What Drives Foreign Direct Investment to BRICS?
Shah, M.H., & Ali, Z. (2016). What Drives Foreign Direct Investment to BRICS?. PUTAJ Humanities and Social Sciences. 23(1), 51-66.
16 Pages Posted: 7 Dec 2016
Date Written: December 5, 2016
This study explores the factors that drive foreign direct investment (FDI) to India, China, Brazil, South Africa and Russia that are called as “BRICS” collectively. Employing random effect panel estimation technique on panel data for the years 1990-2011, the study found that market size, trade openness, GDP growth rate, macroeconomic stability and infrastructure availability are essentially the key location factors for overseas investors. While, WTO accession has an insignificant impact on FDI in BRICS.
Keywords: FDI, BRICS Countries, Market Size, Trade Openness, Macroeconomic Stability, Infrastructure Availability
JEL Classification: C230, F130, F140, F210, F230
Suggested Citation: Suggested Citation