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Russian capital in the Visegrád countries

Author

Listed:
  • Kalman Kalotay

    (UNCTAD)

  • Andrea Elteto

    (Institute of World Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences)

  • Magdolna Sass

    (Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences)

  • Csaba Weiner

    (Institute of World Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences)

Abstract
This working paper analyses investment by Russian firms in the four Visegrád countries, their motivations and ownership advantages, based mostly on the eclectic paradigm. Beside statistical data, we rely on case studies to present the profile of the most important Russian investors in each host country. The Visegrád countries have attracted less Russian investment than their economic importance would warrant, due to various factors, most notably the joint effects of reticence in host countries and firm strategies that do not necessarily see the subregion as a major priority. Most of the Russian investment examined is market, and to a lesser extent, resource seeking, concentrated in the hydrocarbons, steel and nuclear energy industries, often dominated by state-owned firms. Some innovative private Russian companies, with features similar to developed-country multinationals, can also be identified with marketas well as efficiency-seeking investment. Extant investment theories with the exception of the eclectic paradigm fall short of explaining Russian investment. This paper suggests that further analysis is needed on the role of the home country in stimulating outward investment and directing it to specific locations.

Suggested Citation

  • Kalman Kalotay & Andrea Elteto & Magdolna Sass & Csaba Weiner, 2014. "Russian capital in the Visegrád countries," IWE Working Papers 210, Institute for World Economics - Centre for Economic and Regional Studies.
  • Handle: RePEc:iwe:workpr:210
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    File URL: https://vgi.krtk.hu/publikacio/no-210-2014-12/
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Andrea Éltet? & Ágnes Szunomár, 2016. "Chinese investment and trade ? strengthening ties with Central and Eastern Europe," International Journal of Business and Management, International Institute of Social and Economic Sciences, vol. 4(1), pages 24-48, February.
    2. Éltető, Andrea & Sass, Magdolna & Kalotay, Kálmán & Weiner, Csaba, 2015. "Orosz befektetések a visegrádi országokban. Az elméletek temetője? [Russian investment in the Visegrád countries - a cemetery for extant theories?]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 565-586.
    3. Kuznetsov Alexey V. & Nevskaya Anastasia A., 2017. "Geography of FDI from Visegrad Countries in Russia," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 36(36), pages 107-115, June.
    4. Andreff, Wladimir & Andreff, Madeleine, 2017. "Multinational companies from transition economies and their outward foreign direct investment," Russian Journal of Economics, Elsevier, vol. 3(4), pages 445-474.

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    More about this item

    Keywords

    foreign direct investment; multinational enterprises; Central Europe; Russia; Czech Republic; Hungary; Poland; Slovakia;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration

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