International Journal of

ADVANCED AND APPLIED SCIENCES

EISSN: 2313-3724, Print ISSN: 2313-626X

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 Volume 9, Issue 9 (September 2022), Pages: 118-126

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 Original Research Paper

 Drivers of FDI in emerging economies: BRICS vs. MINT

 Author(s): Bibhu Prasad Sahoo 1, Dhananjay Ashri 2, *, Ankita Gulati 3

 Affiliation(s):

 1SGTB Khalsa College, University of Delhi, Delhi, India
 2Department of Commerce, Delhi School of Economics, University of Delhi, Delhi, India
 3Sri Guru Gobind Singh College of Commerce, University of Delhi, Delhi, India

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 * Corresponding Author. 

  Corresponding author's ORCID profile: https://orcid.org/0000-0002-9492-9333

 Digital Object Identifier: 

 https://doi.org/10.21833/ijaas.2022.09.015

 Abstract:

It has been observed that one of the challenges posed to emerging economies is capital constraints. In such a situation, Foreign Direct Investment (FDI) has emerged as a significant capital source for emerging economies. Since liberalization and globalization, emerging economies have achieved remarkable growth through FDI. Therefore, it becomes critical to evaluate FDI determinants in such economies. Many studies are available in this regard; however, there are shreds of evidence of contradictory results. Furthermore, in recent years many scholars have been concerned that human capital can potentially be among the probable determinants of FDI. For the present study, we evaluated the impact of economic indicators (GDP, inflation, infrastructure, and trade openness), political stability of the host country, and human capital development on FDI in emerging economies by drawing pieces of evidence from BRICS and MINT economies. The results revealed that GDP is the most significant factor attracting FDI in BRICS nations, and other economic, political, and human capital-related factors have a trifling impact on FDI. In the case of MINT economies, the results unveiled that political stability, higher GDP, and investment in human capital yield a higher influx of foreign capital. While taking a combined sample, i.e., BRICS and MINT combined, it has been revealed that human capital and market size positively impacts FDI inflows, while inflation has an adverse effect.

 © 2022 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

 Keywords: FDI, Inflation, Trade openness, Infrastructure, Human capital, Political stability

 Article History: Received 1 April 2022, Received in revised form 15 June 2022, Accepted 16 June 2022

 Acknowledgment 

No Acknowledgment.

 Compliance with ethical standards

 Conflict of interest: The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

 Citation:

 Sahoo BP, Ashri D, and Gulati A (2022). Drivers of FDI in emerging economies: BRICS vs. MINT. International Journal of Advanced and Applied Sciences, 9(9): 118-126

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 Figures

 Fig. 1 Fig. 2

 Tables

 Table 1 Table 2 Table 3 Table 4

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