Inflow and Outflow of Foreign Direct Investments in BRICS Countries - An Analysis

L. Krishna Veni

Economy, 2020, vol. 7, issue 2, 98-103

Abstract: Foreign Direct Investment broadly includes any long-term investments by an entity that is not a resident of the host country. It may be in the form of inflow of FDIs from other countries into the domestic economy or outflow of FDIs from the domestic economy to other countries. Against this backdrop, this study mainly aimed to examine the macroeconomic scenario of all BRICS nations in. It also intends to estimate the growth of the inflow of FDI into BRICS, the outflow of FDI from BRICS during the study period 1998-2018 using Simple Linear Regression and to forecast the inflow and outflow of FDI in immediate future. The results reveal some interesting facts with significant variations in the key macroeconomic variables of BRICS like annual growth of GDP, current account deficit, rate of inflation, unemployment etc. Results reveal that except India, rest of the BRICS countries are deriving more than 50% of the GDP from the service sector only in 2018.The findings of the study conclude that China has recorded the highest growth in terms of the inflow of FDI among the BRICS during the study period. But. Russian Federation and Brazil have recorded the highest growth rates in terms of the outflow of FDIs from BRICS during the study period .Based on the regression coefficient values, projection of inflow and outflow of FDIs are made, however, the projections will be accurate only when the other things remaining the same.

Keywords: BRICS; Inflow of FDI; Outflow of FDI; Emerging economies; Macroeconomic variables; Descriptive statistics; Simple linear equation; Projections. (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
http://asianonlinejournals.com/index.php/Economy/article/view/1993/1586 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aoj:econom:v:7:y:2020:i:2:p:98-103:id:1993

Access Statistics for this article

More articles in Economy from Asian Online Journal Publishing Group
Bibliographic data for series maintained by Sara Lim ().