Foreign Direct Investment in Brazil: The Effects of Productivity and Aggregate Consumption

Dias, Maria Helena Ambrósio

doi:10.4172/2168-9458.1000127

Cited by 3 publications

(3 citation statements)

References 18 publications

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“…The empirical efforts dedicated towards examining the FDI-growth relationship in developing and emerging economies appears to be more extensive in comparison to other world regions. For convenience sake, the literature concerning developing and emerging economies and be further disseminated into those concentrating on Latin American countries (Bengoa and Sanchez-Robles (2003) for Latin American countries, Naguibi (2002) for Argentina, Dias et al (2014) for Brazil), Asian countries (Chakraborty and Basu (2002) for India, Khaliq and Noy (2007) and Velnampy et al (2013) for Sri Lanka, Naz et al (2015) for Pakistan, Rahman (2015) for Bangladesh, Najaf and Najaf (2016) for Pakistan and Afghanistan, Zhang (2001Zhang ( , 2006 and Hong (2014) for China) as well as for African countries (Seetanah and Khadaroo (2007) for 39 SSA countries, Esso (2010) for 10 SSA countries, Sakyi and Egyir (2012) for 45 African countries, Seyoum et al (2015) for 23 African countries and Jugurnath et al 2016for 32 SSA countries).…”

Section: Developing and Emerging Economiesmentioning

confidence: 99%

The FDI-Growth Nexus in South Africa: A Re-Examination Using Quantile Regression Approach

Khobai

Hamman

Mkhombo

et al. 2018

Studia Universitatis Babes-Bolyai Oeconomica

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This study sought to contribute to the growing empirical literature by investigating the effects of FDI on per capita GDP growth for South Africa using time series data collected between 1970 and 2016. Compared to the majority of previous studies, we use quantile regressions which investigates the effects of FDI on economic growth at different distributional quantiles. Puzzling enough, the empirical results show that FDI has a negative influence on welfare at extremely low quantiles whereas at other levels this effect turns insignificant. Contrary, the effects of domestic investment on welfare is positive and significant at all levels. Collectively, these results have important implications for policymakers in South Africa.

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Section: Developing and Emerging Economiesmentioning

confidence: 99%

The FDI-Growth Nexus in South Africa: A Re-Examination Using Quantile Regression Approach

Khobai

Hamman

Mkhombo

et al. 2018

Studia Universitatis Babes-Bolyai Oeconomica

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“…For Brazilian economy, trade liberalization and domestic market dimensions were major factors attracting FDI inflows (Castro et al, 2013). Moreover, Brazilian productivity growth enhances FDI inflows in Brazil while U.S. productivity growth deters the same (Dias et al, 2014). In the context of BRICS economies, the significant determinants of FDI inflows were found to be market size, infrastructure facilities, labor cost, gross capital formation, exchange rate, trade openness, GDP growth rate, and macroeconomic stability (Asongu et al, 2018; Maryam & Mittal, 2020; Shah & Ali, 2016; Vijayakumar et al, 2010).…”

Section: Literature Reviewmentioning

confidence: 99%

Trends and Determinants of FDI with Implications of COVID-19 in BRICS

Chattopadhyay

Rakshit

Chatterjee

et al. 2022

Global Journal of Emerging Market Economies

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Foreign direct investment (FDI) movement to any country is recognized as an important criterion for economic strength and potentiality. Hence, the present study analyzes the motives of FDI inflows through the determinants and channels, namely horizontal or vertical FDIs and the impact of COVID-19 on FDI Inflows in BRICS countries during the period 1990–2020. The Kinked Exponential (deterministic) trend, and Zivot and Andrew’s trend equations are applied for the growth analysis of FDI inflows. Regarding the estimation of channels of FDI inflows in terms of horizontal, vertical, and hybrid motivations, dynamic panel data analysis using GMM for BRICS economies together and ARDL-PMG for individual countries is made. The findings show significantly positive growth in FDI inflows in all BRICS countries except India during the first decade of the present century. After that, these countries have experienced either significantly or insignificantly declining trends, except India, where the trend has significantly increased during this later period. From the overall analysis, we see that both horizontal and vertical motivations play a dominant role in determining FDI inflows for the BRICS countries. However, from country-wise estimations, it is observed that both horizontal and vertical motives are dominant factors for FDI inflows to India and Russia. In contrast, the horizontal motive of it is significant for China. For Brazil and South Africa, no motive behind FDI inflows appears significant. The pandemic situation significantly impacts attracting FDI in Brazil, while it remains insensitive in the rest of the BRICS countries. The findings reveal that FDI determinants are country-specific. So, the BRICS countries can design proper FDI policy and adopt more reforms in attracting FDI that may help improve their economic situation.

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“…Furthermore, while increased productivity in Brazil encourages FDI inflows, productivity growth in the United States discourages them [17]. Market size, interest rate, infrastructural facilities, trade openness, labor cost, gross capital creation, macroeconomic stability, and GDP growth rate have all been identified as critical predictors of FDI inflows in the context of nations that comprise emerging economies [43].…”

Section: The Trend and The Factors Of Fdi Inflowsmentioning

confidence: 99%

Global FDI inflows and outflows in emerging economies Post-COVID-19 era

2022

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FDI (Foreign Direct Investment) is frequently viewed as a critical measure of a country's economic strength and potential. Consequently, this paper investigates why countries attract FDI by utilizing factors and channels such as vertical or horizontal FDI as well as COVID-19’s impact on FDI flows in emerging economies with data from 1990 to 2020. Models of kinked exponential growth for estimating growth rates and the Andrew and Zivot trend formulations are used to analyze the rise in FDI inflows. The FDI inflow channels are estimated using dynamic panel data analysis, with a generalized method of moments for emerging economies as a whole and an autoregressive distributed lag-pooled mean group for specific countries. The countries studied were India, China, Russia, South Africa, and Brazil. Except for India, where the trend has accelerated, the rest of the nations in the emerging economies category has seen significant or minor declines. Overall, vertical and horizontal factors influence FDI inflows to emerging economies. However, estimations show that vertical and horizontal factors promote FDI inflow into the Russian Federation and India. China's horizontal motivation, on the contrary, is critical. Inflows of FDI into Brazil and South Africa appear to be unrelated. The pandemic scenario affects FDI in Brazil but not in other emerging economies. FDI determinants differ per country. In order to improve their economic situation following the pandemic, developing countries may establish adequate FDI policies to attract FDI.

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Foreign Direct Investment in Brazil: The Effects of Productivity and Aggregate Consumption

Cited by 3 publications

References 18 publications

The FDI-Growth Nexus in South Africa: A Re-Examination Using Quantile Regression Approach

The FDI-Growth Nexus in South Africa: A Re-Examination Using Quantile Regression Approach

Trends and Determinants of FDI with Implications of COVID-19 in BRICS

Global FDI inflows and outflows in emerging economies Post-COVID-19 era

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