Analysis of the composition and trends of international investment flows in Russia in 2005 - 2013

Abstract

The paper gives a comprehensive analysis of the main categories of cross-border investment dynamics recorded in the balance of payments of the Russian Federation, including a detailed analysis of the capital flows classified by major instruments. Th e author describes the basic facts that explain the most significant changes in the financial account of the balance of payments. Besides direct and portfolio investments, other capital flows are described in detail that is usually given little attention. The effects of the financial bubble mainly due to the removal of restrictions on cross-border capital transactions, making the Russian economy vulnerable to external influences, are described. The causes of the financial crisis associated with capital flows are analyzed and postcrisis investment dynamics are presented.