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Energy Consumption, Trade Openness and Exchange Rate Impact on Foreign Direct Investment in Union State of Russia and Belarus

Author

Listed:
  • Dmitry Burakov

    (Department of Financial Markets and Banks, Financial University under the Government of the Russian Federation, Moscow, Russia,)

  • Maxim Intse

    (IFRS Division of Accounting Department, Joint Stock Company ALFA-BANK, Moscow, Russia,)

  • Max Freidin

    (Department of Marketing, Belarusian State Agricultural Academy, Mogilev region, Gorki, Belarus)

Abstract

In this paper we investigate the casual relationship between energy consumption, trade openness, exchange rate and foreign direct investment in Union State of Russia and Belarus for the period from 1997 to 2017. To test the hypothesis and explain the possible casual relations we use the error correction approach. Result of the conducted research show that in the short run trade openness and exchange rate affect foreign direct investment in positive and significant manner. In the long run, energy consumption, trade openness and exchange rate positively affect foreign direct investment.

Suggested Citation

  • Dmitry Burakov & Maxim Intse & Max Freidin, 2018. "Energy Consumption, Trade Openness and Exchange Rate Impact on Foreign Direct Investment in Union State of Russia and Belarus," International Journal of Energy Economics and Policy, Econjournals, vol. 8(4), pages 77-82.
    • Handle: RePEc:eco:journ2:2018-04-10
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    References listed on IDEAS

    as
    1. Arratibel, Olga & Furceri, Davide & Martin, Reiner & Zdzienicka, Aleksandra, 2011. "The effect of nominal exchange rate volatility on real macroeconomic performance in the CEE countries," Economic Systems, Elsevier, vol. 35(2), pages 261-277, June.
    2. Asiedu, Elizabeth, 2002. "On the Determinants of Foreign Direct Investment to Developing Countries: Is Africa Different?," World Development, Elsevier, vol. 30(1), pages 107-119, January.
    3. John Anyanwu, 2011. "Working Paper 136 - Determinants of Foreign Direct Investment Inflows to Africa, 1980-2007," Working Paper Series 327, African Development Bank.
    4. Agiomirgianakis, G. M. & Asteriou, D. & Papathoma, K., 2003. "The determinants of foreign direct investment: a panel data study for the OECD countries," Working Papers 03/06, Department of Economics, City University London.
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    Cited by:

    1. Zainab Fatima & Faisal Nadeem Shah & Bilal Bashir & Muhammad Shazeb, 2022. "Impact of Energy Consumption and Trade on CO2 Emission in Pakistan," Journal of Economic Impact, Science Impact Publishers, vol. 4(1), pages 99-105.
    2. Vladimir V. Olkhovik & Olga I. Lyutova & Edvardas Juchnevicius, 2022. "Economic Growth Models and FDI in the CIS Countries During the Period of Digitalization," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 2, pages 73-90, April.

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    More about this item

    Keywords

    Foreign direct investment; energy consumption; trade openness; exchange rate; error correction model;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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