Lots of investors seriously contemplate investing in East-European markets. Surely, it may be risky to make such general statement about all markets in the region. E.g., investing in Poland still is far more attractive than investing in Ukraine, because of a current political situation.
However, it is clearly visible in many data and different analysis that foreign investments in that part of Europe remains growing. Nowadays, many firms are opening their offices or affiliates in Eastern Europe. There are some factors which may be indicated as main results of this situation.
To start with, the economy of these countries are continuously growing. It means that its societies becomes more and more well-to-do. Definitely, it attracts new businesses and investments as guys may spend more money on new products. It is well known economic fact that when society becomes richer, new investments appear. Certainly, if there is no restrictions imposed by the state.
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And this is how we reach the second relevant factor which is: incentives for investment. Many countries decide to develop and implement different investment incentives strategies. They are designed specifically to encourage foreign investors to come to the country. These incentives may have various forms. Everything depends on a concrete scheme designed and implemented by government of the particular country.
Sometimes, it might be an incentive for a concrete industry, or even for a specific region. In the second option, it usually aims to develop least developed regions of the country. A good of such investment incentives may be the idea of creating industrial parks. Such initiative is pretty common in various Eastern European countries. They are frequently created in a special areas which have the highest possibility of industrial development. What is relevant is that the area is conveniently connected with other areas and cities by roads, ports and railroads. For example, industrial park in Poland frequently may offer good business infrastructure connecting not only other Polish cities, but also with neighbouring countries such as Belarus as well as Ukraine.
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