IDEAS home Printed from https://ideas.repec.org/a/arh/jrujec/v6y2020i2p144-161.html
   My bibliography  Save this article

An analysis of EU FDI inflow into Russia

Author

Listed:
  • Marta Domínguez-Jiménez

    (Bruegel, Brussels, Belgium)

  • Niclas Frederic Poitiers

    (Bruegel, Brussels, Belgium)

Abstract

This paper analyzes the trends and drivers of inward foreign direct investment in Russia between 2009 and 2019. The EU is the premier provider of FDI into Russia, even though we find that reported values overstate its role given the use of Special Purpose Entities (SPEs). Key drivers of Russian FDI flows are the price of oil and natural resource markets, macroeconomic volatility, monetary policy, sanctions and trade impediments. As FDI is highly concentrated in natural resource rich regions, we argue that a sectoral decomposition understates the importance of fossil fuel extraction. Based on this analysis as well as the literature on growth effects of FDI, we argue that Russia needs more investment into higher-value added activities.

Suggested Citation

  • Marta Domínguez-Jiménez & Niclas Frederic Poitiers, 2020. "An analysis of EU FDI inflow into Russia," Russian Journal of Economics, ARPHA Platform, vol. 6(2), pages 144-161, June.
    • Handle: RePEc:arh:jrujec:v:6:y:2020:i:2:p:144-161
    DOI: 10.32609/j.ruje.6.55880
    as

    Download full text from publisher

    File URL: https://rujec.org/article/55880/
    Download Restriction: no
    File URL: https://libkey.io/10.32609/j.ruje.6.55880?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Marek Dabrowski, 2019. "Can emerging markets be a source of global troubles again?," Russian Journal of Economics, ARPHA Platform, vol. 5(1), pages 67-87, April.
    2. Marek Dabrowski, 2015. "The systemic roots of Russia’s recession," Policy Contributions 10234, Bruegel.
    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. Deseatnicov, Ivan & Klochko, Olga, 2023. "Currency risk and the dynamics of German investors entry and exit in Russia," Emerging Markets Review, Elsevier, vol. 55(C).
    2. Maiya RAKHIMOVA & Galina KAKENOVA & Almagul KUSHPAYEVA, 2023. "Cooperation Between The Eu And Post-Soviet Countries: Western Authors’ Approaches To Analysing The Issue," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 23(2), pages 97-112.

    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. Mahmut BAKIR & Şahap AKAN & Kasım KIRACI & Darjan KARABASEVIC & Dragisa STANUJKIC & Gabrijela POPOVIC, 2020. "Multiple-Criteria Approach of the Operational Performance Evaluation in the Airline Industry: Evidence from the Emerging Markets," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 149-172, July.
    2. Simone Auer & Emidio Cocozza & Andrea COlabella, 2016. "The financial systems in Russia and Turkey: recent developments and challenges," Questioni di Economia e Finanza (Occasional Papers) 358, Bank of Italy, Economic Research and International Relations Area.
    3. Oliver Fritz & Elisabeth Christen & Franz Sinabell & Julian Hinz, 2017. "Russia's and the EU's Sanctions. Economic and Trade Effects, Compliance and the Way Forward," WIFO Studies, WIFO, number 60669, August.
    4. Mäkinen, Mikko, 2016. "Nowcasting of Russian GDP growth," BOFIT Policy Briefs 4/2016, Bank of Finland Institute for Emerging Economies (BOFIT).
    5. Dabrowski, Marek, 2016. "Currency crises in post-Soviet economies — a never ending story?," Russian Journal of Economics, Elsevier, vol. 2(3), pages 302-326.

    More about this item

    Keywords

    foreign direct investment economic growth Russian economic development.;

    JEL classification:

    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

    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:arh:jrujec:v:6:y:2020:i:2:p:144-161. 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: Teodor Georgiev (email available below). General contact details of provider: https://rujec.org/ .

    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.