scholarly journals The future of Russian outward foreign direct investment and the eclectic paradigm: What changes after the crisis of 2008–2009?

Competitio ◽  
2010 ◽  
Vol 9 (1) ◽  
pp. 31-54 ◽  
Author(s):  
Kalman Kalotay
Keyword(s):  
Foreign Direct Investment ◽  
Development Strategy ◽  
Russian Federation ◽  
Direct Investment ◽  
Business Environment ◽  
Outward Foreign Direct Investment ◽  
Economies In Transition ◽  
The Future ◽  
Eclectic Paradigm ◽  
The Russian Federation

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

scholarly journals EVALUATION OF CRITERIA FOR THE ACTIVITIES OF REPRESENTATIVE OFFICES OF JAPANESE COMPANIES IN THE RUSSIAN FEDERATION AND THE NEED TO IMPROVE THEIR EFFICIENCY

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
Keyword(s):  
Foreign Direct Investment ◽  
Russian Federation ◽  
Direct Investment ◽  
Structural Changes ◽  
Legal Status ◽  
Legal Regulation ◽  
Business Environment ◽  
Capital Inflows ◽  
The Russian Federation ◽  
Business Entities

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.

IMPACT OF DIRECT FOREIGN INVESTMENTS ON THE ECONOMY OF THE RUSSIAN FEDERATION

2020 ◽  
Author(s):  
Victoria Igorevna Vlezkova ◽  
◽  
Roman Olegovich Soglaev ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Russian Federation ◽  
Direct Investment ◽  
Foreign Investments ◽  
The Russian Federation

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

The Rise of Transnational Corporations from Developing Countries in the Second Half of the 20th Century

Istoriya ◽  
2021 ◽  
Vol 12 (11 (109)) ◽  
pp. 0
Author(s):  
Alexey Kuznetsov
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Global Economy ◽  
World Order ◽  
Developed Countries ◽  
Global South ◽  
Business Environment ◽  
Outward Foreign Direct Investment ◽  
Foreign Direct Investment Stock

The article highlights three stages of the formation of multinationals from developing countries. Although first Argentine TNCs appeared at the turn of the 19th — 20th centuries, in the majority of the Global South countries TNCs appeared in the 1960s — 1980s. With the collapse of the bipolar world order, which in many developing countries was accompanied by significant internal political and economic transformations, the second stage of foreign expansion of TNCs from the Global South began. Indeed, in 1990 they accounted for 6 % of global outward foreign direct investment stock, while the figure was 10 % by the end of 2005. We date the beginning of the third stage to the financial and economic crisis of 2007—2009, since multinationals from developing countries as a whole are more successfully overcoming the period of turbulence in the global economy. By the end of 2020, they accounted for 22 % of global outward foreign direct investment stock, and during the COVID-19 pandemic crisis they generally exported more than 50% of the capital. The modern foreign expansion of such TNCs has many reasons, differs greatly from country to country, and often differs slightly from the specifics of Western multinationals. At the same time, initially, “late internationalization” in developing countries had two main vectors — the use of new opportunities for South — South cooperation and overcoming, through the creation of subsidiaries in highly developed countries, the shortcomings of the business environment of “catching up” countries.

scholarly journals Foreign Direct Investment in Russia (Late 1980s - Late 2010s)

2020 ◽  
pp. 346-359
Author(s):  
Denis S. Zheriborov ◽  
Vitaliy N. Pirogov
Keyword(s):  
Foreign Direct Investment ◽  
Russian Federation ◽  
Foreign Investment ◽  
Direct Investment ◽  
Direct Foreign Investment ◽  
Theoretical Studies ◽  
Historical Aspect ◽  
The Russian Federation ◽  
A Company ◽  
Historical Periods

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.

scholarly journals ANALYSIS AND STRUCTURE OF RUSSIAN DIRECT INVESTMENTS ABROAD

2017 ◽  
pp. 9-15
Author(s):  
O. N. Izyumova ◽  
T. A. Krylova
Keyword(s):  
Foreign Direct Investment ◽  
International Relations ◽  
Direct Investment ◽  
Foreign Capital ◽  
World Market ◽  
Economies In Transition ◽  
The World ◽  
Regulatory Measures ◽  
The Russian Federation ◽  
Market Relations

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.

scholarly journals Sanctions and Foreign Direct Investment: Damage to Russia and Sanctioning Countries

2020 ◽  
Vol 14 (1) ◽  
pp. 44-53
Author(s):  
S. V. Kazantsev
Keyword(s):  
United States ◽  
Foreign Direct Investment ◽  
United Kingdom ◽  
Russian Federation ◽  
Direct Investment ◽  
The United States ◽  
Foreign Investments ◽  
Before And After ◽  
The Russian Federation ◽  
The Impact

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.

scholarly journals Foreign Direct Investment (FDI), Investment in Construction and Poverty in Economic Crises (Denmark, Italy, Germany, Romania, China, India and Russia)

Economies ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 152
Author(s):  
Tatyana Sukhadolets ◽  
Elena Stupnikova ◽  
Natalia Fomenko ◽  
Nadezhda Kapustina ◽  
Yuri Kuznetsov
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Russian Federation ◽  
Direct Investment ◽  
Growth Patterns ◽  
Poverty Level ◽  
Northern Asia ◽  
The Russian Federation ◽  
The Impact

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.

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