Financial Analytics: Science and Experience
 

How the sanctions have affected the efficiency of enterprises: The sectoral aspect

Vol. 11, Iss. 1, FEBRUARY 2018

Received: 4 October 2017

Received in revised form: 7 November 2017

Accepted: 9 November 2017

Available online: 1 March 2018

Subject Heading: Economic policy

JEL Classification: 

Pages: 87–101

https://doi.org/10.24891/fa.11.1.87

Fedorova E.A. Financial University under Government of Russian Federation, Moscow, Russian Federation
ecolena@mail.ru

ORCID id: not available

Nemchaninova D.N. Financial University under Government of Russian Federation, Moscow, Russian Federation
ndn14@mail.ru

ORCID id: not available

Fedorov F.Yu. Financial University under Government of Russian Federation, Moscow, Russian Federation
fedorovfedor92@mail.ru

ORCID id: not available

Importance This paper studies the impact of sanctions on the efficiency of Russian companies.
Objectives The purpose of the study is to analyze the impact of sanctions on the foreign direct investment (FDI) efficiency of domestic companies using the Malmquist Index (MI) and economic and mathematical modeling.
Methods The paper examines the FDI performance of 2,166 companies in order to investigate the impact of the sanctions imposed. The Malmquist Productivity Index, combined with the DEA analysis, is taken as the basis for the comparison.
Results The hypothesis that sanctions from countries with a high level of development have a greater impact on the activities of companies with foreign direct investment than those ones from developing countries, is not refuted in the Russian market. The work tests the hypothesis about the impact of sanctions on the industry. The oil and trade sectors have suffered the most, while the productivity of the banking (financial) sector remains practically unchanged.
Conclusions and Relevance The conducted analysis is relevant for the Russian reality, as it shows which way the Russian economic realities are changing. The conducted research can be applied to study the influence of the sanction package, evaluate political decisions from the economic point of view. In addition, the analysis can be used to investigate foreign direct investment in Russian conditions.

Keywords: sanction, foreign direct investment, efficiency, productivity, factor

View all articles of issue

 

ISSN 2311-8768 (Online)
ISSN 2073-4484 (Print)

Journal current issue

Vol. 11, Iss. 3
September 2018

Archive