EUROPEAN NEIGHBOURHOOD POLICY AND FDI: EASTERN DIMENSION

The paper (1) analyses the volume, dynamics and structure of inward FDI flows to six transition economies in Eastern Europe, covered by the Eastern Partnership initiative under the EU's European Neighbourhood Policy (i.e., Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine), and (2) explores the potential role played in these flows by factors related to the advancement of the countries' transition process. The results of the study indicate that inward FDI flows varied greatly across the countries in question over the period 2004-2014, and depended mostly on (1) the countries' progress in introducing market reforms, (2) their stability and the democratization of the political systems (having regard also to the geopolitical situation, both internal and external), and (3) general conditions for doing business in them.