ABSTRACT
SUMMARY. Since the beginning of the transition from centrally planned to market economy, the FDI outflows of the Russian Federation have consistently exceeded the inflows. In the 1990s, most of the outflows were of an informal nature, and unregistered in the balance of payments, or misregistered under other items. Since 2003, their recording has improved. However, the question remains: how can a lower-middle income country become a net capital exporter? It is supposed to be the combined result of economic and political factors such as the economic and business environment, still deemed to be difficult. The fact that the 'oligarchy' created under the presidency of Boris Yeltsin (1991-1999) continues to control large parts of the privatized natural resources of the country also stimulated capital exporting behavior. With the political changes currently taking place, only a limited increase in the influence of the State is expected to happen. Moreover, the strategic interest of Russian firms to control their vertical value chains through outward FDI is expected to remain in the longer term. [Article copies available for a fee from The Haworth Document Delivery Service: 1-800-HAWORTH. E-mail address: <docdelivery@haworthpress.com > Website: < https://www.HaworthPress.com > © 2005 by The Haworth Press, Inc. All rights reserved.]
