Kayam, Saime S. and Hisarciklilar, Mehtap and Yabrukov, Alexandr (2007): What causes the regional disparity of FDI in Russia? a spatial analysis.
Download (680kB) | Preview
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.
|Item Type:||MPRA Paper|
|Original Title:||What causes the regional disparity of FDI in Russia? a spatial analysis|
|English Title:||What causes the regional disparity of FDI in Russia? A spatial analysis|
|Keywords:||FDI, regional disparity, spatial econometrics, Russia|
|Subjects:||F - International Economics > F2 - International Factor Movements and International Business > F23 - Multinational Firms ; International Business
C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C31 - Cross-Sectional Models ; Spatial Models ; Treatment Effect Models ; Quantile Regressions ; Social Interaction Models
F - International Economics > F2 - International Factor Movements and International Business > F21 - International Investment ; Long-Term Capital Movements
R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R12 - Size and Spatial Distributions of Regional Economic Activity
|Depositing User:||Saime Kayam|
|Date Deposited:||31. May 2012 12:52|
|Last Modified:||09. Sep 2015 08:30|
Altomonte, C. (2008) Regional economic integration and the location of multinational firms, Review of World Economics, 143, 277-305.
Anselin, L. (1988) Spatial econometrics: Methods and models, Kluwer Academic Publishers, Boston.
Anselin, L. (1999) Spatial econometrics (mimeo) University of Texas at Dallas.
Baltagi, B.H., P. Egger and M. Pfaffermayr (2007) Estimating models of complex FDI: Are there third-country effects? Journal of Econometrics, 140, 260-281.
Bayulgen, O. (2005) Foreign investment, oil curse, and democratization: A comparison of Azerbaijan and Russia, Business and Politics, 7, Article 3.
Bevan, A. A. and Estrin, S. (2004). The determinants of foreign direct investment into European transition economies, Journal of Compaative Economics, 32, 775-787.
Blonigen, B. A. (2005) A review of the empirical literature on FDI determinants, NBER Working Paper Series, No. 11299.
Blonigen, B.A., R.B. Davies, G. R. Waddell and H. T. Naughton (2007) FDI in space: Spatial autoregressive relationships in foreign direct investment, European Economic Review, 51, 1303-1325.
Brenton P., F. Di Mauro and M. Lucke (1999) Economic integration and FDI: An empirical analysis of foreign investment in the EU and in Central and Eastern Europe, Empirica, 26, 95–121.
Broadman, H. G. and F. Recanatini (2001) “Where has all the foreign investment gone in Russia?” World Bank Policy and Research Working Paper No. 2640.
Brock, G. (1998) Foreign direct investment in Russia’s regions, 1993-95: Why so little and where has it gone?, Economics of Transition, 6, 349-360.
Brock, G. (2005) Regional growth in Russia during the 1990s-What role did FDI play?, Post-Communist Economies, 17, 319-329.
Buch C. M., R. M. Kokta and D.Piazolo, 2003. Foreign direct investment in Europe: Is there redirection from the South to the East? Journal of Comparative Economics, 31, 94-109.
Carstensen, K. and F. Toubal (2004) Foreign direct investment in Central and Eastern European Countries: A dynamic panel analysis. Journal of Comparative Economics, 32, 3-22.
Chakrabarti, A. (2003) A theory of the spatial distribution of foreign direct investment, International Review of Economics and Finance, 12, 149-169.
Cieslik, A. and M. Ryan (2004) Explaining Japanese direct investment flows into an enlarged Europe: A comparison of gravity and economic potential approaches. Journal of the Japanese and International Economies, 18, 12-37.
Coughlin, C.C. and E. Segev (2000) Foreign direct investment in China: A spatial econometric study, World Economy, 23, 1-23.
Eichengreen, B., & Tong, H. (2007). Is China’s FDI coming at the expense of other countries?, Journal of Japanese International Economies, 21, 153-172.
Fabry, N. and S. Zeghni (2002) Foreign direct investment in Russia: How the investment climate matters. Communist and Post-Communist Studies, 35, 289-303.
Hanson, G. H. (2005) Market potential, increasing returns and geographic concentration, Journal of International Economics, 67, 1-24.
Harris, C. D. (1954) The market as a factor in the localization of industry in the United States, Annals of the Association of American Geographers, 44, 315-348.
He, C. (2006) Regional decentralisation and location of foreign direct investment in China, Post-Communist Economies, 18, 33-50.
Head, K. and T. Mayer (2004) Market potential and the location of Japanese investment in the European Union, Review of Economics and Statistics, 86, 959-972.
Iwasaki, I. and K. Suganuma (2005) Regional distribution of foreign direct investment in Russia, Post-Communist Economies, 17, 153-172.
Krugman, P. R. (1992) A dynamic spatial model, NBER Working Papers 4219.
Ledyaeva, S. (2009) Spatial econometric analysis of determinants and strategies of foreign direct investment in Russian regions, World Economy, 32, 643-666.
LeSage, P. J. (1998) Spatial econometrics, Working Paper, Department of Economics, University of Toledo.
LeSage, P. J. (1999) The theory and practice of spatial econometrics, Working Paper, Department of Economics, University of Toledo.
LeSage, J. P. (2006) Spatial econometrics library, www.spatial-econometrics.com
Linneman, H. (1966) An econometric study of international trade flows, North Holland Publishing Company, Amsterdam. Pöyhönen, P. (1963) A tentative model for the volume of trade between countries, Weltwirtschaftliches Archiv, 90, 93-99.
Razin, A., Rubinstein, Y., & Sadka, E. (2004) “Which countries export FDI, and how much?”, HKIMR Working Paper No. 15/2004.
Rosstat (2004) Russian Regions, Social and Economic Indicators.
Rosstat (2005) Russian Regions, Social and Economic Indicators.
Rosstat (2007) www.gks.ru.
Tinbergen, J. (1962) Shaping the World Economy: Suggestions for an International Economic Policy, New York.
Yudaeva, K., K. Kozlov, N. Melentieva and N. Ponomareva (2000) Does foreign ownership matter? Russian experience, CEFIR Working Paper No.1.