FDI and Long-Term Economic Growth in Russia

30 Pages Posted: 24 Apr 2014

See all articles by Boris Taganov

Boris Taganov

Russian Presidential Academy of National Economy and Public Administration

Date Written: April 23, 2014

Abstract

In this paper we consider relationship between foreign direct investment (as one of the mechanisms of technological development) and long-term economic growth. In the beginning we discuss the role of FDI in the increase of total factor productivity from the viewpoint of endogenous growth theory. We then turn to the comparative analysis of FDI inflow to Russia and other countries broken down by economic industries. We find that Russian industries capable of increasing TFP and positively impacting the long-term economic growth are significantly underinvested relative to other countries. Since, in our opinion, pre-existing sources of Russia’s economic growth are almost completely exhausted, we suggest several economic policy measures aimed at attracting FDI in Russia and improve the absorptive capacity of the country.

Keywords: FDI, TFP, economic growth, human capital, economic policy

JEL Classification: E66, F21, O15, O43

Suggested Citation

Taganov, Boris, FDI and Long-Term Economic Growth in Russia (April 23, 2014). Available at SSRN: https://ssrn.com/abstract=2428188 or http://dx.doi.org/10.2139/ssrn.2428188

Boris Taganov (Contact Author)

Russian Presidential Academy of National Economy and Public Administration ( email )

Vernadskogo Prospect 82
Moscow, Moscow 119571
Russia

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
152
Abstract Views
903
Rank
349,069
PlumX Metrics