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MNEs and capital flight: The case of Russia

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  • Alexander S. Bulatov

    (MGIMO University, Moscow, Russia)

Abstract

This paper studies the participation of Russian multinational enterprises (MNEs) in the flight of capital from the native country. It estimates the mid-annual size of capital flight from Russia in 2015–2020 via channels of its MNEs at 0.8% of GDP. Theoretically and methodologically, this paper concentrates on two groups of motives and prerequisites for this flight — generated by tax-avoidance motives and domestic economic imperfections which lead to tax evasion­ and the institutional escape of national capital. Macro and micro analysis based on the balance of payments and company cases confirms that Russian MNEs are actively participating in capital flight from the country.

Suggested Citation

  • Alexander S. Bulatov, 2022. "MNEs and capital flight: The case of Russia," Russian Journal of Economics, ARPHA Platform, vol. 8(2), pages 174-188, July.
    • Handle: RePEc:arh:jrujec:v:8:y:2022:i:2:p:174-188
    DOI: 10.32609/j.ruje.8.80358
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    File URL: https://rujec.org/article/80358/
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    References listed on IDEAS

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    1. Peter J. Buckley & Mark Casson, 1985. "The Economic Theory of the Multinational Enterprise," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-05242-4.
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    Cited by:

    1. Pavel E. Zhukov, 2023. "Capital Flight from Russia and Possible Sources of Financing Budget Expenditures," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 6, pages 27-42, December.

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    More about this item

    Keywords

    MNE capital flight Russia internationalization theory motives of capital flight SOE;

    JEL classification:

    • F - International Economics

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