What Causes the Regional Disparity of FDI in Russia? A Spatial Analysis

Saime Suna Kayam, Alexandr Yabrukov, Mehtap Hisarciklilar

Research output: Contribution to journalArticle

6 Citations (Scopus)

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.

Original languageEnglish
Pages (from-to)63-78
Number of pages16
JournalTransition Studies Review
Volume20
Issue number1
DOIs
Publication statusPublished - Apr 2013
Externally publishedYes

Keywords

  • FDI
  • Regional disparity
  • Russia
  • Spatial econometrics

ASJC Scopus subject areas

  • Development

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