Foreign Direct Investment (FDI), Computer Information Technology, Corruption Perceptions, Economic Growth, and Trade Openness in BRICS Countries

Abstract

Given a Indonesia’s openness and exposure to the foreign direct investment (FDI), the current study focusses on FDI, particularly inbound from it, as one of the major local and global factors that affect its economy. There are different viewpoints regarding the this effect because some see it from a positive, optimistic point of view, while some have a negative, pessimistic view that are presented researchers impartially. The goal of this research is to examine FDI, computer information technology, corruption perceptions, economic growth, and trade openness in BRICS countries using panel data from 1990 to 2021. The data used is incoming Foreign Investment data to the BRICS countries. We use the Panel Least Square (PLS) method. Results show that computer information technology, Corruption Perceptions, Economic Growth, and Trade Openness encourage FDI in BRICS countries. The development of information and computer technology has had a significant impact on increasing FDI. The low level of corruption increases investor confidence which has a positive influence on raising the FDI in BRICS countries. Economic growth is certainly an attraction for investors to invest, supported by Trade Openness. Keywords: Foreign Direct Investment (FDI), Computer Information Technology, Corruption Perceptions, Economic Growth, Trade Openness