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FDI Inflow in BRICS and G7: An Empirical Analysis

FDI Inflow in BRICS and G7: An Empirical Analysis

Somesh Sharma, Manmohan Bansal, Ashish Kumar Saxena
Copyright: © 2022 |Volume: 13 |Issue: 3 |Pages: 15
ISSN: 1938-0232|EISSN: 1938-0240|EISBN13: 9781683180500|DOI: 10.4018/IJITPM.313443
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MLA

Sharma, Somesh, et al. "FDI Inflow in BRICS and G7: An Empirical Analysis." IJITPM vol.13, no.3 2022: pp.1-15. http://doi.org/10.4018/IJITPM.313443

APA

Sharma, S., Bansal, M., & Saxena, A. K. (2022). FDI Inflow in BRICS and G7: An Empirical Analysis. International Journal of Information Technology Project Management (IJITPM), 13(3), 1-15. http://doi.org/10.4018/IJITPM.313443

Chicago

Sharma, Somesh, Manmohan Bansal, and Ashish Kumar Saxena. "FDI Inflow in BRICS and G7: An Empirical Analysis," International Journal of Information Technology Project Management (IJITPM) 13, no.3: 1-15. http://doi.org/10.4018/IJITPM.313443

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Abstract

A change in FDI inflow is noticed across the globe. G-7 economies, as representative of developed economies, are fronting with a sharp decline in foreign direct investment inflows in the entire world's FDI inflow, while BRICS, a representative of developing economies, is getting more of the world as a whole's FDI inflow. FDI is a significant economic development variable that has substantially impacted the economic growth of economies. Past trends of FDI inflow into BRICS and G-7 economies showed that BRICS economies had noticed a higher compounded average annual growth rate in FDI compared to G-7 economies in the preceding periods. The best-suited ARIMA model's anticipated value of FDI inflow shows an increasing trend in BRICS and a steady and dropping trend in the G-7. Comparative results of the predicted values of FDI inflow showed that BRICS would have positive FDI inflow while the G-7 would follow a declining trend. The study's findings shall help foreign investors identify the investment opportunities and their future course of action in selecting an investment destination.

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