Content №4 от 2020
Investment and cross-border cooperation in the East of Russia
This article may be viewed as another chapter in an ongoing discussion among researchers about the role of the Far Eastern institutional transformation after 2013 in Eastern Russia’s development against the background of cross-border economic relationships. We consider the dynamics offoreign direct investment (FDI), including that for the major industries.
Our calculations show no correlation between FDI volumes and economic growth rates in the eastern regions of Russia. During the period under review, FDI-based cross-border cooperation had little effect on economic diversi-fication in the eastern regions. In most, the majority of investment was allocated to the mineral resources sector. Since 2015, the FDI share in manufacturing, agriculture, construction, trade, hotels and restaurants, and the entertainment industry has generally been no more than 1% of the national total in the relevant sectors.
There is no reason to believe that by now, FDI, stimulated by the creation of new Far Eastern institutions, has contributed significantly to a modern high-tech economy in Eastern Russia. The “Far Eastern ” institutional trans-formation has not changed the “extractive ” nature of economic (andpolitical) institutions. Economic preferences for the Russian East help attract investment, to some extent, but mainly if supported by the federal budget and state guaran-tees. We believe that the gradual transformation of institutions toward their “inclusiveness” is becoming a primary task. Institutional design in the eastern regions requires, besides political will, active involvement of the scientific community.
Glazyrina I. P. iglazyrina@bk.ru
