Determinants of FDI and its Impact on BRICS Countries: A Panel Data Approach

This paper examines the impact of factors determining Foreign Direct Investment (FDI) inflows of BRICS countries using annual dataset from the period 1994-2014. The paper proposes to compare the overall trends and factors impact on the FDI in the BRICS countries. The study employs Panel Data analysi...

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Bibliographic Details
Published in:Transnational corporations review 2015-09, Vol.7 (3), p.269-278
Main Authors: Kishor, Nawal, Singh, Raman Preet
Format: Article
Language:English
Subjects:
BRICS
economic stability
FDI
panel data
stock market capitalization
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Summary:This paper examines the impact of factors determining Foreign Direct Investment (FDI) inflows of BRICS countries using annual dataset from the period 1994-2014. The paper proposes to compare the overall trends and factors impact on the FDI in the BRICS countries. The study employs Panel Data analysis and examines the selected variables like Index of Industrial Production (IIP), Gross Domestic Product (GDP), Foreign Exchange Rate (FOREX), Stock Market Capitalization, Infrastructure Index, and Stock Market Turnover ratio. The empirical results are robust in general for alternative variables determining FDI flows. The policy implication of this study is that increasing interest of economic integration around the globe and interdependence of FDI between member's countries is an important feature for maintaining sustainability of growth.
ISSN:1925-2099
1918-6444
1925-2099
DOI:10.5148/tncr.2015.7302