Exploring Armenian Environment for Foreign Inflows: Corrosive and Constructive Capitals under Microscope
Exploring Armenian Environment for Foreign Inflows: Corrosive and Constructive Capitals under Microscope
The COVID-19 and Artsakh war in 2020 posed considerable challenges to the economy of the Republic of Armenia (RA), resulting in slower economic growth rates, increased unemployment rate, and external debt during 2020-2021.1 Given this critical situation, attracting foreign investments has become even more important, and the discussions regarding this topic intensified recently. In 2022, the war unleashed in Ukraine and the sanctions imposed on the Russian Federation (RF) and Belarus triggered the relocation of various businesses from these countries to Armenia. How may Armenia benefit from these developments? What risks may Armenia face? In general, how can the effectiveness of foreign investments be enhanced because of current situation? The answers derive, on the one hand, from the nature of foreign investments, and the other hand, from the investment environment that exists in the Republic of Armenia, the study of which is the primary concern of this research.
The research has been conducted by the Caucasus Research Resource Center (CRRC)-Armenia Foundation, funded by the Center for International Private Enterprise (CIPE). The contents of this report are based on primary research, are the sole responsibility of the authors, and do not necessarily reflect the views of CIPE.
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