• Like
Fdi in russia
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

Published

Fdi in russia

Fdi in russia

Published in Travel , Business
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
1,904
On SlideShare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
59
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. FDI IN RUSSIAReport in 2010 GROUP: Vu Khanh Linh Tran Thi Ly Ly Nguyen Dieu Thu Le Thi Thu Trang
  • 2. ContentI. IntroductionII. Pattern of FDI in RussiaIII. Determinant of FDI in RussiaIV. ConclusionV. Preferences
  • 3. I. Introduction• Foreign direct investment (FDI)• FDI provides a package of financial capital, technology, managerial skills, information, and goods and services that can make an economy more competitive in the world marketplace, promoting growth and reducing poverty.
  • 4. About Russia Facts•Full name: Russian Federation•Population: 142.8 million (2011)•Capital: Moscow•Area: 17 million km 2•Major language: Russian•Main exports: Oil and oilproducts, natural gas, wood andwood products, metals,chemicals, weapons and militaryequipment
  • 5. RUSSIA ECONOMY The collapse of the Soviet Union: A globally-isolated economya market-based economy A centrally-planned economya globally-integrated eco Economic reforms in the 1990s privatized most industry notable exceptions in the energy, defense-related sectors In 2009 1 natural gasRussia is now the largestnon-EU economy in Europe and 2 oilone of the 10 largest economies 3 steelin the world. primary aluminum less competitive heavy industries remain dependent on the Russian domestic market
  • 6. RUSSIA AS AN ATTRACTIVE NATION
  • 7. RUSSIA AS AN ATTRACTIVE NATION 1. Dynamic Economic Growth 2. One of the Largest Consumer Markets 3. World-Renowned Human Capital 4. Vast Natural Resources 5. Unique Geographic Position 6. Technologically Advanced Economy 7. Attractive Taxation System
  • 8. II. Pattern of FDI in Russia 1. RUSSIA – AN ATTRACTIVE DESTINATION OF FDI IN EUROPERussiaamongEuropeancountries
  • 9. II. Pattern of FDI in Russia 1. RUSSIA – AN ATTRACTIVE DESTINATION OF FDI IN EUROPETop citiesfor FDI inEurope
  • 10. II. Pattern of FDI in Russia1. RUSSIA – AN ATTRACTIVE DESTINATION OF FDI IN EUROPE FDI inflows in the Russian Federation from 1996 to 2010
  • 11. II. Pattern of FDI in Russia 2. FDI DISTRIBUTION IN THE ECONOMY2.1. FDI distribution by economic activities2.2. FDI distribution by investors2.3. FDI distribution by regions
  • 12. 2.1 FDI distribution by economic activities Russia’s great potential in various economic activities.
  • 13. 2.2 FDI distribution by investors Table 4: Total Foreign Investment in the Russian Federation by main country – main investors in 2010 Million of PercentageTotal foreign USD of totalinvestment into Total investments 114746 100Russia by maincountries of which by countries: United Kingdom 40770 35.5 Netherlands 10696 9.3 Germany 10435 9.1 Cyprus 9003 7.8 China 7631 6.7 Luxembourg 5374 4.7 Switzerland 4679 4.1 France 3702 3.2 Ireland 2557 2.2 Virginian Islands (UK) 2383 2.1 Source: Federal State Statistics Service, 2012, table 24.11
  • 14. 2.2 FDI distribution by investorsChanges in the FDI intoRussia by investors2010 - 2011
  • 15. 2.3. FDI distribution by region since 200762% of the FDI concentrated in four regions:2. Moscow (44.2%)3. Moscow Oblast (9.8%)4. St. Petersburg (5.3%)5. Leningrad Oblast (2.7%).6. Other regions (<2.5%)
  • 16. III. Determinants of FDI Brock (1998) market size and the crime situation FDI1 education of the labour force only influenced FDI decisions determinants (1993-1995) for the Moscow and St. Petersburg regions.
  • 17. III. Determinants of FDI Broadman & market size, the extent of infrastructure development Recanatini and prevailing policy frameworks (2001)2 Their model excellently capture cross-regional variation in determinants of FDI inflows FDI flows from 1995-1998, loses its explanatory power (1995-1999) after the 1998 crisis.
  • 18. III. Determinants of FDI3 Iwasaki and resource endowments, market factors, degree of Suganuma industrialization and infrastructure factors (2005) FDI inflow business climate and regionally favorable FDI measures (1996-2003). may affect investment.
  • 19. III. Determinants of FDI 4 Ledyaeva and Linden (2006) the determinants of the number of foreign firms registered in 2002. Gross products of host regions and source countries, agglomeration effect, Moscow city advantages, cultural closeness and an abundance of skilled labor The distance between host regions and source countries is negatively related to the dependent variable
  • 20. III. Determinants of FDI Svetlana Ledyaeva (2007) Market size, the presence of big cities and sea the determinants and ports, oil and gas resources and political and5 spatial relationships of legislative risks FDI inflows into Russian regions more suitable in accordance with the situation in during transition recent years (1996-2005)
  • 21. The determinants and spatial relationships of FDI inflows into Russian regions during 1996-2005 by Svetlana Ledyaeva (2007) ----------------------------------------------------------1. Leading determinantsin this analysis include: Big market size(population, variousmarkets in the economy)
  • 22. The determinants and spatial relationships of FDI inflows into Russian regions during 1996-2005 by Svetlana Ledyaeva (2007) ---------------------------------------------------------- Big city advantages: • Abundant resources (Sakhalin has oil and gas, Magadan has gold and coal and Khabarovsk has big gold and forest resources…) • Skilled labour force (in Moscow, Leningrad and St. Petersburg) • Transportation infrastructure (sea ports in Primorskii, Sakhalin and Krasnodar)
  • 23. The determinants and spatial relationships of FDI inflows into Russian regions during 1996-2005 by Svetlana Ledyaeva (2007) ----------------------------------------------------------  The intensive development of oiland gas minefields in Sakhalin region has been largely funded under production sharing agreements (PSA) in recent years => The Sakhalin and Tyumenregions are the most strategicallypromising oil and gas regions inRussiaTheir attractiveness to foreigninvestors has gained along with risingworld oil and gas prices
  • 24. The determinants and spatial relationships of FDI inflows into Russian regions during 1996-2005 by Svetlana Ledyaeva (2007) ----------------------------------------------------------2. Other determinants: Vertical FDI strategies in resources industries and the fast development of export-oriented fuel industry
  • 25. The determinants and spatial relationships of FDI inflows into Russian regions during 1996-2005 by Svetlana Ledyaeva (2007) ---------------------------------------------------------- A flexibly developing legal framework: “Foreign Investment Law” in 1991 Elaborate framework in 1999 “Labor code” in 2002 “Capital Flow” in 2006 …Russia owns one of the lowest tax rates in Europe
  • 26. The determinants and spatial relationships of FDIFDI inflows into The determinants and spatial relationships of inflows into Russian regions during 1996-2005 by Svetlana Ledyaeva (2007) Russian regions during 1996-2005 by Svetlana Ledyaeva (2007) ---------------------------------------------------------- ----------------------------------------------------------3. Some policy implications: Export tariff policies Import tariff policies
  • 27. IV. Conclusion•Russia is now the largest non-EU economy in Europe and one of the10 largest economies in the world.•Main exports: Oil and oil products, natural gas, wood and woodproducts, metals, chemicals, weapons and military equipment•Russia is an attractive nation - the 4th favorable destination of FDI inEurope. Moscow was the 7th out of 10 European cities attracting FDI(2010)•Russia has great potential in various economic activities. Industry - thestrong point of Russia’s economy•Determinants of FDI
  • 28. IV. Preference• Ernst & Young’s (2011), “Ernst & Young’s European attractiveness survey, FDI in Europe”.• Federal State Statistics Service, Investment, April 6, 2012• The World Bank, world development indicators, foreign direct investment, net inflows, April 6,2012• Luscio Vinhas de Souza (2008), “ECFIN Country focus, foreign investment in Russia”, volume 5, issue 1.• Tullio Buccllato and Francesco Santangelo (2009), “FDI distribution in the Russian Federation: Do spatial effects matter?”, appendix table 2.• Svetlana Ledyaeva, BOFIT Discussion Papers (15 / 2007) “Spatial econometric analysis of determinants and strategies of FDI in Russian regions in pre- and post-1998 financial crisis periods”
  • 29. Thank you for your attention ! GROUP: Vu Khanh Linh Tran Thi Ly Ly Nguyen Dieu Thu Le Thi Thu Trang