Import and Export of Capital: Effects for Russia

DOI: 10.20542/0131-2227-2015-1-63-76

I. Kvashnina, Institute of Economics, Russian Academy of Sciences, 32, Nakhimovskii Prosp., Moscow, 117218, Russian Federation (
V. Obolenskii, Institute of World Economy and International Relations, Russian Academy of Sciences (IMEMO RAN), 23, Profsoyuznaya Str., Moscow, 117997, Russian Federation (

Abstract. In recent years Russian Federation has become one of the leading exporters and importers of capital in the world. The article reviews Russia’s place in the cross-border capital movement, the dynamics and structure of incoming and outgoing foreign direct investment (FDI), and of other types of investment, such as portfolio investment, bank and other loans, international reserves. The main effects of Russia’s capital exchange with the world on domestic economy are estimated. It is stressed that FDI somewhat contributed to the economic growth, diversification of production and productivity. At the same time, the advantages of FDI for modernization of industry were substantially underutilized. The private capital outflow reflects the intention of Russian leading companies to become global international corporations and to participate in the global value chains. However, this slows capital accumulation inside the country, therefore, preventing technological modernization of production and, as a consequence, an increase of enterprises’ competitiveness. Significant portion of capital export is illegal or “grey”. The authors conclude that the optimal model of capital exports and imports can be achieved only by crucial improvement of investment climate in this country. Special attention is paid to institutional changes carried out in recent years to improve business and investment climate in Russia. At the same time, it is shown that even if there is no radical change in business environment, the government and the companies are able to make extra investment inside the country. The article outlines the main directions and barriers for further development of capital movement components.

Keywords: Russia, capital, cross-border movement, ambiguous effects, investment climate

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For citation:
Kvashnina I., Obolenskiy V. Import and Export of Capital: Effects for Russia. World Eonomy and International Relations, 2015, No 1, pp. 63-76.

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