FDI and the Investment Climate in the CIS Countries

November 1, 2003

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Format: Chicago

Clinton R. Shiells FDI and the Investment Climate in the CIS Countries, (USA: International Monetary Fund, 2003) accessed November 21, 2024

Disclaimer: This Policy Dicussion Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

In view of disappointing levels of inward foreign direct investment (FDI), this paper examines capital flows into the Commonwealth of Independent States (CIS) countries and investigates the main impediments to a more favorable investment climate. Direct investment inflows have generally been related to natural resource extraction or energy transportation infrastructure projects, large privatization transactions, and debt/equity swaps to pay for energy supplies. Low FDI inflows despite strengthening macroeconomic performance has reflected a weak investment climate particularly owing to incomplete structural reforms. IMF staff working on the countries concerned cited burdensome tax systems, widespread corruption, extensive state intervention coupled with weak legal and regulatory frameworks, and incomplete structural reforms as the main impediments.

Subject: Balance of payments, Capital flows, Capital inflows, Economic sectors, Foreign direct investment, Oil sector, Privatization

Keywords: Baltics, Capital flows, Capital inflows, Central and Eastern Europe, Central Asia, CIS country, Eastern Europe, Enterprise performance, FDI, FDI flow, FDI inflow, Firm Gazprom, Foreign direct investment, Former Soviet Union, IMF country team, Investment climate, Moldovan firm Moldova-Gaz, Oil sector, PDP, Privatization, Regional issues, Transition economies

Publication Details

Pages:

35
Volume:

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DOI:

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Issue:

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Series:

Policy Discussion Paper No. 2003/005
Stock No:

PPIEA0052003
ISBN:

9781451972849
ISSN:

1564-5193

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