The Political Risks of Foreign Direct Investment in Russian Regions

The paper is aimed at linking the characteristics of regional political regimes in Russia and the political risks for foreign direct investment generated by these regimes' features. As for the methodological basis, it's partially replicate a multidimensional analytical model to compare the political regimes in Russian regions elaborated by R. Turovsky and later complemented by Y. Gaivoronsky. It uses the data on socio-economic and political parameters from 2012 until 2017 as well as the dynamics of foreign direct investment during that period. The author concludes that the level of political competition in the region, as well as the effectiveness of the governor in building relations with the federal center and with investors, significantly contributes to reducing political risks for foreign companies, as well as the influx of additional investments from them.