FOREIGN DIRECT INVESTMENT IN ARMENIA: A FACTOR ANALYSIS OF SECTORAL TRENDS AND ECONOMIC DRIVERS

This research examines the key factors influencing foreign direct investment (FDI) decisions in Armenia, focusing on the real (productive) sector. Employing a combination of graphical, statistical, historical, and comparative methods, the study analyzes investment trends from 2019 to 2024, identifies leading sectors and investor countries, and assesses the impact of macroeconomic indicators. The findings reveal that the energy sector, mining, and financial intermediation are the most attractive for foreign investors, with significant contributions from Russia, the United Arab Emirates (UAE), and Germany. A comparative analysis with Georgia and Moldova highlights the structural and institutional differences shaping investment flows. The study concludes with policy recommendations aimed at improving Armenia's investment climate, including tax incentives for the IT sector and legislative reforms to enhance investor protection.