The impact of offshore results of Russian enterprises

Abstract

Elena Anatolievna Fedorova - Financial University at the Government of the Russian Federation. E-mail: ecolena@mail.ru

A.E. Nikolaev - Financial University under the Government of the Russian Federation.

B.K., Korkmazova - Department "Financial Management", Financial University under the Government of the Russian Federation. E-mail: Bellakormazova01@gmail.com

This paper evaluates influence of the offshore on  domestic companies. It is based on the following hypotheses:1. The offshores negatively affect the competitiveness of Russian enterprises and the processing chain2. The offshores negatively affect export-import activities in Russia, as they distort the real figures of country’s exports and imports3. The effect of foreign direct investment from offshore countries is more pronounced than the effect of FDI in developed countries4. We decided to evaluate the effectiveness of deoffshorization policy. If deoffshorization policy pursued by the Russian Federation since 2011 is effective, it should have a positive impact on the export’s increase and import spillover effects’ decrease.Where is no direct methodology we could assess our hypotheses. In our work, we used a methodology based on an assessment of spillover effects. The study was based on statements of Russian companies (23 567 joint enterprises and 14 653 companies without FDI) for the period of 2005–2012. The authors used RusLana resource to get following information: balance sheets, profit and loss statements, capital structure, number of employees and regional affiliation.The study found that the negative impact of capital from offshore zones to the closed process chain is ambiguous, as there are positive country spillover effects. The trend approaching country indicators to zero in 2010–2012. It suggests that the deoffshorization policy already has showed positive results.