IDEAS home Printed from https://ideas.repec.org/a/arh/jrujec/v8y2022i2p174-188.html
   My bibliography  Save this article

MNEs and capital flight: The case of Russia

Author

Listed:
  • Alexander S. Bulatov

    (MGIMO University, Moscow, Russia)

Abstract

This paper studies the participation of Russian multinational enterprises (MNEs) in the flight of capital from the native country. It estimates the mid-annual size of capital flight from Russia in 2015–2020 via channels of its MNEs at 0.8% of GDP. Theoretically and methodologically, this paper concentrates on two groups of motives and prerequisites for this flight — generated by tax-avoidance motives and domestic economic imperfections which lead to tax evasion­ and the institutional escape of national capital. Macro and micro analysis based on the balance of payments and company cases confirms that Russian MNEs are actively participating in capital flight from the country.

Suggested Citation

  • Alexander S. Bulatov, 2022. "MNEs and capital flight: The case of Russia," Russian Journal of Economics, ARPHA Platform, vol. 8(2), pages 174-188, July.
    • Handle: RePEc:arh:jrujec:v:8:y:2022:i:2:p:174-188
    DOI: 10.32609/j.ruje.8.80358
    as

    Download full text from publisher

    File URL: https://rujec.org/article/80358/
    Download Restriction: no
    File URL: https://libkey.io/10.32609/j.ruje.8.80358?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Peter J. Buckley & Mark Casson, 1985. "The Economic Theory of the Multinational Enterprise," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-05242-4, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pavel E. Zhukov, 2023. "Capital Flight from Russia and Possible Sources of Financing Budget Expenditures," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 6, pages 27-42, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rybalko Yuliia S., 2014. "Holistic Approach of the Evolution Theory to TNC Genesis," Business Inform, RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS (KHARKIV, UKRAINE), Kharkiv National University of Economics, issue 2, pages 23-29.
    2. Tang Linghui, 2002. "Incomplete contracts And Vertically Integrated Multinational Enterprises," International Economic Journal, Taylor & Francis Journals, vol. 16(1), pages 127-138.
    3. Subramanian Rangan & Metin Sengul, 2009. "Information technology and transnational integration: Theory and evidence on the evolution of the modern multinational enterprise," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(9), pages 1496-1514, December.
    4. Clegg, Jeremy & Lin, Hsin Mei & Voss, Hinrich & Yen, I-Fan & Shih, Yi Tien, 2016. "The OFDI patterns and firm performance of Chinese firms: The moderating effects of multinationality strategy and external factors," International Business Review, Elsevier, vol. 25(4), pages 971-985.
    5. Sourafel Girma & Steve Thompson & Peter Wright, 2006. "International Acquisitions, Domestic Competition and Firm Performance," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 13(3), pages 335-349.
    6. Arvanitis, Spyros & Hollenstein, Heinz & Stucki, Tobias, 2016. "Does the explanatory power of the OLI approach differ among sectors and business functions? Evidence from firm-level data," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 10, pages 1-46.
    7. Christian Bellak, 1999. "Explaining Foreign Ownership By Comparative and Competitive Advantage: Empirical Evidence," Department of Economics Working Papers wuwp062, Vienna University of Economics and Business, Department of Economics.
    8. Roberto Basile & Anna Giunta & Jeffrey Nugent, 2003. "Foreign Expansion by Italian Manufacturing Firms in the Nineties: an Ordered Probit Analysis," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 23(1), pages 1-24, August.
    9. Mark Casson, 2018. "The Theory of International Business: The Role of Economic Models," Management International Review, Springer, vol. 58(3), pages 363-387, June.
    10. Iavor Marangozov, 2005. "From Practice to Theory of the International Joint Ventures," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 44-77.
    11. George Norman, 2009. "Internalization Revisited," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 165(1), pages 121-133, March.
    12. Chris Wagner, 2020. "Deducing a state-of-the-art presentation of the Eclectic Paradigm from four decades of development: a systematic literature review," Management Review Quarterly, Springer, vol. 70(1), pages 51-96, February.
    13. Maria Moschandreas, 1997. "The Role of Opportunism in Transaction Cost Economics," Journal of Economic Issues, Taylor & Francis Journals, vol. 31(1), pages 39-58, March.
    14. Galaso Reca, Pablo & García de la Cruz, José Manuel & Sánchez Díez, Angeles, 2016. "Mergers and acquisitions carried out by Spanish firms in Latin America: a network analysis study," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    15. Behl, Abhishek & Jayawardena, Nirma & Ishizaka, Alessio & Gupta, Manish & Shankar, Amit, 2022. "Gamification and gigification: A multidimensional theoretical approach," Journal of Business Research, Elsevier, vol. 139(C), pages 1378-1393.
    16. Gatignon, Aline & Gatignon, Hubert, 2010. "Erin Anderson and the Path Breaking Work of TCE in New Areas of Business Research: Transaction Costs in Action," Journal of Retailing, Elsevier, vol. 86(3), pages 232-247.
    17. Luo, Yadong & Tan, J. Justin, 1997. "How much does industry structure impact foreign direct investment in China?," International Business Review, Elsevier, vol. 6(4), pages 337-359, August.
    18. Henk Kox, 2001. "Exposure of the business services industry to international competition," CPB Document 10.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    19. Vachani, Sushil, 2005. "Problems of foreign subsidiaries of SMEs compared with large companies," International Business Review, Elsevier, vol. 14(4), pages 415-439, August.
    20. Pradhan, Jaya Prakash, 2007. "National Innovation System and the Emergence of Indian Information and Software Technology Multinationals," MPRA Paper 12359, University Library of Munich, Germany.

    More about this item

    Keywords

    MNE capital flight Russia internationalization theory motives of capital flight SOE;

    JEL classification:

    • F - International Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arh:jrujec:v:8:y:2022:i:2:p:174-188. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Teodor Georgiev (email available below). General contact details of provider: https://rujec.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.