IDEAS home Printed from https://ideas.repec.org/p/hal/wpcatt/hal-01885147.html
   My bibliography  Save this paper

Why do Russian firms invest abroad? A firm level analysis
[Centre d'Analyse Théorique et de Traitement des données économiques WHY DO RUSSIAN FIRMS INVEST ABROAD? A FIRM LEVEL ANALYSIS]

Author

Listed:
  • Amar Iqbal Anwar

    (Cape Breton University - Cape Breton University)

  • Mazhar Mughal

    (CATT - Centre d'Analyse Théorique et de Traitement des données économiques - UPPA - Université de Pau et des Pays de l'Adour)

Abstract

This study examines the motives for Russian outward foreign direct investments (OFDI) around the world. Using firm-level data for Russian firms, home and host country economic, geographical, cultural and institutional drivers of Russian OFDI are analyzed. Findings show that Russian OFDI seems to be motivated by both the push and the pull factors. Results suggest market-seeking to be the main motive behind Russian outward foreign direct investments, followed by resource and technology acquisition, while efficiency-seeking does not appear to be a major objective. Compared with the pre-crisis period, Russian firms have been seeking more foreign investments since 2008. The study helps better understand the economic, geographical, cultural and institutional factors that Russian transnational corporations consider while planning investments abroad.

Suggested Citation

  • Amar Iqbal Anwar & Mazhar Mughal, 2014. "Why do Russian firms invest abroad? A firm level analysis [Centre d'Analyse Théorique et de Traitement des données économiques WHY DO RUSSIAN FIRMS INVEST ABROAD? A FIRM LEVEL ANALYSIS]," Working papers of CATT hal-01885147, HAL.
    • Handle: RePEc:hal:wpcatt:hal-01885147
    Note: View the original document on HAL open archive server: https://hal-univ-pau.archives-ouvertes.fr/hal-01885147
    as

    Download full text from publisher

    File URL: https://hal-univ-pau.archives-ouvertes.fr/hal-01885147/document
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Peter J Buckley & L Jeremy Clegg & Adam R Cross & Xin Liu & Hinrich Voss & Ping Zheng, 2007. "The determinants of Chinese outward foreign direct investment," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(4), pages 499-518, July.
    2. Amar Anwar & Mazhar Mughal, 2013. "The role of diaspora in attracting Indian outward FDI," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 40(11), pages 944-955, October.
    3. Amar Iqbal Anwar & Mazhar Mughal, 2012. "Economic Freedom and Indian Outward Foreign Direct Investment: An Empirical Analysis," Economics Bulletin, AccessEcon, vol. 32(4), pages 2991-3007.
    4. Filippov, Sergey, 2011. "Russia's emerging multinational companies amidst the global economic crisis," MERIT Working Papers 2011-003, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. Kolstad, Ivar & Wiig, Arne, 2009. "Is Transparency the Key to Reducing Corruption in Resource-Rich Countries?," World Development, Elsevier, vol. 37(3), pages 521-532, March.
    6. Zhang, Xiaoxi & Daly, Kevin, 2011. "The determinants of China's outward foreign direct investment," Emerging Markets Review, Elsevier, vol. 12(4), pages 389-398.
    7. John H Dunning, 1988. "The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(1), pages 1-31, March.
    8. Mohamed Amal & Patricia Luiza Kegel, 2012. "Determinants of Brazilian Outward Foreign Direct Investment: A Home Country Perspective," Palgrave Macmillan Books, in: Marin A. Marinov & Svetla T. Marinova (ed.), Impacts of Emerging Economies and Firms on International Business, chapter 9, pages 168-188, Palgrave Macmillan.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Csaba Weiner, 2018. "Pull factors driving Russian multinationals into five CEE countries, a sectoral overview," IWE Working Papers 250, Institute for World Economics - Centre for Economic and Regional Studies.
    2. Csaba Weiner, 2017. "International expansion of Russian multinationals - a focus on home-country push factors, Europe and five CEE countries," IWE Working Papers 236, Institute for World Economics - Centre for Economic and Regional Studies.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Amar Iqbal Anwar & Mazhar Mughal, 2014. "Why do Russian firms invest abroad? A firm level analysis [Centre d'Analyse Théorique et de Traitement des données économiques WHY DO RUSSIAN FIRMS INVEST ABROAD? A FIRM LEVEL ANALYSIS]," Working papers of CATT hal-01885147, HAL.
    2. Amar Iqbal Anwar & Mazhar Y Mughal, 2015. "Determinants of Russian Firms' Merger and Acquisition Activities," Economics Bulletin, AccessEcon, vol. 35(4), pages 2382-2394.
    3. Wladimir Andreff, 2016. "Outward Foreign Direct Investment from BRIC countries: Comparing strategies of Brazilian, Russian, Indian and Chinese multinational companies," Post-Print halshs-01342391, HAL.
    4. Chengchun Li & Yun Luo & Glauco Vita, 2020. "Institutional difference and outward FDI: evidence from China," Empirical Economics, Springer, vol. 58(4), pages 1837-1862, April.
    5. Wladimir Andreff, 2016. "Outward Foreign Direct Investment from BRIC countries: Comparing strategies of Brazilian, Russian, Indian and Chinese multinational companies," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01342391, HAL.
    6. Wladimir Andreff, 2015. "Outward Foreign Direct Investment from BRIC countries: Comparing strategies of Brazilian, Russian, Indian and Chinese multinational companies," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 12(2), pages 79-131, December.
    7. Li, Linjie & Liu, Xiaming & Yuan, Dong & Yu, Miaojie, 2017. "Does outward FDI generate higher productivity for emerging economy MNEs? – Micro-level evidence from Chinese manufacturing firms," International Business Review, Elsevier, vol. 26(5), pages 839-854.
    8. Conti, Claudio Ramos & Parente, Ronaldo & de Vasconcelos, Flávio C., 2016. "When distance does not matter: Implications for Latin American multinationals," Journal of Business Research, Elsevier, vol. 69(6), pages 1980-1992.
    9. Gloria Ge & Hugh Wang, 2013. "The impact of network relationships on internationalization process: An empirical study of Chinese private enterprises," Asia Pacific Journal of Management, Springer, vol. 30(4), pages 1169-1189, December.
    10. Chen, Hong & Gangopadhyay, Partha & Singh, Baljeet & Chen, Kairan, 2023. "What motivates Chinese multinational firms to invest in Asia? Poor institutions versus rich infrastructures of a host country," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    11. Ravi Ramamurti & Jenny Hillemann, 2018. "What is “Chinese” about Chinese multinationals?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(1), pages 34-48, January.
    12. Huiying Zhang & Yikang Liu, 2022. "Do Foreign Direct Investment and Migration Influence the Sustainable Development of Outward Foreign Direct Investment? From the Perspective of Intellectual Property Rights Protection," Sustainability, MDPI, vol. 14(9), pages 1-18, April.
    13. Chris Wagner, 2020. "Deducing a state-of-the-art presentation of the Eclectic Paradigm from four decades of development: a systematic literature review," Management Review Quarterly, Springer, vol. 70(1), pages 51-96, February.
    14. Liu, Yuli & Ge, Yuejing & Hu, Zhiding & Wang, Shufang, 2018. "Culture and capital flows—Exploring the spatial differentiation of China's OFDI," China Economic Review, Elsevier, vol. 48(C), pages 27-45.
    15. Yanfeng Liu & Miao Su & Jinjing Zhao & Sally Martin & Kum Fai Yuen & Choong-Bae Lee, 2023. "The determinants of China’s outward foreign direct investment: a vector error correction model analysis of coastal and landlocked countries," Economic Change and Restructuring, Springer, vol. 56(1), pages 29-56, February.
    16. Gilbert Kofi Adarkwah & Tine Petersen Malonæs, 2022. "Firm-specific advantages: a comprehensive review with a focus on emerging markets," Asia Pacific Journal of Management, Springer, vol. 39(2), pages 539-585, June.
    17. Xie, En & Reddy, K.S. & Liang, Jie, 2017. "Country-specific determinants of cross-border mergers and acquisitions: A comprehensive review and future research directions," Journal of World Business, Elsevier, vol. 52(2), pages 127-183.
    18. Amar Anwar & Ichiro Iwasaki, 2022. "Institutions and FDI from BRICS countries: a meta-analytic review," Empirical Economics, Springer, vol. 63(1), pages 417-468, July.
    19. Oludotun Fasanya, David & Ingham, Hilary & Read, Robert, 2022. "Determinants of internationalisation by firms from Sub-Saharan Africa," Journal of Business Research, Elsevier, vol. 144(C), pages 951-965.
    20. Justin Paul & Gurmeet Singh, 2017. "The 45 years of foreign direct investment research: Approaches, advances and analytical areas," The World Economy, Wiley Blackwell, vol. 40(11), pages 2512-2527, November.

    More about this item

    Keywords

    2008 financial crisis; Outward Foreign Direct Investment; Russia;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • G01 - Financial Economics - - General - - - Financial Crises
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:wpcatt:hal-01885147. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CATT - UPPA - Université de Pau et des Pays de l'Adour (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.