There is a consensus in the law and development field and international policy circles that a Theoretically Ideal Legal Climate is necessary to attract foreign investment into an emerging economy. This research study analyses and attempts to build on this 'Dominant Theory' in the context of Russia. The Dominant Theory has little direct empirical support: the methods that are most often used to assert that law as a determinant of foreign investment are inappropriate to the task, and the findings of such studies are inconsistent and unconvincing. Further, the studies that purport to assert the importance of a Theoretically Ideal Legal Climate to foreign investors leave three important questions unanswered: - How do foreign investors perceive the host legal climate before investing? - Why do they invest in countries that lack a Theoretically Ideal Legal Climate? - What factors affect the importance that foreign investors attach to host legal climates? A range of existing research provides preliminary answers to these questions, suggesting that the Dominant Theory is not entirely accurate. They form the basis of two hypotheses. Interviews of foreign investors and their advisors in London and Moscow are carried out to address the research agenda. The evidence verify the hypotheses. While foreign investors would prefer a Theoretically Ideal Legal Climate, and welcome improvements in the quality of the Russian legal climate, it is clear that a notable faction of them do not conform to the Dominant Theory. First, according to the interviewees, the quality of Russia's legal climate does determine whether investors choose to invest there or not. Second, foreign investors can operate successfully in the absence of a Theoretically Ideal Legal Climate. Finally, the impact of the Russia's legal climate depends significantly on the characteristics of the investor and nature of the investment.
| Identifer | oai:union.ndltd.org:bl.uk/oai:ethos.bl.uk:510888 |
| Date | January 2006 |
| Creators | Afshar, Ali |
| Publisher | Queen Mary, University of London |
| Source Sets | Ethos UK |
| Detected Language | English |
| Type | Electronic Thesis or Dissertation |
| Source | http://qmro.qmul.ac.uk/xmlui/handle/123456789/28503 |
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