Comparative Analysis of FDI Inflow in Emerging Economies

Abstract

This comprehensive document offers an extensive comparative analysis of Foreign Direct Investment (FDI) inflows in emerging economics, with a primary focus on key emerging countries. These nations have increasing attracted foreign investor seeking new growth opportunities. The BRICS group which includes Brazil, Russia, India, China, and South Africa, stands out as an important subject for this comparative study. The main objective is to gain comprehensive understanding of the foreign direct investment (FDI) inflow patterns is developing countries over the previous decade, emphasizing temporal trends and assessing the profound impact of FDI on their economic growth. The methodology employed in this research involves secondary data analysis utilizing information from reports by institution like the Reserve Bank of India (RBI), Macro Trends and the Ministry of Commerce. The study also includes an in-depth review of research papers, thorough and a meticulous analysis of FDI inflow data spanning the last 10 years. To gauge the influence of FDI on economic growth, a rigorous regression analysis is conducted. Emerging economies have increasingly become hotbeds for foreign investment, attracting capital from across the globe. Investors seeking to diversify their portfolios have taken notice of these countries because they present a multitude of growth potential. The BRICS group is unique among these rising economies because of its size, diversity, and potential for economic growth. Over the past decade, the BRICS nations have experienced significant shifts in FDI inflows, reflecting the evolving global economic landscape. This analysis clarifies the factors driving these investments and their effects on economic growth, with a focus on comprehending the long-term trends in FDI inflows to these nations. It is imperative that investors and regulators alike comprehend these trends. In addition to providing overall FDI inflow statistics, the analysis looks at the industries and geographical areas that have drawn in a lot of foreign capital. Moreover, it examines the evolution of policies and regulations in these countries that have played a pivotal role in shaping FDI trends. The central theme of this research revolves around assessing the impact of FDI on the economic growth of the BRICS nations. In order to do this, we measure the impact of FDI on these nations' economic performance using rigorous regression analysis. This empirical analysis helps us understand how much foreign direct investment (FDI) has contributed to economic growth and whether this contribution differs across the BRICS nations. Key words – FDI, BRICS, Inflow, economic growth.