The Motives and Impediments to FDI in the CIS

Abstract

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Foreign Direct Investment in Ghana – the Political Economy Perspective

“…The point in efficiently seeking MNE is to take advantage of different endowments, cultures, institutional arrangements, economic systems and policies and market structures by concentrating production in a limited number of locations to supply multiple markets. To seek foreign production efficiently, crossborder markets must be both well-developed and open, so regionally integrated markets tend to flourish" (Kudina & Jakubiak 2008). It should also be noted that multinationals do combine all the above motives when seeking investment proposals.…”

EU Cooperation with Non-Member Neighboring Countries: The Principle of Variable Geometry

“…This was mainly due to the poor business and investment climate in this region which was caused by high inlation, high iscal deicits, currency instability, poor protection of property rights, insider-oriented privatization, numerous bureaucratic obstacles (including those directly affecting foreign investors), delays in adopting market-oriented legislation and its effective enforcement, pervasive corruption, a fragile inancial sector, and underdeveloped infrastructure (see Kudina & Jakubiak, 2011). industries, retail trade, inancial services, etc.…”

“…(Kudina & Jakubiak, 2011): foreign investors in the CIS predominantly seek domestic market opportunities in the host country (with most production supplies coming from abroad) rather than eficiency considerations (low-cost opportunities for developing a global production chain). Therefore, the potential innovation and eficiency spillovers to domestic producers are limited.…”

Foreign Direct Investment, Natural Resources, Economic Freedom, and Sea-Access: Evidence from the Commonwealth of Independent States

“…Nevertheless, some studies on FDI have found that resource-rich countries attract a lower volume of inward FDI than resource-scarce countries [11][12][13]. Considering that CIS countries are endowed with vast natural resource reserves [14], a substantial volume of FDI to these countries is mainly concentrated on resource extraction, signposting the importance of resources in attracting FDI [15]. Unfortunately, resource wealth does not automatically translate into national wealth; instead, resources tend to spread corruption, source conflicts and cause environmental damage [6,16].…”