30/09/2020 - This report examines recent developments in FDI and related sustainable development outcomes in EaP countries. It also considers several dimensions of the policy framework that affect the investment climate of the six countries; notably, FDI liberalisation, investment promotion and facilitation, investment tax incentives, and responsible business conduct.
Foreign Direct Investment (FDI) in Eastern Partner countries has grown considerably over the last two decades, and is associated with greater innovation capacity. Yet, already below potential compared to neighbouring regions, FDI flows to the EaP countries are likely to drop sharply as a consequence of the coronavirus (COVID-19) pandemic and resulting global economic upheaval. There remains considerable scope for improving the investment climate, in order to retain existing investors, attract new ones, and mitigate the expected drop in FDI inflows.
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Iris Mantonvani (Iris.email@example.com)