Publication

This paper examines the question of why Russia has failed to attract noteworthy amounts of foreign direct investment (FDI) despite liberalization of its economy. It first discusses several determinants of FDI such as macroeconomic performance, political risk and administrative mechanisms. Secondly, the paper assesses Russia's development with respect to these determinants. The author points out that since Vladimir Putin took office as Russia's president in 2000, the country has attracted huge capital flows compared to the 1990s.