Will Foreign Direct Investment Take Off in the Russian Federation?

2004 ◽  
Vol 5 (1) ◽  
pp. 119-138 ◽  
Author(s):  
Kálmán KALOTAY
Author(s):  
Victoria Igorevna Vlezkova ◽  
◽  
Roman Olegovich Soglaev ◽  

The article is devoted to the analysis of foreign direct investment flows into the economy of the Russian Federation. The authors consider the dynamics, structure, features of activities and the main barriers to attracting foreign direct investment in the economy of the Russian Federation


2020 ◽  
pp. 346-359
Author(s):  
Denis S. Zheriborov ◽  
Vitaliy N. Pirogov

Foreign direct investment in Russia in a historical aspect are discussed in the article. It is noted that theoretical studies on this issue have led to a better understanding of the economic mechanism and the behavior of various participants in the economic sphere at both the micro and macro levels, which has opened up new areas of research in the field of economics. It is stated that an understanding of why a company initiates foreign direct investment in a particular country or increases their volume, allows us to present the main motives of the management of firms to invest, rather than to export or outsource production to national firms. The purpose of this study is to identify the main trends in foreign direct investment in the Russian Federation in various historical periods. A review of economic indicators on attracted investments, reflected in the relevant economic reports of the Central Bank of the Russian Federation, as well as other documents, a periodization of direct foreign investment in the Russian Federation was made. Based on the analysis, the authors propose to consider five periods: from the late 1980s to 1999, from 2000 to 2007, from 2008 to 2013, from 2014 to 2019 and from 2020 to the present, which have their own characteristics. Attention is paid to the fact that foreign direct investment in the Russian Federation during these periods was uneven, due to serious political contradictions in the international arena.


THE BULLETIN ◽  
2021 ◽  
Vol 2 (390) ◽  
pp. 70-80
Author(s):  
A. M. Petrov ◽  
L. M. Sembieva ◽  
N. I. Golysheva ◽  
R. A. Ivanov ◽  
N. K. Muravitskaya

Being one of the most important tools of the national economy, foreign direct investment provides means for production expansion, creating employment opportunities and jobs, accelerating structural changes, improving the country’s financial standing in foreign relations, increasing its foreign exchange reserves, reducing budget holdbacks, and improving its credit rating. In Russia, foreign investments are primarily made through capital contributions by registered foreign residents. According to official reports, in the total annual capital inflows into the Russian Federation, 10 to 12% are attributable to foreign direct investment, 1 to 2% - to indirect investment, and up to 80% - to other investments. The current state of the world economy is characterized by many challenges: from increased competition and a new round of trade wars between major economic powers to a shift in emphasis in approaches to assessing the effectiveness of economic entities from exclusively financial to mainly non-financial, including environmental and social aspects. The corresponding economic conditions, coupled with significant political and economic pressure from a number of countries, sharply raise the issue of developing new approaches to determining the effectiveness of their own activities. Determining the effectiveness of business entities is necessary in order to ensure timely and adequate assessment of their business model from the perspective of key stakeholders and to develop an effective strategy for long-term sustainable functioning in the new business environment. This issue is particularly relevant for those economic entities that implement their activities, including through foreign representative offices. Determining the effectiveness of business entities ' representative offices abroad and evaluating their strategic performance, in addition to differences in approaches to accounting and public reporting, is also complicated by the specifics of the legal status of representative offices of economic entities, as well as the processes of legal regulation of their activities in different countries.


Competitio ◽  
2010 ◽  
Vol 9 (1) ◽  
pp. 31-54 ◽  
Author(s):  
Kalman Kalotay

This article explores the future of Russian outward foreign direct investment in the aftermath of the crisis of 2008–2009. As it is too early to analyse the full impact of the crisis, it develops hypotheses about the degree of slowdown in the foreign expansion of Russian transnational corporations. It uses an extension of the eclectic paradigm to home country advantages (competitive environment, business environment, development strategy, State involvement) applied to a comparison of the Russian Federation with other economies in transition as an analytical tool. Systematic differences between transnationals from the Russian Federation (global firms, based on natural resources, aiming for vertical integration of assets) and from new European Union member countries (regional firms, based on downstream activities or services, aiming for horizontal integration) allow us to formulate more solid conclusions about the future of the Russian firms facing lower export prices, lower market capitalizations and higher debts. In turn, this article argue that a comparison with the large emerging economies of Brazil, China and India, under the acronym of BRIC can be less useful in the current context, as these economies are significantly less affected by the crisis of 2008–2009 than the Russian Federation; hence they can not expect a slowdown in their outward foreign direct investment similar to that of Russian transnationals. JEL: F23; F21; O52; P29


2020 ◽  
Vol 14 (1) ◽  
pp. 44-53
Author(s):  
S. V. Kazantsev

The volume and dynamics of foreign investments are formed under the influence of many conditions and circumstances. The author of this article examines the impact of one class of factors that determine the dynamics and geographical structure of Russia’s foreign direct investment inflows outflows. These are anti-Russian sanctions imposed by a group of States in 2014 to isolate the Russian Federation in the field of politics, finance and economy, science and technology, information and culture. For these countries, Russia is not a priority investment target. The share of the Russian Federation varied from two to five per cent, and rarely exceeded 10 per cent of the total volume of these countries foreign direct investment net outflows in 2007–2018. The author presented in this article the positive and negative aspects of foreign direct investment, their dynamics before and after the imposition of sanctions. In particular, the author shows that the reduction in the foreign direct investment net inflows from Russia to the sanctioning countries was less significant for the leading EU States — Germany, France and United Kingdom — than for many other sanctioning countries The cuts in Russia’s foreign direct investment net outflows had almost no impact on the United States who was the main initiator of anti-Russian sanctions.


Economies ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 152
Author(s):  
Tatyana Sukhadolets ◽  
Elena Stupnikova ◽  
Natalia Fomenko ◽  
Nadezhda Kapustina ◽  
Yuri Kuznetsov

This study aims to examine the impact of foreign direct investment (FDI), investment in construction and poverty in various countries. The Russian Federation invests heavily in construction and it is located both in Europe and Asia. Russia is usually described as a European country (while 70% of its territory is in Northern Asia, 80% of the population resides in Europe). That is why in this document both developed and emerging countries are considered; the former are represented by the EU members of different economic levels and the latter by BRICS countries. We looked at economically different countries to determine the best differentiated data in order to answer the question: “Why does a high level of poverty persist in Russia if Russian officials have repeatedly reaffirmed their commitment to the implementation of the Sustainable Development Goals (SDGs) by investing heavily in construction and attracting FDI?”. For the estimation, we used an autoregressive distributed lag (ARDL), considering cointegration and heteroscedasticity, in which the current values of the series depend both on the past values of this series and on the current and past values of other time series. Having received statistical data, we were able to compare the economic development of countries with some economic growth theories. 4–5% FDI share of the GDP helps to contain the negative impact of financial crises. Investment in construction supports the economies of countries in the long term and maintains or reduces the poverty level by increasing the assets of the population. Empirical data also helped us to evaluate the economic growth patterns and poverty in these seven countries. China and the Russian Federation will find themselves at different “poles”. China uses several theories and models simultaneously for economic development and poverty reduction and the Russian Federation does not keep to an established theory or a model of economic growth.


2021 ◽  
pp. 158-178
Author(s):  
Kobiljon Kh. Zoidov ◽  
◽  
Konstantin S. Jankauskas ◽  

The article examines the socio-economic consequences of the COIVD-19 pandemic, such as the increase in poverty and social differentiation. Goal. To identify and analyze the socio-economic consequences of the COIVD-19 pandemic in Russia and other countries of the world, the measures taken by national governments to combat these consequences, as well as the dynamics of Russia's position in international economic rankings and the presence or absence of a connection between this dynamics and the dynamics of investment in the national economy. Objectives. Analysis of indicators of poverty and social stratification in Russia and the world in the context of the COIVD-19 pandemic; comparison of anti-crisis economic programs in the largest countries and Russia by GDP; study of the methodology of the most credible international economic rankings; comparative analysis of the dynamics of Russia's position in international economic rankings and the dynamics of capital investment and foreign direct investment in Russia. Methodology. The methods of system analysis, classification and comparison, evolutionary-institutional theory and historical approach were applied. Statistical and other data of the Federal State Statistics Service of the Russian Federation, federal executive authorities of the Russian Federation, the Eurasian Economic Commission were used, and their own calculations were carried out on the basis of these data. Results. It was revealed that in order to combat the socio-economic consequences of the COVID-19 pandemic, governments in different countries implemented comprehensive packages of measures including such as increasing health care costs, direct support for the population, maintaining employment, promoting small and medium-sized businesses, and the most affected sectors of the economy. The total volume of the anti-crisis program in Russia, calculated as a percentage of GDP, is about 2-3 times less than in the largest world economies. Conclusions. At the same time, our country is distinguished by a significantly higher level of concentration of wealth in the hands of a group of so-called «super-rich» citizens, compared to the global average and the level of Eastern European countries, even in the context of the COVID-19 pandemic. At the same time, the dynamics of the volume of capital investment and foreign direct investment, as possible sources of recovery of economic growth, significantly lags behind the dynamics of Russia's position in some international ratings.


Author(s):  
O. N. Izyumova ◽  
T. A. Krylova

This article analyzes direct investments. Currently, with the development of market relations and the strengthening of international relations, the objective trends in the growing volume of the export of Russian capital, the increase in its scale and the size of foreign assets, the consolidation of Russian companies in the promising segments of the world market, makes the article relevant and important for consideration. For a more precise presentation of the present situation, the structure of capital flows, in the context of economic entities, as well as statistical data on regulatory measures for foreign direct investment, are provided. The analysis revealed an unfavorable situation on the world investment market for the Russian Federation. The outflow of foreign direct investment from countries with economies in transition tends to decline. Carrying out the analysis of investments it is impossible to bypass. It should be noted that the structure of the capital exported from Russia differs from the similar structure of states with a progressive market by the fact that the share of other investments approximates to the share of foreign direct investment, and this trend increases dramatically in the period of instability. A clearer idea allows us to obtain a detailed analysis of the outflow of Russian investments and the inflow of foreign capital, as given in the paper. The article allows to consider the structure and present position of Russian direct investments and foreign capital.


Author(s):  
Olga V. Kuznetsova

In recent years (since late 2013) the federal government has intensified the policy of foreign investors attracting to the Russian Far East, proclaiming the need to integrate this macro-region in the Asia Pacific region and creating development institutions of the Far East, as well as preferential conditions for investors – the territories of priority socio-economic development, free port of Vladivostok. Investors are given massive tax preferences, regime of free customs zone, a number of other preferences. However, from the point of view of foreign investors many instruments of state investment policy – rather its lack, than advantage. Investment policy of regional authorities in the Far East is currently ranked low, in the National ranking of investment climate in subjects of the Russian Federation Far East regions, with the exception of Khabarovsk Krai, located in the second half. By the volume of foreign direct investment (FDI) stock Sakhalin oblast stands out among the Russian Far East regions, occupying on this indicator the second place among all subjects of the Russian Federation due to the action of agreements on production section, which appeared in 1990- ies. The shares of other Far Eastern regions in the FDI stock in Russia is still small. The state’s efforts in recent years to attract FDI to the Far East led to some increase in the volume of FDI stock in the macro-region, but not in all subjects of the Russian Fed eration. Preferential regimes are increasingly attracted domestic rather than foreign investors. Among the projects with participation of foreign capital projects focused on the domestic market of the Far East (agriculture, services) and the use of macro-region natural resources dominate. Projects on creation of manufacturing industries which products can be delivered beyond the Far East, including for export, yet few. The prospects for improvement, given the existing experience of the gradual development of new regions by foreign investors, but it requires improvement of the state investment policy both at federal and regional levels.


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