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Estimation of Effect of Foreign Direct Investment on the Russian Economy during Sanctions Based on Spillover Effects

Author

Listed:
  • Elena Anatolievna Fedorova

    (Financial University under the Government of the Russian Federation)

  • Alexey Eduardovich Nikolaev

    (Higher School of Economics)

  • Anna Sergeevna Nikolaeva

    (Financial University under the Government of the Russian Federation)

  • Marina Anatolievna Alekseeva

    (Higher School of Economics)

Abstract

The study estimates the effect of foreign direct investments (FDI) on the efficiency of enterprises in Russia. The article test the following hypotheses: first – FDI coming from the countries that sanctioned Russia cause larger effect on the efficiency of local companies, unlike China and countries that didn’t impose sanctions, and the effect depends on the share of property of foreign investors in the local companies; second – increasing the volume of investments into research and development of receivers of FDI causes positive effect on the competitiveness of local enterprises; third – FDI into import substituting industries coming from countries that imposed sanctions cause lesser effect on the competitiveness and operational efficiency of Russian companies. The empirical base of the study includes 168 000 observations among 33 606 Russian enterprises during 2011–201. Based on the study, the authors partially confirm the first hypothesis and fully confirm the second and the third hypotheses

Suggested Citation

  • Elena Anatolievna Fedorova & Alexey Eduardovich Nikolaev & Anna Sergeevna Nikolaeva & Marina Anatolievna Alekseeva, 2018. "Estimation of Effect of Foreign Direct Investment on the Russian Economy during Sanctions Based on Spillover Effects," Spatial Economics=Prostranstvennaya Ekonomika, Economic Research Institute, Far Eastern Branch, Russian Academy of Sciences (Khabarovsk, Russia), issue 1, pages 37-58.
    • Handle: RePEc:far:spaeco:y:2018:i:1:p:37-58
    DOI: 10.14530/se.2018.1.037-058
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    References listed on IDEAS

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    Cited by:

    1. Elena A. Fedorova & Aleksei E. Nikolaev & Yuliya S. Shirokova & Fedor Yu. Fedorov, 2019. "Export and Import Activities of Russian Companies With FDI in the Context of Sanctions," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 3, pages 75-90, June.

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    More about this item

    Keywords

    foreign direct investments; spillover effects; efficiency; sanctions; DEA; R&D; Russia;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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