TRENDS AND PATTERN OF FDI INFLOW IN BRICS: A TIME SERIES ANALYSIS

In the contemporary time, Foreign Direct Investment (FDI) has been an essential mode of investment. It has been essential for both developed and developing countries. For the developing countries, it plays an important role in the major sectors where there is lack of domestic investment. For the BRICS cooperation, Brazil, Russia, India, China and South Africa (BRICS), Foreign Direct Investment (FDI) has been an important aspect of investment apart from domestic investment. BRICS countries have been main destinations of FDI inflow for the last few years. There are few ways to measure the growth rate of Foreign Direct Investment inflow in BRICS like average annual growth rate (AAGR), compound annual growth rate (CAGR) and compound grate rate function (CGR). The present study uses Exponential growth rate function or compound growth rate function (CGR) to measure the growth rate of FDI inflow for BRICS countries. The study measures growth rate before and after BRICS formation. The study has found that China (1975-2016) has been the dominant destination of FDI inflow followed by India (1982-2016) and Brazil (1975-2016). The Russia has been stagnant in growth rate of FDI inflow over a period of time. The study also found that South Africa (1970-2016) to be least attracting destination for Foreign Direct Investment inflow over the last few decades.