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Keith Crane - Foreign direct investment in the states of the former USSR

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title Foreign Direct Investment in the States of the Former USSR Studies - photo 1

title:Foreign Direct Investment in the States of the Former USSR Studies of Economies in Transformation, 1014-997X ; Paper No. 5
author:Crane, Keith
publisher:World Bank
isbn10 | asin:0821322699
print isbn13:9780821322697
ebook isbn13:9780585184586
language:English
subjectInvestments, Foreign--Former Soviet republics, Former Soviet republics--Economic conditions.
publication date:1992
lcc:HG5572.F68 1992eb
ddc:332.6/73/0947
subject:Investments, Foreign--Former Soviet republics, Former Soviet republics--Economic conditions.
Recent Studies of Economies in Transformation Papers
No. 1 County Department III, Europe and Central Asia Region, Food and Agricultural Policy Reforms in the Former USSR: An Agenda for the Transition.
No. 2 Michalopoulos and Tarr, Trade and Payments Arrangements for States of the Former USSR
No. 3 Country Department III, Europe and Central Asia Region, Statistical Handbook: States of the former USSR
No. 4 Barr, Income Transfers and the social Safety Net in Russia

Page i
Studies Of Economies In Transformation
Paper Number 5
Foreign Direct Investment in the States of the Former USSR
The World Bank
Washington, D.C.
Page ii
Copyright 1992
The International Bank for Reconstruction
and Development/THE WORLD BANK
1818 H Street, N.W.
Washington, D.C. 20433, U.S.A.
All rights reserved
Manufactured in the United States of America
First printing September 1992
Second printing December 1993
Papers in the "Studies of Economies in Transformation" series present the results of policy analysis and research on the states of the former USSR. The papers have been prepared by World Bank staff and consultants and issued by the World Bank's Europe and Central Asia Country Department III. Funding for the effort has been provided in part by the Technical Cooperation Program of the World Bank for states of the former USSR. In light of the worldwide interest in the problems and prospects of these countries, dissemination of these findings is encouraged for discussion and comment.
The findings, interpretations, and conclusions expressed in this paper are entirely those of the author(s) and should not be attributed in any manner to the World Bank, to its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent. The World Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility whatsoever for any consequence of their use. Any maps that accompany the text have been prepared solely for the convenience of readers; the designations and presentation of material in them do not imply the expression of any opinion whatsoever on the part of the World Bank, its affiliates, or its Board or member countries concerning the legal status of any country, territory, city, or area or of the authorities thereof or concerning the delimitation of its boundaries or its national affiliation.
The material in this publication is copyrighted. Requests for permission to reproduce portions of it should be sent to the Office of the Publisher at the address shown in the copyright notice above. The World Bank encourages dissemination of its work and will normally give permission promptly and, when the reproduction is for noncommercial purposes, without asking a fee. Permission to copy portions for classroom use is granted through the Copyright Clearance Center, Inc., Suite 910, 222 Rosewood Drive, Danvers, Massachusetts 01923, U.S.A.
The complete backlist of publications from the World Bank is shown in the annual Index of Publications, which contains an alphabetical title list (with full ordering information) and indexes of subjects, authors, and countries and regions. The latest edition is available free of charge from the Distribution Unit, Office of the Publisher, Department F, The World Bank, 1818 H Street, N.W., Washington, D.C. 20433, U.S.A., or from Publications, The World Bank, 66, avenue d'Ina, 75116 Paris, France.
ISSN: 1014-997X
Cataloging-in-Publication Data for this title is available directly from the Library of Congress.
Page iii
Foreword
Following the dissolution of the USSR at the end of 1991, the fifteen former Soviet republics are engaged in creating market-oriented economic systems and restructuring their economies. Substantial flows of foreign investment would greatly accelerate that process by providing an inflow of capital, facilitating the transfer of superior technology, and establishing a competitive spur for improved factor productivity. The governments of the new republics are therefore concerned in the course of shaping the legislative and institutional framework for the transformed economy about the impact of their decisions on the attractiveness of the economy for foreign investors. This report is an effort to assist in that assessment.
This report examines the current state of foreign investment in the fifteen former Soviet republics and recent trends in these flows. Stocks and flows of direct foreign investment embodied in operating joint ventures are considered based both on officially tabulated data and on an independent database compiled from evidence of operational activity by registered joint ventures. The distribution of the joint ventures by republic and area of economic activity over time is considered. Conclusions are drawn about the particular policies and institutions that have influenced these trends in foriegn direct investment activity. These conclusions are supported not only by the examination of available data but also by an informal survey of the views of active Western investors on the key aspects of the enviroment for foreign investment in these republics.
This study is intended for decision-makers and their economic policy and legal advisors in the 15 states of the former USSR, officials of the other member countries of the World Bank, and those with an interest in economic developments in these new countries. Those who are interested in helping to create an enviroment conductive to direct foreign investment in the interest of accelerated reform, restructuring and recovery of their economies should find this study most informative.
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