Impact of Governance and Financial Development on Foreign Direct Investment in BRICS Nations

IF 3.3 Q1 BUSINESS, FINANCE

JOURNAL OF ECONOMICS AND BUSINESS Pub Date : 2023-09-30 DOI:10.31014/aior.1992.06.03.519

A. Wasnik, Ishan Kumar Sarraf

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引用次数: 0

Abstract

The study tries to understand the impact of Governance and Financial Development on the FDI inflow in the BRICS nations. The study uses the panel regression method to analyze the degree of impact of these indicators on the FDI inflow. The study found that the unit change in Government Effectiveness, Political Stability, and Regulatory Quality will have a positive impact on the FDI inflow in BRICS nations by 1.353, 0.945, and 0.148536 times respectively, while any unit change in the Control of Corruption will have a negative impact on the FDI inflow by 2.820 times. Likewise, for Financial Development, any unit change in the Financial Market Depth and Financial Market Efficiency will positively impact the FDI inflow by 1.634 and 1.624 times, respectively. The study implies that the BRICS nations should focus on strengthening their Government Effectiveness, maintaining Political Stability, improve Regulatory Quality while combating corruption to attract FDI. Similarly, enhancing the Depth and Efficiency of their Financial Markets will significantly strengthen their FDI inflow. The researchers and scholars may pursue the policy implications provided within the study for gauging measures to improve the FDI Inflows in the BRICS nations through Governance and Financial Developments.

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金砖国家治理和金融发展对外国直接投资的影响

本研究试图了解治理和金融发展对金砖国家FDI流入的影响。本研究采用面板回归方法分析了这些指标对FDI流入的影响程度。研究发现，政府有效性、政治稳定性和监管质量的单位变化对金砖国家FDI流入的正向影响分别为1.353倍、0.945倍和0.148536倍，而腐败控制的单位变化对FDI流入的负向影响为2.820倍。同样，对于金融发展而言，金融市场深度和金融市场效率的任何单位变化将分别对FDI流入产生1.634倍和1.624倍的正向影响。研究表明，金砖国家应注重加强政府效率，保持政治稳定，提高监管质量，同时打击腐败，以吸引外国直接投资。同样，提高其金融市场的深度和效率将显著加强其外国直接投资流入。研究人员和学者可以根据研究中提供的政策含义，衡量通过治理和金融发展改善金砖国家FDI流入的措施。

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

JOURNAL OF ECONOMICS AND BUSINESS BUSINESS, FINANCE-

CiteScore

6.20

自引率

2.60%

发文量

期刊介绍： Journal of Economics and Business: Studies in Corporate and Financial Behavior. The Journal publishes high quality research papers in all fields of finance and in closely related fields of economics. The Journal is interested in both theoretical and applied research with an emphasis on topics in corporate finance, financial markets and institutions, and investments. Research in real estate, insurance, monetary theory and policy, and industrial organization is also welcomed. Papers that deal with the relation between the financial structure of firms and the industrial structure of the product market are especially encouraged.