Russian and Chinese OFDI. Drivers and determinants for FDI exchange

Abstract

Foreign Direct Investment is becoming a distinguishing feature of modern world and is increasingly attracting interest of scholars. It is indeed so when it comes to the emerging economies’ interaction with FDI flows and especially true for investment flows between the emerging economies. The current study focuses on the FDI exchange between Russia and China and sees its goal in exploration and elaboration of the patterns and determinants of FDI exchange between the two countries. The sub-questions current study is facing with also consider the revealing of Russian and Chinese OFDI peculiarities and, consequently, comparison of the FDI exchange features to the general outward investment trends of two countries. The results show that the capital exchange between Russia and China has some distinguishing features, making it different from the two countries’ investment in the rest of the world. The research has also distinguished the need to pay particular attention to the home-country conditions and features, which are specific for this case of FDI exchange and are usually outside of the general FDI theory, in order to adequately describe FDI exchange between Russia and China.