Foreign Direct Investment in Armenia: A Sad Story

by Gevork Gevorkyan on May 30, 2008

Although Armenians have large and rich diaspora in the world, foreign direct investment (FDI) has been historically low in Armenia. Although FDI growth rates remain high, Armenia still lies behind the countries in the region. To illustrate, FDI inflows in Armenia in 2006 were 450 US dollars, while foreigners invested around 1 billion dollars in Georgia, 3.7 billion dollars in Azerbaijan and 20 billion dollars in Turkey. Relative to neighboring countries FDI in Armenia stay at extremely low levels.

For 2007 Armstat reports 670 million dollars, while the same figure for Georgia is above 1.5 billion dollars. It is difficult to figure out its causes, however possible explanation can blockage that Armenia has been experiencing already for a decade.

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