Foreign direct investment spillovers in the Russian economy: The results of empirical estimation

The paper is devoted to the foreign direct investment (FDI) spillovers in the Russian economy. Using the database on 29,817 Russian enterprises for the period of 2006—2014, we empirically estimate FDI spillovers on both intra-industry and inter-industry levels. We show that the intra-industry effects and upstream inter-industry effects have the non-linear U-shape dependence on the share of foreign companies in the industry, while downstream inter-industry effects are linear and negative. Analysing regional factors influencing FDI spillovers in the Russian economy, we find stronger effects in the regions with higher level of human capital and higher level of innovation activity. We do not find the proof for the hypothesis that FDI spillovers are stronger in the western part of Russia comparing to the eastern part.