—The research paper is an attempt to examine the
relationship between foreign direct investment (FDI) and
economic growth in the five BRICS economies namely, Brazil,
Russia, India, China and South Africa over the period
1989-2012. The empirical methodology cointegration and
causality analysis at panel level is applied. The results confirm
that foreign direct investment and economic growth are
cointegrated at the panel level, indicating the presence of long
run equilibrium relationship between them. Results from
causality tests indicate that there is long run causality running
from foreign direct investment to economic growth in these
economies. It is thus important that policymakers to remove
obstacles to FDI inflows and improve the respective absorptive
capacity in order to reap maximum positive growth effects.
—BRICS, causality, cointegration, FDI, panel
Gaurav Agrawal is with the ABV – Indian Institute of Information
Technology & Management, India (e-mail: email@example.com).
Cite: Gaurav Agrawal, "Foreign Direct Investment and Economic Growth in
BRICS Economies: A Panel Data Analysis," Journal of Economics, Business and Management vol. 3, no. 4, pp. 421-424, 2015.