Correlation Between News Background and Fdi Inflows in Russian Regions

Abstract

The authorsinvestigate the connection between regional FDI inflows and news background concerning investment process. The authors examined 3 million regional news items. Then they rated Russian regions by negative or positive investment news and calculated news indices. Using panel data for 80 Russian regions (GRP; number of enterprises and organizations; fixed capital investment; regional FDI inflows; regional rating by fixed capital investment per capita in 2014) and news indices the researchers assessed correlation between mentioned variables. The study shows that information on FDI origin countries has little impact on regional inflows while positive regional investment news is much more important. The results also indicate that foreign investors prefer regions with low competition and low investments in fixed capital

Keywords

• investment
• foreign direct investment
• marketing
• news background
• regional policy
• text analysis
• subject of the Russian Federation