The thesis aims to examine determinants that account for and promote inward foreign direct investments into 28 transition countries after the collapse of the Soviet Union. While potential benefits from investment flows are well-recognized, they are never guaranteed. Therefore, policies adopted by the governments of the respective hosting countries may have an essential role to play in attracting and sustaining investments to maximize their benefits.
The transition countries were divided into three country groupings according to their regional location and they were analyzed separately. Particularly, the differences in size and timing of the accommodated investments within these groups and among them was discussed considering dynamics of investment flows and stocks starting early 1990s. The main motivation sought by investors in each of the region was identified. The empirical part of the thesis aimed at looking whether the investment flows are stimulated by the overall macroeconomic framework or transition specific institutional architecture of these hosting countries. We employed an annual panel data for these countries in transition for 1994-2014 using a fixed effects estimator. The results suggested that while the institutional setup has some significant effect in attracting investments, the macroeconomic environment of these countries seems to be a more influential determinant to stimulate investments.
Annotation in English
The thesis aims to examine determinants that account for and promote inward foreign direct investments into 28 transition countries after the collapse of the Soviet Union. While potential benefits from investment flows are well-recognized, they are never guaranteed. Therefore, policies adopted by the governments of the respective hosting countries may have an essential role to play in attracting and sustaining investments to maximize their benefits.
The transition countries were divided into three country groupings according to their regional location and they were analyzed separately. Particularly, the differences in size and timing of the accommodated investments within these groups and among them was discussed considering dynamics of investment flows and stocks starting early 1990s. The main motivation sought by investors in each of the region was identified. The empirical part of the thesis aimed at looking whether the investment flows are stimulated by the overall macroeconomic framework or transition specific institutional architecture of these hosting countries. We employed an annual panel data for these countries in transition for 1994-2014 using a fixed effects estimator. The results suggested that while the institutional setup has some significant effect in attracting investments, the macroeconomic environment of these countries seems to be a more influential determinant to stimulate investments.
Keywords
foreign direct investment, transition, determinant
Keywords in English
foreign direct investment, transition, determinant
Length of the covering note
56
Language
AN
Annotation
The thesis aims to examine determinants that account for and promote inward foreign direct investments into 28 transition countries after the collapse of the Soviet Union. While potential benefits from investment flows are well-recognized, they are never guaranteed. Therefore, policies adopted by the governments of the respective hosting countries may have an essential role to play in attracting and sustaining investments to maximize their benefits.
The transition countries were divided into three country groupings according to their regional location and they were analyzed separately. Particularly, the differences in size and timing of the accommodated investments within these groups and among them was discussed considering dynamics of investment flows and stocks starting early 1990s. The main motivation sought by investors in each of the region was identified. The empirical part of the thesis aimed at looking whether the investment flows are stimulated by the overall macroeconomic framework or transition specific institutional architecture of these hosting countries. We employed an annual panel data for these countries in transition for 1994-2014 using a fixed effects estimator. The results suggested that while the institutional setup has some significant effect in attracting investments, the macroeconomic environment of these countries seems to be a more influential determinant to stimulate investments.
Annotation in English
The thesis aims to examine determinants that account for and promote inward foreign direct investments into 28 transition countries after the collapse of the Soviet Union. While potential benefits from investment flows are well-recognized, they are never guaranteed. Therefore, policies adopted by the governments of the respective hosting countries may have an essential role to play in attracting and sustaining investments to maximize their benefits.
The transition countries were divided into three country groupings according to their regional location and they were analyzed separately. Particularly, the differences in size and timing of the accommodated investments within these groups and among them was discussed considering dynamics of investment flows and stocks starting early 1990s. The main motivation sought by investors in each of the region was identified. The empirical part of the thesis aimed at looking whether the investment flows are stimulated by the overall macroeconomic framework or transition specific institutional architecture of these hosting countries. We employed an annual panel data for these countries in transition for 1994-2014 using a fixed effects estimator. The results suggested that while the institutional setup has some significant effect in attracting investments, the macroeconomic environment of these countries seems to be a more influential determinant to stimulate investments.
Keywords
foreign direct investment, transition, determinant
Keywords in English
foreign direct investment, transition, determinant
Research Plan
The objective of the following thesis is to examine empirically the determinants that account for and promote investments in Armenia after the collapse of the Soviet Union and declaration of the independence of the country. Being a transition economy, Armenia relies heavily on and can have potential benefits from the FDI inflows to revitalize its economy. The study would present and analyse the general characteristics of the FDI inflow trend and examine the key determinants attracting those flows. The policy recommendations based on the empirical results of the thesis would suggest some possible government responses to increase them and maximize the gains of the country from those flows.
Research Plan
The objective of the following thesis is to examine empirically the determinants that account for and promote investments in Armenia after the collapse of the Soviet Union and declaration of the independence of the country. Being a transition economy, Armenia relies heavily on and can have potential benefits from the FDI inflows to revitalize its economy. The study would present and analyse the general characteristics of the FDI inflow trend and examine the key determinants attracting those flows. The policy recommendations based on the empirical results of the thesis would suggest some possible government responses to increase them and maximize the gains of the country from those flows.
Recommended resources
Alfaro, L., & Chauvin, J. (2017). Foreign Direct Investment, Finance, and Economic Development. Boston: Harvard Business School.
Caucasus Analytical Digest. (2016). No. 82: Foreign Direct Investment. Foreign Direct Investments in Armenia: Opening the Doors is Not Enough to Attract Investment, pp. 2-27.
Donu V., Janíčko M. (2015). Institutional Determinants of Investment Inflows into Transition Economies. Journal of Central and Eastern European Economic and Management Issues, 23 (5), 3-23.
Gevorkyan, A. V. (2015). The legends of the Caucasus: Economic transformation of Armenia and Georgia. International Business Review 24, 1009-1024.
Sandhu, D. N. (2016). Determinants of Inward Foreign Direct Investment (1994-2014): The Case of India. Journal of Indian Management , 83-94.
World Bank. (2018). Global Investment Competitiveness Report 2017/2018: Foreign Investor Perspectives and Policy Implications. Washington, DC: World Bank.doi:10.1596/978-1-4648-1175-3.
Recommended resources
Alfaro, L., & Chauvin, J. (2017). Foreign Direct Investment, Finance, and Economic Development. Boston: Harvard Business School.
Caucasus Analytical Digest. (2016). No. 82: Foreign Direct Investment. Foreign Direct Investments in Armenia: Opening the Doors is Not Enough to Attract Investment, pp. 2-27.
Donu V., Janíčko M. (2015). Institutional Determinants of Investment Inflows into Transition Economies. Journal of Central and Eastern European Economic and Management Issues, 23 (5), 3-23.
Gevorkyan, A. V. (2015). The legends of the Caucasus: Economic transformation of Armenia and Georgia. International Business Review 24, 1009-1024.
Sandhu, D. N. (2016). Determinants of Inward Foreign Direct Investment (1994-2014): The Case of India. Journal of Indian Management , 83-94.
World Bank. (2018). Global Investment Competitiveness Report 2017/2018: Foreign Investor Perspectives and Policy Implications. Washington, DC: World Bank.doi:10.1596/978-1-4648-1175-3.
Enclosed appendices
1 CD
Appendices bound in thesis
graphs, tables
Taken from the library
Yes
Full text of the thesis
Appendices
Reviewer's report
Supervisor's report
Defence procedure record
Student Mary Hayrapetyan presented results of the diploma thesis "The determinants of the Inward Foreign Direct Investments: An empirical analysis from Countries in Transition". Committee was familiarized with both reviews from the supervisor and reviewer. Then discussion followed with several questions concerning i.e. potential negative effects of FDI on host countries.