FDI (Foreign Direct Investment) Into Russian Economical System

By

ACKNOWLEDGEMENT

It would not have been possible to narrate this thesis without the help and motivation of the gracious people around me, to only some of whom it is possible to give particular highlight here. First of all, I would like to express my sincere appreciation to my advisor for the continuous support of my study and research, for his endurance, enthusiasm and engross knowledge. His guidance helped me in all the time of research and writing for this thesis. Besides my advisor, I would like to thank the rest of my thesis committee [s] for their encouragement, perceptive comments and difficult questions. I thank my fellow research companions [names] for the stimulating discussions, for working together before deadlines and for the enlightening experiences. Last but not the least I would like to thank my family: [names] for supporting me and providing me insightful suggestions and ideas for working on this diversified project.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

Signed __________________ Date _________________

ABSTRACT

As opposed to domestic invest; foreign direct investment is a particular type of foreign capital. The activities of FDI are organized and controlled by the firms outside the nation where their principle markers are located and in which they are headquartered. International investment flows and trades provide a strong stimulus to expansion in individual countries and global economic growth. The aim of this paper is to provide an in-depth analysis of the foreign direct investment in Russian economical system. The quantitative research design is chosen as the research design of this study. Quantitative research design is chosen for this research study because the main theme of this research study is to examine the impact of macro economics factors on foreign direct investment in Russia. The correlation analysis showed a significant correlation between GDP, Employment and Inflation. Moreover, the positive correlation between GDP, Employment and Inflation showed that the relationship is positive. That is, increasing the value of Employment and Inflation would increase the value of Gross Domestic Product. The multiple regression analysis showed a significant effect of Inflation and Employment on Gross Domestic Product. This suggests that administrators should focus their efforts on Employment and Inflation because there is an appreciable effect on Gross Domestic Product. The growth of a country in the form of foreign direct investment (FDI) has recently increased a lot and is growing at a faster rate than most other transactions made nationally and internationally. For every small and medium sized companies of Russia FDI represent an opportunity to become more actively involved in international business and investment activities.

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Background of the Research Study1

Aims and Objectives of the Research Study1

Research Questions2

Significance of the Research Study2

Scope of the Research Study3

Structure of the Thesis3

Chapter Summary5

CHAPTER 2 LITERATURE REVIEW6

Introduction6

Theoretical ...