FDI Implications on BRICS Economy Growth

Abstract

The BRICS economies group, Brazil, Russia, India, China and South Africa are recognized as the most developed economies from the emerging economies. This paper aims to analyze the FDI flows on BRICS economy. The impact of FDI on the host country depends on the size and structure of these flows. In the current economic climate, worldwide there is a competition between the host countries to attract the larger volumes of FDI. The BRICS group offers to foreign investors a number of benefits such as young labor force, cheap labor force, natural resources and big markets. In these emerging economies FDI seem to have a positive impact by contributing to their development.