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Uneven partners: The regional dynamics of FDI flows between China and Russia
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DOI：10.1016/j.aglobe.2025.100124.png)
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Abstract
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This paper analyzes the regional determinants of bilateral FDI flows between China and Russia over the period 2003-2021, using project-level data from the fDi Markets database. We construct panels for both Chinese FDI in Russia and Russian FDI in China to examine how subnational characteristics shape investment patterns. The results reveal clear asymmetries: Chinese FDI in Russia is larger, more regionally dispersed, and concentrated in resource and infrastructure sectors. Russian FDI in China is more limited and focused on services in coastal provinces. While wages and marketization influence location decisions, geographic proximity and investor location within Russia have little explanatory power.
Keywords:
Foreign direct investment
China-Russia relations
Regional determinants
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