Institutions and FDI from BRICS countries: a meta-analytic review

Anwar, Amar; Iwasaki, Ichiro

doi:10.1007/s00181-021-02145-w

Cited by 18 publications

(7 citation statements)

References 85 publications

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“…It is noted that good governance includes several political and institutional conditions that could have a negative influence on the operation of an investment company (Fails 2012) or the business climate, and governance is considered to be the most unpredictable FDI factor (Busse and Hefeker 2009). Anwar and Iwasaki (2021) conducted a meta-analysis and reached the conclusion that foreign investors choose to invest their capitals in risky markets that present modest institutional quality. Several empirical studies have focused on the impact of the recipient country's governance on the amount of FDI inflows in different geographic regions in developed and developing countries, as presented in Table 1, as well as in different groups of developing economies (Table 2).…”

Section: Institutional Quality As An Fdi Determinant In Developing An...mentioning

confidence: 99%

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

Kechagia

Metaxas

2022

Economies

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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.

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Section: Institutional Quality As An Fdi Determinant In Developing An...mentioning

confidence: 99%

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

Kechagia

Metaxas

2022

Economies

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“…Good governance is key to inflows of FDI, existing literature has been postulating a positive connection between GG and FDI [ [11] , [12] , [13] , [14] , [15] , [16] ]. For instance, Anwar and Iwasaki [ 17 ] disclosed that foreign investors preferred a less risky environment for investment with robust involvement from institutions in the economy, positing a conducive investment ambiance that plays a beneficial role. Contrary, a lower degree of IQ in the economy posturized overall economic instability, disrespect of investor rights, and absence of good governance, which has a direct connection to investment risk and additional cost for securing the investment.…”

Section: Figmentioning

confidence: 99%

An asymmetric nexus between clean energy, good governance, education and inward FDI in China: Do environment and technology matter? Evidence for chines provincial data

Qamruzzaman¹

2023

Heliyon

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“…Brazil, Russia, China, India and South Africa (BRICS) are outliers in the developing countries and are emerging faster with consistent return and good market depth (Mittal et al, 2022). The institutional quality positively impacts the cross-border M&A activity of BRICS countries (Anwar and Iwasaki, 2021). The relationships between the different types of investments are bound to differ for different economies due to differences in ecosystems.…”

Section: Introductionmentioning

confidence: 99%

“…, 2022). The institutional quality positively impacts the cross-border M&A activity of BRICS countries (Anwar and Iwasaki, 2021). The relationships between the different types of investments are bound to differ for different economies due to differences in ecosystems.…”

Section: Introductionmentioning

confidence: 99%

Domestic, inbound and outbound M&A activity interdependence in Brazil

Kumar

Saikia

Mundi

2022

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PurposeMergers and acquisitions (M&As) are of three types: domestic, inbound and outbound cross-border. Inbound M&As provide an inflow of foreign funds into the economy, whereas outbound M&As involve the outflow of domestic funds. This paper examines the impact of domestic and cross-border mergers and acquisitions in Brazil on each other.Design/methodology/approachThe authors analyze M&A activity in Brazil and examine the impact domestic, inbound and outbound M&As have on each other. The study uses a vector auto-regressive model to test the relationships for each quarter of 2000–2018. The M&A activity is operationalized using the total number of deals and the cumulative value of the deals in a particular period.FindingsThe results depict stark contrast for M&A activity measured through incidences and monetary value. Overall, the number of deals can better explain each other than value. The authors find that, in terms of incidences, domestic M&A is Granger caused by both outbound and inbound M&As together. Further, inbound and domestic M&As together Granger cause outbound M&As in terms of aggregate monetary value. The impulse response function reveals that incidence shocks created in M&A activity are longer lasting than the value shocks.Practical implicationsThe results have implications for businesses and policymakers. The study reveals the complexities of crowding effects important for businesses. The government needs to structure its future investment-promotion strategies depending on the objectives related to the number and value of M&A activity.Originality/valueThe study uses econometric tools and empirical methods to find the unexplored nature of the relationship between domestic, outbound and inbound cross-border M&As.

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Institutions and FDI from BRICS countries: a meta-analytic review

Cited by 18 publications

References 85 publications

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

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

An asymmetric nexus between clean energy, good governance, education and inward FDI in China: Do environment and technology matter? Evidence for chines provincial data

Domestic, inbound and outbound M&A activity interdependence in Brazil

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