Abstract
After a long period of economic misery, during the past decade the Republic of Moldova has experienced good economic performance in terms of GDP growth. Yet, many indications are that the Republic Moldova is underperforming in terms of FDI attraction. The Republic of Moldova wants and needs more FDI than it has been receiving so far. More importantly, it has the potential to attract more FDI. To tap into this potential will require meeting several conditions and concerted actions on many fronts, which are the main theme of this paper. Key actions discussed in the paper include: making FDI a policy priority, embedded in the development strategy; developing human resources for better FDI; enhancing the competitiveness of physical infrastructure; achieving excellence in regulating and administering investment; strengthening the domestic SME sectors and encouraging linkages with foreign enterprises; and establishing a full-fledged investment promotion agency.
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