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

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 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 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.

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 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.

scholarly journals Socio-economic consequences of the COVID-19 pandemic in Russia and other countries: analysis of anti-crisis programs, impact on the position in international rankings and prospects for recovery

2021 ◽  
pp. 158-178
Author(s):  
Kobiljon Kh. Zoidov ◽  
◽  
Konstantin S. Jankauskas ◽  
Keyword(s):  
International Economic ◽  
Foreign Direct Investment ◽  
Russian Federation ◽  
Direct Investment ◽  
Capital Investment ◽  
System Analysis ◽  
Economic Consequences ◽  
Federal State ◽  
The World ◽  
The Russian Federation

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.

scholarly journals flipkart.com’s Strategy on Amazon.com’s Entry into India :A Case Study

2013 ◽  
Vol 12 (4) ◽  
pp. 131-143
Author(s):  
Padmanabh B
Keyword(s):  
Foreign Direct Investment ◽  
Government Policy ◽  
Direct Investment ◽  
Online Shopping ◽  
Foreign Investments ◽  
Online Retail ◽  
Online Sales ◽  
Internet Users ◽  
The Government

The online retail industry in India is expected to grow to Rs. 7000 crores by 2015. Its size in 2013 is Rs. 2500 crores. By 2014 India is expected to become the 3rd largest nation of Internet users and this would provide huge potential to the online retail Industry1.Among the major cities in India, consumers in Mumbai topped the chart in doing online shopping followed by Ahmedabad and Delhi2. As per Google study conducted in 2012, 51 percent of the traffic for its Great online shopping festival (GOSF) was due to customers from cities other than the four metros. Referring to the growth in online sales, Nitin Bawankule, industry director, e-commerce, online classifieds and media/entertainment at Google India said, “Top motivators for shopping online include cash back guarantee, cash on delivery, fast delivery, substantial discounts compared to retail, and access to branded products”3.  The E –commerce space in India has seen a lot of action and there are many online players like flipkart.com, Myntra.com, Fabmart, Indiaplaza and Indiatimesshopping. Amazon.com made an indirect entry through Junglee.com. The reason for this indirect entry is the result of government policy towards foreign direct investment.  The Government of India announced in September 2012 the revised foreign direct investment policy in retail. As per this announcement foreign investments are blocked in e-commerce sector while allowing 51 percent FDI in multi-brand retail stores and 100 percent FDI in single brand retail. Amazon has been eyeing the Indian E commerce market which is estimated around $2 billion4.

scholarly journals The Relationship Between FDI, Poverty Reduction and Environmental Sustainability in Tunisia

2018 ◽  
Vol 1 (1) ◽  
pp. p114
Author(s):  
Marwa Lazreg ◽  
Ezzeddine Zouari
Keyword(s):  
Sustainable Development ◽  
Foreign Direct Investment ◽  
Co2 Emissions ◽  
Direct Investment ◽  
Gini Index ◽  
Poverty Reduction ◽  
Negative Impact ◽  
Cointegration Test ◽  
Foreign Investments ◽  
Significant Negative Impact

Our goal in this paper is the study of the impact of FDI on poverty and sustainable development in the case of Tunisia and during the study period from 1985 to 2015. In addition, we use the test unit root of cointegration test, the model error correction of FMOLS and Granger causality. In the case of Tunisia, we find that all variables are integrated of order 1. Thus, we can use the cointegration test. Indeed, the result of the null hypothesis test of no cointegration was rejected at the 5% threshold, which explains the presence of a cointegration relationship between FDI, sustainable development and poverty. Finally, we present and interpreted the results of the estimated FMOLS model and Granger causality test to study the contribution of FDI to the poverty reduction and sustainable development in Tunisia. We find that the LIDE variable measuring foreign direct investment has a significant negative impact on the GINI index. We notice the LCO2 variable that measures the CO2 emissions has a negative and significant impact on poverty as measured by the poverty gap at $ 1.91. We prove that direct foreign investments have a significant negative impact on CO2 emissions. We find that the LIDE variable measuring foreign direct investment has a significant negative impact on the GINI index. We notice the LCO2 variable that measures the CO2 emissions has a negative and significant impact on poverty as measured by the poverty gap at $ 1.91. We prove that direct foreign investments have a significant negative impact on CO2 emissions. We found that the LIDE variable measuring foreign direct investment has a significant negative impact on the GINI index. We notice the LCO2 variable that measures the CO2 emissions has a negative and significant impact on poverty as measured by the poverty gap at $ 1.91. We prove that direct foreign investments have a significant negative impact on CO2 emissions.

Inward and Outward Foreign Investments of the Asian Economies in Transition and India

2020 ◽  
pp. 694-719
Author(s):  
Ishita Ghosh ◽  
Sukalpa Chakrabarti
Keyword(s):  
Foreign Direct Investment ◽  
Panel Data ◽  
Literature Review ◽  
Direct Investment ◽  
Secondary Data ◽  
Foreign Investments ◽  
Economies In Transition ◽  
The World Bank ◽  
The World ◽  
Empirical Significance

This chapter is divided into two parts. The first part examines panel data evidence concerning empirical significance of the determinants of Foreign Direct Investment (FDI) in CLMV countries. Theoretical and empirical findings and outcomes on FDI have been considered to test the model for the aforementioned nations. The data has been taken from the World Bank through 2005-2014. Findings accept the four proposed hypotheses and the results are significant. The second part explores the trade and FDI situation in CLMV through secondary data, and establishes that India has potential to augment bi-lateral ties through this route. Literature review for this section also corroborates with the findings of the first part.

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