Russian Capital in the Visegrád Countries

Hungarian Academy of Sciences, Centre for Economic and Regional Studies Working Paper No. 210

57 Pages Posted: 10 Dec 2014

See all articles by Kalman Kalotay

Kalman Kalotay

United Nations Conference on Trade and Development (UNCTAD); UNCTAD

Andrea Éltető

Institute of World Economics, Centre of Economic and Regional Studies, Hungarian Academy of Sciences

Magdolna Sass

Hungarian Academy of Sciences (HAS) - Research Centre for Economic and Regional Studies (HAS)

Csaba Weiner

Hungarian Academy of Sciences (HAS) - Institute of World Economics

Date Written: December 9, 2014

Abstract

This working paper analyses investment by Russian firms in the four Visegrád countries, their motivations and ownership advantages, based mostly on the eclectic paradigm. Beside statistical data, we rely on case studies to present the profile of the most important Russian investors in each host country. The Visegrád countries have attracted less Russian investment than their economic importance would warrant, due to various factors, most notably the joint effects of reticence in host countries and firm strategies that do not necessarily see the subregion as a major priority. Most of the Russian investment examined is market, and to a lesser extent, resource seeking, concentrated in the hydrocarbons, steel and nuclear energy industries, often dominated by state-owned firms. Some innovative private Russian companies, with features similar to developed-country multinationals, can also be identified with market as well as efficiency-seeking investment. Extant investment theories with the exception of the eclectic paradigm fall short of explaining Russian investment. This paper suggests that further analysis is needed on the role of the home country in stimulating outward investment and directing it to specific locations.

Keywords: foreign direct investment, multinational enterprises, Central Europe, Russia, Czech Republic, Hungary, Poland, Slovakia

JEL Classification: D22, F23, M16

Suggested Citation

Kalotay, Kalman and Éltető, Andrea and Sass, Magdolna and Weiner, Csaba, Russian Capital in the Visegrád Countries (December 9, 2014). Hungarian Academy of Sciences, Centre for Economic and Regional Studies Working Paper No. 210. Available at SSRN: https://ssrn.com/abstract=2535997 or http://dx.doi.org/10.2139/ssrn.2535997

Kalman Kalotay (Contact Author)

United Nations Conference on Trade and Development (UNCTAD) ( email )

Division on Investment, Technology and Enterprise
Palais des Nations
Geneva, 1211
Switzerland

UNCTAD ( email )

Division on Investment, Technology and Enterprise
Palais des Nations
Geneva, 1211
Switzerland

Andrea Éltető

Institute of World Economics, Centre of Economic and Regional Studies, Hungarian Academy of Sciences ( email )

Hungary

Magdolna Sass

Hungarian Academy of Sciences (HAS) - Research Centre for Economic and Regional Studies (HAS) ( email )

7621 Pécs, Papnovelde u. 22
Budapest, H-1112
Hungary

Csaba Weiner

Hungarian Academy of Sciences (HAS) - Institute of World Economics ( email )

Tóth Kálmán utca 4
Budapest, 1097
Hungary

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