Skip to main content

Foreign Direct Investment Determinants in Post-Crisis Russia: Empirical Evidence

  • Chapter
  • 365 Accesses

Part of the Schriftenreihe der Österreichischen Gesellschaft für Europaforschung (ECSA Austria) / European Community Studies Association of Austria Publication Series book series (EUROPAFORSCH,volume 12)

Abstract

In this paper, we provide an empirical analysis of the determinants of FDI inflows into Russian regions for the post-crisis period (1999–2005). Using cross-section OLS we obtained the following results. First, the main determinants of FDI inflows into Russian regions during transition were market size, the presence of big cities, oil and gas resources and political and legislative risk factors. The hydrocarbon-endowed Sakhalin region almost stands as an FDI determinant by itself.

An extended version of this paper is forthcoming under the title “Spatial Econometric Analysis of Foreign Direct Investment Determinants in Russian Regions” in the World Economy Journal.

This is a preview of subscription content, access via your institution.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Bevan, Alan A., Estrin, Saul (2004), The determinants of foreign direct investment into European transition economies. Journal of Comparative Economics 32 (4), 775–787.

    CrossRef  Google Scholar 

  • Broadman, Harry G., Recanatini, Francesca (2001), Where Has All the Foreign Investment Gone in Russia?, Policy Research Working Paper No. 2640, Washington, DC, World Bank.

    Google Scholar 

  • Brock, Gregory J. (1998), Foreign Direct Investment in Russia’s Regions 1993–95, Why So Little, and Where Has It Gone?, Economics of Transition 6 (2), 349–360.

    CrossRef  Google Scholar 

  • Carstensen, Kai, Toubal, Farid (2004), Foreign direct investment in Central and Eastern European countries: a dynamic panel analysis, Journal of Comparative Economics 32 (1), 3–22.

    CrossRef  Google Scholar 

  • Coughlin, Cletus, Segev, Eran (2000), Foreign direct investment in China: a spatial econometric study, The World Economy 23(1), 1–23.

    CrossRef  Google Scholar 

  • Frenkel, Michael, Funke, Katja, Stadtmann, Georg (2004), A panel analysis of bilateral FDI flows to emerging economies, Economic Systems 28 (3), 281–300.

    CrossRef  Google Scholar 

  • Globerman, Steven, Shapiro, Daniel, Yao, Tang (2006), Foreign direct investment in emerging and transition European countries, International Finance Review 6, 431–459.

    CrossRef  Google Scholar 

  • Iwasaki, Ichiro, Suganuma, Keiko (2005), Regional Distribution of Foreign Direct Investment in Russia, Post-Communist Economies 17 (2), 153–172.

    CrossRef  Google Scholar 

  • Janicki, Hubert P., Wunnava, Phanindra V. (2004), Determinants of foreign direct investment: empirical evidence from EU accession candidates. Applied Economics 36 (5), 505–509.

    CrossRef  Google Scholar 

  • Ledyaeva, Svetlana, Linden, Mikael (2006), Testing for Foreign Direct Investment gravity model for Russian regions. Department of Business and Economics Working paper No. 32, University of Joensuu.

    Google Scholar 

  • Liuhto, Kari — Pelto, Elina — Lipponen, Kirsi (2004), Where to do Business in Russia? A Report on Russian Regions, Firms, Foreign Trade and Investment Flows, Pan-European Institute, Turku, Finland (http://www.tse.fi/FI/yksikot/erillislaitokset/pei/Documents/Julkaisut/Liuhto_Pelto_Lipponen_52004.pdf)

    Google Scholar 

  • Ndikumana, Leonce (2000), Financial determinants of domestic investment in Sub-Saharan Africa: Evidence from panel data, World Development 28 (2), 381–400.

    CrossRef  Google Scholar 

  • Unctad (2003), World Investment Report, Unctad, Geneva.

    Google Scholar 

  • Xing, Yuquing, Kolstad, Charles (1997), Do Lax Environmental Regulations Attract Foreign Investment?, Working Paper in Economics, 6-95R, UC Santa Barbara.

    Google Scholar 

  • Xing, Yuquing, Kolstad, Charles (2002), Do Lax Environmental Regulation Attract Foreign Investment?, Environmental & Resource Economics, European Association of Environmental and Resource Economics 21, 1–22.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Editor information

Editors and Affiliations

Rights and permissions

Reprints and Permissions

Copyright information

© 2009 Springer-Verlag Wien

About this chapter

Cite this chapter

Ledyaeva, S. (2009). Foreign Direct Investment Determinants in Post-Crisis Russia: Empirical Evidence. In: Tondl, G. (eds) The EU and Emerging Markets. Schriftenreihe der Österreichischen Gesellschaft für Europaforschung (ECSA Austria) / European Community Studies Association of Austria Publication Series, vol 12. Springer, Vienna. https://doi.org/10.1007/978-3-211-92662-8_5

Download citation

  • DOI: https://doi.org/10.1007/978-3-211-92662-8_5

  • Publisher Name: Springer, Vienna

  • Print ISBN: 978-3-211-92661-1

  • Online ISBN: 978-3-211-92662-8