The transnational corporations impact on the Russian economic growth

Abstract

This paper is devoted the study of transnational corporations role in the host country economy development and the business climate importance for attracting foreign direct investments and foreign affiliates of international companies. The purpose of this paper is to analyze the business climate, assess the impact of foreign TNCs on the economic development of the Russian Federation and give recommendations for improving the investment climate. In this paper the authors studied the activity of transnational corporations in the Russian economy, the dynamics of TNCs foreign affiliates “arrival” and the foreign direct investment inflows. A brief analysis of the Russian business climate was made. The paper provides the studies review about the impact of TNCs on the host country economic growth. The research about the impact of TNCs through foreign direct investment on the dynamics of Russian exports was made. The econometric model was used to study the foreign direct investments impact on the dynamics of Russian export flows. Finally, the recommendations to improve the foreign direct investments inflows were given.