The Great Transformation: Russia's Return to the World Economy
AbstractSince the 1998 financial crisis the Russian economy has been growing rapidly, and seems set to go on doing so in the coming years, recording healthy balance of trade surpluses and surpluses on the public sector accounts. At the same time, under President Putin, market-type reforms have gained renewed momentum. Surveys show that the business environment in Russia has changed in recent years, but from "very bad" to "bad", but for foreign investors, the existing business conditions are fair and getting better. Foreign investment levels have remained relatively low for much of the 1990s, usually little over $2 billion per annum, but recently inflows have increased - including returning flight capital - and there are prospects for far higher levels of FDI in the future. FDI to date has been relatively broadly-based by sector: oil and other natural resources provide the headline projects, but investment in hotels and catering, food, drink and tobacco, and other services, have been large and growing. We expect industrial restructuring in selected lagging sectors of manufacturing to present massive opportunities to foreign investors, notably vehicles. Overall, while noting various problematic areas for the business community, and the usual uncertainties in any medium- to long-term forecasting exercise, we remain broadly confident that Russia's economy will continue to grow quite rapidly, and that the opportunities for foreign investors in an increasingly wide range of branches will steadily expand.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Centre for Economic Reform and Transformation, Heriot Watt University in its series CERT Discussion Papers with number 0401.
Date of creation: 2004
Date of revision:
Foreign direct investment; trade; Russia; transition;
Find related papers by JEL classification:
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- P20 - Economic Systems - - Socialist Systems and Transition Economies - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-10-18 (All new papers)
- NEP-CIS-2004-10-18 (Confederation of Independent States)
- NEP-TRA-2004-10-18 (Transition Economics)
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Professor Mark Schaffer) The email address of this maintainer does not seem to be valid anymore. Please ask Professor Mark Schaffer to update the entry or send us the correct address.
If references are entirely missing, you can add them using this form.