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Article

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

Journal of International Studies. 2018. Vol. 11. No. 3. P. 57-69.
Spitsin V., Mikhalchuk A., Spitsina L., Vukovic D.

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.