Foreign Direct Investment-Growth Nexus in BRICS: How Relevant are the Absorption Capacities?

IF 0.9 Q3 ECONOMICS

Scientific Annals of Economics and Business Pub Date : 2023-03-20 DOI:10.47743/saeb-2023-0006

Kunofiwa Tsaurai

引用次数: 0

Abstract

This study examined the impact of foreign direct investment on economic growth in BRICS using fixed effects, dynamic ordinary least squares (DOLS) and fully modified ordinary least squares (FMOLS). Panel data ranging from 1991 to 2019 was used for the purposes of this study. The same study also explored whether financial sector and human capital development are necessary absorption capacities that enhance economic growth in BRICS. To a larger extent, foreign direct investment had a negative impact on economic growth in BRICS, consistent with the dependency theory. Financial development was also found to be the channel through which economic growth is enhanced by foreign direct investment. Although the influence was observed to be non-significantly negative, human capital development improved the influence of foreign direct investment on economic growth. BRICS authorities are therefore urged to implement human capital and financial development enhancement policies to ensure significant foreign direct investment’s positive influence on economic growth.

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金砖国家的外国直接投资-增长关系:吸收能力的相关性如何?

本研究采用固定效应、动态普通最小二乘(DOLS)和完全修正普通最小二乘(FMOLS)分析了外国直接投资对金砖国家经济增长的影响。本研究使用了1991年至2019年的面板数据。该研究还探讨了金融部门和人力资本发展是否是促进金砖国家经济增长的必要吸收能力。在更大程度上，外国直接投资对金砖国家的经济增长产生了负面影响，这与依赖理论相一致。金融发展也被认为是外国直接投资促进经济增长的渠道。虽然观察到的影响为非显著负向，但人力资本开发提高了外国直接投资对经济增长的影响。因此，我们敦促金砖国家当局实施促进人力资本和金融发展的政策，以确保大量外国直接投资对经济增长产生积极影响。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Scientific Annals of Economics and Business ECONOMICS-

CiteScore

1.40

自引率

0.00%

发文量

审稿时长

10 weeks

期刊介绍： The Journal called Scientific Annals of Economics and Business (formerly Analele ştiinţifice ale Universităţii "Al.I. Cuza" din Iaşi. Ştiinţe economice / Scientific Annals of the Alexandru Ioan Cuza University of Iasi. Economic Sciences), was first published in 1954. It is published under the care of the Alexandru Ioan Cuza University, the oldest higher education institution in Romania, a place of excellence and innovation in education and research since 1860. Throughout its editorial life, the journal has been continuously improving. Renowned professors, well-known in the country and abroad, have published in this journal. The quality of the published materials is ensured both through their review by external reviewers of the institution and by the editorial staff that includes professors for each area of interest. The journal published papers in the following main sections: Accounting; Finance, Money and Banking; Management, Marketing and Communication; Microeconomics and Macroeconomics; Statistics and Econometrics; The Society of Knowledge and Business Information Systems.