Ten Years of Foreign Direct Investment in the Former Soviet Union: A Survey with Special Focus on Kazakhstan

This paper reviews the statistical evidence of FDI in the countries of the former Soviet Union for the period 1987 to 1997 taking into account data both from the host countries and from the countries of origin. The main characteristics of this FDI and its variation among the success or states of the Soviet Union are established. The paper gives special attention to Kazakhstan, the second most successful country in attracting FDI.The paper starts with the historical context for foreign investment. Then the current foreign investment inflow is assessed, along with information on the source countries and the sectoral pattern of investments. The paper provides a rich selection and evaluation of data that can form the basis for further research.Furthermore, key motives and obstacles are discussed through a review of survey evidence. On the basis of the evidence, explanations are proposed on why FDI has, for most parts, entered the region far slower than the potential of the region would have suggested.