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What causes the regional disparity of FDI in Russia? a spatial analysis

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  • Kayam, Saime S.
  • Hisarciklilar, Mehtap
  • Yabrukov, Alexandr

Abstract

We analyse the determinants of the regional disparity of FDI inflows to Russia. The spatial distribution of FDI is attributed to regional and/or trans-regional factors. Region specific characteristics such as wage, education level, transportation as well as gross regional product, which accounts for market size, in host and alternative regions are considered to analyze the spatial interaction between regions employing spatial econometrics. We find that shocks to FDI levels in proximate regions have no effect on FDI inflows to hosts. However, FDI in a region depends on spatial market size and endowment of natural resources in alternative host regions.

Suggested Citation

  • Kayam, Saime S. & Hisarciklilar, Mehtap & Yabrukov, Alexandr, 2007. "What causes the regional disparity of FDI in Russia? a spatial analysis," MPRA Paper 39151, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:39151
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    2. Mariana SEHLEANU, 2020. "Foreign Participation In The Share Capital Of Companies In Romania €“ A Regional Analysis," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 14(1), pages 33-42, November.
    3. The Nguyen Huynh, 2022. "Spatial effects of institutional quality on firm performance: evidence from Vietnam," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 36(2), pages 89-105, November.
    4. Gonchar, Ksenia & Marek, Philipp, 2013. "Natural-resource or Market-seeking FDI in Russia? An Empirical Study of Locational Factors Affecting the Regional Distribution of FDI Entries," IWH Discussion Papers 3/2013, Halle Institute for Economic Research (IWH).
    5. Arogundade, Sodiq & Biyase, Mduduzi & Eita, Joel H., 2021. "Foreign Direct Investment and Inclusive Human Development in Sub-Saharan African Countries: Domestic Conditions Matter," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 74(4), pages 463-498.
    6. Adolfo Maza & Paula Gutiérrez‐Portilla & José Villaverde, 2020. "On the drivers of UK direct investment in the Spanish regions: A spatial Durbin approach," Growth and Change, Wiley Blackwell, vol. 51(2), pages 646-675, June.
    7. The Nguyen Huynh, 2022. "Dynamic spatial effects of determinants of foreign direct investment: A case of the southern key economic region of Vietnam," Australian Economic Papers, Wiley Blackwell, vol. 61(3), pages 436-454, September.

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    More about this item

    Keywords

    FDI; regional disparity; spatial econometrics; Russia;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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