In the section Articles
Title of the article Foreign Direct Investment from China in the Regions of Russia: Are They Substitutes or Compliments of Foreign Trade?
Pages 67-86
Author Alina Nikolaevna Novopashina
Senior Lecturer; Junior Research Fellow
Amur State University; Economic Research Institute FEB RAS
21 Ignatyevskoe Road, Blagoveshchensk, Russia, 675027; 153 Tikhookeanskaya Street, Khabarovsk, Russia, 680042
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Abstract The study summarizes theoretical approaches explaining the conditions under which foreign direct investment (FDI) can complement or substitute foreign trade depending on investment incentives. The author examines the example of investment and trade cooperation between cross-border and internal regions of Russia and China. Using regression analysis of China’s FDI impact on the foreign trade of Russian regions with China the author concludes that cross-border regions can attract China’s FDI because of their comparative advantages. The paper also employs FDI localization ratios in cross-border and internal regions and the structure of China’s FDI by different activities. The study shows that FDI from China can complement foreign trade with China in cross-border regions. However internal regions attract FDI from China mostly because of access to their home markets, and in this case FDI are substitutes of foreign trade with China
Code 339.727.22+339.56
DOI 10.14530/se.2012.4.067-086
Keywords foreign direct investment ♦ foreign trade ♦ investment-complements of trade ♦ investmentsubstitutes of trade ♦ cross-border regions ♦ internal regions ♦ Russia ♦ China
Download SE.2012.4.067-086.Novopashina.pdf
For citation Novopashina A.N. Foreign Direct Investment from China in the Regions of Russia: Are They Substitutes or Compliments of Foreign Trade? Prostranstvennaya Ekonomika = Spatial Economics, 2012, no. 4, pp. 67-86. DOI: 10.14530/se.2012.4.067-086. (In Russian).
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Financing The article was prepared with the partial financial support of the RFBR grant No. 12-06-00134-а and the project of the Far Eastern Branch of the Russian Academy of Sciences No. 12-II-UO-10-019

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