Outward Investments from China and Russia: Macroeconomic and Institutional Perspective

A. Panibratov, L. Ermolaeva

Research output

Abstract

China is one of the strategic trade partners for Russia, and both countries are top investors among emerging economies. Surprisingly, this is not justified with the investigation of whether outward foreign direct investments (OFDI) from China and Russia differ from other economies and what are distinguishing characteristics of the OFDI originating from these two countries? Based on institutional theory we test the set of hypotheses concerning OFDI from China and Russia. We conduct panel regression analysis on the sample of Chines and Russian OFDI for the 2002-2012. The results show that informal institutions are more important for China than for Russia, whereas for Russian OFDI government plays guiding role. Moreover, our results contradict previous studies saying that less developed institutional environment is more attractive for firms from emerging markets; the rule of law variable shows positive significant coefficient for both countries. Nevertheless, traditional allocation of OFDI still remains importan
Original languageEnglish
PublisherИздательский Центр «Академия»
Publication statusPublished - 2015

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Outward foreign direct investment
Institutional perspective
Russia
China
Macroeconomics
Emerging economies
Strategic trade
Panel regression analysis
Coefficients
Informal institutions
Government
Rule of law
Emerging markets
Institutional environment
Investors
Institutional theory

Cite this

Panibratov, A., & Ermolaeva, L. (2015). Outward Investments from China and Russia: Macroeconomic and Institutional Perspective. Издательский Центр «Академия».
Panibratov, A. ; Ermolaeva, L. / Outward Investments from China and Russia: Macroeconomic and Institutional Perspective. Издательский Центр «Академия», 2015.
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abstract = "China is one of the strategic trade partners for Russia, and both countries are top investors among emerging economies. Surprisingly, this is not justified with the investigation of whether outward foreign direct investments (OFDI) from China and Russia differ from other economies and what are distinguishing characteristics of the OFDI originating from these two countries? Based on institutional theory we test the set of hypotheses concerning OFDI from China and Russia. We conduct panel regression analysis on the sample of Chines and Russian OFDI for the 2002-2012. The results show that informal institutions are more important for China than for Russia, whereas for Russian OFDI government plays guiding role. Moreover, our results contradict previous studies saying that less developed institutional environment is more attractive for firms from emerging markets; the rule of law variable shows positive significant coefficient for both countries. Nevertheless, traditional allocation of OFDI still remains importan",
keywords = "outward foreign direct investments (ofdi), institutional distance, russian economy, chinese economy, прямые иностранные инвестиции (пии), институциональная среда, российская экономика, китайская экономика, научные доклады",
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Panibratov, A & Ermolaeva, L 2015, Outward Investments from China and Russia: Macroeconomic and Institutional Perspective. Издательский Центр «Академия».

Outward Investments from China and Russia: Macroeconomic and Institutional Perspective. / Panibratov, A.; Ermolaeva, L.

Издательский Центр «Академия», 2015.

Research output

TY - BOOK

T1 - Outward Investments from China and Russia: Macroeconomic and Institutional Perspective

AU - Panibratov, A.

AU - Ermolaeva, L.

PY - 2015

Y1 - 2015

N2 - China is one of the strategic trade partners for Russia, and both countries are top investors among emerging economies. Surprisingly, this is not justified with the investigation of whether outward foreign direct investments (OFDI) from China and Russia differ from other economies and what are distinguishing characteristics of the OFDI originating from these two countries? Based on institutional theory we test the set of hypotheses concerning OFDI from China and Russia. We conduct panel regression analysis on the sample of Chines and Russian OFDI for the 2002-2012. The results show that informal institutions are more important for China than for Russia, whereas for Russian OFDI government plays guiding role. Moreover, our results contradict previous studies saying that less developed institutional environment is more attractive for firms from emerging markets; the rule of law variable shows positive significant coefficient for both countries. Nevertheless, traditional allocation of OFDI still remains importan

AB - China is one of the strategic trade partners for Russia, and both countries are top investors among emerging economies. Surprisingly, this is not justified with the investigation of whether outward foreign direct investments (OFDI) from China and Russia differ from other economies and what are distinguishing characteristics of the OFDI originating from these two countries? Based on institutional theory we test the set of hypotheses concerning OFDI from China and Russia. We conduct panel regression analysis on the sample of Chines and Russian OFDI for the 2002-2012. The results show that informal institutions are more important for China than for Russia, whereas for Russian OFDI government plays guiding role. Moreover, our results contradict previous studies saying that less developed institutional environment is more attractive for firms from emerging markets; the rule of law variable shows positive significant coefficient for both countries. Nevertheless, traditional allocation of OFDI still remains importan

KW - outward foreign direct investments (ofdi)

KW - institutional distance

KW - russian economy

KW - chinese economy

KW - прямые иностранные инвестиции (пии)

KW - институциональная среда

KW - российская экономика

KW - китайская экономика

KW - научные доклады

M3 - Commissioned report

BT - Outward Investments from China and Russia: Macroeconomic and Institutional Perspective

PB - Издательский Центр «Академия»

ER -

Panibratov A, Ermolaeva L. Outward Investments from China and Russia: Macroeconomic and Institutional Perspective. Издательский Центр «Академия», 2015.