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Regional Growth in Russia During the 1990s—What Role Did FDI Play?

  • Gregory Brock

Regional economic growth in Russia's regions in 1995-2000 is analysed with particular attention paid to FDI and how it influenced growth during this period. FDI appears to have been essential before the 1998 crisis in helping the economy grow despite the initial chaos of the transition. Larger regional economies that have garnered most FDI and perhaps gone further with institutional reforms that can assist in capturing the full benefits of FDI are likely to lead economic growth in the future. All regions need to take advantage now of the favourable economic environment to assess and learn from prior FDI experience to foster future growth should the price of oil and the remaining advantage of a depreciated currency change. No evidence was found that region-wide corruption hindered economic growth in the 1990s.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/14631370500204222
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Article provided by Taylor & Francis Journals in its journal Post-Communist Economies.

Volume (Year): 17 (2005)
Issue (Month): 3 ()
Pages: 319-329

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Handle: RePEc:taf:pocoec:v:17:y:2005:i:3:p:319-329
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  1. Alan A. Bevan & Saul Estrin, 2000. "The Determinants of Foreign Direct Investment in Transition Economies," William Davidson Institute Working Papers Series 342, William Davidson Institute at the University of Michigan.
  2. Levin, Andrew & Raut, Lakshmi K, 1997. "Complementarities between Exports and Human Capital in Economic Growth: Evidence from the Semi-industrialized Countries," Economic Development and Cultural Change, University of Chicago Press, vol. 46(1), pages 155-74, October.
  3. Berthelemy, Jean-Claude & Demurger, Sylvie, 2000. "Foreign Direct Investment and Economic Growth: Theory and Application to China," Review of Development Economics, Wiley Blackwell, vol. 4(2), pages 140-55, June.
  4. Anwer, Muhammad Sarfraz & Sampath, Rajan K., 1997. "Exports and Economic Growth," 1997 Annual Meeting, July 13-16, 1997, Reno\Sparks, Nevada 35938, Western Agricultural Economics Association.
  5. Kevin Honglin Zhang, 2001. "How does foreign direct investment affect economic growth in China?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 9(3), pages 679-693, November.
  6. Feder, Gershon, 1983. "On exports and economic growth," Journal of Development Economics, Elsevier, vol. 12(1-2), pages 59-73.
  7. Bevan, Alan & Estrin, Saul, 2000. "The Determinants of Foreign Direct Investment in Transition Economies," CEPR Discussion Papers 2638, C.E.P.R. Discussion Papers.
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