Evolution of the regulatory environment of transnational corporations in field of global investments in the late XXth and early XXIst century

The article examines the economic dimension of modern regulation of transnational corporations (TNCs) in the context of the evolving international investment environment from the 1990s to the present. Particular attention is given to the dynamics of regulatory approaches shaped at the intersection of state economic policy, market forces, and international treaty processes. The analysis focuses on the impact of regulatory changes on the investment decision-making of TNCs, particularly in the area of foreign direct investment (FDI), as well as on the transformation of the global competitive landscape under the influence of both mandatory and voluntary regulatory instruments. The study explores how the liberalization of national legislation and the expansion of bilateral investment treaties have contributed to attracting private capital to transition and developing economies. It analyzes regional initiatives and multilateral processes ‒ particularly those within the frameworks of GATT/WTO, the OECD, and the World Bank ‒ which played a key role in shaping the institutional environment for the economic activities of TNCs. An attempt is made to assess how these initiatives influence investment flows, competition structures, and corporate decision-making on a global scale. Special attention is devoted to the role of soft law, corporate self-regulation, and codes of conduct as alternatives or complements to classical legal instruments. These mechanisms are viewed not only as tools for reducing transaction costs but also as instruments shaping the economic accountability of TNCs to states, markets, and society at large. Through retrospective analysis, a disparity was identified between the economic power of transnational corporations and the capacity of states to effectively regulate them within a globalized economy. It is emphasized that the absence of a coherent global agreement on TNCs leads to the fragmentation of the regulatory landscape, which in turn creates asymmetries in economic incentives for different groups of states and corporations. Drawing on the obtained findings and international experience, the author substantiates the need for an economically balanced model for the international regulation of transnational corporations, one that would account both for states' imperatives to preserve sovereignty and for the necessity of establishing transparent and stable rules for business operations. It is underscored that new regulatory tools should combine flexibility and adaptability with a clear economic orientation toward sustainable development, investment security, and effective competition.