IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

Foreign direct investment in Russia's regions 1993-95. Why so little and where has it gone?

Listed author(s):
  • Gregory J. Brock

In this paper, foreign direct investment (FDI) into Russia's regions during the period 1993-95 is analysed using recently available regional data. Russia's regions are shown to be much richer than China's, but much poorer than US states, though with far less FDI than either country. FDI into the regions is also low compared to both Western and Eastern European countries, but has grown substantially from very low levels. Relatively higher FDI is found to occur when crime is lower, market size is bigger and risk is less. Surprisingly, the education of the workforce is found to be important only in the two major cities of St. Petersburg and Moscow, suggesting FDI into Russia's regions is not drawn by cheap labour. Unlike other countries, no evidence for either infrastructure or privatization influencing FDI could be found. The use of tax breaks and exemptions to attract FDI may be short-sighted as the consequent cut in budget revenues hampers the ability of the region to fight crime and to lower business risk, resulting in an implicit marginal tax increase for future foreign investors that exceeds any benefits from shortterm tax breaks. Copyright The European Bank for Reconstruction and Development, 1998.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1468-0351.1998.tb00053.x
File Function: link to full text
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by The European Bank for Reconstruction and Development in its journal Economics of Transition.

Volume (Year): 6 (1998)
Issue (Month): 2 (November)
Pages: 349-360

as
in new window

Handle: RePEc:bla:etrans:v:6:y:1998:i:2:p:349-360
Contact details of provider: Postal:
One Exchange Square, London EC2A 2JN

Web page: http://www.blackwellpublishing.com/journal.asp?ref=0967-0750

More information through EDIRC

Order Information: Web: http://www.blackwellpublishing.com/subs.asp?ref=0967-0750

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:bla:etrans:v:6:y:1998:i:2:p:349-360. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)

or (Christopher F. Baum)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.