Forest investment in the Russian part of the economic corridor China-Mongolia-Russia

Abstract

The activity of foreign and joint ventures in the Russian part of the economic corridor is analysed. The enterprises with foreign capital play an insignificant role in the economy of the border regions now in comparison with the developed Siberian territories. Most of the foreign enterprises are registered by individuals, which reduces the innovation potential of investment and contributes to the import of labor. The main donor countries are China and Cyprus. The prevalence of Chinese investors is noted especially in the Zabaikalsky kraj where they dominate in most types of activities. Mongolia is the closest neighbor of this zone but its investors are represented in Buryatia only. Investments in wholesale trade and construction prevail with high concentration of production in coal and metal ore extraction. Such an industry structure hampers the flow of new technologies and the growth of human capital. Prospects for the growth of foreign investment are connected with the expansion of resource extraction including forest resources and their primary processing for export as well as the development of transition activities in the area of the expected economic corridor. It requires a purposeful state and regional policy of attracting investment into technological areas of communications and transport.