FDI in Russia from CESEE and Central Asia: A Micro-Level Perspective

Päivi Karhunen (paivi.karhunen@aalto.fi), Riitta Kosonen (riitta.kosonen@aalto.fi), Svetlana Ledyaeva (svetlana.ledyaeva@aalto.fi) and Julia Wörz (julia.woerz@oenb.at)
Additional contact information
Päivi Karhunen: Aalto University School of Business, Center for Markets in Transition and Department of Economics
Riitta Kosonen: Aalto University School of Business, Center for Markets in Transition and Department of Economics,
Svetlana Ledyaeva: Aalto University School of Business, Center for Markets in Transition and Department of Economics
Julia Wörz: Foreign Research Division, Oesterreichische Nationalbank, http://www.oenb.at
Authors registered in the RePEc Author Service: Julia Maria Woerz (julia.woerz@oenb.at)

Focus on European Economic Integration, 2014, issue 4, 54-70

Abstract: In this paper we study FDI in Russia originating from Central, Eastern and Southeastern Europe (CESEE) and Central Asia. We describe patterns of FDI and examine the determinants underlying these patterns, basing our analysis on firm-level data for the period from 1997 to 2011 obtained from Rosstat, Russia’s Federal State Statistics Service. We split the investor countries under review into two subgroups, i.e. Central Eastern Europe, Baltics and Balkans (CEEBB) and Eastern Europe, Caucasus and Central Asia (EECCA). We find that Belarus and Ukraine are the largest contributors of FDI into Russia among the countries under review. However, firms established by investors from Estonia, Poland and Lithuania are more profitable than those established by investors from Belarus and Ukraine. In our empirical test of locational determinants influencing the choice of a particular Russian region as an FDI destination we, among other things, find evidence against the institutional distance argument, which maintains that FDI flows are more limited among countries that exhibit greater differences in terms of their regulatory and normative business environment.

Keywords: Foreign direct investment; Russian regions; former communist countries (search for similar items in EconPapers)
JEL-codes: D22 F15 F23 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.oenb.at/dam/jcr:8f2efd92-879a-4c35-87f ... q4_studies_woerz.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:onb:oenbfi:y:2014:i:4:b:1

Ordering information: This journal article can be ordered from
Oesterreichische Nationalbank, Documentation Management and Communications Services, Otto-Wagner Platz 3, A-1090 Vienna, Austria
oenb.publikationen@oenb.at

Access Statistics for this article

Focus on European Economic Integration is currently edited by Julia Wörz and Elisabeth Beckmann

More articles in Focus on European Economic Integration from Oesterreichische Nationalbank (Austrian Central Bank) P.O. Box 61, A-1011 Vienna, Austria. Contact information at EDIRC.
Bibliographic data for series maintained by Elisabeth Beckmann (elisabeth.beckmann@oenb.at).