Institutions régionales et choix de localisation des firmes étrangères dans les régions russes

We utilize a sample of 2520 firms with foreign ownership registered in Russia in the period 1990-2007 to empirically test the impact of regional (sub-national) institutional potential on foreign firms` location decisions across Russia. We find that in general foreign firms tend to locate in Russian regions with better institutional potential. We further conclude that foreign investors tend to locate in Russian regions with larger markets, higher educational backgrounds, better transport infrastructure and no civil conflicts.