What Drives Foreign Direct Investment to BRICS?

Shah, Mumtaz Hussain; Ali, Zahid

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

See all articles by Mumtaz Hussain Shah

Mumtaz Hussain Shah

Institute of Management Studies, University of Peshawar

Zahid Ali

University of Peshawar - Institute Of Management Studies

Date Written: December 5, 2016

Abstract

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

Shah, Mumtaz Hussain and Ali, Zahid, What Drives Foreign Direct Investment to BRICS? (December 5, 2016). Shah, M.H., & Ali, Z. (2016). What Drives Foreign Direct Investment to BRICS?. PUTAJ Humanities and Social Sciences. 23(1), 51-66., Available at SSRN: https://ssrn.com/abstract=2880537