Does Foreign Ownership Matter? Russian Experience
by K. Yudaeva (RECEP), K. Kozlov (RECEP and NES), N. Melentieva (NES),
and N. Ponomareva (NES)

This article compares the productivity of Russian firms that receive foreign direct investment with that of Russian firms that do not and analyses spillover effects from foreign-owned firms to domestic firms. Foreign firms are found to be more productive than domestic firms, but lack of adequate reform negatively hurts the productivity of foreign-owned firms. Spillovers between foreign-owned and domestic firms are most important at the local level and depend on the stock of human capital in the region.