Effectiveness of National Companies and Economic Diversification in Regions as Factors of Foreign Direct Investment Spillovers in the Russian Economy
Abstract
This article examines intra- and inter-industry spillovers from foreign direct investment (FDI) on the performance of Russian domestic firms. Using a database of manufacturing firms operating in Russia in the period of 1999–2008, we observe positive intra- and inter-sectoral FDI spillovers. We mark out two important factors influencing sign and significance of FDI spillovers — the difference in the national companies’ effectiveness and in the level of regional diversification. We found out that more effective Russian firms face less crowding out effect than less effective firms. At the same time less effective Russian producers get more benefits of interaction with foreign companies in vertically linked sectors of economy than more effective producers. We find positive intra-regional FDI spillovers in Russian regions with relatively more diversified industrial structure, while in highly specialised regions the sign of these effects changes into negative, but still remains positive for inter-regional vertical spillovers.
Keywords:
foreign direct investment, spillovers, vertically linked industries, diversification, spatial development
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Published
2011-06-30
How to Cite
Kadochnikov, S. M., Drapkin, I. M., Davidson, N. B., & Fedyunina, A. A. (2011). Effectiveness of National Companies and Economic Diversification in Regions as Factors of Foreign Direct Investment Spillovers in the Russian Economy. Russian Management Journal, 9(2), 3–26. Retrieved from https://rjm.spbu.ru/article/view/335
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New Research
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Articles of the Russian Management Journal are open access distributed under the terms of the License Agreement with Saint Petersburg State University, which permits to the authors unrestricted distribution and self-archiving free of charge.
