International Production in Russia: Possible Effects of Forward and Backward Linkages

Abstract

The article examines some important consequences of international production – the effects of forward and backward linkages that include effects of technology transfer and generating productivity effects. The author pays special attention that the firms of receiving country should possess appropriate absorptive capacity in order to use effectively advantages of establishing forward and backward linkages. Such opportunities are created in Russian automotive industry, where local producers of auto components act as outsourcers for world OEMs.