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Potential risks of attracting direct foreign investments to the formation of regional clusters

Author

Listed:
  • Galina Boush
  • Konstantin Grasmik
  • Maksim Pyatkov

    (Omsk State University named after F. M. Dostoyevsk)

Abstract

This paper discussesthe role ofdirectforeign investmentsin the processes of regionalclusters’ creation. The new type of clusters was identified - clusters that are created bytransnational corporations (TNCs)invitedinto the territory.The authors analyzedthe globalexperience of creatingclusters byforeign direct investmentof transnational corporations and found out thatthere is much evidence thatindicatesa weakeconomic potentialof such projects.A statisticalanalysis of economic indicators of several foreign regional clusters (of this type) showed that clustersof this typeare developedmainly due tomarket conditionsrather thanfrom its own resources. Correlationandregression analysisconfirmed the hypothesisofweak influence ofdirectforeign investment on economicpotentialof clustersin the early stagesof its development. The authors offer a set ofindicators to assessthe effectiveness ofclusters’ performancein case of a highdependency on a foreigninvestment.

Suggested Citation

  • Galina Boush & Konstantin Grasmik & Maksim Pyatkov, 2012. "Potential risks of attracting direct foreign investments to the formation of regional clusters," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(1), pages 118-127.
    • Handle: RePEc:ura:ecregj:v:1:y:2012:i:1:p:118-127
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    References listed on IDEAS

    as
    1. Inge Ivarsson, 1999. "Competitive Industry Clusters and Inward TNC Investments: The Case of Sweden," Regional Studies, Taylor & Francis Journals, vol. 33(1), pages 37-49.
    2. Irina Vazhenina & Sergey Vazhenin, 2010. "Algorithm for construction of regional agrarian-industrial clusters in the modernized economy," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(1), pages 129-136.
    3. N. A. Phelps, 2008. "Cluster or Capture? Manufacturing Foreign Direct Investment, External Economies and Agglomeration," Regional Studies, Taylor & Francis Journals, vol. 42(4), pages 457-473.
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    Cited by:

    1. Larisa Kapustina & Ľudmila Lipková & Oksana Falchenko, 2016. "Evaluation of Foreign Direct Investment Contribution in the Economic Development of Sverdlovsk Region and Russia," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(3), pages 741-754.

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