Diasporas’ engagement in the economic development of Armenia

Abstract

This research set out to examine the key motivational factors that affect the decision of Diaspora to invest in Armenia. The analysis yielded some important results. First, the Diaspora presents an excellent source of development resources, but it does not contribute adequately to strengthening the Armenian growth prospects. Second, the Diaspora’s engagement in the Armenian economy in its current form does not provide solutions for its transitional challenges. Moreover, Diaspora representatives remain disengaged from active participation in economic and political life in Armenia and undermine demand for improvements, especially in the business environment. Third, the Armenian Diaspora community does not want to do serious business in the home country where corruption takes away profit. In Armenia, many market institutions are still not fully developed, which makes the Armenian market volatile with high uncertainty about future developments.