Many investors seriously contemplate investing in East-European markets. Undoubtedly, it is risky to make such general statement about all markets in that part of Europe. For example, investing in Poland still remains far more attractive than investing in Ukraine, due to a current political situation.
However, it is clearly visible in tons of data and varous analysis that foreign investments in this part of Europe remains growing. Nowadays, many companies open their offices or affiliates in East-European markets. There are a few factors which might be listed as main results of this situation.
Firstly, the economy of Eastern European countries are still growing. That means that its citizens becomes more and more rich. Surely, it attracts new businesses and investments as individuals are able to spend more money on their consumption. It is well known economic law that when society becomes richer, new investments appear. Obviously, if there is no limits decreed by the state.
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And here we reach the second substantial factor which is: incentives for investment. Many governments make a decision to develop and implement various investment incentives strategies.
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They are designed specifically to encourage foreign investments in the country. These incentives may have various forms. Everything depends on a specific scheme created and implemented by government of a concrete country.
Frequently, it might be an incentive for a concrete industry, or even for a specific region. In the second case, it frequently aims to develop least developed regions of the country. A good of such investment incentives might be the idea of creating industrial parks. Such initiative is rather common in various Eastern European countries. They are usually created in a special areas which have the highest possibility of industrial development. What is substantial is that the area is conveniently connected with other areas and cities by roads, airports and railroads. E.g., industrial park in Poland frequently could offer good business infrastructure connecting not only other Polish towns, but also with nearby countries such as Lathvia or Ukraine.
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