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Article

FDI and Institutions in BRIC and CIVETS Countries: An Empirical Investigation

Department of Economics, University of Thessaly, 38334 Volos, Greece
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Author to whom correspondence should be addressed.
Academic Editor: E. M. Ekanayake
Economies 2022, 10(4), 77; https://doi.org/10.3390/economies10040077
Received: 30 November 2021 / Revised: 15 March 2022 / Accepted: 21 March 2022 / Published: 24 March 2022
(This article belongs to the Special Issue Foreign Direct Investment and Investment Policy)
In recent years, a number of countries with emerging economies have proceeded to use market-oriented strategies, deregulation and reforms in order to attract more foreign investors and attract foreign direct investment (FDI) inflows. The present paper aims to empirically investigate the role of governance in attracting FDI using panel data and comparing two groups of fast-growing emerging countries, namely BRIC (Brazil, Russia, India, China) and CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa). The study includes a panel data analysis using the latest available secondary data ranging from 2002 to 2019. Empirical models are extended and presented. The findings suggest that FDI inflows in BRICS are attracted by rule of law, regulatory quality, political stability and absence of violence, while CIVETS absorb FDI inflows due to control of corruption, political stability, absence of violence, regulatory quality and government effectiveness. The paper contributes to the existing literature since it is the first attempt to investigate the role of governance in attracting FDI in BRIC and CIVETS economies, taking into consideration other FDI determinants. To our knowledge, it is the first paper to study and compare FDI and institutional determinants in the specific groups of emerging countries. View Full-Text
Keywords: foreign direct investment; institutional quality; panel data analysis; developing economies; BRIC; CIVETS foreign direct investment; institutional quality; panel data analysis; developing economies; BRIC; CIVETS
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MDPI and ACS Style

Kechagia, P.; Metaxas, T. FDI and Institutions in BRIC and CIVETS Countries: An Empirical Investigation. Economies 2022, 10, 77. https://doi.org/10.3390/economies10040077

AMA Style

Kechagia P, Metaxas T. FDI and Institutions in BRIC and CIVETS Countries: An Empirical Investigation. Economies. 2022; 10(4):77. https://doi.org/10.3390/economies10040077

Chicago/Turabian Style

Kechagia, Polyxeni, and Theodore Metaxas. 2022. "FDI and Institutions in BRIC and CIVETS Countries: An Empirical Investigation" Economies 10, no. 4: 77. https://doi.org/10.3390/economies10040077

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