Foreign Direct Investment and Governance Quality in Russia

Olga Kuzmina, Natalya Volchkova () and Tatiana Zueva ()
Additional contact information
Tatiana Zueva: New Economic School

No w0205, Working Papers from Center for Economic and Financial Research (CEFIR)

Abstract: This paper studies the effect of poor governance quality on foreign direct investment in Russia. Using a survey of businesses across forty administrative districts, we find that higher frequency of using illegal payments and higher pressure from regulatory agencies, enforcement authorities, and criminals, negatively affect foreign direct investment. Our identification strategy builds on the exogenous cross-regional variation in worker strikes during 1895-1914, the period before the October Revolution. We find that moving from the average to the top governance quality across Russian regions more than doubles the FDI stock.

Keywords: foreign direct investment; quality of governance; corruption; Russia (search for similar items in EconPapers)
JEL-codes: F21 G15 O17 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2014-04
New Economics Papers: this item is included in nep-cis, nep-int and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (26)

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http://www.cefir.ru/papers/WP205.pdf (application/pdf)

Related works:
Journal Article: Foreign direct investment and governance quality in Russia (2014)
Working Paper: Foreign Direct Investment and Governance Quality in Russia (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:cfr:cefirw:w0205

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