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Foreign Direct Investment and Enterprise Performance in Transition Countries: Evidence from Russia and Ukraine

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  • Valentijn Bilsen
  • P Van Maldegem

Abstract

This study compares the performance of foreign firms with domestic ones in Russia and Ukraine, using recent survey data of 450 enterprises. We find that foreign owned firms are less prone to inter-enterprise arrears and wage arrears, have a better export performance, and use more sophisticated competition strategies. Foreign investment appears to enhance entrepreneurial know-how. In case of de novo firms foreign investment often led to a 'jump start' of the enterprise, rather than a gradual adjustment over time. Foreign firms have a positive spill-over effect. They introduce healthy financial management methods, and proliferate badly needed market oriented entrepreneurial know-how through the managerial market.

Suggested Citation

  • Valentijn Bilsen & P Van Maldegem, 1999. "Foreign Direct Investment and Enterprise Performance in Transition Countries: Evidence from Russia and Ukraine," Working Papers wp144, Centre for Business Research, University of Cambridge.
    • Handle: RePEc:cbr:cbrwps:wp144
    Note: PRO-1
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    File URL: https://www.jbs.cam.ac.uk/cbrwp144/
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    References listed on IDEAS

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    6. Bilsen, Valentijn & Konings, Jozef, 1998. "Job Creation, Job Destruction, and Growth of Newly Established, Privatized, and State-Owned Enterprises in Transition Economies: Survey Evidence from Bulgaria, Hungary, and Romania," Journal of Comparative Economics, Elsevier, vol. 26(3), pages 429-445, September.
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    Cited by:

    1. Valentijn Bilsen & Elena Mitina, 1999. "Financing Firm Start-up and Restructuring in Transition Countries: Evidence from Belarus, the Ukraine and Russia," Working Papers wp150, Centre for Business Research, University of Cambridge.

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