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Foreign Direct Investment and Democratic Development in the Russian Provinces: A Preliminary Analysis
Author(s) -
StonerWeiss Kathryn
Publication year - 2000
Publication title -
policy studies journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.773
H-Index - 69
eISSN - 1541-0072
pISSN - 0190-292X
DOI - 10.1111/j.1541-0072.2000.tb02017.x
Subject(s) - foreign direct investment , elite , democracy , politics , incentive , foreign policy , investment (military) , political science , political economy , development economics , economics , international trade , market economy , economic system , law
Foreign investment in Russia has consistently lagged behind East European countries throughout the last decade. Although formidable obstacles to attracting foreign investment remain throughout the country, some of Russia's 89 provinces have been more successful than others in creating attractive investment environments. One reason for this varied success may be related to the degree of economic and political elite consensus that exists in some regions. This, in turn, may help in the formulation of incentives to attract foreign investors. However, the political consensus that helps to establish a stable policy environment for foreign investment may well imperil pluralistic political development in the long run. Thus, we must be wary of conflating foreign investor interest with liberal politics and democratic development in Russia's regions.