The impact of foreign direct investment on structural changes in the regional economy

In this paper we take a direct look at the relation between foreign direct investment and structural changes in economy. In order to evaluate the impact of foreign direct investment on the economy of Tatarstan we use fundamental methods of structural-dynamic analysis of economics. In compliance with the methodological approach presented in this paper we carry out an empirical analysis on a database of 458 enterprises with the participation of foreign capital over the period 2001-2007 provided by Tatarstanstat. We find that in some cases foreign direct investments influence the structure and dynamics of the regional gross output due to the two important factors, such as unstable growth rates and unstable structural changes in the foreign-owned sector of Tatarstan's economy.