Are the EaP Countries Attractive to Investors? A Brief Analysis of the Financial, Institutional, Political and Fiscal Elements


  • Alisa-Mihaela Ambrozie “Dunărea de Jos” University Galati
  • Sergiu-Lucian Șorcaru Danubius University of Galati
  • Ștefan-Cătălin Topliceanu ”Alexandru Ioan Cuza” University of Iasi


foreign direct investment; economic growth; doing business; country risk; institutional freedom


This article aims to analyze if the Eastern Partnership (EaP) countries (Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine) are attractive to investors in the period 2015-2019. These countries are interested in FDI and how to succeed in attracting as many investors as possible due to the increased chances of joining the European Union. To measure the attractiveness of the EaP countries it is used a quantitative approach through which the evolution of several aspects is observed. There were selected for analysis variables from a financial, fiscal, institutional and administrative point of view. The results reveal that the EaP countries have improved their investment climate and business environment mainly due to significant governance performance, fiscal and financial incentives and institutional progress. The most visible performances were recorded by Georgia and Armenia. The results demonstrate that only some of the EaP countries are able to attract investors and are prepared for EU membership from a fiscal, financial, institutional and administrative perspective. These facts are of interest to policy makers from the EaP countries and to European ones.

Author Biographies

Alisa-Mihaela Ambrozie, “Dunărea de Jos” University Galati

Master in progress, Faculty of Economic and Business Administration, Specialization Comunication in Marketing

Sergiu-Lucian Șorcaru, Danubius University of Galati

Senior Lecturer, Faculty of Communications and International Relations

Ștefan-Cătălin Topliceanu, ”Alexandru Ioan Cuza” University of Iasi

Assistant Professor, Faculty of Economic and Business Administration


Akisik, O.; Gal, G. & Mangaliso, M. (2020). IFRS, FDI, economic growth and human development: The experience of Anglophone and Francophone African countries. Emerging Markets Review, 45, 100725.
Bajo-Rubio, O. & Sosvilla-Rivero, S. (1994). An econometric analysis of foreign direct investment in Spain, 1964-1989. The Southern Economic Journal, 61, pp. 104-120.
Blomstrom, M.; Lipsey, R. & Zejan, M. (1992). What explains developing country growth? NBER Working Paper 4132. The National Bureau of Economic Research, Cambridge.
Duarte, L.; Kedong, Y. & Xuemei, L. (2017). The Relationship between FDI, Economic Growth and Financial Development in Cabo Verde. International Journal of Economics and Finance, 9(5), pp. 132-142.
Hansen, H. & Rand, J. (2006). On the causal links between FDI and growth in developing countries. The World Economy, 29, pp. 21-41.
Hunya, G. (1998). Integration of CEEC manufacturing into European corporate structures by direct investments. MOST: Economic Policy in Transnational Economies, 8, pp. pp. 69-90.
Iftode, F.; Pîrju, I. S. (2014). Contemporary Globalization, the Transition from Border to Integration. EIRP Proceedings, vol. 9, International Conference “European Integration Realities and Perspectives”, 9th Edition, pp. 304-313.
Kaufmann D.; Kraay, A.; Mastruzzi, M. (2010). The Worldwide Governance Indicators: methodology and analytical issues. The World Bank Policy Research Working Paper, no. 5430, September.
Li, X. & Liu, X. (2005). Foreign direct investment and economic growth: an increasingly endogenous relationship. World Development, 33(3), pp. 393-407.
Lipsey, R. (2001). Interpreting developed countries’ foreign direct investment. In Deutsche Bundesbank (ed.), Investing Today for the World of Tomorrow: Studies on the investment process in Europe, pp. 285-325. Springer.
Michalet, C. (1997). Strategies of multinationals and competition for foreign direct investment: The opening of central and eastern Europe (The World Bank).
Moore, M. (1993). Determinants of German manufacturing direct investment: 1980-1988. Review of World Economcis, 129, pp. 120-138.
Moosa, I. (2002). Foreign direct investment: theory, evidence and practice. Palgrave.
OECD (2008). Benchmark definition of foreign investment (4th ed.). OECD Publications.
OECD (2020). Country Risk Classifications of the Participants to the Arrangement on Officially Supported Export Credits.
Ruane, F. & Ugur, A. (2005). Foreign Direct Investment and Productivity Spillovers in the Irish manufacturing industry: Evidence for firm level panel data. International Journal of the Economics of Business, 12, pp. 53-66.
Schneider, F. & Frey, B. (1985). Economic and political determinants of foreign direct investment. World Development, 13, pp. 161-175.
The World Bank Group. (2020a) Doing Business 2020: Comparing Business Regulation in 190 Economies. The World Bank Publications.
The World Bank Group. (2020b). Doing Business Indicators.
The World Bank Group. (2020c). World Development Indicators.
The World Bank Group. (2020d). Worldwide Governance Indicators.
Wang, Z. & Swain, N. (1995). The determinants of foreign direct investment in transforming economies: Empirical evidence from Hungary and China. Weltwirtschaftliches Archiv, 131, pp. 359-382.
Zhang, K. (2006, June 24-25). Foreign direct investment and economic growth in China: A panel data study for 1992-2004. Conference WTO, China and Asian Economies, Beijing, China.




How to Cite

Ambrozie, A.-M. ., Șorcaru, S.-L. ., & Topliceanu, Ștefan-C. . (2021). Are the EaP Countries Attractive to Investors? A Brief Analysis of the Financial, Institutional, Political and Fiscal Elements: Array. Acta Universitatis Danubius. Œconomica, 17(1). Retrieved from



Financial Economics