THE EFFECT OF FOREIGN DIRECT INVESTMENT ABROAD AND EXPORTS ON ECONOMIC GROWTH: BRICS COUNTRIES

Résumé

The main purpose of this paper is to examine the causality and long-run relationship between outward foreign direct investments (OFDI), exports, and home country economic growth for the BRICS countries during the period 1992-2018. To achieve this objective, panel data was used, Johansen Fisher Panel Co Integration Test were applied, along with the error correction model to detect causality in the long run. The empirical results revealed the presence of a panel long-run and short-run relationship between OFDI and GDP. On the other hand, long-term exports and GDP moved together in the long run, but there was no short-term causal relationship between exports and GDP.