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Why do Russian firms invest abroad? A firm level analysis

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  • Anwar, Amar
  • Mughal, Mazhar

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

  • Anwar, Amar & Mughal, Mazhar, 2014. "Why do Russian firms invest abroad? A firm level analysis," MPRA Paper 58178, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:58178
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    References listed on IDEAS

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    1. 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.
    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. 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.
    4. 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.
    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.
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    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.

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    More about this item

    Keywords

    Outward Foreign Direct Investment; 2008 financial crisis; 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

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