Does foreign ownership matter? The Russian experience

Ksenia Yudaeva*, Konstantin Kozlov, Natalia Melentieva, Natalia Ponomareva

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

125 Citations (Scopus)


The paper both compares productivity of Russian firms that have foreign direct investments with productivity of fully domestically owned firms and analyses spillovers from foreign-owned firms to domestic firms. Foreign firms are found to be more productive than domestic ones, but productivity of the former is negatively affected by slow progress of reforms in the regions where they operate. It is also found that there are positive spillovers from foreign-owned firms to domestic firms in the same industry, but negative effects on domestic firms that are vertically related to foreign-owned firms. The stock of human capital in regions where foreign firms operate is one of the factors which help domestic firms to benefit from the entry of foreign firms.

Original languageEnglish
Pages (from-to)383-409
Number of pages27
JournalEconomics of Transition
Issue number3
Publication statusPublished - 2003
Externally publishedYes


  • Foreign direct investment
  • Spillovers


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