FDI Inflow Determinants in BRIC countries: A Panel Data Analysis | Zendy

Vinit Ranjan | Zendy; Gaurav Agrawal | Zendy

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FDI Inflow Determinants in BRIC countries: A Panel Data Analysis

Author(s) -

Vinit Ranjan,

Gaurav Agrawal

Publication year - 2011

Publication title -

international business research

Language(s) - English

Resource type - Journals

eISSN - 1913-9012

pISSN - 1913-9004

DOI - 10.5539/ibr.v4n4p255

Subject(s) - bric , foreign direct investment , openness to experience , inflow , panel data , economics , international economics , china , emerging markets , capital outflow , monetary economics , macroeconomics , human capital , capital formation , econometrics , geography , economic growth , psychology , social psychology , archaeology , financial capital , meteorology

This study explores Foreign Direct Investment (FDI) inflow determinants in Brazil, Russia Federation, India and China; collectively known as BRIC countries. A random effect model is employed on the panel data set consisting of annual frequency data of 35 years ranging from 1975 to 2009 to identify the FDI inflow determinants. The empirical results show that market size, trade openness, labour cost, infrastructure facilities and macroeconomic stability and growth prospects are potential determinants of FDI inflow in BRIC where as gross capital formation and labour force are insignificant, although macroeconomic stability and growth prospects have very little impact.

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