Where Has All the Foreign Investment Gone in Russia?

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
Broadman, Harry G.
dc.contributor.author
Recanatini, Francesca
dc.date.accessioned
2014-08-21T18:13:25Z
dc.date.available
2014-08-21T18:13:25Z
dc.date.issued
2001-07
dc.date.lastModified
2021-04-23T14:03:43Z
dc.description.abstract
Since its transition to a market economy began, Russia has not attracted much foreign direct investment (FDI). Inflows of FDI into Russia are much lower than those into other transition countries in the region, adjusted for population size and similar measures. Clearly, if Russia is to grow it must increase the level of FDI inflows, which is why a good deal of policy attention has focused on the problem. Equally important for achieving sustainable growth in such a large, heterogeneous economy is learning how to make the spatial distribution of FDI within Russia more even. Inflows are strikingly skewed. Close to 60 percent of FDI goes to four regions in te western part of the country--Moscow City, Moscow oblast, St. Petersburg, and Leningrad oblast--which account for only 22 percent of Russia's gross national product and only 13 percent of Russia's population. Only two of the other 85 regions account for more than 2.5 percent of the country's FDI and most account for much less. Surprisingly, neither policymakers nor observers and analysts have paid much attention to diagnosing the reason for this imbalance in FDI's distribution. The authors try to empirically unbundle the determinants of FDI's regional distribution within Russia. They find that faactors associated with market size, infrastructure development, and the policy environment seem to explain much of the observed variation in FDI flows to regions in Russia. Moreover, the explanatory power of the model that best explains cross-regional variation in FDI flows from 1995 to 1998 changes significantly after the 1998 default and ruble devaluation--suggesting the possibility of a "structural change" in the determination of FDI after the 1998 crisis.
en
dc.identifier
http://documents.worldbank.org/curated/en/2001/07/1552021/all-foreign-investment-gone-russia
dc.identifier.uri
http://hdl.handle.net/10986/19575
dc.language
English
dc.language.iso
en_US
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper;No. 2640
dc.rights
CC BY 3.0 IGO
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo/
dc.subject
CAPITAL FLIGHT
dc.subject
CAPITAL FLOWS
dc.subject
CENTRAL BANK
dc.subject
CENTRAL PLANNING
dc.subject
COUNTRY CONTEXT
dc.subject
DEPENDENT VARIABLE
dc.subject
DEVALUATION
dc.subject
DEVELOPED COUNTRIES
dc.subject
DOMESTIC DEMAND
dc.subject
DOMESTIC MARKETS
dc.subject
ECONOMIC ACTIVITY
dc.subject
ECONOMIC CHARACTERISTICS
dc.subject
ECONOMIC CONDITIONS
dc.subject
ECONOMIC DEVELOPMENT
dc.subject
ECONOMIC DIMENSION
dc.subject
ECONOMIC INCENTIVES
dc.subject
ECONOMIC MANAGEMENT
dc.subject
ECONOMICS
dc.subject
ECONOMISTS
dc.subject
EMPIRICAL LITERATURE
dc.subject
EMPIRICAL RESULTS
dc.subject
EMPIRICAL STUDIES
dc.subject
EMPIRICAL WORK
dc.subject
ESTIMATED COEFFICIENT
dc.subject
EXPLANATORY VARIABLES
dc.subject
FDI
dc.subject
FINANCIAL CAPITAL
dc.subject
FINANCIAL SERVICES
dc.subject
FOREIGN CAPITAL
dc.subject
FOREIGN DIRECT INVESTMENT
dc.subject
FOREIGN EXCHANGE
dc.subject
FOREIGN INVESTMENT
dc.subject
FOREIGN INVESTORS
dc.subject
GDP
dc.subject
GROSS DOMESTIC PRODUCT
dc.subject
GROSS NATIONAL PRODUCT
dc.subject
GROWTH PERFORMANCE
dc.subject
HOST COUNTRIES
dc.subject
HUMAN CAPITAL
dc.subject
IMPORTS
dc.subject
INCOME
dc.subject
INDUSTRIAL DEVELOPMENT
dc.subject
INSTITUTIONAL ANALYSIS
dc.subject
INSTITUTIONAL DEVELOPMENT
dc.subject
LABOR COSTS
dc.subject
LABOR FORCE
dc.subject
MARKET ECONOMY
dc.subject
MARKET SIZE
dc.subject
NATURAL RESOURCES
dc.subject
OIL
dc.subject
PER CAPITA INCOME
dc.subject
POLICY ENVIRONMENT
dc.subject
POLICY FRAMEWORK
dc.subject
POLICY ISSUES
dc.subject
POLICY MAKERS
dc.subject
POLICY MEASURES
dc.subject
POLICY REFORMS
dc.subject
POLICY RESEARCH
dc.subject
POLITICAL ECONOMY
dc.subject
POLITICAL ELEMENTS
dc.subject
POPULATION SIZE
dc.subject
POTENTIAL INVESTORS
dc.subject
POVERTY REDUCTION
dc.subject
PROMOTING GROWTH
dc.subject
REDUCING POVERTY
dc.subject
REGIONAL DISTRIBUTION
dc.subject
REGRESSION ANALYSIS
dc.subject
SKEWED DISTRIBUTION
dc.subject
SPATIAL DISTRIBUTION
dc.subject
STRUCTURAL CHANGE
dc.subject
STRUCTURAL REFORMS
dc.subject
SUSTAINABLE GROWTH
dc.subject
TAX RATES
dc.subject
TRANSITION COUNTRIES
dc.subject
TRANSITION ECONOMIES
dc.subject
TRANSITION PROCESS
dc.subject
WAGE RATES
dc.subject
WAGES
dc.title
Where Has All the Foreign Investment Gone in Russia?
en
okr.date.disclosure
2001-07-31
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.doctype
Publications & Research
okr.docurl
http://documents.worldbank.org/curated/en/2001/07/1552021/all-foreign-investment-gone-russia
okr.globalpractice
Poverty
okr.globalpractice
Governance
okr.globalpractice
Trade and Competitiveness
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-2640
okr.identifier.externaldocumentum
000094946_01080904131456
okr.identifier.internaldocumentum
1552021
okr.identifier.report
WPS2640
okr.language.supported
en
okr.pdfurl
http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2001/08/29/000094946_01080904131456/Rendered/PDF/multi0page.pdf
en
okr.region.administrative
Europe and Central Asia
okr.region.country
Russian Federation
okr.theme
Trade and integration
okr.topic
International Economics and Trade :: Foreign Direct Investment
okr.topic
Poverty Reduction :: Achieving Shared Growth
okr.topic
Economic Theory and Research
okr.topic
Public Sector Development :: Decentralization
okr.topic
Environmental Economics and Policies
okr.topic
International Terrorism and Counterterrorism
okr.topic
Payment Systems and Infrastructure
okr.topic
Poverty Reduction :: Poverty Assessment
okr.unit
Poverty Reduction and Economic Management Sector Unit, Europe and Central Asia Region
okr.volume
1

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