The value of waiting: Russia's integration into the international capital markets

Arbeitspapier

Capital flight has characterized the transformation process in Russia. Inflows of foreign direct investment have been minor and have been preceeded by inflows of portfolio capital. The paper shows that uncertainty about macroeconomic stabilization exhibits a strong negative effect on the volume of capital inflows when investment decisions are irreversible. Reducing uncertainty may but must not necessarily lead to more investment. The fact that monetary stabilization policies have not been accompanied by comprehensive institutional reforms can explain the pattern of Russia's capital flows in general and the dismal performance in attracting foreign direct investment in particular.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Year: 1998 ; Kiel: Institut für Weltwirtschaft (IfW)

Classification and Topics

• Classification: Wirtschaft ; Central Banks and Their Policies ; International Investment; Long-term Capital Movements ; International Monetary Arrangements and Institutions ; Open Economy Macroeconomics
• Subject: Direktinvestition ; Portfolio-Investition ; Optionspreistheorie ; Inflationsbekämpfung ; Wirtschaftspolitik ; Systemtransformation ; Standortfaktor ; Russland ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Buch, Claudia M. ; Heinrich, Ralph P. ; Pierdzioch, Christian
• Event: Veröffentlichung
• (who): Kiel Institute of World Economics (IfW) ; ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
• (where): Kiel
• (when): 1998

Further information

• Handle: http://hdl.handle.net/10419/47257
• Last update: 10.03.2025, 11:42 AM CET