Many investors vigorously take into consideration investing in East-European markets. Obviously, it might be risky to make such general statement about all markets in the part of Europe. For example, investing in Poland still is a great deal more attractive than investing in Ukraine, due to a well-known political situation.
However, it is easily visible in many data and different analysis that foreign investments in that part of Europe are constantly growing. At this moment, a lot of companies are opening their offices or affiliates in Eastern Europe. There are some factors that may be listed as main results of this situation.
Firstly, the economy of those countries are continuously growing. That means that its societies are becoming more and more wealthy. Apparently, it attracts new companies and investments as individuals are able to spend more money on new products. It is widely known economic fact that when society becomes richer, new investments come. Surely, if there is no limits established by the government.
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And here we reach the second crucial factor that is: incentives for investment. Tons of countries decide to develop and implement different investment incentives schemes. They are designed with the purpose to encourage foreign investors to come to the country. Such incentives may have different forms. A lot of depends on a concrete scheme created and implemented by government of a concrete country.
Frequently, it may be an incentive for a concrete industry, or even for a specific region. In the second option, it usually aims to develop the poorest regions of the country. A good of such investment incentives may be the idea of developing industrial parks. Such idea is rather common in the region of Eastern Europe. They are usually created in a special regions which have the highest possibility of industrial development. What is important is that the area is conveniently connected with other regions and cities by roads, airports and railroads. E.g., industrial park in Poland often can offer good business infrastructure connecting not just other Polish towns, but also with nearby countries such as Belarus and Ukraine.
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