Foreign Direct Investments: A Comparison of EAEU, DCFTA and Selected EU-CEE Countries

RR428.jpg
publication_icon

Peter Havlik, Gabor Hunya and Yury Zaytsev

wiiw Research Report No. 428, June 2018
43 pages including 2 Tables and 23 Figures

free download

Hardcopy 8 add to cart  

Shipping Costs

Foreign direct investment (FDI) has been the main driver of restructuring and modernisation in Central and Eastern Europe. This paper looks into FDI stocks and flows in a dynamic and cross-country perspective, comparing the key EAEU countries (Belarus, Kazakhstan and Russia) as well as DCFTA countries (Georgia, Moldova and Ukraine) with selected EU-CEE peers (Hungary, Poland, Romania and Slovakia) in the neighbourhood. The study shows that EAEU and DCFTA countries have not been particularly attractive for foreign investors: taking out round tripping inflows from offshore destinations, the accumulated FDI would be even lower. This explains a lot why restructuring in the region stalls. This pattern can change only with marked improvements in the domestic regulatory environment and investment climate.

 

Reference to wiiw databases: wiiw Annual Database, wiiw FDI Database

Keywords: foreign direct investment, FDI flows and stocks, Eastern Europe, Belarus, Georgia, Moldova, Kazakhstan, Russia, Ukraine, FDI by key partners and sectors

JEL classification: C82, F13, F14, O57, P23

Countries covered: Belarus, CESEE, CIS, Georgia, Kazakhstan, Moldova, Russia, Ukraine


top