The regional development impacts of foreign direct investment in Donetsk Oblast, Ukraine.

2006-7

Principal Investigators

Dr Adam Swain

Funding

Nuffield Foundation, UK

Project overview

Foreign direct investment (FDI) is regarded as an important mechanism for encouraging structural reform and economic development in post-soviet regional economies. FDI encourages competition and provides capital, know-how and jobs. However since 1999, the Ukrainian Donbas has experienced rapid growth that appears to be based on local capital accumulation and domestic investment. This project will establish the extent to which FDI has played a role in local economic development policies, in stimulating regional economic growth and in driving the restructuring of the economy in Donetsk Oblast. The project will be the first systematic survey of companies with foreign capital in Donetsk. Moreover the project offers a unique opportunity to witness the impact of FDI on regional economies in the context of, , a rapidly transforming national political and economic situation following the so-called ‘orange revolution’. The election of President Yushchenko in 2004 has already changed national economic policy, putting economic growth in the Donbas in question.

Research outcomes

To be added