Determinants of FDI and its Impact on BRICS Countries: A Panel Data Approach

Kishor, N. Kundan; Singh, Raman

doi:10.5148/tncr.2015.7302

Cited by 20 publications

(27 citation statements)

References 11 publications

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“…In the context of BRICS countries, recent studies are undertaken to get a deeper understanding of FDI inflows or outflows determinants. Studies (Haydariuglu, 2016;Kishor & Singh, 2015;Labes, 2015;Popa & Carp, 2013;Ranjan & Agrawal, 2011;Vijaykumar, Sridharan, & Rao, 2010) observed market size, labour cost, infrastructure, currency value, and gross capital formation work as the catalyst to attract FDI inflows in BRICS, while trade openness and inflation turns out insignificant. In a study by Jadhav (2012) to test the determinants of FDI in BRICS, confirmed that traditional economic factors are more significant than the institutional and political factors in promoting FDI into BRICS countries.…”

Section: Review Of Literaturementioning

confidence: 99%

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Foreign direct investment into BRICS: an empirical analysis

Maryam

Mittal

2020

Transnational Corporations Review

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This paper examines empirically the role of selected macroeconomic variables in determining FDI inflows in the context of BRICS countries. The study employed the Pooled Mean Group (PMG) Auto-Regressive Distributive Lag (ARDL) method for annual dataset over the period 1994 to 2018. The findings of the study indicate that factors like GDP, trade openness, exchange rate, gross capital formation and availability of infrastructure facilities are significant in long run. The country-specific analysis for short run indicates that among BRICS, the FDI determining variables differ in each country. Among BRICS, China is the finest country with the significant and positive effects of examined variables in stimulating FDI inflows. As BRICS economies are facing challenge at the global level, the study suggested the need of adoption of liberal policies to attract more FDI along with growth promotion.

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Section: Review Of Literaturementioning

confidence: 99%

“…Similarly, exchange rate stability is expected to have a positive impact on foreign capital inflows in the economy by influencing the trade expansions and economic growth (Kishor & Singh, 2015;Vijaykumar et al, 2010). The strength of the currency is used as a proxy for the purchasing power of the investing firm.…”

Section: Description Of Variablesmentioning

confidence: 99%

Foreign direct investment into BRICS: an empirical analysis

Maryam

Mittal

2020

Transnational Corporations Review

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“…A large and well-rehearsed literature review on the determinants of foreign direct investment usually (for useful surveys) [4,5] and in numerous specific geographical contexts (for example) [6,7,8]. The results find the big cities with good harbors and/or powerful industrial baselines profited most from government policy.…”

Section: Analyzing Regional Fdi: a Briefmentioning

confidence: 99%

Influences Factors between THAI FDI Policy and Regional Distribution of FDI—Based on 77 Provinces During 1985-2016 Panel Data

Fan¹,

Wu²

2017

dtcse

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This article studies regional distribution of Foreign Direct Investment (FDI) under Thai Foreign Direct Investment Policy 2016. Its focus is classified doing a single constructed panel data covering all 77 Thai provinces when the time 1985-2016. The work is started on the opinion that international investors analyze many focuses of location decision in all provinces (covering wage rates, GPP per head, industrial area, telecommunication and transportation, population size and density, human capital, and way from the center of city to the central harbors of Thailand) and government policy such as incentives, back choosing to move FDI in a given region. Author econometric model views propose government regional level policy, and the impact of zoning especially, nevertheless, has a positive effect and significant on regional FDI, brining FDI to these zones that the best incentives were on proposition. The other feasible determinants of FDI regions are mainly appeared to be insignificant.

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“…The literature concerning the factors that affect Foreign Direct Investment on various groups of countries is vast (Asiedu (2006) for Africa; Asiedu (2002) for Developing Countries;Lucas (1993) for East and South Asian economies; Beven and Estrin (2000) for transition economies (Central and Eastern Europe); Akpan, et al (2014) for BRICS and MINT; Xaypanya et al (2015) for ASEAN; Nunnenkamp & Spatz (2002) for developing countries, Sahoo (2006) for South Asian countries; Tintin (2013) for Central and Eastern European Countries). However, the empirical evidence on the determinants of Foreign Direct Investment in BRICS countries (i) remains thin and far from conclusive (ii) the statistical inference of some of these studies (such Kishor et al (2015) and relies heavily on panel data methods such as random effect (RE) and fixed effects (FE). While FE and RE can help to mitigate issues caused by omitted variables, these techniques do not address two other sources of endogeneity-potential reverse causality from the dependent variable (such FDI) to the explanatory variables (such as GDP), and possible error in the measurement of the variables resulting in biased estimated coefficients.…”

Section: Introductionmentioning

confidence: 99%

Determinants of FDI in BRICS Countries: Panel Data Approach

Biyase

Rooderick

2018

Studia Universitatis Babes-Bolyai Oeconomica

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We empirically investigates the factors that affect Foreign Direct Investment (FDI) inflows in five BRICS countries for the period 1990–2015. We address the selection bias and unobserved heterogeneity by estimating a panel Heckman selection method and attempts to account for both selection and endogeneity within the new two-stage method. After addressing the above mentioned econometric issues, the infrastructure and GDP per capita variables under the new two-stage method remain positive and significantly similar to the coefficient of infrastructure and GDP per capita under the panel Heckman selection model. In addition, the inverse Mills ratio maintain its level of statistical significance, confirming the presence of both sample selection bias and endogeneity.

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Determinants of FDI and its Impact on BRICS Countries: A Panel Data Approach

Cited by 20 publications

References 11 publications

Foreign direct investment into BRICS: an empirical analysis

Foreign direct investment into BRICS: an empirical analysis

Influences Factors between THAI FDI Policy and Regional Distribution of FDI—Based on 77 Provinces During 1985-2016 Panel Data

Determinants of FDI in BRICS Countries: Panel Data Approach

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