The study empirically investigates the effect of Foreign Direct Investment (FDI) on economic growth and explores the determinant factors in BRICS countries and Turkey (BRICST) by taking the role of institutions into account. The regression results show that FDI is beneficial for economic growth and the positive effect of FDI increases with more economic freedoms. The study examines the determinants of FDI in BRICST by considering the composite FDI potential index and several other variables such as GDP size and openness. The results reveal that better institutions attract more FDI. Therefore, BRICST countries should prioritize the institutional reforms in their policy agenda. Such a policy will increase the positive effect of FDI on growth and will make these countries more resilient to the shocks such as the economic crises.
|Title of host publication||Proceedings of the Annual Conference on International Political Economy|
|Number of pages||19|
|Publication status||Published - 1 Sep 2012|
|Event||the Annual Conference on International Political Economy - Izmir, Turkey|
Duration: 23 May 2012 → 25 May 2012
|Conference||the Annual Conference on International Political Economy|
|Period||23/05/12 → 25/05/12|