Trends & determinants of foreign direct investment (FDI) in BRICS countries: Panel analysis

Abstract

The Present study examines the determinants of FDI inflows in BRICS countries by using annual time series data running from 20001-2018. The Study employs Panel Data Analysis and has taken Market size (measured by GDP), Economic Stability (measured by inflation), Trade Openness as potential determinant of FDI inflows. The Model provides a best as two of the variables i.e. Market Size and Economic Stability have taken the expected signs and are significant; but the unexpected sign in case of Trade Openness and its insignificance may indicate towards the need to undertake bold and systemic trade liberalization reforms in BRICS; strengthening the credibility of the reform process.