Kudryashov V.S., Tetereva E.V. The Uniqueness of Foreign Investment in Terms of Sectoral and Territorial Characteristics in the Russian Federation

DOI: http://dx.doi.org/10.15688/jvolsu10.2016.1.3

 

Vadim Sergeevich Kudryashov

Candidate of Economic Sciences, Associated Professor,

Economics and Finance of Enterprises and Industries Department,

North-West Institute of Management of Russian Presidential Academy

of National Economy and Public Administration

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Dnepropetrovskaya St., 8, 190119 Saint Petersburg, Russian Federation

Elena Valeryevna Tetereva

Master Student,

Department of International Economics and Business Banking,

International Banking Institute

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Prosp. Nevsky, 60, 191011 Saint Petersburg, Russian Federation

Abstract. The Russian Federation represents the extensive territory with rich resources and rather developed (but unevenly placed) infrastructure. This characteristic has also created feature of attraction both foreign investments generally, and direct foreign capital investments in particular.

It should be noted that the Russian statistical year-book in official publications of investing activities does not include data of commercial banks in financial sector of economy that significantly distorts a situation in the investment market. As the financial sector of economy is also one of options for foreign capital investments, and generally this investment into the banking sector.

Direct foreign investments increase dependence of domestic economy on foreign partners, foreign banks increase a presence share in the domestic market, advance the products and realize economic policy of the “maternal” countries. However affiliated foreign credit institutions increase the importance not due to quantity, and due to quality and amount of the enclosed capital investments in several banks. It should be noted that it is much more important fees in the authorized capital, than other types of direct foreign investments. Further dynamics of PII in financial sector, namely, in a bank industry we will consider how in general, and on regions, we will construct the forecast and it is comparable with foreign experience.

Thus, it should be noted that foreign investors choose regions with the developed infrastructure and good transport communication, the competent personnel, perspective productions and the companies. In industry structure direct foreign investments arrive generally to the sphere of power industry, gazo-both oil-extracting industries and the processing productions. However, till 2014 foreign investors also preferred to invest in financial sector, for example, to the bank sphere. As it allowed or to advance sales in the holdings (automotive industry and car loans), or to absorb less strong banks and to win an essential share in the Russian market.

Key words: direct foreign investments, banking sector, constituent territories of Russian Federation, economic sectors, investment project.

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The Uniqueness of Foreign Investment in Terms of Sectoral and Territorial Characteristics in the Russian Federation by Kudryashov V.S., Tetereva E.V. is licensed under a Creative Commons Attribution 4.0 International License.

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