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From Russia to Eurasia : Specific Features of the “Russosphere” from the Perspective of Business Activities of Japanese Firms


  • Tokunaga, Masahiro
  • Suganuma, Keiko
  • Odagiri, Nami


In this paper, we demonstrate the trends and prospects of Japanese foreign direct investment (FDI) in European Emerging Markets (EEMs) against the background of the recent development of emerging markets and explore the specificities of the Russian market, the biggest EEM in terms of market size and inward FDI received. More specifically, we give an overview of foreign capital flows from Japan to major EEMs and describe the achievements and problems of Japanese investors as related to business with Russia. We find that the Russian market seems to be a lucrative option for Japanese firms, despite unfavorable investment conditions and limited institutional freedom afforded to outsiders, including a language barrier due to the wide usage of Russian in the business field. Although use of the Russian language is one of major business obstacles affecting foreign investors, making matters more challenging in the country, it nonetheless provides us with a common language as a hub of business operations in the former Soviet Union countries or “Russosphere,” where Russia has still economic leverage and maintains cultural domination

Suggested Citation

  • Tokunaga, Masahiro & Suganuma, Keiko & Odagiri, Nami, 2018. "From Russia to Eurasia : Specific Features of the “Russosphere” from the Perspective of Business Activities of Japanese Firms," RRC Working Paper Series 77, Russian Research Center, Institute of Economic Research, Hitotsubashi University.
  • Handle: RePEc:hit:rrcwps:77

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    More about this item


    foreign direct investment (FDI); European Emerging Markets (EEMs); business language; Russia; Russosphere;

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • P2 - Economic Systems - - Socialist Systems and Transition Economies
    • P3 - Economic Systems - - Socialist Institutions and Their Transitions

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