Foreign direct investment in Russia: how the investment climate matters

Abstract

Among European transition economies and the CIS, Russia is the largest country and has the most important endowment of natural resources, well-educated labour force, and large potential market. Paradoxically, Russia is one of the least attractive host countries in this region. This situation may generate a risk of economic marginalization. Our main task is to develop our understanding of FDI in Russia by asking a main question: Why is Russia an exception in the context of FDI globalization? Is Russia willing to stay outside the general trend of fierce competition for FDI and able to developed endogenously sustainable growth?

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