FOREIGN DIRECT INVESTMENT IN RUSSIA AND IRAN UNDER WESTERN ECONOMIC SANCTIONS
- Authors: Rasoulinezhad E.1, Sabri P.1
-
Affiliations:
- University of Tehran
- Issue: Vol 10, No 1 (2019)
- Section: ECONOMICS
- URL: https://journals.ssau.ru/eco/article/view/7394
- DOI: https://doi.org/10.18287/2542-0461-2019-10-1-%25p
- ID: 7394
Cite item
Full Text
Abstract
This article discusses the trends and changes in foreign direct investment (FDI) in Iran and Russia under the economic sanctions of the West. Both countries have an oil economy that suffers from Western economic sanctions. Since FDI is an important economic indicator for these two countries, they tried to increase FDI even with economic sanctions. The results of this article concluded that Iran and Russia used three main strategies called «Turn East», «Economic Resistance» and «Attracting Investments» to reduce the negative impact of sanctions on FDI inflows. Also, we recommended using the potential of the Chinese project “One belt, one road”, as well as a higher level of economic cooperation between Iran and Russia, especially in the project of the Greater Eurasian Partnership and the North-South corridor.
Keywords
About the authors
Ekhsan Rasoulinezhad
University of Tehran
Author for correspondence.
Email: lioner97@mail.ru
Parisa Sabri
University of Tehran
Email: lioner97@mail.ru
References
- Расулинежад Э., Бузари Б. Тождественность и различия антисанкционных экономик в Иране и России // Вестник Самарского университета. Экономика и управление. 2018. Т. 9. № 1. С. 33–37 = Rasoulinezhad E., Buzari B. Tozhdestvennost’ i razlichiya antisanktsionnykh ekonomik v Irane i Rossii [Similarities and differences of anti-sanctions economies in Iran and Russia]. Vestnik Samarskogo Universiteta: Ekonomika i upravlenie [Vestnik of Samara University. Economics and Management], 2018, Vol. 9, no. 1, pp. 33–37 [in Russian].
- Putin Rides to Xi’s Rescue on Battered Silk Road as the West Stews. Bloomberg, 26.04.2019. Available at: https:// www.themoscowtimes.com/2019/04/26/putin-rides-to-xis-rescue-on-battered-silk-road-as-the-west-stews-a65397 [in English].
- Dyomkin D. (2014). Russia says firms leaving over sanctions can’t return soon. Available at: https://news.yahoo.com/ minister-warns-foreign-firms-against-leaving-russia-over-070851737.html [in English].
- Ershova N. Investment climate in Russia and challenges for foreign business: The case of Japanese companies.
- Journal of Eurasian Studies, 2017, (2), pp. 151–160 [in English].
- Fabry N., Zeghni S. Foreign direct investment in Russia: how the investment climate matters. Communist and Post-Communist Studies, 2002, 35 (3), pp. 289–303 [in English].
- Kalotay K., Sulstrarova A. Modelling Russian outward FDI. Journal of International Management, 2010, 16 (2), pp. 131–142 [in English].
- Iran, a strategic country on path of One-Belt-One-Road initiative. Mehr News Agency, 2.2.2019. Available at: https://en.mehrnews.com/news/142112/Iran-a-strategic-country-on-path-of-One-Belt-One-Road-initiative [in English].
- Producing 500m oil barrels, outcome of IPC 3rd contract. Mehr News Agency, 19.03.2018. Available at: https:// en.mehrnews.com/news/132921/Producing-500m-oil-barrels-outcome-of-IPC-3rd-contract [in English].
- Salim A., Razavi M.R., and Afshari-Mofrad M. Foreign direct investment and technology spillover in Iran: The role of technological capabilities of subsidiaries. Technological Forecasting and Social Change, 2017, 122, pp. 207– 214 [in English].
- Sharifi-Renani H., Mirfatah M. The Impact of Exchange Rate Volatility on Foreign Direct Investment in Iran.
- Procedia Economics and Finance, 2012, 1, pp. 365–[in English].
Supplementary files
