Investment Freedom Index

In fact, RA has signed 21 bilateral agreements with different countries. However, these agreements are not yet performing. Further establishments of Trade Representations in European Union, United States as well as Russia will definitely contribute to trade-economic relationship as well as investment process development between Armenia and other countries. However, Armenia's Investment Freedom Index is calculated 75. 0 in 20102.

Points are deducted from the ideal score of 100 for each of the restrictions found in a country's investment regime. Statistical dynamics of FDI in RA (includes attractive spheres of FDI) According to the World Bank, Armenia is ranked first amongst Commonwealth Independent States countries in terms of FDI features (Doing Business in Armenia, 2008) World Bank).

Due to its economic dynamism, the country has earned the nickname "The Caucasian Tiger". Undoubtedly, the financial crisis has its negative impact on investment flow to Armenia.

It is apparent from the graph that in 2009 foreign investments flows increased by almost 500million USD, whereas FDI flows decreased by 300million USD-this was one of the main impacts of financial crisis in Armenia.

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However, the statistics shows that starting from the year of 2004 the amount of FDI have only ascended year by year. Especially, it doubled in 2008 in comparison with 2007. Surprisingly, in 2008 Armenia was ranked at the first place for dramatic rise (45%) of FDI.

(http://www. un. org. al/subindex. php? faqe=news&newsid=184) Over all, RA if not enhanced, has at least kept its position equal in comparison with 2008. In fact, during these years Armenia has improved its position considering Performance index which has reached to 16th position (see Chart 1).

Significant investments were made by the Armenian diaspora living outside the country (nearly 6 million people). Armenian Diaspora plays a big role in involving FDI.

It is estimated (EV and CRRC, 2006) that during 1994-2004 69% of foreign investors that invested in Armenia were Diaspora-connected investors and 68% of FDI-recipient companies were Diaspora-connected. In 2009, the most considerable foreign investments Armenia got from France (USD 146 million) and Russia (USD 122 million) constituting 38 and 32 percent of the total, respectively. France got the major investor position due to its investments in telecommunication industry-Orange-Armenia (see Chart 2).