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Does Economic Freedom Influence the FDI - Growth Nexus in BRICSASEAN Economies?

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  • Md Gyasuddin Ansari

    (Indian Institute of Management Kozhikode)

  • Rudra Sensarma

    (Indian Institute of Management Kozhikode)

Abstract

This paper examines the relationship between foreign direct investment, economic freedom and economic growth in BRICS-ASEAN countries. Further, we investigate the role of economic freedom in conjunction with productive capacities, human capital and financial institutions in spillover of foreign direct investment to economic growth. We apply Two Stage Least Square method for this analysis. We find a positive role of economic freedom along with productive capacities, human capital and financial institutions on transmission of foreign direct investment to economic growth. This demonstrates that productive capacities, human capital and financial institutions, apart from economic freedom, are instrumental in spillover of foreign direct investment to economic growth in the economies of BRICS-ASEAN. We provide the policy implications of our study.

Suggested Citation

  • Md Gyasuddin Ansari & Rudra Sensarma, 2022. "Does Economic Freedom Influence the FDI - Growth Nexus in BRICSASEAN Economies?," Working papers 530, Indian Institute of Management Kozhikode.
    • Handle: RePEc:iik:wpaper:530
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