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Financial Analytics: Science and Experience
 

Evaluating the efficiency of foreign direct investment: A cross sectoral comparison

Vol. 9, Iss. 41, NOVEMBER 2016

PDF  Article PDF Version

Received: 6 October 2016

Received in revised form: 12 October 2016

Accepted: 19 October 2016

Available online: 17 November 2016

Subject Heading: INNOVATION AND INVESTMENT

JEL Classification: F21, F37

Pages: 11-23

Fedorova E.A. Financial University under Government of Russian Federation, Moscow, Russian Federation
ecolena@mail.ru

Fedorov F.Yu. Financial University under Government of Russian Federation, Moscow, Russian Federation
fedorovfedor92@mail.ru

Nikolaev A.E. AO Gidromashservis, Moscow, Russian Federation
alexed.nik@gmail.com

Afanas'ev D.O. Financial University under Government of Russian Federation, Moscow, Russian Federation
dmafanasyev@gmail.com

Importance The research evaluates the efficiency of companies having foreign direct investment in line with industry specifics.
Objectives The research pursues ranking the industries that handle foreign direct investment in the most effective way.
Methods The research involves methods of analysis that draws upon performance indicators (profitability) and technological efficiency (DEA analysis). We also used financial statements of the Russian companies that work with foreign direct investment.
Results General profitability decreases over time, with profitability of assets being negative in 2014. It results from anti-Russian sanctions, including the restriction of foreign direct investment.
Conclusions and Relevance Foreign direct investment has a positive effect on the Russian economy, and their restriction caused a reduction in performance indicators of the Russian companies. The average efficiency of the industry confirms that foreign direct investment has a positive effect in each industry, and its restriction will affect industries respectively.

Keywords: foreign direct investment, efficiency, spillover effect, industry, rating

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