Foreign Direct Investments in Armenia: Opening the Doors is Not Enough to Attract Investment

Abstract

FDI continues to be an essential contributing factor to Armenia's economic development. The Government of Armenia, having recognized the importance of FDI in the economy, officially announced an "open-door policy" since its independence. While this policy was positively reflected in several global indicators assessed by international organizations, there had not been tangible outcomes related to foreign investments in the economy, a fact explained by several strong objective and subjective factors related to the current global economic situation. These trends will continue in the absence of proactive and aggressive FDI generation and export promotion policies in the country.