International Journal of Research in Economics and Social Sciences
  • Year: 2016
  • Volume: 6
  • Issue: 11

Foreign Direct Investment, Currency Exchange rates and BRICs countries

  • Author:
  • Rizwan Fareed1, Hassan Jalil2, Zubair Khalid3, Muhammad Rizwan Ali4, Nuhammad Shoaib5
  • Total Page Count: 12
  • Page Number: 142 to 153

1Research Scholar, University of Gujrat

2Research Scholar, University of Gujrat

3Research Scholar, University of Gujrat

4Research Scholar, University of Gujrat

5Research Scholar, University of Gujrat

Online published on 20 April, 2017.

Abstract

BRICs countries stand out the large potential consumer market which attracts large capital due to general characteristics of large-scale population. BRICs countries are listed as emerging countries as a whole these countries do not have an economic union that can stand their trade and integration collectively. The BRIC are both the fastest growing and largest emerging markets economies. They account for almost three billion people, or just under half of the total population of the world. In recent times, the BRIC have also contributed to the majority of world's GDP growth. The objective of research is to find out that does exchange rate and FDI related in BRICs countries? This research work is being designed in such a way that it helps to understand the relationship between foreign exchange rate and FDI in BRICs. It will be a quantitative research based on secondary data. We will use statistical tools for research results. Statistical Tools will be correlation analysis, linear regression analysis and graphical analysis of different variables. This sample consists of data from 1981 to 2014 on yearly bases. Summarizing the results it could be written as a result this paper shows that the FDI increases with increase in exchange rates of currency. Changing exchange rate is one factors to change the FDI in BRICs, there could be research on other factors that has causal relationship with foreign direct investment in BRICs.

Keywords

BRICs, FDI, Exchange rate, Import and export