Supporting Sustainable Financing and Access to Finance in Armenia

Maria Atamanchuk and Kiichi Tokuoka ()

No 2023/004, IMF Working Papers from International Monetary Fund

Abstract: In Armenia, both external and domestic financing face challenges. Armenia’s share of inward foreign direct investment (FDI) in private external financing has declined significantly over the past decade. Access to domestic finance in Armenia is also moderate and masks important disparities. Against this background, this paper analyses the determinants of inward FDI and examines the impediments to increasing access to domestic finance. The paper confirms empirically that governance-related structural factors have a significant impact on inward FDI. Similar structural factors, informality and poor accounting practices are reported among major challenges for increasing access to finance for firms in Armenia. This paper finds that to improve financing in Armenia include: implementing structural reforms to improve the business environment, maintaining prudent macroeconomic policies, strengthening financial reporting, and improving financial inclusion through reduced informality in the economy.

Keywords: Inward FDI; access to finance; financial inclusion; face challenge; sustainable financing; inward foreign direct investment; financing in Armenia; Armenia's share; Foreign direct investment; Business environment; Capital inflows; Loans; Global; Europe; Middle East and Central Asia (search for similar items in EconPapers)
Pages: 27
Date: 2023-01-13
New Economics Papers: this item is included in nep-acc, nep-cfn, nep-fdg, nep-fle and nep-tra
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=521315 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:2023/004

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().