Foreign direct investment as an indicator of competitiveness: from post-COVID shock to war and energy crisis

Introduction. In the current conditions of transformation of the world economic order, foreign direct investment (FDI) is a source of additional financial resources, and a significant indicator of the level of competitiveness of national economies. Their dynamics, structure, and sectoral priorities reflect both the internal potential of countries and their ability to respond to global challenges. Problem Statement. FDI serves as a kind of indicator of the balance of the state's economic policy, and their territorial, sectoral and functional distribution allows to trace the current trends in the development of the global economy. The purpose of the article is to theoretically and empirically substantiate the use of foreign direct investment as an indicator of international competitiveness, taking into account post-COVID shocks, Russia's full-scale war against Ukraine and the energy crisis. Results. It is proven that the pandemic accelerated the digitalization and change of global production chains, and the war and energy shocks facilitated the reassessment of risks, regional asymmetry of flows and refocusing of capital. Empirical analysis of FDI forms (investments in new projects, financing of international projects and cross-border mergers and acquisitions) records a peak recovery in 2021-2022 and a subsequent correction, while “green” energy and digital infrastructure retain investment priority. Conclusions. It is substantiated that FDI plays the role of a “stress test” of economic policy meaning that their dynamics reflect the trust of institutional investors, the quality of the regulatory environment and the ability of the state to integrate into global value chains. The author offers recommendations on targeting FDI in priority sectors, combining deregulation measures with risk-based screening and using FDI as a tool for transition to the Economy 5.0 paradigm.