Vladislav Spitsin

National Research Tomsk Polytechnic University 

Tomsk, Russia

Tomsk State University of Control Systems and Radioelectronics

Tomsk, Russia

spitsin_vv@mail.ru

Foreign-owned companies in countries with an unstable economy: The case of the automotive industry in Russia

Alexander Mikhalchuk

National Research Tomsk Polytechnic University 

Tomsk, Russia 

aamih@tpu.ru

Lubov Spitsina

National Research Tomsk Polytechnic University 

Tomsk, Russia 

s_luba_07@mail.ru

Darko B. Vukovic

National Research University Higher School of Economics, 

St. Petersburg, Russia

vdarko@hotmail.rs

Abstract. This paper analyses the development patterns for the foreign-owned enterprises in countries with an unstable economy. The object of research refers on enterprises in foreign (FO), joint (JO) and Russian (RO) ownership producing cars and auto components in the territory of the Russian Federation.  The research is based on the application of method of regression analysis of panel data for analysing the financial performance of the enterprises. We have identified that foreign-owned enterprises react more sharply on crises and changes in exchange rates. The depreciation of the ruble has a particularly negative impact on the profitability of foreign-owned enterprises. The crisis periods have a strong negative impact on the revenue of enterprises by all forms of ownership.

Received: February, 2018

1st Revision: May, 2018

Accepted: August, 2018

DOI: 10.14254/2071-

8330.2018/11-3/5

JEL Classification: F21, Q3, Q14

Keywords: foreign direct investment (FDI), automotive industry, economic sanctions, foreign and joint ownership, Russia