Title: Diagnostics of foreign direct investments inflow in Russian Federation: theoretical and practical issues

Authors: Yury Zaytsev

Addresses: Institute of Applied Economic Studies, Russian Academy of National Economy and Public Administration, 84-9 Vernaskogo Avenue, Moscow 119571, Russia

Abstract: The article analyses the factors that influenced the dynamics of foreign direct investment in the Russian economy in 2014 and over the last decade. The author considers theoretical perspective of the factors, influencing the incoming FDI in national economy. As a key factor influencing the unprecedented influx of FDI in Russia the author examines the impact of institutional conditions on FDI inflow. A special focus is made on the distribution of different types of foreign investments by different sectors of the Russian economy. On the basis of regression analysis the author identifies key investment climate factors influencing the FDI inflow and explains the paradox, originated in the Russian economy in the second half of the 2000s. The paradox is associated with annual FDI inflow increase despite the weak investment climate in extractive and mining sectors of the Russian economy. The conclusions, suggested by author could provide a sound basis for investors in their decision-making process.

Keywords: foreign direct investment; FDI inflows; investment climate; horizontal investment; vertical investment; venture capital; import substitution; extractive industries; Russia; finance industry; insurance industry.

DOI: 10.1504/IJTGM.2016.076316

International Journal of Trade and Global Markets, 2016 Vol.9 No.2, pp.170 - 181

Received: 03 Feb 2015
Accepted: 24 Aug 2015

Published online: 03 May 2016 *

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