Direct Chinese investments ​as a factor of economic growth in the Russian regions

The article reveals the impact of Chinese direct investment on the economic dynamics of Russia’s regions. The main indicators of Chinese direct investment in the Russian economy in the sectoral and regional context are considered, the periodization of Russian-­Chinese investment cooperation is given with the identification of the main trends in investment dynamics, the main methods of Chinese direct investment are identified. Since the impact of Chinese direct investment on economic macro variables has not been thoroughly studied, the aim of the study is to build an econometric model to test the hypothesis of a positive impact of Chinese direct investment on the Russian gross regional product (both variables are calculated per employee). Panel data for 51 federal subjects from eight federal districts of Russia for the period from 2015 to 2022 were analyzed using a fixed-­effects model. The results of the study revealed a statistically significant positive effect of foreign direct investment (FDI) on the gross regional product, which confirms the hypothesis put forward. Chinese direct investment is having an impact on the Russian economy combined with an increase in gross capital accumulation, an increase in the share of highly skilled labor, an increase in government spending and an increase in the level of economic openness of the regions. Thus, the model is applicable to explain the economic growth of Russian regions. Chinese investments contribute to the diversification of the Russian economy, especially in energy, infrastructure and high-tech sectors. The problems of Chinese investments are their limited scale and the discrepancy between the sectoral structure of investments and the needs of the regions. The work contributes to understanding the role of Chinese capital in modernizing the Russian economy and offers practical recommendations for deepening investment cooperation.