FDI and the Investment Climate in the CIS Countries

Author/Editor:

Clinton R. Shiells

Publication Date:

November 1, 2003

Electronic Access:

Download PDF. Use the free Adobe Acrobat Reader to view this PDF file

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.

Series:

Policy Discussion Paper No. 03/5

Subject:

English

Publication Date:

November 1, 2003

ISBN/ISSN:

9781451972849/1934-7456

Stock No:

PPIEA0052003

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

35

Please address any questions about this title to publications@imf.org