DETERMINANTS OF GLOBAL MIGRATION: THE IMPACT OF ESG INVESTMENTS AND FOREIGN DIRECT INVESTMENT
DETERMINANTS OF GLOBAL MIGRATION: THE IMPACT OF ESG INVESTMENTS AND FOREIGN DIRECT INVESTMENT

Summary/Abstract: In response to global economic, social, andenvironmental problems, ESG investment principleshave changed the approach to directing and structuringforeign direct investment. Additionally, they arebecoming an essential factor in attracting migrants. Thisarticle aims to determine the impact of foreign directinvestment on global migration trends and theirpeculiarities with the introduction of ESG investmentprinciples. For this purpose, global foreign directinvestment flows, global ESG investment flows, andglobal migration trends have been analyzed from 1995to 2022. Pairwise correlation calculation was used as theprimary analysis method through R-Studio softwarewith integrated R programming language. The resultsindicated a 35% correlation between the volume ofglobal ESG investment flows and the number ofinternational migrants (as a percentage of the totalpopulation, which varies between 3.2% and 3.6%) for2010-2022. Subsequently, regression analysis wasconducted to explore the relationship between criticalvariables: investment flows and the level of migration infour European countries (France, Poland, the CzechRepublic, and Germany). It was determined thatinvestment inflows led to new jobs, acceleratedeconomic growth, and improved business climate, thusencouraging reduced outflow and increased inflow ofmigrants. Investments based on ESG principles alsoreduce emigration as they enhance the quality of life inthe host country, provide better environmentalprotection, and promote more transparent corporatemanagement. However, it should be noted thatinvestments have no apparent impact on migrationcaused by external factors such as wars or politicalconflicts, so such analysis should not include periods ofglobal economic and political unrest.

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