What determines foreign direct investment in Russia?

Explanatory variable: FDI_t	(1)	(2)
GDP	16.33^*** (2.352)	14.71^*** (4.404)

BRE	−1.08^** (0.355)	−1.24^** (0.540)

RER	1.70^** (0.556)	1.84^* (1.145)

LAB	−0.141^*** (0.037)	−1.110 (0.072)

OPN	−5.55^** (2.295)	−6.91 (5.599)

SAN	−1.10^*** (0.250)	−1.26^*** (0.372)

TAX	8.48^*** (2.140)	6.20^* (3.672)

Const	−103.97^*** (14.856)	−94.01^*** (28.781)

Wald c² (7)		84.79

Prob > c²		0.000

Durbin–Watson d-statistic		1.72^***
R²	0.88	0.89

Note: Robust standard errors in parentheses.

Source: The author.

* p < 0.1,

** p < 0.05,

*** p < 0.01.

Table A1

Sample of years used in the estimation.

Sample

1995, 1996, 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017

[i] Source: The author.

Table A2

Description of variables.

FDI	Inward FDI measured in constant 2010 US$ dollars, log	World Bank database
GDP	Russia's GDP measured in constant 2010 US$ 2,010 dollars, log	World Bank database
BRE	BRENT crude oil price in dollars per barrel, log	United States Energy Information Administration
RER	Real effective exchange rates as weighted averages of bilateral exchange with US$ dollar adjusted by relative consumer prices, measured as index, 2010 = 100, log	Bank for International Settlements
OPN	Own elaboration based on values of GDP, Import and Export, measured in percentage points, log	World Bank database
SAN	Own elaboration, dummy variable to account for the effect of Western sanctions on the economy of Russia, measured as 0 or 1	Own elaboration
TAX	Corporate income tax rate, measured in percentage points	Tax code of Russia
LAB	Labour productivity, GDP per hour, measured in constant 2010 US$ dollars, log	OECD database

[i] Source: The author.

Table A3

Summary statistics of variables.

Variables	Mean	Std. Dev.	Minimum	Maximum
GDP	1,303.91	324.86	813.02	1,706.43

BRE	54.06	33.48	12.76	111.57

RER	81.56	16.57	48.09	106.67

OPN	45%	0.06	37%	59%

SAN	0.14	0.34	0	1

TAX	26%	0.06	20%	35%
LAB	86.01	16.64	63.26	107.63

[i] Source: The author.

Table A4

Correlations between variables.

Variables	GDP	BRENT	RER	OPN	SAN	TAX	LAB
GDP	1

BRENT	0.85	1

RER	0.75	0.87	1

OPN	0.92	0.78	0.76	1

SAN	0.52	0.12	0.08	0.53	1

TAX	−0.89	−0.71	−0.63	−0.82	−0.40	1
LAB	0.73	0.87	0.79	0.94	0.50	−0.88	1

[i] Source: The author.

References

Authors

Metrics

Articles in this issue

DOI: https://doi.org/10.2478/ceej-2019-0016 | Journal eISSN: 2543-6821 | Journal ISSN: 2544-9001

Journal RSS Feed

Language: English

Page range: 311 - 322

Published on: Jul 8, 2020

Published by: Faculty of Economic Sciences, University of Warsaw

In partnership with: Paradigm Publishing Services

Keywords:

foreign direct investment,

economic transition,

Russia

JEL:

F23,

P33

Related subjects:

Business and economics,

Political economics,

Economic theory, systems and structures,

Microeconomics,

Macroeconomics,

Economic policy

© 2020 Oleg Gurshev, published by Faculty of Economic Sciences, University of Warsaw
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Volume 6 (2019): Issue 53 (January 2019)