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- Title
What Derives Foreign Direct Investment Inflows; Evidence from a Panel Analysis of BRICS Countries?
- Authors
Ayomitunde, Aderemi Timothy; Mathias, Opele Adedayo; Chindima, Ebere E.; Olubunmi, Amusa Bolanle
- Abstract
The aim of this study is to investigate the variables that derive foreign direct investment in BRICS countries. Recent past studies have shown mixed results which make further study on this subject matter imperative. Data was collected from the United Nations Conference on Trade and Development and World Bank Indicator from 1990- 2017 and the study employed various Panel Data Techniques such as Fixed Effects Model, Random Effects Model, Hausman Test and Panel Fully Modified Least Squares. The findings that emerged in this study established the active variables that derive inflows of FDI in BRICS countries as gross domestic product per capita and the standard of living of people in these countries. Whereas market size was discovered to be a passive variable that propels FDI inflows in the BRICS economic region. Based on these findings the study recommends as follows: firstly, the policy makers in BRICS countries should embark on further policy measures that will ensure the continuous improvement of living standard of people in one hand and expansion of gross domestic product per capita growth on the other hand. In addition, more policies and stable political goodwill should be embarked upon towards making local market attractive to foreign investors in these countries.
- Subjects
UNITED Nations Conference on Trade &; Development; FOREIGN investments; PANEL analysis; FIXED effects model; RANDOM effects model; COST of living
- Publication
Acta Universitatis Danubius: Œconomica, 2019, Vol 15, Issue 3, p299
- ISSN
2065-0175
- Publication type
Article