Impact of Foreign Direct Investment From Offshoring on the Efficiency of Russian Companies
https://doi.org/10.18288/1994-5124-2023-4-58-77
Abstract
This paper examines the impact of foreign direct investment (FDI) from offshoring and developed countries on the efficiency of Russian companies. The empirical basis for this analysis includes the financial performance of 18,804 domestic companies from 2013 to 2020, which provided 150,432 data points. The research methodology included panel regression and DEA data shell analysis, which enables comprehensive analysis of a company’s performance in comparison with other companies. Both horizontal and vertical spillover effects were determined in order to trace the effect of offshore companies. Horizontal spillover consists of the side effects on productivity that exclusively national firms are subject to when operating in the same industry alongside firms with foreign investment. Vertical spillover is due to reciprocal and direct links between foreign companies and their suppliers and buyers. This study indicates that efficiency measured in terms of spillover effects is greater for companies with FDI from white offshores than for companies with FDI from gray and black offshores. Furthermore, the efficiency of investment from developed countries in terms of spillover effects is greater than that of investment from gray and black offshores. The spillover effects from investment by gray and black offshores is negligible because of the return of capital. These results may be informative for the top management of Russian enterprises, shareholders, boards of directors, specialists from financial and tax services, analysts, the Ministry of Finance of the Russian Federation, the Federal Tax Service and other interested parties.
Keywords
spillover effect,
white offshores,
black and gray offshores,
returning capital,
theory of institutional arbitrage
JEL: E22, F21, F23, P45
About the Authors
E. A. Fedorova
Financial University Under the Government of Russian Federation
Russian Federation
Russian Federation
Elena A. Fedorova, Dr. Sci. (Econ.), Professor of the Department of Corporate Finance and Corporate Governance
49, Leningradskiy pr., Moscow, 125993
M. K. Tregubova
MegaFon PJSC
Russian Federation
Russian Federation
Mariya K. Tregubova
41, Oruzheynyy per., Moscow, 127006
V. G. Komletsova
Moscow Representative Office of Hines International, Inc.
Russian Federation
Russian Federation
Varvara G. Komletsova
11 Gogolevskiy bul., Moscow, 119019
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For citations:
Fedorova E.A., Tregubova M.K., Komletsova V.G. Impact of Foreign Direct Investment From Offshoring on the Efficiency of Russian Companies. Economic Policy. 2023;18(4):58-77. (In Russ.) https://doi.org/10.18288/1994-5124-2023-4-58-77
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