*Research Scholar, Delhi School of Management, Delhi Technological University, New Delhi, India
**Assistant Professor, Apeejay School of Management, New Delhi, India
***Assistant Professor, Delhi School of Management, Delhi Technological University, Delhi, India
Online published on 13 March, 2014.
Foreign Direct Investment (FDI) has played a momentous role in the vigorous growth of countries across the world which in turn has triggered an interest in the minds of the researchers to focus on the determinants of such phenomenon.
Some of the identified factors for this observable fact are namely comparative labor costs, country size, economic openness, nature of exchange rate regime, return on investment, and political factors amongst many others. While several studies of the determinants of FDI have been published in the last years, most of them focus on a single country and are based on conceptual frameworks which have been developed to analyze FDI in developed countries. However, nothing much has been discussed about whether the logic of these frameworks can be directly applied to FDI in BRIC nations.
BRIC nations have been chosen because of their notable growth rates and rising shares in the worldwide trade and investment flows. The purpose of this study is, therefore, to explore the determinants of FDI in the BRIC nations from 1991 to 2010. We model foreign direct investment as a function of economic variables and it was found that they play an important role in influencing the level of foreign direct investment in BRIC Nations.
BRIC Nations, Economic Variables, Foreign Direct Investment, Growth Rate
