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


Peter Havlik, Gabor Hunya and Yury Zaytsev

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

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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