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Restoring the Economic Power of Russia through OFDI Expansion

Author

Listed:
  • Imola DRIGÃ

    () (University of Petroºani, Romania)

  • Codruþa DURA

    () (University of Petroºani, Romania)

Abstract

When enterprises enter a new country they face the challenge to develop their acquisition and distribution systems. In this way modern management concepts are exported. Today, managers of multinational companies are more specialized in segmenting their activities and in finding optimal location for increasingly specialized forms of activity being able to adopt their products to local markets. These technological and managerial efforts have been extended by political that provided a larger opening than in previously closed economies. FDI is one of the most efficient means by which emerging markets become integrated to the global economy while FDI provides capital, technology and management know-how required by the restructuring of firms in the host economies. The propose of the paper is to analyze the growing importance of OFDIs from emerging markets underlining the fact that, in recent years, middle and low income countries, such as Brazil, China, India, Nigeria, Malaysia, Russia and South Africa, have become important in the global geography of capital flows. From among the BRIC countries, our paper will provide insights into the Russian economy, focusing on its goal of becoming a major outward investing country on a global scale. The expansion of Russian corporations to abroad, and particularly to Europe, raised many questions regarding the motivations behind their internationalization and led to a common acknowledged belief that they were tools of regaining political hegemony rather than pure economic entities. Given the complexity of the subject, the main objective of our paper is to explore trends for Russian OFDI and their impact upon the new balance of the global economic power.

Suggested Citation

  • Imola DRIGÃ & Codruþa DURA, 2013. "Restoring the Economic Power of Russia through OFDI Expansion," Economia. Seria Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 16(2), pages 227-241, December.
  • Handle: RePEc:rom:econmn:v:16:y:2013:i:2:p:227-241
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    File URL: http://www.management.ase.ro/reveconomia/2013-2/3.pdf
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    References listed on IDEAS

    as
    1. Gabor Hunya & Roman Stöllinger, 2009. "Foreign Direct Investment Flows between the EU and the BRICs," wiiw Research Reports 358, The Vienna Institute for International Economic Studies, wiiw.
    2. Filippov, Sergey, 2011. "Russia's emerging multinational companies amidst the global economic crisis," MERIT Working Papers 003, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    3. R?zvan C?t?lin DOBREA & Elena ?ERBAN, 2012. "Analysis of Foreign Direct Investment Determinants at the Level of a County in Romania," Economia. Seria Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 15(1), pages 219-226, June.
    4. Elena Mihaela ILIESCU & Felicia Alina DINU, 2011. "Country Risk Importance on Investment Decision Making," Economia. Seria Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 14(2), pages 371-379, December.
    5. Malgorzata Jakubiak & Alina Kudina, 2008. "The Motives and Impediments to FDI in the CIS," CASE Network Studies and Analyses 0370, CASE-Center for Social and Economic Research.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Imola Drigă & Codruța Dura, 2013. "New Trends Regarding OFDI From Russia," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 13(2), pages 41-50.

    More about this item

    Keywords

    BRIC countries; emerging markets; FDI flows; Russian multinationals.;

    JEL classification:

    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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