Foreign direct investment, Financial Econometrics

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PASE plc is a UK-based international energy company, which currently operates wholly-owned subsidiaries in Europe and North America. PASE plc's strategy is to generate future growth through foreign direct investments in emerging market economies. Currently, PASE plc is considering an invitation by the government of Gujistan to invest in a new power station in that country, which is in urgent need of improvement in its electricity generation and supply systems to support a recent rapid increase in industrial production.
Country Profile

Gujistan is a large populous country in Central Asia which is endowed with large reserves of oil and natural gas. Until a few years ago, the country was governed by a neo-communist regime, but that government was overthrown by a pro-democracy mass popular uprising in October 2003. Following the overthrow of the government, Gujistan was governed by a caretaker government whose main task was to draw a new constitution for the country and organize democratic election within one year. The new government that was elected a year later has embarked on an extensive programme of economic and capital market reforms. The government hopes that the reforms will not only transform Gujistan economically, but very crucially, will also underpin and consolidate the various pro-Western democratic and political institutions that were recently established and given accent in law by its Westminster-styled houses of parliament.


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