The Study On German Foreign Direct Investment In Russia

As Chinese enterprises accelerate their pace of "going abroad". We should conclude the developed countries’ mature foreign direct investment experience which have aroused the academic circle attention to help Chinese enterprises "going abroad". German foreign direct investment behavior has been more than 100 years, Germany, Ranked the third place just after the United States and Japan, is the world’s major sources of foreign direct investment. To study the characteristics of German foreign direct investment will be a good reference value. At the same time, the rising of emerging countries become a background, giving a meaningful specific view to foreign direct investment from Germany, and through studying foreign direct investment in Russia It can also reflect the degree of closeness between the two countries in economic cooperation relations to some extent. Germany, The degree of closeness of German-Russian relations weather it can undergo a turnaround since Ukraine crisis will usher in turn.On the basis of finishing back in the international direct investment theory, Firstly this paper describes the strategic motivation of German FDI in Russia; Secondly through the review of development period of German FDI in Russia, The paper reaches the core part:Trying to analysis the current situation of the German FDI in Russia, It can be interpreted the scale features, industry characteristics and geographical features of German FDI; Finally the Russian internal policies and environmental factors, and German-Russian political relations, It can be qualitatively analyzed the influence factors about German foreign direct investment in Russia.According to the paper’s research:The primary motivation for German FDI in Russia is the German companies" urge to step into the Russia market; The industrial distribution of German FDI in Russia is mainly concentrated in the chemical, machinery, automobile, metallurgy and other traditional industries in Germany, but in recent years German companies in service sector grew rapidly its share in total amount of German FDI in Russia; On the geographical distribution of German FDI in Russia, Moscow, St. Petersburg and other Russian central area in Europe accounted for a major share of the German FDI in Russia; Changes in political relations between Germany and Russia will affect to some extent the German companies’ FDI activities in Russia, but with the deepening of development of German-Russian economic cooperation based on complementary structure, the change of the political relationship between Russia and Germany have become increasingly weak influence on German companies’ FDI activities in Russia, Only when the occurrence of violent political conflict, the German FDI activities in Russia will be significantly affected, it can clearly be seen in the Ukraine event’s influence on German FDI activities in Russia.