Foreign Direct Investment in Russia and Lessons for China

This article examines the history, trends, geographical and sectoral preferences, and policy issues of foreign direct investment (FDI) in Russia. Most of the obstacles to FDI in Russia are institutional. The following institutional aspects are reviewed: government restrictions, trade-related investment measures (TRIMs), customs, bureaucracy, legal FDI framework, labor issues, taxation, partnerships with firms, corruption, and crime. The discussion ends with a comparative note on FDI in China.