Export Competitiveness and FDI Performance across the Regions of the Russian Federation
The Russian Federation's regions not only have highly uneven degrees of development, they also have very uneven degrees of foreign orientation. Regions with the highest foreign orientation--exports of goods per capita or inbound foreign direct...
| Main Authors: | , , , |
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2016/09/26785275/export-competitiveness-fdi-performance-across-regions-russian-federation http://hdl.handle.net/10986/25122 |
| Summary: | The Russian Federation's regions
not only have highly uneven degrees of development, they
also have very uneven degrees of foreign orientation.
Regions with the highest foreign orientation--exports of
goods per capita or inbound foreign direct investment per
capita—almost across the board have the highest standard of
living; and those with the lowest foreign orientation
generally have the lowest. In this paper, the Russian
federal regions are grouped into three categories--lagging,
middle-range, and leading--according to real per capita
gross regional product. Leading regions seem to be those
specialized in mineral exports; lagging regions are not. In
addition, the richest regions tend to have high per capita
exports, high foreign direct investment, or both;
middle-range regions with relatively higher incomes often
have high per capita non-mineral exports. Russia's
lagging regions have much more tenuous international
engagements than the rest of Russia in exports and foreign
direct investment. These findings suggest that foreign
orientation is an important determinant of socioeconomic
development and could be an important item on Russia's
regional policy agenda. Such policies might have a variety
of objectives: (1) earning income (export goods in which
Russia has traditionally had a comparative advantage); (2)
diversification and economic stability (minimize risk from
drops in oil prices or crises in individual markets and add
exports for which demand is likely to be steady over the
medium term); (3) technological upgrading (move to more
sophisticated goods with greater innovation content); and
(4) regional development (promote the uplift of lagging
regions). Each of these motives has a different profile of
goods exported, regions, and most closely associated
destination markets. |
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