Foreign Direct Investments in Economy of Republic of Moldova and Perspectives for their Growth in the Framework of Neighboring with the EU

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Publishing date: Monday, 05 November 2007
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Currently, Republic of Moldova is one of the most deprived countries in the region in terms of foreign direct investment flows, being among the last five countries in South-East Europe and CIS in terms of FDI stock per capita. The main reasons for this low performance are the lack of an appropriate strategy to attract foreign investment during the transition period, lack of natural resources, missing the first wave of interests from the big international investors towards the privatization taking place in the wider region, high regional competition for foreign investment, etc. As a result, Moldova benefits from less than 400 USD stock of FDI per capita. At the same, time proximity to the EU and Moldova's European aspirations offer a number of advantages that need to be explored properly. This study provides a number of recommendations for the creation of a favourable climate for foreign investors and benefitting from the proximity to the EU.

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