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RESEARCH CENTER FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS of Ukraine (KHARKIV, UKRAINE)

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Liburkina L. M.

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The Models and Conceptions of Foreign Capital Localization
Busarieva T. H., Harbar A. M.

Busarieva, Tetiana H., and Harbar, Anton M. (2026) “The Models and Conceptions of Foreign Capital Localization.” Business Inform 9:77–86.
https://doi.org/10.32983/2222-4459-2026-9-77-86

Section: International Economic Relations

Article is written in Ukrainian
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UDC 339.727.22

Abstract:
The relevance of the problem is attributed to the fact that under the conditions of global economic crises, geopolitical tensions, and escalating security challenges, foreign capital localization models are undergoing significant transformations. Multinational enterprises are refining their strategic approaches, focusing not solely on maximizing economic efficiency, but also incorporating priorities such as risk mitigation, enhancing resilience, technological security, and cooperation with politically aligned countries. The aim of the study is to explore and systematize the theoretical conceptions and models of foreign capital localization. To achieve this aim, the methods of systematization, classification, and critical analysis, as well as structural-logical analysis and the method of scientific abstraction, were applied. The key prerequisites for foreign capital localization and the mechanisms of integrating foreign enterprises into the national economies of host countries are studied. Based on the research results, five main groups of localization models are systematized: behavioral-process, resource-competence, institutional, learning and absorption models, as well as novel geoeconomic models. It is found that the institutional feasibility of deeper localization is determined both by the distance and quality of the host country’s institutions, and by the level of geopolitical trust and the ability of local suppliers to form vertical linkages within global value chains. It is substantiated that the restructuring of supply chains based on political trust criteria requires a trade-off between resilience and economic efficiency. The scientific novelty of the obtained results lies in the further development of the theoretical and methodological foundations for researching international capital movements through a comprehensive systematization of its localization conceptions and models. It is proposed to use the presented systematization as a theoretical basis for developing applied tools to assess the impact of capital localization on the national economy.

Keywords: foreign capital localization; foreign direct investment; multinational enterprises; foreign capital localization models.

Fig.: 1. Tabl.: 1. Bibl.: 18.

Busarieva Tetiana H. – Doctor of Sciences (Economics), Professor, Professor, Department of World Economy, State University of Trade and Economics (19 Kіoto Str., Kyiv, 02156, Ukraine)
Email: [email protected]
Harbar Anton M. – Postgraduate Student, Department of World Economy, State University of Trade and Economics (19 Kіoto Str., Kyiv, 02156, Ukraine)
Email: [email protected]

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