Abstract:
Strengthening financial and economic stability in certain countries of the world requires
the modification of tools for assessing the imbalances in the flow of financial
resources that arise and spread as a result of the economy financialization and their
consequences for the functioning of markets, especially investment ones. The purpose
of the study is to develop a methodological approach to identifying the dependencies
between financial resources imbalances resulting from financialization and investment
flows. The following research methods were used: science-based abstraction, analysis
and synthesis, economic and mathematical methods (to identify the dependencies between
the imbalances in the movement of financial resources and investment flows in
the economy); comparison and analogy (to study the world experience in identifying
the links between financialization and investment flows in the economy). The aspects
of the influence of imbalances in financial resources movement as a result of the economy
financialization on investment flows are systematized. Various consequences of
these imbalances for the functioning of the investment market are determined. The algorithm
of identification of special aspects of investment flows influenced by financial
resources imbalances was modified. The hypothesis of the strong correlation between
the dynamics of foreign direct investment in the Eastern European countries and the
level of imbalances in the flow of financial resources has been confirmed. The hypothesis
of the significant influence of financialization processes on investment activity in
the real sector of the economy, including infrastructure investments, has been refuted.
It has been established that imbalances in the flow of financial resources as a result of financialization
do not contribute to the development of investment markets of Eastern
European countries, and only intensify disparities by directing foreign direct investment
in the financial sectors of these countries and increasing the volatility of their
market conditions.
It has been determined that the approach to identifying the dependencies between
financial resources imbalances as a result of financialization and investment flows in
Eastern European economies has allowed to substantiate the impact of such imbalances
on investment amounts and on the capital formation dynamics.
