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What causes the regional disparity of FDI in Russia? a spatial analysis

Saime Kayam (), Mehtap Hisarciklilar and Alexandr Yabrukov

MPRA Paper from University Library of Munich, Germany

Abstract: We analyse the determinants of the regional disparity of FDI inflows to Russia. The spatial distribution of FDI is attributed to regional and/or trans-regional factors. Region specific characteristics such as wage, education level, transportation as well as gross regional product, which accounts for market size, in host and alternative regions are considered to analyze the spatial interaction between regions employing spatial econometrics. We find that shocks to FDI levels in proximate regions have no effect on FDI inflows to hosts. However, FDI in a region depends on spatial market size and endowment of natural resources in alternative host regions.

Keywords: FDI; regional disparity; spatial econometrics; Russia (search for similar items in EconPapers)
JEL-codes: C31 F21 F23 R12 (search for similar items in EconPapers)
Date: 2007
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Journal Article: What Causes the Regional Disparity of FDI in Russia? A Spatial Analysis (2013) Downloads
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