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Political risk for foreign firms in the Western CIS – An analysis on Belarus, Moldova, Russia and Ukraine

Author

Listed:
  • Kari Liuhto
  • Marika Heikkilae
  • Eini Laaksonen

Abstract

This report analyses the political risks of Belarus, Moldova, Russia and Ukraine from a foreign firm's point of view. Russia's increasing economic nationalism means increasing investment risk for foreign investors. The political climate in Ukraine is unfavourable to foreign investment but not to the extent that it would prevent or seriously restrict the possibilities of operating in the market. The political risk in Belarus is related to the centralisation of authority over economic policy. In Moldova, political risks for foreign investors are clearly present in this economically and politically problematic situation. All in all, political risk remains elevated in Belarus, Moldova, Russia and Ukraine.

Suggested Citation

  • Kari Liuhto & Marika Heikkilae & Eini Laaksonen, 2009. "Political risk for foreign firms in the Western CIS – An analysis on Belarus, Moldova, Russia and Ukraine," Journal of East European Management Studies, Rainer Hampp Verlag, vol. 14(4), pages 395-407.
    • Handle: RePEc:rai:joeems:doi_10.1688/1862-0019_jeems_2009_04_liuhto
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    Cited by:

    1. World Bank, 2010. "Belarus : Transport Sector Policy Note," World Bank Publications - Reports 19462, The World Bank Group.

    More about this item

    Keywords

    political risks; foreign firms; Belarus; Moldova; Russia; Ukraine;
    All these keywords.

    JEL classification:

    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General
    • P31 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions

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