FDI’s Influence on International Trade in BRICS. Is Technology-Related Infrastructure Relevant?
Keywords:
Foreign Direct Investment; Technology; Foreign Trade; BRICS; Panel DataAbstract
Objectives: The role played by foreign direct investment (FDI) in enhancing international trade in BRICS was the focus of this study. It also studied technology’s ability to affect FDI’s role in international trade within the same global economic bloc. Prior Work: Available literature on the FDI-international trade nexus still shows a lot of gaps, mixed, divergent and unanswered questions. Approach: Fully modified ordinary least squares (OLS) and fixed effects are the two panel methods of data (1995-2023) analysis employed. Results: Both methods show that FDI significantly enhanced international trade in models 1 and 2. Under both panel methods and across all three models, technological advancement’s enhancing influence on international trade was found to be significant. Models 1 and 2 under both methods indicated that technology significantly enhanced FDI’s effect on international trade. Implications: Nations which fall under this global economic bloc should develop and implement FDI and technology advancement enhancement policies to boost international trade. Value: The paper indicates that technology is necessary in improving FDI’s impact on international trade in BRICS.
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