Inflow and Outflow of Foreign Direct Investments in BRICS Countries - An Analysis

Foreign Direct Investment broadly includes any long-term investments by an entity that is not a resident of the host country. It may be in the form of inflow of FDIs from other countries into the domestic economy or outflow of FDIs from the domestic economy to other countries. Against this backdrop, this study mainly aimed to examine the macroeconomic scenario of all BRICS nations in. It also intends to estimate the growth of the inflow of FDI into BRICS, the outflow of FDI from BRICS during the study period 1998-2018 using Simple Linear Regression and to forecast the inflow and outflow of FDI in immediate future. The results reveal some interesting facts with significant variations in the key macroeconomic variables of BRICS like annual growth of GDP, current account deficit, rate of inflation, unemployment etc. Results reveal that except India, rest of the BRICS countries are deriving more than 50% of the GDP from the service sector only in 2018.The findings of the study conclude that China has recorded the highest growth in terms of the inflow of FDI among the BRICS during the study period. But. Russian Federation and Brazil have recorded the highest growth rates in terms of the outflow of FDIs from BRICS during the study period .Based on the regression coefficient values, projection of inflow and outflow of FDIs are made, however, the projections will be accurate only when the other things remaining the same.