ABSTRACT
The attraction of foreign direct investment (FDI) has become a major priority, particularly for developing and transition countries, as FDI is expected to supplement national savings by capital inflows and promote economic development. FDI provides a strong stimulus for sustainable economic growth in host countries and offers access to internationally available technologies and management know-how. Governments of both developed and transition countries are participating in offering both explicit and implicit incentives in an attempt to attract this foreign capital. Notwithstanding, much of this literature is focused more on developed and other emerging regions, with limited studies examining the determinants and motives of FDI in the Customs Union countries of Russia, Belarus and Kazakhstan. This chapter thus seeks to enhance understanding of the phenomenon by examining the role of some indicators in facilitating the FDI phenomenon in the Customs Union countries between 2000 and 2011.
