The relationship between foreign direct investment and the business environment of the CIS countries

Foreign Direct Investment (FDI) is one of the important mechanisms for national economic development and the strengthening of cooperation. The integration process taking place in the modern world economy shows that the development of regional associations and individual countries depends on the closeness of international economic ties, especially the increase in mutual foreign direct investment. The process of foreign direct investment helps to introduce advanced technology and implement projects. The research on the cooperation of Commonwealth of Independent States (CIS) is particularly important. This is due to each country of that region is interested in expanding economic interaction with the alliance countries under the conditions of modern geopolitical instability, which inhibits investment activities. Today, FDI does not have a significant field of strengthening economic cooperation between CIS countries. Because the main problems in attracting FDI in the CIS are lack of a unified framework of legislation in the field of direct investment, the bureaucracy that breeds corruption, difficult business conditions and the development of the financial market is weak. The purpose of the study is to determine the impact of foreign direct investment on the development of economic interaction between the CIS countries and to develop recommendations on this basis aimed at attracting foreign investment for the further development of mutual cooperation of their national economies. A set of interrelated tasks must be solved to achieve research aims: -??identify the role of foreign direct investment in the development of the economies of the CIS countries and ensuring their mutual cooperation. -??to determine the main factors influencing the cooperation of CIS member countries in the field of foreign direct investment based on comparative analysis of economic development between the countries surveyed. -??to develop practical measures aimed at attracting foreign direct investment to the CIS countries, contributing to the deepening of their economic interaction. The work reveals the following main findings: -??the theoretical aspects of the international movement of capital, which determine the essence, role and dominant directions of FDI development in the modern world economy; -??weaknesses (lack of a unified legislative framework for FDI within the CIS; high level of bureaucracy that generates corruption; low indicators of business regulation in individual countries of the union) and strengths (natural wealth, geographic location and market size; improved indicators of business regulation) development of integration processes in the CIS space. Threats (geopolitical problems: the possibility of introducing new sanctions against Russia, which is a key investor within the CIS; dependence of certain CIS countries on energy prices in the external market) of the development of economic cooperation of the CIS countries in the context of geopolitical risks are identified; -??the main reasons hindering the development of cooperation between the CIS member states in the field of FDI are the differentiation of macroeconomic indicators, the geopolitical situation, legislative risks, institutional obstacles and administrative barriers; -??recommendations have been developed aimed at attracting FDI to the CIS countries, contributing to the further development of economic cooperation of the studied group of states.