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What determines foreign direct investment in Russia?

Author

Listed:
  • Gurshev Oleg

    (Faculty of Economic Sciences, Department of Macroeconomics and International Trade Theory, University of Warsaw, ul. Długa 44/50, 00-241Warszawa, Poland)

Abstract

This article focuses on the determinants of inward foreign direct investment (FDI) in Russia. The article briefly describes the historical context of foreign investment policymaking in Russia since the beginning of the economic transition to an open market economy after the dissolution of the Soviet Union. When compared to other developing countries, Russia's FDI stocks continue to lag despite a set of proactive measures undertaken by the national government. Following the literature review, the most commonly cited determinants explaining inward FDI in Russia include market size, labour productivity, trade and investment barriers, domestic exchange rate, rule of law and institutional framework.

Suggested Citation

  • Gurshev Oleg, 2019. "What determines foreign direct investment in Russia?," Central European Economic Journal, Sciendo, vol. 6(53), pages 311-322, January.
    • Handle: RePEc:vrs:ceuecj:v:6:y:2019:i:53:p:311-322:n:20
    DOI: 10.2478/ceej-2019-0016
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    More about this item

    Keywords

    foreign direct investment; economic transition; Russia;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid

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