Investments as a Lever for Lifting the Economy out of Crisis

Vladimir Kossov

International Studies of Management & Organization, 2011, vol. 41, issue 4, 20-33

Abstract: This article has three objectives: first, to present the results of what has been done in Russia to create the institutional underpinnings for fixed investment; second, to explore investment profitability by type of business activity; and, third, to describe the role of foreign direct investment in the overall fixed investments in the Russian economy. Our analysis reveals that despite all the efforts, two problems remain with the Russian economy. Investments in fixed assets have not decreased income inequality both in industrial sectors and regional aspects, and these investments do not endeavor to change the structure of the Russian economy, leading to the predominance of natural resources extraction and the weakness of modern services and high-tech industries.

Date: 2011
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DOI: 10.2753/IMO0020-8825410401

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