FOREIGN DIRECT INVESTMENT INFLOW IN 1997-2016 YEARS IN GEORGIA, UKRAINE AND MOLDOVA (COMPARABLE ANALYSIS)
Journal Title: Globalization and Business - Year 2018, Vol 5, Issue 5
Abstract
Resource deficit is a serious problem, but wealthy resources do not mean the riches of the country. One of the main reasons for the collapse of the former Soviet Union was ineffective use of rich natural resources. The Soviet economy, especially in the last years of its existence, was mainly dependent on income from the export of resources. Dropping prices on export resources have significantly damaged the country and have played a big role in the collapse of the former USSR. In the early 1990s, after the dissolution of the Soviet Union, new independent states, differently, but still found the way to build a market economy. Some of them have benefited from the richness of resources, while others more or less have taken advantage of innovations. Recently, one of the post-Soviet states (Georgia, Ukraine, Moldova) became associate members of the EU. The European integration vector has created new requirements. It becomes more actual to stimulate attracting foreign investments. In these processes the countries which use these foreign investments in accordance with logically elaborated and substantiated priority are getting more benefit. All three above-mentioned countries are suffering a serious problem of territorial integrity which obviously creates a lot of problems. The report is dedicated to the comparative analysis of only foreign direct investment (FDI) in Georgia, Ukraine and Moldova. Initially, the newly formed independent post soviet countries have suffered from a deficit of their own finances, and foreign investors were observing the current events and not hurrying. Countries should have their own model of development, to create the laws, structures, conditions for people to get dignified income to deepen the integrative processes and etc. Such tasks could not be completed in a short time, which was well understood by foreign investors. As a result in the early 1990s the scales of direct foreign investments in the analyzed countries were minimal, and then the processes were speeding up. The FDI played a key role in economic development of these countries.
Authors and Affiliations
LEVAN SILAGADZE
Keywords
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