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Emerging Multinationals in Russia

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  • Satoshi Mizobata

    (Professor, Kyoto Institute of Economic Research, Kyoto University)

Abstract

Recent developments in FDI show that more and more emerging economies are involved in exporting foreign capital. Transnational corporations (TNCs) are no longer a unique phenomenon of developed countries. The present paper analyzes the activity of Russian TNCs. While looking at both the inward and outward FDI structure, we try to understand preconditions for the emergence and development of Russian TNCs, their formation process, evolution and motivation. Transnationalization process in Russia explicitly shows the domestic economic and business structure in Russia. Among the specific features of TNCs we identified the following ones: inclination towards natural resources, energy and metallurgy sectors; strong interrelation with the state; path-dependency in formation of TNCs and its impact on motivation for transnationalization (Soviet legacy); specific character of relations with CIS countries. Moreover, we indicated specific features related to the macro-economic structure of the Russian economy, namely the specific route for capital inflow and outflow and its strong relation with foreign liabilities structure, existence of offshore-type TNCs without clear property rights and industrial structure, usage of offshore schemes for tax evasion and as sources for transferring of the governmental aid in conditions of crisis. The paper points out to the necessity of revision of TNCs (MNCs) theory in emerging economies and sheds light on existence of the so-called Russian type emerging TNCs.

Suggested Citation

  • Satoshi Mizobata, 2014. "Emerging Multinationals in Russia," KIER Working Papers 899, Kyoto University, Institute of Economic Research.
    • Handle: RePEc:kyo:wpaper:899
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    File URL: http://www.kier.kyoto-u.ac.jp/DP/DP899.pdf
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    References listed on IDEAS

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    1. John H Dunning, 1998. "Location and the Multinational Enterprise: A Neglected Factor?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(1), pages 45-66, March.
    2. 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).
    3. Ahmed Zoromé, 2007. "Concept of Offshore Financial Centers: In Search of an Operational Definition," IMF Working Papers 2007/087, International Monetary Fund.
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    Cited by:

    1. Victor Gorshkov, 2017. "Structural Changes in the Russian Outward Banking Foreign Direct Investment," KIER Working Papers 977, Kyoto University, Institute of Economic Research.

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