BUSINESS INSTITUTIONAL FRAMEWORK: FDI

ABSTRACT
To discover the effect of institutional structure, institutional change and privatization as business economic institutional framework on foreign direct investments to Russia is the interest of this dissertation. In this context, profiles of some Russian business economic institutional structures, like capital, profit, performance and efficiency were studied.

The researcher made use of the quantitative method of research to collect the online informational data as well as compute for the capital and profit and foreign direct investment using Microsoft Excel and SPSS, for Analyses of Variance and Multiple regressions.

The results revealed that the Russian business institutional framework for foreign direct investment hinges on the values of natural gas and oil reserves of the country, and not on the other preconceived economic ideas such as institutions, institutional changes, privatization, factories, and improvements to cultivated lands, machinery and other tools, equipment, and structures used to produce goods and services. Otherwise, the inventory or stock of plant, equipment, and other generally durable productive resources held, as FDIs’ has been consistently and sustainably spiraling up. The business economic institution therefore is very attractive to the foreign direct investors in the global economy because of the observed sustained increasing inflow of foreign direct investment, plus, continuous increases in total profit in every succeeding year is enjoyed by Russia.