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

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.

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


2018 ◽  
Vol 11 (2) ◽  
pp. 1563-1573
Author(s):  
Dolores Guadalupe Alvarez Orozco ◽  
José Felipe Ojeda ◽  
Celina Lopez Mateo

In 2012, the reform of the Federal Labor Law was implemented in Mexico, arguing that it was necessary to make the legislation more flexible, in order to position Mexico as a viable country to attract Foreign Direct Investment (FDI). However, there has been little monitoring on the real effects of these changes. The objective of this research was to analyze the factors that determine the precarious working conditions in the city of Celaya Guanajuato Mexico with the use of a quantitative approach of a non-experimental cross-sectional design. The results identified that precarious working conditions are correlated with the gender, age, schooling, economic sector and origin of the investment. The implications for management are: The legal flexibility for attracting direct foreign investment according to this research, has been an appropriate strategy, since it pressures labor markets to improve their conditions to be competitive, because the industry with direct foreign investment is governed by the Law, on the other hand, the national industry reflects labor practices well below the legal minimums.


1997 ◽  
Vol 36 (4I) ◽  
pp. 403-418
Author(s):  
Stephen Guisinger

Pakistan for many years maintained strict controls on foreign direct investment. However, over the past decade controls on foreign investment in manufacturing have diminished sharply, though less so for the service sector. The government continues to impose restrictions on foreign trade, which adversely affect foreign direct investors in several ways. Nonetheless, Pakistan has moved a substantial distance toward liberalising direct foreign investment. There are two obvious policy issues related to foreign investment raised by these developments. First, should Pakistan proceed further toward liberalisation and at what pace? Second, with a liberalised investment sector, should Pakistan become an active protagonist among developing countries for a multilateral agreement on investment?


Author(s):  
Hasan Bakır ◽  
Filiz Eryılmaz

In this chapter, the authors investigate the causality relationship between the inflows of foreign direct investment (FDI) and economic growth as measured by Real Gross Domestic Product (GDP) per capita in Turkey during the period 1974-2012 by using the Granger causality tests. The causality test indicates that economic growth Granger-causes FDI. This means that there is bidirectional causality from Reel GDP to FDI in Turkey. So the author results support “the growth – driven FDI hypothesis”. This demonstrates that in the related time in Turkey, more direct foreign investment entered the economy together with an increase in economic growth.


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.


Author(s):  
Victor Obasse ◽  
Chima Onuoha

This study is an empirical inquiry into the impact of Direct Foreign Investment (DFI) of other countries into the manufacturing sector in River State, Nigeria. It would lead to a better understanding of the economic mechanism and the behavior of economic agents, both at micro and macro cadre allowing the opening of new areas of study in economic growths. This study would also look through the advantages and disadvantages which foreign direct investment has on Nigeria economy, thereby, reveal if there is a correlation between the direct foreign investment and the Nigerian economy. As a cross section survey, data for this study was generated using well and articulately structured survey from 50 respondents across 10 manufacturing firms in Rivers State. A total of three hypotheses were proposed with analysis revealing the relationship between direct foreign investments and manufacturing sector, it was revealed that direct foreign investment had a positive and significant relationship with manufacturing sector. The researcher believes that if appropriate actions are taken and necessary structures erected, the Nigerian manufacturing sector will be a healthier place to access the benefits that foreign direct investment conveys. This will lead to growth in Nigeria manufacturing sector. It was revealed that in spite of the acknowledged remuneration foreign direct investment conveys. It is nonetheless, criticized on grounds, of the defective activities that foreign investors indulge in. In conclusion, the study showed that the expansion of the manufacturing sector and direct foreign investment in Nigeria is based on a number of problems which may be reason for the positive but insignificant impact on DFI when the variables was regressed against manufacturing sector. It was at that point recommended that, Government needs to do a few needful in order to motivate foreign investors, this is by providing good and right social infrastructure and also a pool of relevant workforce, a safe working environment against militancy and a potentially strong market for their product and services can be sold.


Author(s):  
Yuliya Mikhailovna Kudryashova

This article analyzes the investment legislation of the Russian Federation and the United States. The subject of this research is the specific normative legal acts regulating direct foreign investments in the indicated countries, while the object is the relations emerging in the process of foreign investment activity.  The author provides the examples of various factors in the area of foreign investment for the purpose of their comparison and determination of specificity of their practical implementation. The reference to doctrinal sources allowed to clearer explain the author’s position of the topic. The scientific novelty and relevance of this work are substantiated by examination of investment activity, which greatly impacts the economy of modern countries. The author’s special contribution lies in studying the experience of U. S. legislation with regards to direct foreign investments. The main conclusion consists in the fact that both jurisdictions have a well-developed mechanism for regulating investment relations, as well as both countries feature a number of restrictions that can face a foreign investor. The need for improvement of Russian legislation is underlined. The acquired results can be used in legislative and expert activity, as well as in further theoretical-legal research.


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.


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