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Diagnostics of foreign direct investments inflow in Russian Federation: theoretical and practical issues

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  • Yury Zaytsev

Abstract

The article analyses the factors that influenced the dynamics of foreign direct investment in the Russian economy in 2014 and over the last decade. The author considers theoretical perspective of the factors, influencing the incoming FDI in national economy. As a key factor influencing the unprecedented influx of FDI in Russia the author examines the impact of institutional conditions on FDI inflow. A special focus is made on the distribution of different types of foreign investments by different sectors of the Russian economy. On the basis of regression analysis the author identifies key investment climate factors influencing the FDI inflow and explains the paradox, originated in the Russian economy in the second half of the 2000s. The paradox is associated with annual FDI inflow increase despite the weak investment climate in extractive and mining sectors of the Russian economy. The conclusions, suggested by author could provide a sound basis for investors in their decision-making process.

Suggested Citation

  • Yury Zaytsev, 2016. "Diagnostics of foreign direct investments inflow in Russian Federation: theoretical and practical issues," International Journal of Trade and Global Markets, Inderscience Enterprises Ltd, vol. 9(2), pages 170-181.
  • Handle: RePEc:ids:ijtrgm:v:9:y:2016:i:2:p:170-181
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    References listed on IDEAS

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    Cited by:

    1. Zaytsev, Yu. & Loshchenkova, A., 2023. "The impact of sanctions on the activities of Russian companies in the manufacturing sector of the economy in 2014-2021," Journal of the New Economic Association, New Economic Association, vol. 60(3), pages 50-65.

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