theory

Faculty of Management and Marketing

Specialty Labor Economics

TEST

in the discipline World Economics

Topic "Essence, causes and forms of international capital migration"

Student Romanova I.V.

Day group

Teacher Leskina O.N.

Penza -- 2011

Introduction

2. Reasons for capital migration

3. The place and role of Russia in the MMK system

Test tasks

Conclusion

Bibliography

Introduction

One of the forms of international economic relations is the international movement of capital (IMC), which has currently gained such momentum that in scope and influence on world economy competes with international trade in goods and services.

International capital movement is one of the main means of integrating the national economy into the world economy, ensuring the influx of additional investment resources, the transfer of production capacities and advanced technologies, accumulated experience in organizing and managing production, obtaining additional profit, increasing influence and control over entities receiving capital, approximation production to markets. The purpose of international capital movement is to obtain business profit or interest, to search for more favorable conditions for the use of capital.

One of distinctive features modern international capital movement is the presence of fierce competition for its attraction. In such conditions, the investment attractiveness of the country receiving capital plays a decisive role.

International capital migration means the movement of financial flows between lenders and borrowers in different countries. 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, increases their foreign trade turnover, accelerates economic development and contributes to the growth of production volumes, exceeds the competitiveness of manufactured goods on the world market, increases the technical potential of importing countries , increases employment in the country.

1. The essence and forms of capital migration

International capital migration is the counter movement of capital between countries, bringing income to their owners. MMK is carried out through its export and import directly between countries, through international financial markets or international financial institutions. Capital is the most important factor of production; the supply of funds necessary to create material and intangible benefits; value that generates income in the form of interest, dividend, profit. Irrevocable and interest-free funds provided to other countries, strictly speaking, are not capital, because they do not bring income to its owners. However, in the host country these funds can be used as capital. And, conversely, funds exported as capital can be spent on consumption. An increase in the volume of foreign capital in the national economy may not be associated with a new influx of resources. It can be carried out through borrowing by a non-resident from local public and private sources, as well as converting part of the profit into the capital of enterprises with foreign participation. Exporters and importers of capital are public and private structures, including central and local authorities and other government organizations; private firms, banks, international and regional organizations, individuals. The following types of international capital movements are distinguished:

1. By source of origin:

1) official (state) capital - state budget funds transferred abroad or received from abroad by decision of governments, as well as by decision of intergovernmental organizations. This type of capital movement includes all government loans, credits, loans, grants, assistance that are provided by one country to another country on the basis of intergovernmental agreements. Capital that is managed by international intergovernmental organizations on behalf of their members (loans from the International Monetary Fund, World Bank, UN peacekeeping expenses, etc.) is also considered official.

2) private (non-state) capital - these are funds of private firms, banks and other non-governmental organizations, moved abroad or received from abroad by decision of their management. This type of capital flow includes foreign investment to private firms, the provision of trade loans, and large-scale lending.

2. By nature of use:

1) entrepreneurial capital - funds directly or indirectly invested in production with the aim of making a profit.

The investment of entrepreneurial capital in a country can occur either by creating a branch or by acquiring firms and companies already existing there. Private capital is most often used as entrepreneurial capital, although the government and state-owned enterprises can also invest abroad.

2) loan capital - funds lent in order to receive interest in excess of the amount borrowed. It can be both public and private. Specific forms of loan capital include loans, credits, and investments in foreign banks.

3. By investment period:

1) medium-term and long-term capital - capital whose investment period exceeds one year.

2) short-term capital - capital whose investment period is less than one year (mainly loan capital in the form of trade loans).

4. According to the purpose of the investment:

1) direct investment - investment of capital for the purpose of acquiring long-term economic interest in the country where capital is invested, providing the investor with the right to control the object of placement of capital and the capital itself.

2) portfolio investment - investment of capital in foreign securities, which does not give the investor the right to real control over the investment object.

3) other investments that do not fall under the definition of direct or portfolio (the main role among them is played by international credits, loans and bank deposits).

5. According to the form of export/import:

1) legal - the movement of which is registered by the state;

2) illegal - the movement of which is not registered by government agencies. Thus, a significant part of capital is exported from Russia illegally, and already abroad it turns into different kinds investments, the profits from which are not returned to the country.

Table No. 1. Forms of capital migration.

Classification feature	MMK forms
According to the form of ownership of migrating capital	Private, State, International, monetary and financial organizations, Mixed
By timing of capital migration	Ultra-short-term (up to 3 months), Short-term (up to 1-1.5 years), Medium-term (from 1 year to 5-7 years), Long-term (over 5-7 years and up to 40-45 years)
According to the form of capital provision	Commodity, - monetary, Mixed
According to the purpose and nature of the use of migrating capital	Entrepreneurial, Loan.

2. Reasons for capital migration

international capital economics investment

The main reasons causing and stimulating international capital migration are:

Uneven development of national economies: capital leaves stagnating economies and is attracted to stable economies with high growth rates and higher rates of profit;

Imbalance in current account balances causes capital to flow from countries with a surplus to countries with a current account deficit;

Capital migration between countries is stimulated by the liberalization of national capital markets, i.e. lifting restrictions on the inflow, operation and export of foreign investments;

The development and expansion of international credit, currency and stock markets contributes to a large-scale increase in the international movement of capital;

International capital migration is closely related to the increased activity of transnational corporations and banks; with inclusion in financial activities non-banking and non-financial organizations; with an increase in the number and resources of institutional and individual investors;

The economic policy of countries that attract foreign capital, creating favorable conditions for it to make domestic investments, to service the external and internal debts of the state.

The distinctive features of modern capital migration are:

1. Increasing the role of the state in the export of capital.

2. Strengthening the migration of private capital between developed countries.

3. Increasing the share of foreign direct investment.

3. The place and role of Russia in the MMK system

Russia does not stand aside from the processes of international capital migration. It is strange, but Russia, resorting to foreign loans, is one of the world's largest exporters of capital. According to " Round table business of Russia" in the mid-90s, the total volume of resources located abroad, including exported and invested capital, foreign debts amounted to a huge amount - from 500 to 600 billion dollars. At the same time, the export of capital, which began in the late 80s, continues There are thousands of companies with Russian capital operating abroad, some of which were founded there back in Soviet time, but most of them are in last years. According to some estimates, the volume of investments of these Russian enterprises abroad amount to 9-10 billion dollars. For comparison, for example, similar US capital investments are approaching 1 trillion. dollars, and in Japan and Great Britain they amount to several hundred billion dollars. The majority of Russian foreign business investment is in the West, including in offshore centers and tax havens. Foreign investments of Russian individuals and legal entities in loan form (i.e. bank deposits, funds in the accounts of other financial institutions, etc.). Some of them are placed for a short period of time to carry out current foreign economic operations. Their value is estimated at 25-35 billion dollars. The position of Russia in the system of international capital movements is presented more clearly in the form of a histogram (Fig. 1.)

Fig. 1. Foreign investments in the Russian Federation and investments from the Russian Federation abroad in the 1st quarter of 1999 - 2009.

The export of capital from Russia is carried out in two ways: legally and illegally, taking the form of “capital flight”.

The legal route for the export of capital is based on the Decree of the Council of Ministers of the USSR dated May 18, 1989 No. 412 “On the development economic activity Soviet organizations abroad." In this regard, the legal export of capital includes all state and non-state enterprises created in accordance with this resolution and entered into the State Register of Foreign Enterprises Created with Russian Participation.

The bulk of private capital is exported from Russia as part of the so-called “capital flight”. It began in 1989, when the USSR government decided to grant enterprises, associations and organizations the right to directly enter foreign markets. The process of capital outflow from Russia has intensified since 1990. In order to imagine what losses Russia is suffering as a result of this process, we can cite the following figures: the annual capital flight is estimated at 12-24 billion dollars (according to some estimates, up to 50 billion. Doll.). For comparison: the entire export of petroleum products in 2009 amounted to $29.3 billion.

Currently, capital flight has begun to take on sophisticated forms that are not always controllable by law. This process, in particular, includes:

Export proceeds not transferred to Russia. In 1999 alone, its volume amounted to about 4.6 billion dollars. In 2009, this figure amounted to 2 billion dollars. The largest shortfalls in the federal budget were noted for such types of goods as oil, petroleum products and non-ferrous metals.

Understatement of export and overestimation of import prices, especially actively used in barter transactions;

Making advance payments under import contracts without subsequent delivery of goods and crediting currency to foreign accounts of Russian residents. Experts estimate currency leakage during import operations at $3-4 billion per year.

As a result of unfair barter transactions, about $1 billion leaks out of Russia every year.

Capital flight is typical for countries with galloping inflation, high taxes and political instability. All this is typical for Russia. To these reasons we can add factors of distrust in the state, the lack of benefits and incentives for storing and investing capital within the country. This process is typical not only for Russia, but also for many countries where there are significant criminal structures.

Test tasks

1. The sphere of stable commodity-money relations between countries for the exchange of produced national products is:

a) Integration

b) International division of labor

c) International trade

d) Globalization

Answer: c) International trade.

2.If the exchange rate of the national currency increases, then this is:

a) Will have a positive impact on the conditions of export activities

b) Will negatively affect the conditions of export activities

c) Will positively affect the interests of importers

d) Will negatively affect the interests of importers

Answer: c) Will have a positive impact on the interests of importers.

The country's economy is described by the data presented in the table:

Index	Estimated in billions of dollars.
Export of goods
Import of goods
Export of services
Import of services
Unilateral transfers abroad
Investment income
Payment of interest on foreign loans
Capital outflow from the country
Capital inflow into the country

1.Calculate the current account and capital account balances.

2. Model the possibility of the country’s economy achieving a zero balance of payments balance by changing the value of the country’s official foreign exchange reserves.

Solution: We calculate the balance of payments using the following formula: CF = - NX, where CF is the capital account; NX - current account. The capital account is calculated using the formula CF = I - S, where I is investment; S - savings.

S = 14+22+74 =110

I = 36+180 = 216

216 --110 = 106 = CF

It follows that if CF > 0, then the country is a borrower or importer of capital.

The current account is calculated using the formula X - M = NX

X = 251+70 = 321

M = 410+72 = 482

321 -- 482 = - 161 = NX

The fact that the NX indicator is negative indicates that investments exceed savings. We obtain the following balance of payments 106 = - 161

Here we see that this is a country with an open economy of little openness. In a given country, a world interest rate is established that does not balance investments and savings within the country. Graphically the situation looks like this:

Achieving a zero balance of payments balance by the country's economy is possible by increasing the country's official foreign exchange reserves.

Conclusion

This test paper examines the processes of international capital migration. Capital migration does not involve the physical movement from country to country of industrial buildings and structures, machinery, equipment and other goods or the movement work force, but the movement of financial flows in the form of contributions to the authorized capital of enterprises in another country or in the form of investments in the development of production and the economy as a whole.

International capital migration is determined, first of all, by factors of an economic and political nature.

The objective basis for capital migration is the presence of an excess of capital in individual countries and the fact that the demand for capital and its supply in different segments of the world economy in countries is uneven, or, simply put, does not coincide. There is a demand for capital in some developing and former CIS countries, while in America and Western Europe there are huge opportunities for its export.

The main forms of international capital migration are its migration in loan and entrepreneurial forms.

The steady trend of capital export, deepening the international division of labor, reflects the objective needs of the development of productive forces in the conditions of the scientific and technological revolution. The scope of domestic markets is becoming narrow for efficient production. This is especially true for technologically complex, knowledge-intensive products in advanced industries, the production of which is often impossible without international cooperation.

States, especially economically backward ones, by pursuing an “open door policy” for foreign capital, have a greater chance of their own economic breakthrough.

Bibliography

1. World economy: Textbook. manual for universities/Ed. I.P. Nikolaeva. - M.: UNITY, 2000.

2. World Economy: Textbook/Ed. A.S. Bulatova. - M.: Economist, 2005.

3. Lomakin V.K. World Economy: Textbook. - M.: UNITY, 2001.

4. Kolesov V.P. International Economics: Textbook. - M.: INFRA-M, 2004.

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Introduction

2. Factors determining migration processes

4. Migration of capital in the global economy

Conclusion

Bibliography

Introduction

In the era of the formation and dominance of big capital, in which financial capital, there is a gradual reorientation from the international exchange of goods to the export of capital. As a result, international economic relations received additional source of its development, when it is not a product that is exported in order to realize its value and make a profit, but a value that is exported in order to advance the production of goods in other countries, i.e. creation of new values, their implementation and profit. Thus, the export of capital is a type of international economic relations when value in monetary or other form is exported abroad for the purpose of producing and appropriating profit and obtaining other economic and political benefits.

However, this phenomenon in international economic relations does not mean the displacement of global trade itself. We are talking about the emergence of a qualitatively new phenomenon in international economic relations, which, on the one hand, developed in parallel with international exchange goods, on the other - the development of world trade.

International capital migration is a complex economic phenomenon, consisting of many interrelated processes and affecting many areas of the economy. At the same time, capital migration allows for cooperation between different countries and increasingly contributes to the process of globalization.

1. Definition and essence of international capital migration

International capital migration is the cross-border movement of one of the most important factors of production, resulting from its historically established or acquired concentration in individual countries, creating economic prerequisites for more efficient production of goods and services in other countries.

When capital is exported abroad, it is no longer the act of realizing the profit contained in the price of exported goods that is transferred, but the process of its creation itself. The objective reason for the international migration of capital is the uneven economic development of countries in the world economy, which in practice is expressed in the unevenness of capital accumulation in different countries and the discrepancy between the demand for capital and its supply in individual parts of the world economy.

The classification of forms of international capital movement reflects various aspects of this process and can be carried out according to various indicators.

According to sources of origin. There are private and public investments.

Public investments are government loans, advances, grants (gifts), assistance, the international movement of which is determined by intergovernmental agreements.

Private investments are funds from non-state sources placed abroad or received from abroad by private individuals (Individuals or legal entities).

According to the export form.

The movement of capital is distinguished in monetary and commodity forms. Thus, the export of capital can be machinery and equipment, patents and know-how, if they are exported abroad as a contribution or components of the authorized capital of a company being created or acquired there. Another example would be trade loans.

By nature of use.

Foreign investments can be loans and entrepreneurial ones. The loan form of capital export consists of providing individual states, cities, banks, enterprises and their associations with loans at agreed interest rates. The source of the loan form of capital export can also be a wide variety of economic entities: states, international financial and economic organizations, banks, corporations, companies.

The advantages of the entrepreneurial form of capital export compared to the loan form are determined by: the unlimited time of its operation, the preservation of ownership of capital, and the disposal of exported capital. However, it should be noted that when using the loan form of capital import, the importing entity has much broader rights regarding its use.

In addition, the advantage of the entrepreneurial form of capital export is that it is accompanied by the import of new technologies and equipment, foreign experience and knowledge in technical, production and organizational and managerial activities, increasing the level of qualifications of domestic specialists, training and retraining of the workforce.

For the intended purpose.

Foreign capital investments are divided into direct, portfolio and other investments.

Foreign direct investment (FDI) is the acquisition of a block of shares (10 percent or more) of a foreign company for the purpose of participating in the management of the enterprise. Direct investments also include loans from parent organizations to their foreign branches. Basically, direct investment is private entrepreneurial capital.

Portfolio investments are a purely financial transaction for the acquisition of foreign securities that do not provide the opportunity for direct control over the activities of a foreign investment object, but only provide the right to income.

Other investments include mainly international loans and bank deposits.

By subjects of migration.

There are macro and micro levels.

Macro level - interstate capital flow. Statistically, it appears in the country's balance of payments.

Micro level - the movement of capital within international companies through intracorporate channels.

According to the directions of flows.

Currency, credit and settlement services for the purchase and sale of goods and services. international migration capital loan

Foreign investments in fixed and working capital.

Transactions with securities and various financial instruments.

Currency operations.

Redistribution of part of the national income through the budget in the form of assistance to developing countries and state contributions to international organizations, etc.

By investing capital abroad, an investor makes international investments - investing in securities of issuers from other countries denominated in foreign currency, as well as in financial instruments purchased for foreign currency.

The internationalization of investment activity is aimed at eliminating non-economic barriers and creating conditions under which for investors the differences between making investments in their own country and abroad virtually disappear.

The risks associated with international investments include those of national markets that are common to all investors, resident and non-resident. At the same time, investors from developed countries may face risks when investing internationally that are not present in their national markets. There are additional risks for non-residents associated with the possible introduction of restrictions on their activities and on the export of capital and income. A feature of any international investment is the risk of a fall in foreign currency exchange rates, which leads to a decrease in the return on investment in terms of the investor’s currency.

The structure of investment financing sources is changing in the international market: the international market for government bonds is gradually narrowing, which is associated, on the one hand, with the orientation of developed countries towards a consistent reduction in the state budget deficit and a corresponding reduction in new issues, and on the other hand, with a change in investor preferences in the face of falling profitability of government securities and increased cross-border access to transactions in the growing corporate securities market.

Thus, the prevailing trends of growing interdependence of sectors of the international investment market are leading to a convergence of two opposing investment models existing in world practice - American (with the leading role of the stock market) and continental (with the predominance of the banking system in financing investments). An integrated model is being formed that makes it possible to ensure an increase in the need for investment resources through the activities of diversified financial institutions that combine the functions of investment and commercial banks, the activation of the exchange and over-the-counter securities markets, and the spread of new financial institutions.

At the micro level, the process of capital migration occurs through the interaction of capital of individual economic entities (enterprises, firms) of nearby countries through the formation of systems of economic associations of states and coordination of national policies.

The rapid development of inter-company relations gives rise to the need for interstate (and in some cases non-state) regulation aimed at ensuring the free movement of goods, services, capital and labor between countries within a given region, at coordinating and conducting joint economic, scientific, technical, financial and monetary , social foreign and defense policy. As a result, integral regional economic complexes are created with a single currency, infrastructure, general economic proportions, financial funds, general supranational or interstate governing bodies.

The simplest form of economic integration is a free trade zone, within which trade restrictions between participating countries and, above all, customs duties are abolished.

Another form - Customs Union- involves, along with the functioning of a free trade zone, the establishment of a unified foreign trade tariff and the implementation of a unified foreign trade policy in relation to third countries.

In both cases, interstate relations concern only the sphere of exchange, in order to provide the participating countries with equal opportunities in the development of mutual trade and financial settlements.

More complex shape is a common market that provides its participants, along with free mutual trade and a common external tariff, freedom of movement of capital and labor, as well as coordination of economic policies.

But the most complex form of interstate economic integration is an economic (and monetary) union, combining all of the above forms with the provision of a common economic, monetary and financial policy.

Economic integration provides a number of favorable conditions for the interacting parties.

Firstly, integration cooperation gives economic entities (commodity producers) wider access to various types of resources: financial, material, labor, to the latest technologies throughout the region, and also allows them to produce products based on the capacious market of the entire integration group.

Secondly, the economic rapprochement of countries within a regional framework creates privileged conditions for firms from countries participating in economic integration, protecting them to a certain extent from competition from firms from third countries.

Thirdly, integration interaction allows its participants to jointly solve the most pressing social problems, such as leveling the conditions for the development of other regions, easing the situation on the labor market, providing social guarantees to low-income segments of the population, and further developing the health care system, labor protection and social security.

2. Factors determining capital migration

There are a number of reasons behind the export of capital. These include, first of all, ensuring access to raw materials and guaranteeing their stable supply. At the same time, exported capital could use cheap labor on a large scale, which made it possible to significantly reduce production costs and increase the competitiveness of manufactured products.

In addition, it is necessary to take into account the fact that the ongoing competition within the national markets of industrialized countries led to cheaper products. A decrease in the level of profitability, and this called into question new investments. As a result, a surplus of capital arose, which sought more profitable applications abroad. The export of capital became that “outlet”. Through which there was an outflow of capital to other countries due to the difficulties of its advance into the national economy.

An important role in the development of capital exports was played by the protectionist import policy pursued by almost all countries of the world, which ensured, on the one hand, the protection of national industry, and on the other, the influx of foreign capital in the interests of those industries and industries for which there was not enough national capital or they had sufficient technological capabilities, experience and knowledge in organizing the production of certain types of products.

The export of capital played a dual economic and political role in relation to those countries that were recipients of capital. Firstly, the formation of transnational corporations or transnational associations of capital, not to mention the growth of foreign trade turnover between countries, tied such countries in financial and economic terms to certain industrialized countries. Secondly, economic dependence was the instrument through which political influence was exercised.

The next reason for the further increase in the export of capital was differences in national conditions for the development of equipment and technology, and the total labor force. It is necessary to keep in mind that there are two, and sometimes counter, flows of capital. On the one hand, we are talking about the export of capital with the aim of penetrating another national market based on the possession of technology, organization, experience and knowledge in the field of production of any product. In this case, the recipient country of capital gets the opportunity to develop production within the country on the basis of the best achievements in the field of technology, technology, organization and management. The exporting country receives an additional source financial resources in the form of re-export of corporate profits from abroad.

On the other hand, the export of capital can be carried out precisely due to the lack of national technical, technological, organizational and managerial achievements. IN in this case financial capital flows to those countries, firms and corporations that have such achievements. By interacting with the domestic capital of these countries, foreign capital receives the necessary technical and technological knowledge, experience and other practical data and information with the aim of re-exporting them to their country and thus increasing the technical and economic level of national production.

A huge role in the export of capital was played by the formation and development of international infrastructure, primarily transport and information systems, which significantly “brought closer together” and provided conditions for further deepening and expanding the internationalization of the production of not only finished products, but also partial products. Semi-finished products, assemblies and parts. This became the basis for the development of international specialization and production cooperation.

The main reasons for capital migration include the following:

Different marginal productivity of capital, determined by the interest rate (capital moves from where its productivity is low to where it is high). The desire of firms to internationally diversify their activities.

The presence of customs barriers that interfere with the import of goods and thereby push foreign suppliers to import capital to penetrate the market.

Stable political environment and generally favorable investment climate.

Factors stimulating capital migration include:

International industrial cooperation, investments of TNCs in foreign subsidiaries. In recent years, the intensive development of cooperation between firms from different countries has led to the emergence of large international production and investment complexes, the creation of which is most often initiated by TNCs. For them, the intra-company division of labor went beyond national boundaries and essentially became international. On this basis, the degree of openness of national economies increases. An open economy is being formed on the basis of a more complete inclusion of the country in world economic relations.

The economic policy of industrialized countries aimed at attracting significant amounts of capital to maintain economic growth rates, employment levels, and the development of advanced industries.

The economic behavior of developing countries seeking to attract foreign capital for their economic development by liberalizing the investment climate.

Carrying out international organizations policies for liberalizing the international investment space, developing universal norms for investment cooperation.

International agreements on the avoidance of double taxation of income and capital between countries, promoting the development of trade and attracting investment.

Capital migration is based on a number of objective factors, among which the most important are:

Internationalization. It is a process of developing sustainable economic relationships and expanding reproduction beyond the national economy.

International division of labor.

Scientific and technological revolution.

Openness of national economies.

3. Indicators of participation in migration processes and balance of capital flows

A country's participation in international capital flows is assessed by a number of indicators. One of them is the volume of foreign assets (investments) of a given country, related to its GDP (GNP), i.e. share of foreign investment in GDP: where is the country’s investment assets abroad.

Another indicator is the ratio of the volume of direct investment of a given country abroad and the volume of foreign direct investment on its territory: where is foreign direct investment of a given country, is foreign direct investment in the territory of a given country.

If the value of the indicator is greater than one, then this indicates a positive balance in the migration flows of capital from country to country, if less than one, then it indicates an increase in the influx of foreign capital over the export of domestic capital from the country.

The next indicator for assessing capital migration is the ratio of a country’s external debt to GDP or the volume of exports of a given country, that is, an indicator of external debt: where is the volume of external debt.

This indicator is important for assessing the country’s solvency in relation to foreign partners, as well as for determining the level of financial and economic dependence of the country and the possibility of pursuing independent both foreign and domestic economic policies.

The capital balance sheet reflects all international transactions with assets.

The capital balance sheet reflects income from trading assets, such as the sale of stocks, bonds, real estate and companies to foreigners, and expenses arising from our purchases of assets abroad.

The capital flow balance is the proceeds from the sale of assets - the costs of purchasing assets abroad.

Likewise, the sale of goods and services and the sale of foreign assets lead to foreign exchange earnings.

The purchase of foreign assets, on the contrary, represents an expenditure of foreign currency. Thus, the capital balance shows the net foreign exchange receipts from all asset transactions.

The capital balance shows in detail how our foreign assets are changing. If the proceeds from selling assets to the rest of the world are greater than our costs of buying assets abroad, then the capital flow balance is in surplus.

In this case, capital flows into Russia, and we say that there is a net capital inflow.

On the contrary, when we buy more assets abroad than foreigners buy in Russia, there is a net outflow, or export of capital, and the balance of capital flows is reduced to a deficit.

There is a simple rule that helps to distinguish a surplus from a deficit in the current balance of capital movements.

When the corresponding transactions lead to net receipts of foreign currency, then this balance is reduced to a positive balance.

When a country buys more goods abroad than it sells, for example when people spend more foreign currency than they receive, then there is a current account deficit. When sales of assets to foreigners and borrowing abroad ultimately exceed purchases of foreign assets and loan repayments, the country acquires foreign currency as a result of net capital inflows and hence has a capital account surplus.

4. Capital migration in the global economy

The modern world economy is characterized by a continuous increase in the scale of export of direct investment abroad, the rate of export of which significantly exceeds the growth rate of world GDP and world exports. That is, on the basis of direct investment, foreign production is being formed, uniting the economies of different countries through closer ties than trade does.

Investment growth is observed in both developing and developed countries. It is noted that attracting investment was facilitated by a favorable economic climate, including rising profits, and the economic growth. In the international investment market, new, so-called “contractual” forms of investment are emerging: service and management agreements, targeted long-term loan agreements related to capital investments, franchise agreements, licensing agreements, financial lease agreements, production sharing agreements . These operations do not provide for the transfer of ownership rights to a non-resident, which differs from the traditionally considered categories of direct and portfolio investments, but they provide the right to systematically receive income (royalties, rentals, etc.).

Conclusion

Thus, the process of capital migration was outlined. The theory was considered to determine what a given economic process, the reasons and factors determining the movement of capital are considered.

The movements of capital in the real world, the role of transnational corporations, as well as the regulation of this process were presented in more detail.

Also, problems generated by the movement of capital from one country to another were identified, and new trends were presented that are increasingly used in modern conditions.

As a result, in this work the set tasks were solved and the set goal was achieved.

In conclusion, it should be added that economic integration, in particular the migration of capital, is a rapidly developing process, which makes especially sense in our changing world, in the increasingly unfolding process of globalization. This allows not only to establish economic ties between states, but, more importantly, to establish relationships, share and transfer experience accumulated over time.

Bibliography

1. Shcherbanin Yu.A., World economy / Yu.A. Shcherbanin - Moscow, Unity, 2010, p. 415.

2. Spiridonov I.A., World economy / I.A. Spiridonov - Moscow, Infra-M, 2011.

3. Fischer S., Dornbusch R., Schmalenzi R., Economics / S. Fischer, R. Dornbusch, R. Schmalenzi - Moscow, Delo, 2011.

4. Dobrynin A.I., Tarasevich L.S. Economic theory 3rd edition, 2010.

5. Safina I.L. Problems of capital flight from Russia // Questions of Economics - No. 7. - 2011

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TOPIC 6. INTERNATIONAL CAPITAL MIGRATION

Formation of the world economy at the turn of the 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 of international capital migration

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 the international movement of capital are interpreted differently by different economic schools 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 in 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 as the basis of international capital movements differences in interest rates, the dynamics of which are determined by conditions affecting the demand and supply of capital. K. Iversen put forward the concept of marginal international capital mobility: different types of 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, the further development of neoclassical theory showed that it is of little use for studying direct investment, since one of its main prerequisites - 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. investments.

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 significant economic fundamentals 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 on preferential terms through 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 an influx of financial resources into developing countries was the conclusions made by American economists about the characteristics of capital accumulation in an underdeveloped economy 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: savings-investment gap-filling models and foreign exchange replacement models.

Many Western economists have criticized the use of development assistance. 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 since the end of the 19th century. 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.

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 in which 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 to economically less 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 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 The world capital market is 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 makes it possible to increase the investment activity of its subjects and the growth rate of the global 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.

The migration of speculative capital has a negative impact on the development of the world economy. Focusing on making a profit from short-term speculative transactions at the exchange rate of currencies, or speculation on the international stock market, speculative capital can undermine the activities of individual companies and entire countries and economic regions (provoking a collapse stock market, 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.

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