Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212589 
Year of Publication: 
2006
Series/Report no.: 
BOFIT Discussion Papers No. 17/2006
Publisher: 
Bank of Finland, Institute for Economies in Transition (BOFIT), Helsinki
Abstract: 
Barro and Sala-I-Martin empirical framework of neoclassical Solow-Swan model is specified to determine the FDI impact on per capita growth in 74 Russian regions during period of 1996-2003.The Arellano-Bond GMM-DIFF methodology, developed for dynamic panel data models, is used in estimations.Results imply that in general FDI (or related investment components) do not contribute significantly to economic growth in Russia in the analyzed period. Regional growth in 1996-2003 is explained by the initial level of region's economic development, the 1998 financial crisis, domestic investments, and exports.However some evidence of positive aggregate FDI effects in higher-income regions is relevant.Another interesting result is that natural resource availability seems to be growth-inducing in rich regions, while in poor regions it is not significant.We also found convergence between poor and rich regions in Russia.However FDI seems not to play any significant role in the recent growth convergence process among Russian regions.
Subjects: 
Foreign Direct Investment (FDI)
Russian regional economy
and economic growth
JEL: 
E22
F21
P27
Persistent Identifier of the first edition: 
ISBN: 
952-462-842-2
Document Type: 
Working Paper

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