Why do Russian firms invest abroad? A firm level analysis

Centre d'Analyse Théorique et de Traitement des données économiques WHY DO RUSSIAN FIRMS INVEST ABROAD? A FIRM LEVEL ANALYSIS

Amar Iqbal Anwar (1) , Mazhar Mughal (2)

1 Cape Breton University
2 CATT - Centre d'Analyse Théorique et de Traitement des données économiques

This study examines the motives for Russian outward foreign direct investments (OFDI) around the world. Using firm-level data for Russian firms, home and host country economic, geographical, cultural and institutional drivers of Russian OFDI are analyzed. Findings show that Russian OFDI seems to be motivated by both the push and the pull factors. Results suggest market-seeking to be the main motive behind Russian outward foreign direct investments, followed by resource and technology acquisition, while efficiency-seeking does not appear to be a major objective. Compared with the pre-crisis period, Russian firms have been seeking more foreign investments since 2008. The study helps better understand the economic, geographical, cultural and institutional factors that Russian transnational corporations consider while planning investments abroad.

Keywords: 2008 financial crisis; Outward Foreign Direct Investment; Russia

Domains: Economics and Finance

Amar Iqbal Anwar, Mazhar Mughal. Why do Russian firms invest abroad? A firm level analysis. 2014. ⟨hal-01885147⟩